Stevens v. Lake

615 So. 2d 1177, 1993 WL 46761
CourtMississippi Supreme Court
DecidedFebruary 25, 1993
Docket90-CA-0313
StatusPublished
Cited by115 cases

This text of 615 So. 2d 1177 (Stevens v. Lake) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Lake, 615 So. 2d 1177, 1993 WL 46761 (Mich. 1993).

Opinion

This appeal arises from a February 8, 1990, order of the Washington County Circuit Court granting the appellees' motion for summary judgment in a legal malpractice action. The appellants also challenge the circuit court's imposition of attorneys' fees and costs against them as sanctions pursuant to M.R.C.P. 11 and the Mississippi Litigation Accountability Act, Miss. Code Ann. § 11-55-1, et seq. (Supp. 1992). While the evidence in the record clearly presents a case of actionable negligence, we find that the cause of action is time-barred by the applicable statute of limitations, Miss. Code Ann. § 15-1-49 (1972). However, finding nothing to suggest that the Stevens or their attorneys acted in bad faith, by putting forth a claim so devoid of any hope for success, we reverse the Circuit Court's imposition of sanctions.

I.
Reviewing the facts of Albert Lake's involvement with Leo Stevens' final affairs, we are reminded of Sir Walter Scott's immortal words, "What a tangled web we weave when first we practice to deceive." Marion Stevens and Leo R. "Diddy" Stevens, Jr., brothers and business partners, operated for many years a varied enterprise which included a farm, an oil distributorship, and a service station. Defendant-Appellee, *Page 1179 J. Albert Lake, a World War II comrade-in-arms with Leo Stevens, served as the brothers' attorney for at least forty years.

In 1979, Leo Stevens, Jr.'s health began to decline. In May, 1979, doctors informed him that he was terminally ill. On the same day that Leo Stevens, Jr. received this grim news, his wife Doris took him to attorney Walter Swain for preparation and execution of a will leaving all assets to her. Apparently perceiving himself to be helplessly subject to his wife's dominating influence, Leo Stevens, Jr. asked Lake at some point in September, 1979, to prepare an inter vivos trust into which he could convey his share of the partnership. The parties differ over whether Lake discussed the trust with Marion Stevens before drafting it. The appellants allege that Marion participated with Leo Stevens, Jr. and Lake in the discussion of what the language of the trust should include. Lake says that he called Marion on the phone before the trust was executed to make sure he was agreeable to the arrangement but maintains that Marion was not a party to the discussions leading up to the drafting of the trust. Lake's brief accepts as fact that Leo Stevens, Jr. and Marion Stevens discussed the proposed trust between themselves before it was drafted. Lake prepared a final draft of the trust on October 2, 1979. The next day, October 3, 1979, Leo Stevens, Jr. went to Lake's office where he executed the trust along with a quitclaim deed transferring all his assets into the trust. Later that same day, Leo Stevens, Jr. informed Marion Stevens and Marion's wife, Rosalie, that he had fixed his affairs in such a way that Doris could not interfere and that Marion would be in charge if anything happened to Leo.

A little over a month later, on November 11, 1979, Leo Stevens, Jr. died. The trust and quitclaim deed had never been recorded. According to Lake, the death was a "complete and utter shock" to him. On November 12, 1979, he recorded the quitclaim deed but not the trust.

On November 13, 1979, Lake invited Marion Stevens and Leo Stevens, III, the decedent's son, to come to his office the next day. On November 14, 1979, Marion Stevens and Leo Stevens, III attended a conference at Lake's office at which Lake presented and discussed the provisions in the trust. According to the appellants and Leo Stevens, III, nothing was said about the failure to record the trust.

On November 15, 1979, Lake wrote a letter to Greenville Production Credit Association, a creditor of the Stevens Brothers Partnership, in which he stated: "In my opinion the trust and the conveyance to the trust will withstand any attack that may be made by Mrs. Stevens or by anyone else."

On November 16, 1979, attorney Walter Swain advised Lake that Doris Stevens had gone to Jackson to consult with another attorney about Leo Stevens, Jr.'s will. Lake conversed by telephone with John Kuykendall, an attorney hired by Doris Stevens, on November 27, 1979. On the sixth day of December, 1979, Lake held a conference with Doris Stevens and her attorneys John Kuykendall and Minor Sumners. Kuykendall asserted the validity of the will in which Leo Stevens, Jr. had bequeathed all his assets to his wife and maintained that since the inter vivos trust was not recorded prior to Leo Stevens, Jr.'s death, the instrument was ineffective. Lake informed Marion Stevens that same day that the trust was void and that the only available means of salvaging the situation was to buy Doris' inherited interest in the partnership. Lake explained to Marion Stevens that Leo Stevens, Jr. had expressly instructed him not to record the trust for the time being, being afraid that his wife would find out about it and force him to revoke it.

On or before April 29, 1980, Lake prepared a quitclaim deed which conveyed to Doris Stevens that portion of the partnership which Leo Stevens, Jr. had attempted to preserve for Marion Stevens by means of the October, 1979, trust and quitclaim deed. The quitclaim deed from Marion Stevens to Doris Stevens recited:

Whereas, that certain "Stevens Family Trust" and Quitclaim Deed, both of which were dated October 3, 1979, were *Page 1180 withheld from recordation in the land records of Washington County, Mississippi, by specific direction of the Trustor Leo R. Stevens and, therefore, never took effect.

Marion Stevens executed the quitclaim deed containing the above-quoted language on April 29, 1980. Marion Stevens briefly entered a partnership agreement with Doris Stevens, but in June of 1980, Marion and Rosalie Stevens bought out Doris Stevens' interest. Lake and the law firm to which he belonged continued to represent Marion and Rosalie Stevens until January 22, 1987, at which time the firm severed its relationship with the Stevens since it had started representing one of the Stevens' creditors.

Marion and Rosalie Stevens began to encounter financial difficulties. At some point in 1987, the Stevens contacted Michael Farrell, an attorney who practiced with the firm of Satterfield and Allred, to discuss the possibility of filing bankruptcy. Having already been retained to represent one of the Stevens' creditors, Satterfield and Allred declined to represent the Stevens. Farrell did mention to the Stevens, however, that Lake's failure to record the Stevens Family Trust could possibly involve malpractice. The Stevens were referred to attorney William Howell for representation in their bankruptcy proceedings. Howell listed the contingent malpractice claim against Lake and his firm on the bankruptcy petition, but the bankruptcy trustee declined to pursue the claim.

On October 8, 1988, the Stevens filed a complaint against J. Albert Lake and his law firm, Lake, Tindall, Hunger Thackston, engaging as counsel S. Dennis Joiner, who subsequently associated David Reynolds to assist him in pursuing the action.1 They alleged that Lake had been negligent and breached his fiduciary trust in connection with the filing or failure to file a trust drawn up on behalf on Marion R. Stevens' brother, Leo R. "Diddy" Stevens, shortly before his death in 1979.

Lake raised a number of affirmative defenses; most notably, that the Stevens' claims were barred by the limitations set forth in Miss. Code Ann. §§ 15-1-35 and 15-1-29

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Cite This Page — Counsel Stack

Bluebook (online)
615 So. 2d 1177, 1993 WL 46761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-lake-miss-1993.