Packgen, Inc. v. Bernstein, Shur, Sawyer & Nelson, P.A.

2019 ME 90
CourtSupreme Judicial Court of Maine
DecidedJune 6, 2019
StatusPublished

This text of 2019 ME 90 (Packgen, Inc. v. Bernstein, Shur, Sawyer & Nelson, P.A.) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Packgen, Inc. v. Bernstein, Shur, Sawyer & Nelson, P.A., 2019 ME 90 (Me. 2019).

Opinion

MAINE SUPREME JUDICIAL COURT Reporter of Decisions Decision: 2019 ME 90 Docket: Cum-18-58 Argued: September 11, 2018 Decided: June 6, 2019 Revised: November 19, 2019

Panel: SAUFLEY, C.J., and ALEXANDER, MEAD, GORMAN, JABAR, HJELM, and HUMPHREY, JJ. Majority: SAUFLEY, C.J., and MEAD, GORMAN, and HUMPHREY, JJ. Dissent: HJELM, ALEXANDER, and JABAR, JJ.

PACKGEN, INC.

v.

BERNSTEIN, SHUR, SAWYER & NELSON, P.A.

HUMPHREY, J.

[¶1] In Maine, with exceptions not applicable to this appeal, the

Legislature has spoken—a civil action against an attorney for professional

negligence, malpractice, or breach of contract for legal services “shall be

commenced within 6 years after the cause of action accrues,” 14 M.R.S. § 752

(2018),1 and the cause of action accrues on “the date of the act or omission

giving rise to the injury, not from the discovery of the [attorney] malpractice,

negligence or breach of contract.” 14 M.R.S. § 753-B (2018).2 The question we

1 Section 752 identifies those exceptions as “actions on a judgment or decree of any court of record

of the United States, or of any state, or of a justice of the peace in this State, and except as otherwise specially provided.” 14 M.R.S. § 752 (2018). 2 Section 753-B provides that only in actions alleging professional negligence “in the rendering of a real estate title opinion” and “in the drafting of a last will and testament that has been offered for 2

address in this appeal is whether the court-made doctrines of continuing

representation and continuing negligence should apply in the determination of

the date on which a cause of action for legal malpractice accrues under section

753-B.

[¶2] Packgen, Inc., appeals from a judgment entered by the Superior

Court (Cumberland County, Warren, J.) granting the motion of Bernstein, Shur,

Sawyer & Nelson, P.A. (Bernstein Shur), to dismiss Packgen’s complaint for

legal malpractice because Packgen’s claim is barred by Maine’s six-year statutes

of limitations for civil actions, 14 M.R.S. § 752, and attorney malpractice actions,

14 M.R.S. § 753-B. Packgen argues that its claim is not barred because the

doctrines of continuing representation3 and continuing negligence4 operate to

bring the date of the act or omission “giving rise to [its] injury”—Bernstein

Shur’s failure to serve a proper notice of claim or file a defective-products

probate,” the limitation period commences upon the discovery of the cause of action. 14 M.R.S. § 753-B(2)-(3) (2018). 3“The premise [of the doctrine of continuing representation] is that the cause of action in an attorney malpractice case should not accrue until the attorney’s representation concerning a particular transaction is terminated.” 3 Ronald E. Mallen, Legal Malpractice § 23:44 at 543 (2019 ed. 2019) (quotation marks omitted). 4 Under a continuing negligence theory, the statute of limitations period does “not begin to run until the date of the last act of negligence”—the date of last injury. See Baker v. Farrand, 2011 ME 91, ¶ 20, 26 A.3d 806; see also Dickey v. Vermette, 2008 ME 179, ¶ 9, 960 A.2d 1178; 3 J.D. Lee & Barry A. Lindahl, Modern Tort Law: Liability and Litigation § 25:123, at 25-242 to -243 (2d ed. 2002) (“Under the continuing tort doctrine, if the negligence involves a continuing tort involving a continuing injury, the statute of limitations does not begin to run until the wrong terminates.”). 3

complaint—within the statute of limitations. 14 M.R.S. § 753-B(1). In the

context of actions for attorney malpractice, we decline to adopt either doctrine

and affirm the judgment dismissing the complaint as untimely pursuant to

14 M.R.S. §§ 752, 753-B.

I. BACKGROUND

[¶3] The following facts are drawn from Packgen’s amended complaint

and from documents attached to it whose authenticity is not challenged. See

Andrews v. Sheepscot Island Co., 2016 ME 68, ¶ 8, 138 A.3d 1197; see also Moody

v. State Liquor & Lottery Comm’n, 2004 ME 20, ¶ 11, 843 A.2d 43. We view the

facts alleged in the complaint as if they were admitted. See Andrews,

2016 ME 68, ¶ 8, 138 A.3d 1197.

A. Underlying Federal Case—Packgen v. Covalence

[¶4] In 2008, Packgen retained Bernstein Shur to prosecute a

defective-products claim against Covalence Specialty Coatings, LLC, and Berry

Plastics Corporation.

[¶5] On May 29, 2008, Bernstein Shur sent a letter to Covalence “to

provide notice of [Packgen’s] claim against Covalence.”5 Although the letter

Packgen’s amended complaint, from which we draw these facts, alleges only that Bernstein Shur 5

sent the letter to Covalence. It is unclear from the complaint whether Bernstein Shur also sent the letter to Berry Plastics. 4

was signed by a Bernstein Shur attorney, it did not set forth the cause of action

under oath as is required by 14 M.R.S. § 1602-B(5) (2018). Bernstein Shur did

not notice the missing oath, nor did it inform Packgen that a “proper notice of

claim [was required] to start the accrual of prejudgment interest” or warn

Packgen of “the adverse consequences of failing to serve such a notice” or the

need to “promptly file suit . . . in order to protect Packgen’s prejudgment

interest rights.” In the three years that followed, Bernstein Shur “made no

attempt to serve a valid notice of claim that complied with section 1602-B,”

“failed to file suit or otherwise diligently pursue the case,” and “failed to keep

Packgen adequately informed about the status of its case.”

[¶6] In 2011, Packgen retained new counsel and sued Covalence and

Berry Plastics in the United States District Court for the District of Maine. On

November 13, 2015, a jury rendered a verdict in favor of Packgen in the amount

of $7,206,646.30, plus interest as allowed by law. Packgen filed an amended

motion to alter or amend the judgment to allow post-judgment interest to

accrue from May 29, 2008, the date that Covalence purportedly received

Bernstein Shur’s letter on behalf of Packgen.

[¶7] On December 11, 2015, while the parties were awaiting the court’s

decision on the amended motion, Packgen and Bernstein Shur “entered into a 5

tolling agreement pursuant to which any and all legal defenses based on the

passage of time and any limitations periods applicable to any claim or cause of

action Packgen may possess against [Bernstein Shur] arising out of [Bernstein

Shur’s] representation of Packgen on claims against [Covalence] and other

responsible parties . . . were tolled and would be deemed suspended from

running as of December 11, 2015.”

[¶8] On March 7, 2016, the federal court (Torresen, J.) denied Packgen’s

motion to alter or amend the judgment because Bernstein Shur’s letter to

Covalence failed to comply with the oath requirement in 14 M.R.S. § 1602-B(5)

and therefore did not constitute a valid notice of claim. As a result, Packgen was

permitted to recover prejudgment interest dating only from the filing of the

complaint in 2011 rather than from May 29, 2008, the date on which Bernstein

Shur served the unsworn notice.

B. Packgen’s Claim Against Bernstein Shur

[¶9] On May 23, 2017, Packgen filed a complaint against Bernstein Shur

in the Superior Court alleging that the law firm’s failure to send a notice that

complied with the requirements of section 1602-B caused Packgen to sustain

an economic loss in the amount of $2,510,293.84—the difference between the

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