Smith v. Flinn

968 S.W.2d 12, 1998 Tex. App. LEXIS 1293, 1998 WL 84534
CourtCourt of Appeals of Texas
DecidedFebruary 26, 1998
DocketNo. 13-96-601-CV
StatusPublished

This text of 968 S.W.2d 12 (Smith v. Flinn) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Flinn, 968 S.W.2d 12, 1998 Tex. App. LEXIS 1293, 1998 WL 84534 (Tex. Ct. App. 1998).

Opinion

[14]*14OPINION

RODRIGUEZ, Justice.

This is an appeal from the granting of summary judgment in a legal malpractice case. We affirm.

Willa Mae Holtzclaw (“Holtzclaw”) sued John H. Flinn (“Flinn”) for malpractice arising out of a legal matter Holtzclaw retained Flinn to handle for her.1 Holtzclaw alleged Flinn faded to investigate or sue contractors who had bilked her out of thousands of dollars for unnecessary repairs and improvements to her home, and allowed the statute of limitations to run on any claims she may have had against the contractors.

Flinn asserted his entitlement to summary judgment on two bases: limitations and laches. Where, as here, the trial court’s order granting summary judgment does not specify the ground or grounds relied upon, the judgment is to be affirmed if any of the theories advanced by the movant are meritorious. Cincinnati Life Ins. Co. v. Cates, 927 S.W.2d 623, 625 (Tex.1996); State Farm Fire & Cos. Co. v. S.S. & G.W., 858 S.W.2d 374, 380 (Tex.1993).

The Statute of Limitations in Legal Malpractice Actions

The contractors made repairs and improvements to Holtzelaw’s home in 1984 and 1985; thus, a four-year statute of limitations period applied to any action against the contractors for breach of contract. Tex. Civ. Prac. & Rem.Code Ann. § § 16.004, 16.051 (Vernon 1986 and Supp.1998); Harrison v. Bass Enter. Prod. Co., 888 S.W.2d 532, 537 (Tex.App.—Corpus Christi 1994, no writ). Assuming Flinn was representing Holtzclaw in this matter, he would have had to file suit against the contractors by 1989. Not having done so, Holtzclaw was required to file any claim of legal malpractice within two years of that date, or before the end of 1991. Willis v. Maverick, 760 S.W.2d 642, 644 (Tex.1988) (cause of action for legal malpractice is governed by the two-year statute of limitations). However, limitations do not begin to run in a legal malpractice ease until the claimant discovers or should have discovered through the exercise of reasonable care and diligence the facts establishing the elements of the cause of action. Maverick, 760 S.W.2d at 646. Holtzclaw specifically pleaded that neither she “nor [Gary] Smith2 discovered, nor in the exercise of reasonable diligence should have discovered, Flinn’s wrongful conduct until 1992.”

When a plaintiff pleads the discovery rule, in order to prevail on a motion for summary judgment based on limitations, the defendant must present sufficient evidence to prove, as a matter of law, that no genuine issue of material fact exists with respect to when the plaintiff discovered, or using reasonable diligence, should have discovered the essential facts of his cause of action. Burns v. Thomas, 786 S.W.2d 266, 267 (Tex.1990); Medical Protective Co. v. Groce, Locke & Hebdon, 814 S.W.2d 124, 127 (Tex.App.—Corpus Christi 1991, writ denied).

The Summary Judgment Evidence

To support his motion for summary judgment, Flinn attached excerpts from his deposition wherein he stated that, although he contacted the district attorney’s office regarding filing charges against the contractors,3 he personally informed Holtzclaw he was not representing her in her actions against the contractors, and provided her with the names of attorneys to contact. Flinn admitted he had not declined, in writing, his representation of Holtzclaw with respect to the contractors.

Flinn also relied on the affidavit of Della Seal, an employee of Commercial State Bank in Sinton, Texas, where Holtzclaw had her personal checking account. Seal stated Flinn told her he was not representing Holtzclaw in any action against the contractors because he did not handle cases of this type. Seal further stated she told Holtzclaw that Flinn [15]*15was not representing her in the contractor matter.

Flinn claims that the Seal affidavit and his deposition excerpts establish as a matter of law that Flinn did not undertake to file suit on Holtzelaw’s behalf, that he informed Holtzelaw he was not going to file suit against the contractors, that she was put on notice he was not representing her, and that she did not exercise reasonable diligence in discovering Flinn did not file suit.

Holtzclaw’s summary judgment proof consisted of the affidavit of her executor, Gary Smith; excerpts from Flinn’s deposition; a letter from Holtzclaw’s attorney, Ralph Weston; and the affidavits of Lana Tong, Jennie L. Sloane, and Patricia Walker.

Smith became involved in Holtzclaw’s affairs after he received a telephone call in May 1992 from Lana Tong, an employee at Commercial State Bank concerning deficiencies in Holtzclaw’s account. He investigated Holtzclaw’s finances and determined that, between October 1984 and April 1985, Holtzelaw paid contractors approximately $100,000 for improvements and renovations to her home.

Smith did not actually see copies of the checks until June 1992. Prior to that time, Smith asked Flinn for the checks, but Flinn failed to deliver them to Holtzelaw until attorney Ralph Weston demanded the checks. Smith stated Holtzelaw was confused about why she had written the checks, but that she was under the impression she did not have to take any action because Flinn had come to her home, picked up the checks, and assured her he would be assisting her in recovering her money.

Smith’s affidavit testimony differs from Flinn’s deposition testimony regarding Flinn’s representations to Holtzelaw. While Flinn stated he told Holtzelaw to find another attorney to handle the matter, Smith stated he conferred with Flinn in August 1992, and Flinn informed him he had investigated the contractors and found they were “fly-by-nighters” with no assets. Flinn also told Smith he had advised Holtzelaw she had no remedy and that it would be a waste of time to pursue them. Smith conducted .his own investigation of the contractors and, based solely on the endorsement information contained on the checks, stated he easily located three of the contractors. After conferring with counsel, however, he was advised that all applicable statutes of limitations had run.

In his deposition, Flinn admitted going to Holtzclaw’s home several times and discussing the situation with her. She showed him the canceled checks used to pay the contractors, and Flinn took possession of them.

That Flinn still had the checks in his possession and failed to return them to Holtzelaw was supported by a letter dated June 15, 1992 from attorney Ralph B. Weston. In the letter, Weston made a formal demand upon Flinn for the return of the canceled checks.

Seal’s affidavit was directly controverted by the affidavit of Lana Tong, another employee at Commercial State Bank. Tong stated there was a note in Holtzclaw’s file that Flinn was to be contacted if Holtzelaw encountered any problems.

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Related

Harrison v. Bass Enterprises Production Co.
888 S.W.2d 532 (Court of Appeals of Texas, 1994)
Medical Protective Co. v. Groce, Locke & Hebdon
814 S.W.2d 124 (Court of Appeals of Texas, 1991)
Cincinnati Life Insurance Co. v. Cates
927 S.W.2d 623 (Texas Supreme Court, 1996)
Kelley v. Rinkle
532 S.W.2d 947 (Texas Supreme Court, 1976)
State Farm Fire & Casualty Co. v. S.S.
858 S.W.2d 374 (Texas Supreme Court, 1993)
Burns v. Thomas
786 S.W.2d 266 (Texas Supreme Court, 1990)
Willis v. Maverick
760 S.W.2d 642 (Texas Supreme Court, 1988)
Computer Associates International, Inc. v. Altai, Inc.
918 S.W.2d 453 (Texas Supreme Court, 1996)
Gaddis v. Smith
417 S.W.2d 577 (Texas Supreme Court, 1967)
McClung v. Johnson
620 S.W.2d 644 (Court of Appeals of Texas, 1981)
Quinn v. Press
140 S.W.2d 438 (Texas Supreme Court, 1940)
Courseview, Inc. v. Phillips Petroleum Co.
312 S.W.2d 197 (Texas Supreme Court, 1957)

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Bluebook (online)
968 S.W.2d 12, 1998 Tex. App. LEXIS 1293, 1998 WL 84534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-flinn-texapp-1998.