Turner v. Tranakos

744 P.2d 898, 229 Mont. 51, 44 State Rptr. 1772, 1987 Mont. LEXIS 1038
CourtMontana Supreme Court
DecidedNovember 3, 1987
Docket87-074
StatusPublished
Cited by1 cases

This text of 744 P.2d 898 (Turner v. Tranakos) 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
Turner v. Tranakos, 744 P.2d 898, 229 Mont. 51, 44 State Rptr. 1772, 1987 Mont. LEXIS 1038 (Mo. 1987).

Opinion

*52 MR. JUSTICE GULBRANDSON

delivered the Opinion of the Court.

Robert and Betty Turner appeal a judgment of dismissal made by the District Court of the Twelfth Judicial District. The District Court found that it lacked in personam jurisdiction over the defendant, Arthur Tranakos. We reverse the decision of the District Court and remand for further proceedings.

On December 8, 1986, Robert and Betty Turner instituted this action against Arthur Tranakos in Liberty County alleging legal malpractice, bad faith, breach of fiduciary duty and fraud. The Turners made the following allegations in their complaint:

“1.0 Robert and Betty Turner are farmers who live near Chester, Montana in Liberty County, State of Montana and are second and third generation farmers from Montana.
“1.1 Arthur P. Tranakos is an attorney at law admitted to practice in the Courts of Georgia, and who has actively solicited business in the State of Montana. Tranakos has traveled into the State of Montana to solicit business and he has also appeared as an attorney at law before various Montana Courts although he is not an admitted attorney in Montana.
“2.0 Arthur Tranakos came to Montana on his own and also under the sponsorship of various life insurance companies in order to solicit business for tax sheltered investments and through estate planning.
“2.1 It was in this capacity that he met the Plaintiffs and represented that he was well qualified to assist the farmers in planning their estate and managing their financial affairs. The Defendant Arthur P. Tranakos specifically represented that the highest confidence in trust could be reposed in him and that he would take care of the Plaintiff’s every financial need.
“2.2 Acting in direct reliance upon the representations and advice of Arthur P. Tranakos, the Plaintiffs did put all of their trust and faith in him as an attorney, as an investment counselor, and acting on his advice they transferred their entire interest in their family farm (which was worth in excess of $500,000) to a corporation known as SOLACO, INC., a Nevada corporation, which was owned entirely by Arthur P. Tranakos as the sole shareholder of record.
“2.3 Thereafter, the crisis hit the farm economy through low prices and drought and the major creditor of the Turners commenced a foreclosure action in Liberty County District Court, Cause No. 3010 *53 in which the Federal Land Bank of Spokane sought to foreclose its security interest in the family farm which was operated by the Turners.
“2.4 Arthur P. Tranakos, although not admitted to practice in Montana, entered an appearance as attorney of record for the Turners in that matter and proceeded to [mis]represent the Turners. Arthur P. Tranakos had a duty to obtain local counsel to assist in the representation of the Plaintiffs which duty is breached. Arthur P. Tranakos had an additional duty to render a competent and vigorous defense including pleading of affirmative defenses, filing compulsory counterclaims and to appear at all court hearings.
“2.5 Tranakos violated all of the foregoing duties by not associating local counsel, by not being sponsored in by local counsel, by failing to raise the proper affirmative defenses, file compulsory counterclaims and finally by not appearing at a summary judgment hearing in which the Federal Land Bank won its motion to foreclose by the default of Arthur P. Tranakos and the Turners are in immediate danger of losing the family farm.
“. . . [Addition theirs.]

A summons was issued on December 9, 1986, and Tranakos was personally served in Atlanta, Georgia, on December 16, 1986. On January 8, 1987, the Turners moved for entry of default judgment based on Tranakos’ failure to file a response to the complaint within twenty days. The Liberty County Clerk of Court entered default judgment against Tranakos on January 12, 1987.

At the Turners’ request, the District Court scheduled a hearing for January 26, 1987, to determine damages due under the default judgment. On January 20, 1987, Tranakos filed an answer to the Turners’ complaint wherein he alleged, among other things, that the District Court lacked personal jurisdiction over him. Tranakos’ answer goes on to admit that he “did appear on behalf of [the Turners] in their case adverse the Federal Land Bank of Spokane, Case No. 3010, in this Court.”

The District Court refused to entertain any discussion of damages at the January 26, 1987, hearing. Instead, the District Court dismissed the case on the grounds that it lacked personal jurisdiction over Tranakos. The District Court also took judicial notice of Liberty County District Court Cause No. 3010, entitled “The Federal Land Bank of Spokane v. Robert S. and Betty J. Turner et al.” The Turners appeal the District Court’s dismissal of this action and raise the following issues:

*54 (1) Did the District Court err in dismissing Turners’ action for lack of personal jurisdiction when Turners’ complaint alleged that Tranakos acted and failed to act within Montana in a manner constituting professional malpractice?

(2) Did the District Court err in dismissing Turners’ action for lack of personal jurisdiction after that court took judicial notice of Tranakos’ appearance in the Federal Land Bank’s action to foreclose its mortgage on the Turners’ Montana property?

(3) Did the District Court err in dismissing Turners’ action for lack of personal jurisdiction when Turners’ verified complaint alleged that Tranakos conducted business within the state?

Respondent Tranakos raises the following additional issue:

(4) Is the record before this Court complete and adequate for this Court’s review of the District Court’s decision?

This Court must first address Tranakos’ procedural issue before addressing the merits of this appeal. Tranakos asserts that under Rule 9, M.R.App.P., the Turners have not properly perfected this appeal and, therefore, the appeal must be dismissed. Tranakos’ argument in this regard is that the record on appeal must include the records of the Federal Land Bank foreclosure action, Liberty County District Court Cause No. 3010. However, the District Court took judicial notice of the above-referenced action and this Court may do the same.

Tranakos’ appellate procedure argument is without merit. Rule 202(c), M.R.Evid., provides the following:

“A court may take judicial notice of the law listed in parts 2-10 of Rule 202(b) or other law, whether requested or not. The court may inform itself of any law in such a manner as it may deem proper and the court may call upon counsel to aid it in obtaining such information.”

Rule 202(b)(6), M.R.Evid., allows judicial notice to be taken of the “[r]ecords of any court of this state or of any court of record in the United States or any court of record of any state in the United States . . .” Accordingly, this Court takes judicial notice of Liberty County District Court Cause No. 3010, and all matters of record therein.

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744 P.2d 898, 229 Mont. 51, 44 State Rptr. 1772, 1987 Mont. LEXIS 1038, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-v-tranakos-mont-1987.