McMurtry v. Wiseman

237 F.R.D. 167, 65 Fed. R. Serv. 3d 1229, 2006 U.S. Dist. LEXIS 58135, 2006 WL 2372006
District Court, W.D. Kentucky·Decided August 16, 2006·No. Civil Action No. 1:04CV-81-R·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION & ORDER

RUSSELL, District Judge.

This matter comes before the Court on the Plaintiffs motion to bifurcate under Federal Rule of Civil Procedure (“FRCP”) 42 (Docket # 139). The Defendants’ have responded. (Docket # 169). This matter is now ripe for adjudication. For the following reasons, the Plaintiffs motion to bifurcate is GRANTED. Accordingly, abiding by the “case within a case” format for legal malpractice actions, the underlying claims for fraud, negligence and negligent misrepresentation against Steven Botts shall proceed first, followed by the professional negligence case against the Defendants for their alleged legal malpractice.

DISCUSSION

FRCP 42 states that: “[t]he court, in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy, may order a separate trial of any claim ... or of any separate issue ... or issues.” The Sixth Circuit Court of Appeals has recognized that courts have broad discretion in determining whether or not to bifurcate a case, especially in dealing with matters of liability and damages. See Gafford v. General Elec. Co. 997 F.2d 150, 172 (6th Cir.1993); Hines v. Joy Mfg. Co., 850 F.2d 1146, 1152 (6th Cir.1988). However, the Sixth Circuit has not explicitly addressed this matter in the context of a legal malpractice case.

In Nat’l Union Fire Ins. Co. v. Dowd & Dowd, P.C., 191 F.R.D. 566, 567-68 (N.D.Ill.1999), the Court held that the case should [168]*168not be bifurcated in that matter because “the issues of liability and damages are closely intertwined.” The Court in Dowd explained that because the concern in that matter was whether the plaintiff would have been found liable for $8 million in damages if the defendant attorney had not acted in a negligent manner during the course of the trial, the issues were related and need not be bifuracted. Id. The Court distinguished that matter from Graefe v. Connolly, 1987 WL 4854 (N.D.Ill.1987) and Overbey v. Jones, 1992 WL 223852 (D.Kan.1992), stating that in those cases the court could separate the liability and damages, and thus properly bifurcated those legal malpractice claims. As explained by the Court:

In those bifurcated legal malpractice cases in which the underlying action was tried first, the malpractice plaintiff had also been the plaintiff in the underlying case, and the alleged act of malpractice was that the accused attorney had missed a statute of limitations or had otherwise failed to prosecute the ease, preventing it from ever being tried. Thus, in order to determine if the attorney’s error caused any damages, the court had to determine first if the underlying action had merit. If the plaintiff could not have recovered in the underlying suit, it suffered no damages from its attorney’s error. And the question of whether the underlying suit had merit was not affected by the attorney’s alleged malpractice for failing to prosecute.

Id.

In Graefe, the case involved a suit by plaintiff clients alleging that their former attorney failed to file a finance statement in connection with the sale of their business, claiming they lost $123,665.00 due to the attorney’s omission. Graefe at *1. The difference between Graefe and Dowd is that in Graefe the plaintiff needed to demonstrate the lost opportunity by arguing the merits of that particular claim for the first time verses a definite and set verdict in Dowd, where the clients claim they were liable for $8 million due to the alleged negligence of the attorney during the course of the trial. In addition, the case in Dowd involved tactics used by the attorney during the course of the trial, in contrast to the matter in Graefe, where the attorney’s omission led to the lost benefits.

In Overbey, the United States District Court for the District of Kansas addressed whether or not it should try the underlying claim of medical malpractice first followed by the legal malpractice claim, or whether the claim should not have been bifurcated. Overbey at *1. The Court ultimately held that the claim should be bifurcated in order to determine the validity of the medical malpractice claim. Id. The Court reasoned that bifurcating the claims “would advance the interests of economy and efficiency ... [i]t would allow trial of a central issue of the plaintiffs case ... [i]t would not cause delay, since the remaining portions of the plaintiffs case could be presented closely upon the decision of the jury with respect to the issue of medical malpractice.” Id. The basis of the legal malpractice claim in Overbey was that the attorney had “deprived his client of a right of action” for failure to file certain state law causes of actions in the underlying claim. Id. at *2. The Court noted in that matter that bifurcation would “ ‘further convenience, avoid delay and prejudice, and serve the ends of justice.’ ” Id. (quoting FRCP 42(b)).

Similar to Graefe, Overbey can be distinguished from the matter in Dowd for the same reasons of lost opportunity and omission by the defendant attorney. Essentially, the purpose of the bifurcation in those matters was to determine the legitimacy of the underlying claim had it been brought in the first place, in contrast to Dowd, where the legal malpractice matter concerned examining the actions by the defendant attorney in the underlying litigation.

Other courts have bifurcated the underlying action from the legal malpractice claim in similar situations as the courts in Graefe and Overbey. In Nika v. Danz, the Illinois Court of Appeals affirmed the decision by the trial court to bifurcate the case. Nika v. Danz, 199 Ill.App.3d 296, 145 Ill.Dec. 255, 556 N.E.2d 873, 881-882 (1990). However, in Nika, a case where the plaintiff alleged that the attorney was negligent in failing to file a personal injury action in his initial case, the Court permitted the legal malpractice claim to be tried first, and tried the underlying [169]*169claim after the negligence of the attorney was determined.1 In Cook v. Continental Casualty Company, the Wisconsin Court of Appeals bifurcated a legal malpractice case where the plaintiff alleged that the attorney defendant was negligent for failing to identify certain fact witnesses, and for failing to call them for his case-in-chief in the underlying products liability action. Cook v. Continental Casualty Company, 180 Wis.2d 287, 509 N.W.2d 100, 104-05 (Ct.App.1993). The Court determined that the legal malpractice claim should go first, followed by the underlying claim. Id. at 103-04.

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McMurtry v. Wiseman, 237 F.R.D. 167, 65 Fed. R. Serv. 3d 1229, 2006 U.S. Dist. LEXIS 58135, 2006 WL 2372006 (W.D. Ky. 2006).

237 F.R.D. 167 (McMurtry v. Wiseman) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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