MS COMP CHOICE v. Clark, Scott & Streetman

981 So. 2d 955, 2008 Miss. LEXIS 220, 2008 WL 1970969
CourtMississippi Supreme Court
DecidedMay 8, 2008
Docket2007-CA-00117-SCT
StatusPublished
Cited by15 cases

This text of 981 So. 2d 955 (MS COMP CHOICE v. Clark, Scott & Streetman) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MS COMP CHOICE v. Clark, Scott & Streetman, 981 So. 2d 955, 2008 Miss. LEXIS 220, 2008 WL 1970969 (Mich. 2008).

Opinion

981 So.2d 955 (2008)

MS COMP CHOICE, SIF
v.
CLARK, SCOTT & STREETMAN.

No. 2007-CA-00117-SCT.

Supreme Court of Mississippi.

May 8, 2008.

*956 Joel W. Howell, III, Jackson, attorney for appellant.

David W. Mockbee, David Brice Denison, Jackson, attorneys for appellee.

Before DIAZ, P.J., EASLEY and GRAVES, JJ.

DIAZ, Presiding Justice, for the Court.

STATEMENT OF THE CASE

¶ 1. This case arises from a legal malpractice suit filed by an insurance company's third-party administrator against a law firm that defended the insurance company in a workers' compensation case. *957 The original complaint, in which the third-party administrator was named as the party plaintiff, was never served on the law firm. Instead, an amended complaint was filed and served on the law firm; the amended complaint substituted the insurance company as the party plaintiff. The insurance company claims that it was substituted as the party plaintiff because it was assigned the legal-malpractice claims of the third-party administrator. The trial court ruled that the amendments did not relate back to the date of the original complaint based on its determination that the claims asserted in the amended complaint were those of the insurance company, not the third-party administrator; consequently, it held that the claims asserted in the amended complaint were barred by the statute of limitations and dismissed the complaint with prejudice. The insurance company appeals the trial court's dismissal of its complaint.

FACTS AND PROCEEDINGS BELOW

¶ 2. On February 17, 2000, Elie Grinstead sustained injuries in a logging accident. He filed a petition to controvert with the Mississippi Workers' Compensation Commission against his employer, Monticello Forest Products Corp., and its insurance carrier, Mississippi Comp Choice, SIF[1] (self-insured fund) (Comp Choice). Safety Risk Services, Inc. (Safety Risk), Comp Choice's third-party administrator, retained the law firm of Clark, Scott & Streetman, P.A. (the Clark firm) to defend Grinstead's suit.

¶ 3. On August 20, 2001, the administrative law judge (ALJ) rendered a decision, finding that Grinstead was entitled to benefits. The Clark firm appealed the ALJ's decision to the full Commission. The Commission affirmed the decision of the ALJ on April 2, 2002. The Clark firm then appealed the decision of the Commission to the Circuit Court of Lawrence County. On September 18, 2002, the circuit court affirmed the decision of the Commission. An appeal of the circuit court's decision was never taken.

¶ 4. According to Comp Choice and Safety Risk, the Clark firm was directed to appeal the decision of the circuit court, but failed to do so. Subsequently, Grinstead filed suit against Comp Choice and his employer for bad faith denial of his workers' compensation claim.[2] On November 11, 2002, the Clark firm faxed a standard release form to Comp Choice for its review in connection with the Grinstead workers' compensation case. Comp Choice and Safety Risk also claim that the Clark firm failed to timely notify them about the amount of benefits owed to Grinstead. In September 2003, Comp Choice and Safety Risk discharged the Clark firm as counsel.

¶ 5. On September 14, 2005, Safety Risk filed suit against the Clark firm. The complaint asserted claims of legal malpractice, breach of contract and breach of fiduciary duty against the Clark firm for not appealing the decision of the circuit court in the Grinstead case. Safety Risk never served the complaint upon the Clark firm. Instead, Comp Choice filed an amended complaint on January 9, 2006, substituting itself as the party plaintiff in the place of Safety Risk. The amended complaint asserted the same claims against the Clark *958 firm as the original complaint. In fact, the only amendments made were the substitution of Comp Choice's name for Safety Risk's in the complaint's caption and the addition of the following paragraph:

Plaintiff MS Comp Choice, SIF is a self insurer under the applicable laws of the State of Mississippi and an assignee of any and all interest of Elie W. Grinstead and Francine Grinstead against MS Comp Choice, SIF, Safety Risk Services, Inc., Monticello Forests Products, Inc., Evans Giordano, Inc., and those in privity with them and Safety Risk Services, Inc.

¶ 6. According to Comp Choice, it was assigned Safety Risk's claims against the Clark firm and replaced Safety Risk as the party plaintiff in the amended complaint because it had become the real party in interest as a result of the assignment, pursuant to Mississippi Rule of Civil Procedure 17(a).[3]

¶ 7. On January 10, 2006, Comp Choice served the amended complaint on the Clark firm.[4] According to the Clark firm, until this point in time, it had not been put on notice of a claim arising out of its representation of Comp Choice in the Grinstead case. The Clark firm filed a motion to dismiss on February 9, 2006, arguing, among other things, that the amended complaint was a new and original complaint asserting claims that were barred by the three-year statute of limitations, Mississippi Code Section 15-1-49 (Rev.2003).

¶ 8. The Hinds County Circuit Court treated the Clark firm's motion to dismiss as a motion for summary judgment because it required the court to consider evidence outside the pleadings. The court ruled that the amended complaint asserted new causes of action, and thus the amendments did not relate back to the date of the original pleading. Miss. R. Civ. P. 15(c). In addition to holding that the amended complaint filed by Comp Choice "was in effect a new complaint[,]" the court also held, in the alternative, that because the amended complaint was "filed without the original complaint having been served . . ., [it][was] not effective as an amendment to the original complaint." The court then ruled that the new claims asserted by Comp Choice in the amended complaint were barred by the statute of limitations. Accordingly, the court granted the Clark firm's motion for summary judgment and dismissed Comp Choice's complaint with prejudice. The court requested that the Clark firm's counsel "submit 1) a proposed opinion/order and 2) a separate Summary Judgment dismissing with prejudice the subject action." The Clark firm's counsel complied with this request, and the court adopted the memorandum opinion and order as well as the separate summary judgment order dismissing the case with prejudice prepared by the Clark firm's counsel.

¶ 9. Aggrieved by the trial court's decision, Comp Choice appealed, raising four assignments of error: (1) the trial court erred in ruling that an amended complaint is invalid unless the original complaint has been served on the defendant; (2) the trial court erred in ruling that the amended complaint asserted new causes of action *959 that were barred by the statute of limitations; (3) the trial court erred in determining that Comp Choice's claim against the Clark firm for failing to inform it about Grinstead's benefits was barred by the statute of limitations; and (4) the trial court erred in converting the Clark firm's motion to dismiss to a motion for summary judgment without allowing Comp Choice to conduct discovery.

DISCUSSION

Standard of Review

¶ 10.

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981 So. 2d 955, 2008 Miss. LEXIS 220, 2008 WL 1970969, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ms-comp-choice-v-clark-scott-streetman-miss-2008.