Merritt v. Hopkins Goldenberg, P.C.

841 N.E.2d 1003, 362 Ill. App. 3d 902, 299 Ill. Dec. 271
CourtAppellate Court of Illinois
DecidedNovember 4, 2005
Docket5-04-0122
StatusPublished
Cited by8 cases

This text of 841 N.E.2d 1003 (Merritt v. Hopkins Goldenberg, P.C.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merritt v. Hopkins Goldenberg, P.C., 841 N.E.2d 1003, 362 Ill. App. 3d 902, 299 Ill. Dec. 271 (Ill. Ct. App. 2005).

Opinion

JUSTICE HOPKINS

delivered the opinion of the court:

The plaintiffs, David Wayne Merritt, Sr., individually and in his capacity as the special administrator of the estate of David Wayne Merritt, Jr., and Tiffany Merritt, filed this action against the defendants, Hopkins Goldenberg, P.C., John Hopkins, and Mark Goldenberg, alleging that the defendants committed legal malpractice in obtaining an inadequate settlement in an underlying wrongful-death- and-survival action involving David Jr., who had died in an automobile accident.

On appeal, the defendants argue that the plaintiffs failed to prove their legal malpractice claim and that, therefore, the circuit court improperly denied the defendants’ motions for a directed verdict and for a judgment notwithstanding the verdict. Alternatively, the defendants contend that the verdict was against the manifest weight of the evidence and that various errors in the admission of evidence, an erroneous denial of their motion to transfer, jury instruction errors, an improper closing argument, and an improper damages award entitle them to a new trial.

We reverse and remand for a new trial.

FACTS

On May 16, 1998, David Sr. entered into a contingent fee agreement with the defendants to institute a negligence action against Missouri Dry Dock and Repair Company (Missouri Dry Dock) for the wrongful death of his six-year-old son, David Jr., who died on May 14, 1998, as a result of an automobile accident in Alexander County. David Jr.’s mother, JoAnn, and sister, Tiffany, were also involved in the collision. Although Jo Ann originally retained the defendants to represent her regarding her personal injury claims, she terminated the attorney-client relationship due to disagreements with David Sr. On May 27, 1998, David Sr. was appointed by the circuit court of Alexander County as a special administrator to prosecute the wrongful-death-and-survival action. The defendants represented David Sr. in this capacity, and on November 18, 1999, the plaintiffs settled the action for $200,000.

On July 3, 2001, the plaintiffs brought this legal malpractice action against the defendants, alleging that the defendants settled the plaintiffs’ claim for an inadequate amount. The plaintiffs alleged that the defendants committed malpractice by failing to adequately investigate the claim, by improperly advising David Sr. that $200,000 was a fair and adequate settlement, and by failing to adequately prepare the necessary medical data and testimony to make a proper disposition of the claim. On October 31, 2003, the defendants filed a motion to transfer venue from Madison County to Alexander County, and the circuit court denied the defendants’ motion on November 3, 2003.

At the trial on November 4, 5, and 6, 2003, defendant John Hopkins, a partner of the defendant law firm, testified that John Simmons, who was at that time an employee of the defendant law firm, had initiated the plaintiffs’ underlying action. Hopkins testified that he took charge of the plaintiffs’ case in November 1998. Hopkins testified that the defendants investigated the accident, prepared and filed the 21-page complaint, conducted written and oral discovery, issued trial subpoenas, and prepared jury instructions for trial. Hopkins acknowledged that he did not take statements in the underlying case and that the legal research he completed was stored in his memory, not the file.

Hopkins acknowledged that he wrote an initial settlement demand letter, dated November 24, 1998, to A1 Pranaitis, the attorney hired by the insurance company to defend Missouri Dry Dock and its driver, Gerald Robinson, in the underlying action. In the letter, Hopkins stated that the underlying case was worth in excess of $2 million if it were pursued in Madison or St. Clair County but that because the case was filed in Alexander County and the policy limit of Missouri Dry Dock’s insurance was $1 million, his tendered settlement demand was $750,000. Hopkins testified that initial settlement demands were generally twice as much as the case was worth and were inflated to send a signal to opposing counsel.

On December 15, 1998, Hopkins wrote another letter to Pranaitis, encouraging a settlement by the end of the year. Hopkins testified that although he had spoken with David Sr. on the telephone at that time and David Sr. had indicated that he wanted to settle the case, the two men had not met in person. Hopkins testified that, throughout the case, he primarily communicated with David Sr. by telephone.

On February 25, 1999, Hopkins wrote another letter to Pranaitis, stating that David Sr. was interested in a quick conclusion and suggesting that the parties settle the case. Hopkins testified that at that time, the depositions of Gerald Robinson and David Sr. had been taken. Hopkins met David Sr. in person at his deposition.

On March 22, 1999, Pranaitis offered to settle the underlying case for $60,000. On March 26, 1999, Hopkins refused Pranaitis’s offer of $60,000, characterized the offer as an insult, and stated that the previous demand of $750,000 was more than reasonable, but he lowered the settlement demand to $400,000.

On March 31, 1999, Pranaitis offered to settle the underlying case for $90,000. On April 5, 1999, Hopkins rejected the $90,000 offer and stated that the only resolution would be to try the cause in Alexander County that next October.

On June 17, 1999, Pranaitis offered to settle the underlying case for $100,000. On June 21, 1999, Hopkins rejected Pranaitis’s $100,000 offer, stating that he would entertain settlement discussions more in line with $400,000. On October 11, 1999, Hopkins offered to settle the underlying case for $300,000, stating that the offer was based on his client’s insistence to settle.

Hopkins testified that on November 5, 1999, within two weeks of the trial date, Pranaitis notified him that Missouri Dry Dock was admitting liability. Hopkins testified that the admission of liability was a tactical decision on Missouri Dry Dock’s behalf to remove the circumstances of the accident from the case and to narrow the issues to damages only, thereby lowering damages. Hopkins testified that he advised David Sr. that if he lost, the underlying case might be reduced significantly to $100,000 but that if he won, the case might still have a value of $300,000. Hopkins testified that David Sr. told him that he wanted the case completed because he was in pain and was having trouble dealing with JoAnn. The parties agreed to settle the underlying case for $200,000. On November 18, 1999, the circuit court of Alexander County entered its order approving the $200,000 settlement.

Hopkins testified that when settling the underlying case, he considered issues regarding a release JoAnn had signed. Hopkins characterized the release as a cloud on the case because it was unclear whether JoAnn had released her wrongful death claim along with her bodily injury claim. Hopkins testified that the release’s language was broad, that the release would be construed against JoAnn because her attorney had drafted it, and that JoAnn’s settlement of $100,000 for bodily injuries only was high considering that her medical expenses and lost wages were only $7,500.

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Bluebook (online)
841 N.E.2d 1003, 362 Ill. App. 3d 902, 299 Ill. Dec. 271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merritt-v-hopkins-goldenberg-pc-illappct-2005.