Rod Rehm, P.C. v. Tamarack American

623 N.W.2d 690, 261 Neb. 520, 2001 Neb. LEXIS 60
CourtNebraska Supreme Court
DecidedMarch 30, 2001
DocketS-99-1457
StatusPublished
Cited by7 cases

This text of 623 N.W.2d 690 (Rod Rehm, P.C. v. Tamarack American) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rod Rehm, P.C. v. Tamarack American, 623 N.W.2d 690, 261 Neb. 520, 2001 Neb. LEXIS 60 (Neb. 2001).

Opinion

Miller-Lerman, J.

I. NATURE OF CASE

Rod Rehm, P.C., and Rodney J. Rehm (collectively Rehm) filed a declaratory judgment action in the district court for Lancaster County against Tamarack American (Tamarack), in which Rehm sought a declaration of rights and an order compelling Tamarack to provide Rehm with malpractice insurance coverage for a professional liability claim asserted against Rehm by Jeannine Quinn. Following trial, the jury found in favor of Rehm. Tamarack appeals from the jury verdict entered by the district court. Tamarack claims the district court erred in denying its motion for a directed verdict, in denying its motion for judgment notwithstanding the verdict and motion for a new trial, and in admitting certain expert testimony. For the reasons set forth below, we affirm the decision of the district court.

II. STATEMENT OF FACTS

On February 23, 1993, Quinn slipped and fell on a sidewalk adjacent to Sheridan Elementary School in Lincoln, Nebraska. As a result of her fall, Quinn fractured her ankle.

In June 1993, Quinn retained Rehm. Rehm contacted the Lincoln Public Schools (LPS) on Quinn’s behalf. In August 1994, Rehm engaged in settlement negotiations with LPS’ insurer in an effort to resolve the matter. The insurer offered Quinn $31,000 to settle the matter, but Quinn refused the offer, believing her injury to be more substantial than the settlement offer.

On September 30, 1994, Rehm filed a petition in Lancaster County District Court on behalf of Quinn, naming LPS as the sole defendant. The petition alleged, inter alia, that LPS was negligent in the maintenance of its sidewalk and that as a result of such negligence, Quinn was injured.

*522 On April 19, 1995, LPS filed a motion for summary judgment, claiming it was entitled to judgment as a matter of law. LPS relied on the “sidewalk rule” as the basis for its motion for summary judgment.

Historically, under the common law, cities were responsible for the care and condition of sidewalks within municipal boundaries, and no duty devolved upon an abutting owner to keep the sidewalk adjacent to such owner’s property in a safe condition. In contrast, the “sidewalk rule” recognizes that this common-law rule has been abrogated by city ordinance and/or by statute. Neb. Rev. Stat. § 15-734 (Reissue 1997) provides that “[t]he owner of property abutting on public streets is . . . primarily charged with the duty of keeping and maintaining the sidewalks thereon in a safe and sound condition, and free from snow, ice, and other obstructions . . . .” Section 15-734 further provides, however, that an abutting property owner is liable for injuries sustained as a result of such owner’s failure to keep and maintain the sidewalk in a safe condition only upon the owner’s failure to act after receiving notice from the city that the owner needs to remedy a dangerous condition present on the sidewalk. Thus, under the “sidewalk rule,” the owner of property which abuts a public sidewalk is liable for injuries that are caused by a condition on the sidewalk if the owner has been notified by the city of the dangerous sidewalk condition and fails to act. See, generally, Hill v. City of Lincoln, 249 Neb. 88, 541 N.W.2d 655 (1996); Stump v. Stransky, 168 Neb. 414, 95 N.W.2d 691 (1959).

In support of its summary judgment motion, LPS stated that it did not own the sidewalk adjacent to Sheridan Elementary School, that the sidewalk was a public sidewalk, and that LPS had not received any notice from the city of Lincoln regarding the presence of snow or ice on the sidewalk. LPS argued that under § 15-734 and the cases applying the statute, absent notice from the city, LPS was not liable for Quinn’s injuries.

The record indicates that at the time LPS filed its motion for summary judgment, certain statutes of limitation had ran, and Quinn was no longer able to bring a claim against the city, the owner of the sidewalk, for the injuries she sustained as a result of the fall. In response to LPS’ motion for summary judgment, on August 25,1995, Rehm filed an amended petition on Quinn’s *523 behalf, again naming LPS as the sole defendant. The amended petition asserted what Rehm believed were exceptions to the “sidewalk rule.”

On November 17, 1995, the district court entered summary judgment in favor of LPS and dismissed Quinn’s lawsuit. Rehm appealed the summary judgment order on Quinn’s behalf to the Nebraska Court of Appeals, which affirmed the district court’s order in a memorandum opinion. Quinn v. Lincoln Pub. Schools, 5 Neb. App. xvii (case No. A-95-1393, May 9,1997). This court denied Quinn’s petition for further review on June 25, 1997.

After Quinn’s petition for further review was denied, she contacted another attorney (new counsel) concerning Rehm’s representation of her in the negligence case. In a letter dated October 3,1997, new counsel notified Rehm that Quinn was considering bringing a malpractice action against Rehm. New counsel stated that Rehm had “breached the standard of care” he owed to Quinn by (1) not recognizing all of the potential defendants in the case, in particular, the city; (2) not recognizing the legal significance of § 15-734; and (3) not filing a tort claim against the city within the statutory time period.

Following receipt of new counsel’s letter, Rehm contacted Tamarack, which was his professional liability insurance carrier at that point in time. On October 14, 1996, Tamarack had issued a lawyer’s professional liability insurance policy to Rehm, with a policy period of November 23,1996, to November 23,1998. Prior to the issuance of the Tamarack policy, Rehm testified that he had been insured for professional negligence by “HOME Insurance.” Although Tamarack had not insured Rehm for professional negligence during the time Rehm had represented Quinn at the trial level, the Tamarack policy provided professional liability coverage to Rehm for acts which occurred prior to November 23,1996, the policy’s effective date, so long as the policy’s coverage language was met. Specifically, subsection II.A.2 of the Tamarack policy, under the section entitled “Lawyers Professional Liability Insurance Policy Coverage Form,” stated that Tamarack would pay for claims made against Rehm during the policy period, which claims arose prior to the policy period,

provided that prior to the effective date of the first Lawyers Professional Liability Insurance Policy issued by *524 [Tamarack] to [Rehm] and continuously renewed and maintained in effect to the inception of this policy period:
(a) [Rehm] did not give notice to any prior insurer of any such act, error or omission; and
(b) [Rehm] had no reasonable basis to believe that [he] had breached a professional duty or to foresee that a claim would be made against [him]; and

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Bluebook (online)
623 N.W.2d 690, 261 Neb. 520, 2001 Neb. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rod-rehm-pc-v-tamarack-american-neb-2001.