Turnbull v. Thensted

757 So. 2d 145, 2000 WL 310366
CourtLouisiana Court of Appeal
DecidedMarch 1, 2000
Docket99-CA-0025
StatusPublished
Cited by25 cases

This text of 757 So. 2d 145 (Turnbull v. Thensted) 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
Turnbull v. Thensted, 757 So. 2d 145, 2000 WL 310366 (La. Ct. App. 2000).

Opinion

757 So.2d 145 (2000)

E. Elizabeth TURNBULL, et al.
v.
Charles THENSTED, et al.

No. 99-CA-0025.

Court of Appeal of Louisiana, Fourth Circuit.

March 1, 2000.
Rehearing Denied April 28, 2000.

*147 Louis R. Koerner, Jr., Law Office of Louis R. Koerner, Jr., New Orleans, Louisiana, and A.D. Freeman, Covington, Louisiana, Counsel for Plaintiffs/Appellants.

Thomas M. Richard, Chopin, Wagar, Cole, Richard, Reboul & Kutcher, L.L.P., Mandeville, Louisiana, Counsel for Defendants-Appellees.

Lawrence J. Ernest, Christovich & Kearney, L.L.P., New Orleans, Louisiana, Counsel for Defendants-Appellees.

John V. Baus, Jr., David S. Daly, Jennifer C. deBlanc, Baus, Hammond & Daly, L.L.P., New Orleans, Louisiana, Counsel for Defendants/Appellees.

(Court composed Judge PATRICIA RIVET MURRAY, Judge DENNIS R. BAGNERIS, Sr., and Judge ROBERT A. KATZ).

BAGNERIS, Judge.

STATEMENT OF THE CASE

This case involves the question of whether or not a legal malpractice suit was timely filed. In 1984, a new limited partnership syndication named Courtside Limited (hereinafter "Courtside") was created by Michael Smuck, Mark Strauss, Joseph Michelli, and Ronald Ellington (hereinafter "Smuck, et al."). It also conducted business under the name of The Equity Group. Some notable entities associated with the endeavor were Peat Marwick Mitchell & Co., accountants for the endeavor; Sessions & Fishman, attorneys for the endeavor; and The Home Insurance Company (hereinafter "Home"), a bonding company for The Equity Group; and The Graham Company (hereinafter "Graham"), the broker for Home's participation in the endeavor. Approximately forty other individuals participated in the Courtside endeavor by investing some or all of their personal fortunes (hereinafter "the Courtside Plaintiffs").

After some time, the Courtside Plaintiffs became suspicious of the legitimacy of the Courtside endeavor and formed a four-person committee (hereinafter "The Courtside Plaintiffs' Committee") to find an attorney to bring suit against Smuck, et al, The Equity Group, Home, Graham, Sessions and Fishman, and Peat Marwick Mitchell and Co. (hereinafter collectively "the Defendants"). The Courtside Plaintiff's Committee ultimately decided on Attorney Charles Thensted (hereinafter "Mr. Thensted") to undertake the suit. Notably, from August 1986 until November 1989, Louis Koerner, Jr. (hereinafter "Mr. Koerner"), an attorney and a Courtside Investor, served as a member of the Courtside Plaintiffs' Committee, which interviewed and hired Mr. Thensted as their attorney.

In August and September 1989, after Mr. Thensted had negotiated a settlement on behalf of the Courtside Plaintiffs resulting in significant restitution and the voluntary dismissal of all of the Courtside Defendants with the exception of Home and Graham, the late Honorable Veronica Wicker granted motions for summary judgment filed by Home and Graham, dismissing the remaining claims of the Courtside Plaintiffs, including those of E. Elizabeth Turnbull (hereinafter "Ms. Turnbull") and Mr. Koerner. In addition, Judge Wicker found that the Plaintiffs owed contractual remuneration to Home. The summary judgments were appealed but to no avail. On September 28, 1993, the summary judgments were affirmed. See Abbott v. Equity Group, Inc., 2 F.3d 613 (5 Cir.1993) cert. denied, 510 U.S. 1177, 114 S.Ct. 1219, 127 L.Ed.2d 565 (1994).

On December 30, 1992, Ms. Turnbull filed her Original malpractice Petition against Mr. Thensted and his former firm, *148 Gelpi, Sullivan, Carroll & Gibbens. At that time, Ms. Turnbull's Courtside appeal was still pending. In this Petition, Ms. Turnbull alleged principally that Mr. Thensted had failed to assemble and present the facts and law applicable to aiding and abetting, resulting in the summary judgment motions that had been decided more than three years earlier.

On January 10, 1994, Peggy J. Koerner (hereinafter "Ms. Koerner"), wife of the late Louis Koerner, Sr., filed her Original malpractice Petition. Notably, both Ms. Turnbull and Ms. Koerner's Original malpractice Petitions were filed by attorney, A.D. Freeman, Jr. (hereinafter "Mr. Freeman").

In response to Ms. Turnbull's and Ms. Koerner's Original and Supplemental and Amending malpractice Petitions, Mr. Thensted filed Exceptions of Prescription and No Cause of Action. On September 6, 1995 and May 13, 1996, Ms. Turnbull and Ms. Koerner filed Supplemental and Amending Petition contending that Mr. Thensted neither understood or properly argued Rule 10b-9 of the Securities and Exchange Commission. They also asserted that Mr. Thensted's failure to include a specific citation to Rule 10b-9 in the Courtside Complaint permitted Judge Wicker to grant the summary judgment motions in favor of House and Graham. Finally, they claimed that Mr. Thensted accepted a retainer when he was allegedly "insufficiently familiar with securities law" and "without taking proper steps to determine the precise amount of insurance remaining," and failing to allocate settlement funds. It is uncontested that Mr. Thensted negotiated the Courtside settlements shortly before the summary judgment motions were granted in August and September 1989. His retainer was paid in 1986.

On May 1, 1998, Ms. Turnbull and Ms. Koerner filed additional Supplemental and Amended Petitions alleging that, while the Courtside Plaintiffs' Committee was interviewing Mr. Thensted in 1986, he misrepresented his experience, his knowledge of securities law, and his health.

On June 1, 1998, the Exceptions of Prescription and No Cause of Action were tried before the Honorable Gerald P. Fedoroff. Ms. Turnbull, Mr. Koerner, and Mr. Thensted all testified at the hearing. Many exhibits, including much of the extensive correspondence and pleadings that were exchanged throughout the course of the Courtside litigation between Ms. Turnbull, Mr. Thensted, Mr. Freeman, and Mr. Koerner were admitted into evidence. Judge Fedoroff took the matter under advisement and later ruled in favor of Mr. Thensted, upholding the Exceptions.

On September 15, 1998, Judge Fedoroff issued his written reasons for sustaining the Exceptions. Judge Fedoroff concluded that the three year limitation period of LSA-R.S. 9:5605 A barred Mr. Koerner's suit since Mr. Thensted ceased representing Louis Koerner, Sr. on November 14, 1989, and the original Koerner malpractice suit was not filed until more than three years later on January 10, 1994.

In addition, Judge Fedoroff rejected the Courtside Plaintiffs' contention that the application of LSA-R.S. 9:5605 was unconstitutional since the three-year grace period of LSA-R.S. 9:5605 B was sufficient to prevent a constitutional violation.

On September 30, 1998, Judge Fedoroff amended his order to assess Mr. Thensted's costs against the Courtside Plaintiffs and to dismiss the entire suit as prescribed.

The Courtside Plaintiffs filed a Devolutive Appeal from this judgment on October 1, 1998.

LAW AND ARGUMENT

The discretion allotted a trier of fact is great. The standard of review of a trial court's finding of facts supporting prescription is that the appellate court should not disturb the finding of the trial court unless it is clearly wrong. Canter v. Koehring Company, 283 So.2d 716 (La. *149 1973); Hoerner v. Wesley-Jensen, 95-0553 (La.App. 4 Cir. 11/20/96), 684 So.2d 508.

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757 So. 2d 145, 2000 WL 310366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turnbull-v-thensted-lactapp-2000.