Podolan v. Idaho Legal Aid Services, Inc.

854 P.2d 280, 123 Idaho 937, 1993 Ida. App. LEXIS 72
CourtIdaho Court of Appeals
DecidedMay 27, 1993
Docket19630
StatusPublished
Cited by33 cases

This text of 854 P.2d 280 (Podolan v. Idaho Legal Aid Services, Inc.) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Podolan v. Idaho Legal Aid Services, Inc., 854 P.2d 280, 123 Idaho 937, 1993 Ida. App. LEXIS 72 (Idaho Ct. App. 1993).

Opinion

WALTERS, Chief Judge.

Lee and Dale Podolan, wife and husband, appeal from the district court’s decision granting summary judgment for the respondent, Idaho Legal Aid Services, Inc., (Legal Aid). The Podolans sued Legal Aid claiming it was responsible for deceptions committed by one of its former employees, attorney Michael Donnelly, who had continued a pre-existing attorney-client relationship with the Podolans while working for Legal Aid. The court determined that Legal Aid was not responsible for the unauthorized and unsupervised work Donnelly purported to perform. The Podolans assert that genuine issues of material fact exist to preclude summary judgment, and that the court did not interpret the facts in their favor. We affirm.

I

Facts and Procedural Background

Donnelly and the Podolans had an eight year attorney-client relationship in which Donnelly purported to represent them in two lawsuits. Through an elaborate series of lies, forged court documents, false preparations for trial, and false visits to the courthouse, Donnelly led the Podolans into believing he was pursuing their cases when he was not. His misrepresentations were apparently due to a mental illness rather than a desire for personal gain, but nonetheless, the Podolans were injured.

The parties began their association in 1981 when Lee Podolan hired Donnelly to represent her in a sex discrimination case against her former employer, the Tennessee Valley Authority (TVA). Donnelly took the case on an hourly basis, did some work and charged about $1,000. Citing health problems, he relinquished his license to practice law in 1983 and withdrew from practice. Donnelly’s law firm told Mrs. Podolan that it would not continue representing her and Mrs. Podolan decided to represent herself. Her strategy was to wait and see what decision was made. On September 16, 1986, the TVA denied her claim.

After the denial, the Podolans contacted Donnelly at his new place of business, the law offices of William F. Lee. When Mrs. Podolan met with Donnelly, he stated that he did not have a license to practice law but he expected it to be restored within two weeks. Actually, it would be several years before his license was reinstated. Nonetheless, Donnelly told Mrs. Podolan that he had been sick, had undergone therapy, and was feeling fine. Not knowing the nature or seriousness of Donnelly’s illness, or the exact reasons why he had left the practice of law, the Podolans hired him to file an administrative appeal in the TVA case and, if necessary, to file a complaint in federal district court. Through untimely filings and a failure to serve a summons, the case eventually was dismissed administratively and in federal court. During this time, however, Donnelly told the Podolans the cases were being actively pursued.

In 1987, the Podolans hired Donnelly to represent them in an action against Accent Pool and Spas which allegedly sold them a defective hot tub, and Idaho Power Company, with whom the Podolans financed the purchase. Donnelly never filed any documents in this case and despite his representations to the contrary, no court decisions were made and there were no offers of settlement.

During their association, the Podolans were unaware that after Donnelly’s voluntary withdrawal from practice in 1983, he was transferred to “disciplinary inactive *941 status” with the Idaho State Bar while several disciplinary matters were litigated. In May, 1985, he tendered a Conditional Admission of Misconduct. In September, 1985, Donnelly and the state bar commission agreed that he would be formally suspended for one year beginning retroactively in August, 1985. He was allowed a probationary reinstatement, and was required to obtain malpractice insurance. The Idaho Supreme Court entered a disciplinary order in March 1986, and in January, 1987, entered a Conditional Order of Reinstatement. Among other things, Donnelly was placed on two years probation.

In January 1989, Donnelly was hired as a legal assistant by Legal Aid. In March, 1989, the Supreme Court entered an Amended Conditional Order of Reinstatement allowing Donnelly to practice law only when supervised by a licensed attorney and only after obtaining malpractice insurance. Thereafter, Donnelly recovered his license and became a staff attorney at Legal Aid. The malpractice insurance he obtained only covered services performed for Legal Aid clients. In December, 1989, the Podolans learned that Donnelly had been deceiving them practically from the time they first met. In January 1990, Donnelly resigned from Legal Aid. Although his conditional license to practice law was withdrawn, he continued for a short time to appear in court on other non-Legal Aid cases. The facts we have recounted here are abbreviated—Donnelly’s misrepresentations to the Podolans were very numerous, convincingly performed, and dreadful in their falsity.

The Podolans brought this action against Legal Aid in July, 1990, alleging negligent supervision, professional malpractice, fraud, breach of fiduciary duty, bad faith, intentional infliction of emotional distress, and seeking compensatory and punitive damages. Legal Aid answered and deposed the Podolans. The Podolans took no depositions, served no written discovery requests, or otherwise sought to discover facts known to Legal Aid. They filed an amended complaint, which Legal Aid answered. Legal Aid also moved for summary judgment. On September 3, 1991, the district court granted the motion in all respects and entered judgment for Legal Aid. The Podolans appeal, challenging the court’s decision on all claims except the one for professional malpractice. On appeal, they attempt to establish, as they did below, that Legal Aid was vicariously liable for Donnelly’s actions. We will discuss the Podolans’ asserted grounds for vicarious liability before discussing the causes of action presented in their amended complaint.

II

Standard of Review

Summary judgment is appropriate only when there are no genuine issues of material fact and the case can be decided as a matter of law. I.R.C.P. 56(c); Moss v. Mid-American Fire and Marine Insurance Co., 103 Idaho 298, 302, 647 P.2d 754, 758 (1982); Whitlock v. Haney Seed Co., 110 Idaho 347-48, 715 P.2d 1017-18 (Ct. App.1986). Where, as here, a jury has been requested, the nonmoving party is entitled to the benefit of reasonable inferences drawn from the evidentiary facts. Anderson v. Ethington, 103 Idaho 658, 660, 651 P.2d 923, 925 (1982); Whitlock, supra. The facts are drawn from a review of the record, consisting of the motions, pleadings, affidavits, depositions, and admissions on file. I.R.C.P. 56(c); Moss, supra. Controverted facts are viewed in favor of the party resisting the motion. Whitlock, supra.

The party opposing the motion may not merely rest on the allegations contained in the pleadings; rather, evidence by way of affidavit or deposition must be produced to contradict the assertions of the moving party. I.R.C.P. 56(e); Worthen v. State, 96 Idaho 175, 176, 525 P.2d 957, 958 (1974). Raising the slightest doubt as to the facts is insufficient—a genuine issue of material fact must be presented. LePelley v. Grefenson,

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Bluebook (online)
854 P.2d 280, 123 Idaho 937, 1993 Ida. App. LEXIS 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/podolan-v-idaho-legal-aid-services-inc-idahoctapp-1993.