Spolar v. Datsopoulos

2003 MT 54, 66 P.3d 284, 314 Mont. 364, 2003 Mont. LEXIS 53
CourtMontana Supreme Court
DecidedMarch 25, 2003
Docket02-197
StatusPublished
Cited by6 cases

This text of 2003 MT 54 (Spolar v. Datsopoulos) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spolar v. Datsopoulos, 2003 MT 54, 66 P.3d 284, 314 Mont. 364, 2003 Mont. LEXIS 53 (Mo. 2003).

Opinion

JUSTICE LEAPHART

delivered the Opinion of the Court.

¶1 Eugene Spolar appeals from the judgment of the Second Judicial District Court, dismissing his legal malpractice claim as barred by the statute of limitations. We affirm.

¶2 The following issue is raised on appeal:

¶3 Whether the District Court erred in ruling that Spolar’s legal malpractice claim was barred by the statute of limitations, § 27-2-206, MCA.

PROCEDURAL BACKGROUND

¶4 Spolar brought a legal malpractice action against the Defendants and Respondents, Milton Datsopoulos and Datsopoulos, MacDonald & Lind, P.C., alleging that Datsopoulos was professionally negligent and had breached an implied contract while representing Spolar in the division of his marital estate. According to Spolar, Datsopoulos had failed to fully and fairly ascertain the actual value of the estate, and that, because of this error, the division of the assets benefitted Spolar’s wife.

¶5 Spolar and his wife divorced in 1987, but elected to keep their marital estate intact, holding their assets in partnership until 1995 when they decided to divide the estate. At that time Spolar was serving a five-year prison term in connection with a 1993 federal drug trafficking conviction. Datsopoulos had represented Spolar in the criminal case and agreed to continue representing Spolar in the asset division proceedings. During Spolar’s incarceration, he and Datsopoulos communicated about the case by telephone and written correspondence. According to Datsopoulos, they discussed, at length, the value of the marital estate to be divided, and specifically the development of Spolar’s asset list which Datsopoulos would later submit to Judge Purcell in the form of proposed findings of fact and conclusions of law. In creating this asset list, Datsopoulos used a valuation method that he claims Spolar had authorized and which included appraisals prepared by Spolar’s accountant, Boyd Taylor.

¶6 Judge Purcell set a hearing in the matter for October 16, 1995. Before the hearing, Datsopoulos submitted proposed findings of fact and conclusions of law to the court, and forwarded a copy to Spolar, who later acknowledged receiving both that document and a subsequent memorandum, also prepared by Datsopoulos, which included a description of Spolar’s real property. Although it appears *366 that Spolar originally approved Datsopoulos’ valuation method, he began to complain about its reliability sometime before the hearing. Depositions of Spolar and his Idaho attorney, Lance Nalder, indicate that Spolar voiced objections to the valuation method as early as October 1995, when Spolar was incarcerated in a federal prison in Safford, Arizona. On December 9,1996, a year after the hearing, Judge Purcell entered his Findings of Fact, Conclusions of Law and Order, dividing Spolar’s marital estate. According to Judge Purcell, the proposed findings of fact and conclusions of law submitted by Datsopoulos and Spolar’s wife indicated that both parties had agreed on the value of the property.

¶7 Spolar received a copy of the order on December 23, one day before his release from prison. He brought this action against Datsopoulos on December 17, 1999. Datsopoulos moved for summary judgment and, on January 24,2002, the Second Judicial District Court granted the motion, dismissing Spolar’s claim as barred by the statute of limitations. Spolar then appealed.

DISCUSSION

¶8 The determinative issue of this appeal is whether the District Court erred in ruling that Spolar’s cause of action against Datsopoulos was barred by the statute of limitations, § 27-2-206, MCA. Spolar argues that the statute of limitations began to run on December 23, 1996, when he received the Findings of Fact, Conclusions of Law and Order issued by Judge Purcell. Specifically, Spolar contends that even if the cause of action accrued when the Judge entered his findings of fact and conclusions of law on December 9, 1996, the statute of limitations was tolled until December 23, when he received a copy of the Judge’s order. According to Spolar, a party is not charged with actual knowledge of a court order until he or she receives a copy of the ruling. On this basis, Spolar concludes that he did not receive actual knowledge of any damages sustained as a result of the order until December 23.

¶9 In response, Datsopoulos argues that Spolar’s cause of action accrued on October 16,1995, the hearing date in Spolar’s asset division proceedings. According to Datsopoulos, a cause of action for legal malpractice accrues when the plaintiff has knowledge of the facts essential to a claim. Datsopoulos maintains that Spolar’s cause of action accrued when he became aware of, and began objecting to, the valuation method used for purposes of preparing the proposed findings of fact and conclusions of law. Thus, Datsopoulos contends that *367 Spolar’s cause of action accrued in October 1995, more than four years before Spolar filed his legal malpractice suit. Alternatively, Datsopoulos argues that, at the very latest, Spolar’s claim accrued when Judge Purcell entered his Findings of Fact, Conclusions of Law and Order on December 9,1996. Datsopoulos notes that, even with this accrual date, Spolar’s legal malpractice suit, which was filed on December 17,1999, exceeds the three-year statute of limitations period by eight days.

¶10 In granting Datsopoulos’ motion for summary judgment, the District Court concluded that the statute of limitations in Spolar1 s legal malpractice suit began to run when Judge Purcell entered his findings of fact and conclusions of law, and that by December 17,1999, the date on which Spolar filed the suit, the statute of limitations had expired. The District Court identified December 9,1996, as the accrual date for Spolar’s cause of action because Spolar “discovered or should have, through reasonable diligence, discovered Datsopoulos’ alleged act, error or omission ...” on that date. (Citations omitted.)

¶11 Our standard of review in appeals from summary judgment rulings is de novo; and we follow the same criteria applied by the District Court pursuant to Rule 56, M.R.Civ.P. The moving party must establish both the absence of genuine issues of material fact as well as entitlement to judgment as a matter of law. Once this has been accomplished, the burden shifts to the opposing party to prove, by more than mere denial and speculation, that a genuine issue does exist. Stockman Bank of Montana v. Potts, 2002 MT 178, ¶ 3, 311 Mont. 12, ¶ 3, 52 P.3d 920, ¶ 3.

¶12 Section 27-2-206, MCA, provides that an action against an attorney for legal malpractice must be commenced within three years after the “plaintiff discovers or through the use of reasonable diligence should have discovered the act, error, or omission, whichever occurs last ....” Under § 27-2-102(l)(a), MCA, “[a] claim or cause of action accrues when all elements of the claim or cause exist or have occurred, the right to maintain an action on the claim or cause is complete, and a court or other agency is authorized to accept jurisdiction of the action.”

¶13 We have discussed, in some detail, the appropriate standard for determining when a cause of action for legal malpractice accrues and when the statute of limitations begins to run. In Johnson v. Barrett, 1999 MT 594, ¶ 11, 295 Mont. 254, ¶ 11, 983 P.2d 925, ¶ 11 (citing

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Bluebook (online)
2003 MT 54, 66 P.3d 284, 314 Mont. 364, 2003 Mont. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spolar-v-datsopoulos-mont-2003.