Reeder v. North

683 So. 2d 912, 1996 WL 658866
CourtLouisiana Court of Appeal
DecidedNovember 14, 1996
Docket96-CA-165
StatusPublished
Cited by9 cases

This text of 683 So. 2d 912 (Reeder v. North) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reeder v. North, 683 So. 2d 912, 1996 WL 658866 (La. Ct. App. 1996).

Opinion

683 So.2d 912 (1996)

O. William REEDER, M.D.
v.
Bruce A. NORTH and Molony, North & Kewley.

No. 96-CA-165.

Court of Appeal of Louisiana, Fifth Circuit.

November 14, 1996.
Rehearing Denied December 23, 1996.

*913 Arthur A. Lemann III, Arthur A. Lemann IV, New Orleans, for Plaintiff/Appellant.

David L. Colvin, Gretna, for Defendant/Appellee (Bruce A. North).

Daniel A. Rees, New Orleans, for Defendant/Appellee (The Home Insurance Company).

Before CANNELLA and DALEY, JJ., and RICHARD J. GARVEY, J. Pro Tem.

DALEY, Judge.

This is an appeal of a legal malpractice claim that was dismissed on an Exception of Prescription. Plaintiff, O. William Reeder, M.D., (Reeder) sued his former attorney, Bruce A. North, and the firm of Molony, North & Kewley, (North) for malpractice based on the attorneys' alleged failure to bring certain state law claims in a federal court proceeding resulting in the state law claims being barred by res judicata. For the reasons that follow, we reverse the trial court judgment granting the Exception of Prescription and remand for further proceedings.

Plaintiff hired defendants to represent him in an attempt to recover his investment in the "travel club," a fraudulent check kiting and Ponze scheme. On July 10, 1989 North filed a suit on behalf of Reeder in Federal District Court naming Lynn Paul Martin, individually and d/b/a LPM Enterprises, the Succession of Michael B. Palmer and the Bank of LaPlace as defendants. The complaint alleged violations of Federal Securities Law and the Louisiana Blue Sky Law. The case brought in Federal District Court was dismissed with prejudice in 1990.

Subsequently, in May of 1990 North filed a petition in State District Court and served the petition on the travel club defendants. In December of 1990 the petition was amended to allege claims pursuant to the Louisiana Blue Sky Law, negligence, negligent misrepresentation, breach of fiduciary, breach of contract and negligent ignorance. All allegations set forth in the state petition allegedly involved the same occurrence and the identical defendants as those dismissed in the federal suit.

The travel club defendants filed Exceptions of No Cause of Action and Res Judicata to the state court suit. The Exceptions of No Cause of Action and Res Judicata were granted by the trial court on April 26, 1991, dismissing plaintiff's suit with prejudice. Plaintiff appealed. The State Fifth Circuit Court of Appeal affirmed the trial court's dismissal in part and reversed in part; affirming the trial court judgment granting the Exceptions of No Cause of Action and Res Judicata but annulling the dismissal of the suit with prejudice[1] and remanding the case to the trial court to give plaintiff an opportunity to amend his petition to state a contractual cause of action against defendant, Palmer.

Writs to the Louisiana Supreme Court were taken and the Louisiana Supreme Court reversed the Court of Appeal on September 3, 1993[2] reinstating the district court's dismissal with prejudice, holding under *914 the doctrine of res judicata that the Federal District Court's final judgment barred all subsequent claims, federal or state, and that an amendment to plaintiff's petition was not permissible. The Louisiana Supreme Court denied a rehearing request on October 7, 1993. An Application for Writ of Certiorari was denied by the United States Supreme Court on February 28, 1994.[3]

Thereafter, on September 15, 1994 Reeder filed the instant malpractice action against North alleging that North was negligent by not pleading all viable state causes of action in the Federal District Court petition. Defendant North filed an Exception of Prescription and/or Peremption alleging under the provisions of LSA-R.S. 9:5605 that Reeder's legal malpractice action was barred because suit was not filed within one year of the discovery of the malpractice or within three years of the date of the alleged act of malpractice, regardless of when it was discovered. Defendants also argue that as the federal complaint was filed July 10, 1989 and the federal appeal became final on September 27, 1990, this action filed September 15, 1994 was clearly filed more than three years after the alleged act, omission or neglect occurred. The trial court agreed and granted the exception.

Plaintiff argues the continuing representation rule applies and that the cause of action did not accrue until the United States Supreme Court denied the application for Writ of Certiorari on February 28, 1994. Therefore, this suit, filed on September 15, 1994, is timely.

LSA-R.S. 9:5605 governs the time to file legal malpractice claims and provides:

A. No action for damages against any attorney at law duly admitted to practice in this state, any partnership of such attorneys at law, or any professional corporation, company, organization, association, enterprise, or other commercial business or professional combination authorized by the laws of this state to engage in the practice of law, whether based upon tort, or breach of contract, or otherwise, arising out of an engagement to provide legal services shall be brought unless filed in a court of competent jurisdiction and proper venue within one year from the date of the alleged act, omission, or neglect, or within one year from the date that the alleged act, omission, or neglect is discovered or should have been discovered; however, even as to actions filed within one year from the date of such discovery, in all events such actions shall be filed at the latest within three years from the date of the alleged act, omission, or neglect.
B. The provisions of this Section are remedial and apply to all causes of action without regard to the date when the alleged act, omission, or neglect occurred. However, with respect to any alleged act, omission, or neglect occurring prior to September 7, 1990, actions must, in all events, be filed in a court of competent jurisdiction and proper venue on or before September 7, 1993, without regard to the date of discovery of the alleged act, omission, or neglect. The one-year and three-year periods of limitation provided in Subsection A of this Section are peremptive periods within the meaning of Civil Code Article 3458 and, in accordance with Civil Code Article 3461, may not be renounced, interrupted, or suspended.
C. Notwithstanding any other law to the contrary, in all actions brought in this state against any attorney at law duly admitted to practice in this state, any partnership of such attorneys at law, or any professional law corporation, company, organization, association, enterprise, or other commercial business or professional combination authorized by the laws of this state to engage in the practice of law, the prescriptive and peremptive period shall be governed exclusively by this Section.
D. The provisions of this Section shall apply to all persons whether or not *915 infirm or under disability of any kind and including minors and interdicts.
E. The peremptive period provided in Subsection A of this Section shall not apply in cases of fraud, as defined in Civil Code Article 1953.

In determining when the claim against an attorney comes into existence, and hence when prescription or peremption begins to run, we must determine when the facts ripened into a viable cause of action sufficient to support a lawsuit. The elements of a cause of action for damages based on negligence are fault, causation and damages. Bunge Corp. v. GATX,

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Cite This Page — Counsel Stack

Bluebook (online)
683 So. 2d 912, 1996 WL 658866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeder-v-north-lactapp-1996.