Walden v. Hoke

429 S.E.2d 504, 189 W. Va. 222, 1993 W. Va. LEXIS 52
CourtWest Virginia Supreme Court
DecidedApril 23, 1993
Docket21277
StatusPublished
Cited by9 cases

This text of 429 S.E.2d 504 (Walden v. Hoke) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walden v. Hoke, 429 S.E.2d 504, 189 W. Va. 222, 1993 W. Va. LEXIS 52 (W. Va. 1993).

Opinions

BROTHERTON, Justice:

This case involves a petition for appeal by Mildred Walden from the May 6, 1992, summary judgment order of the Circuit Court of Cabell County. She seeks damages from attorneys Jay Hoke and Fredrick Staker, III, for professional negligence, negligent conflict of interest, breach of fiduciary duties, and breach of contract.

On August 1, 1989, Mildred Walden retained Jay Hoke, an associate in the law office of Hankins & Taylor, to represent her in her divorce from her husband, Dan Edwin Walden. Another associate in the Hankins & Taylor office, Fredrick Staker, also participated in her representation by the law firm. Mrs. Walden alleges that Hoke and Staker also represented her husband’s interests in the divorce proceedings.

The Waldens had been married for fourteen years. During that time, Mr. Walden became disabled due to workers’ compensation injuries and a bipolar psychiatric illness that rendered him incompetent. Mrs. Walden contends that she took care of her husband and all of his affairs during their marriage because of his disabilities. Mrs. Walden served as her husband’s legal committee during their marriage, until she resigned on July 5, 1990. At that point, Mr. Walden’s daughter, Bobbi Jo Walden, was appointed to replace her. In her deposition, Mrs. Walden noted that in her capacity as his committee, she handled all aspects of her husband’s disability claims and workers’ compensation claims. She also stated that she participated in all conferences with her husband’s workers’ compen[224]*224sation attorney, Amos Wilson, and that she was involved in the progress of the cases.

During the pendency of the divorce action, but prior to a final decree, Mr. Walden received two workers’ compensation awards, first $55,000, and then $30,000 several months later. Mrs. Walden claims that upon receipt of the $55,000 award, her husband immediately began spending the money and that her request to her lawyers to freeze the assets were ignored until she froze them herself. At that point, approximately $13,000 remained. No evidence was presented in support of these allegations, nor were any dates given regarding the release dates of the workers’ compensation payments.1

On July 20, 1990, after she resigned as committee, Mrs. Walden signed a formal separation and property settlement. On August 21, 1990, a guardian ad litem was appointed for Mr. Walden because he was declared incompetent. On October 18, 1990, a final divorce hearing was held before the Lincoln County family law master. The Lincoln County Circuit Court entered a final divorce decree on that same date, and the property settlement agreement was approved.2 The property settlement stated, in pertinent part, that:

4. That in consideration for which, the Husband and Wife shall receive the monies set forth as follows:
a. The Wife shall receive Twelve Thousand Dollars ($12,000.00) as a lump sum cash settlement, with Two Thousand Dollars ($2,000.00) of which having been previously paid, and with Ten Thousand Dollars ($10,000.00) of which to be conveyed at the execution of this Agreement by both of the parties hereto; and,
b. The Husband shall receive the rest and residue of his State Workers Compensation settlement from this date hereafter; and,
c.The Husband’s Committee, Mrs. Bobbi Jo Walden, has been expressly advised of this provision and does hereby give her express CONSENT AND AGREEMENT to this cash settlement and its effect; and,
* * * * * *
That both the Husband and Wife, together with the Husband’s Committee, further expressly acknowledge and agree that the above mutual covenants and agreed-upon terms are fair and reasonable; were not obtained by fraud, duress or any other unconscionable act or conduct by either of the parties; and, represent an equitable distribution of the marital estate by and between the parties hereto.

In December, 1990, after the divorce decree was final, Mrs. Walden learned that her ex-husband had received a second workers’ compensation award of approximately $30,000. Again, the date of this payment is unclear. Mrs. Walden alleges that her ex-husband, his daughter (the new committee), and her attorney, Mr. Hoke, concealed this award from her.3

Within the appeal time for the divorce decree, Mrs. Walden retained attorney Ray Hampton to attempt to set aside the final divorce decree and property settlement. Thus, on February 7, 1991, she filed a Rule 60(b) motion, arguing that the property settlement agreement and the final divorce decree were obtained by fraud, duress, and unconscionable conduct.

On March 4, 1991, a hearing and oral argument was held in Lincoln County Circuit Court. On March 21, 1991, the court ruled that the appellant:

[225]*225knew of the existence of the Worker’s Compensation award made to the Respondent herein. And did knowingly and intelligently waive her rights thereto as demonstrated by her execution of the Settlement Agreement which reads in part in paragraph 4B, that the husband shall receive the rest and residue of the State Worker’s Compensation settlement from this date hereafter; and that the agreement was signed by the Petitioner on July 20th, 1990, and the Petitioner received the portion of the Worker’s Compensation funds which the Petitioner seeks a portion thereof; after July 20th, 1990. And that the Petitioner entered into this Settlement Agreement without her being subjected to any fraud, duress or other unlawful means.4

Rather than filing an appeal, Mrs. Walden filed suit against Hoke and Staker for legal malpractice in Cabell County on April 30, 1991. The malpractice suit was filed within the appeal period for the Lincoln County Rule 60(b) action. In the malpractice claim, Mrs. Walden asserted that her attorneys had a conflict of interest, that she did not understand the settlement agreement, that she was under duress throughout the divorce, and that she did not know of the second workers’ compensation award to her husband. The appellant characterizes this issue as professional negligence, breach of fiduciary duties, and lack of informed consent. Following a one-year discovery period, the appellees moved for summary judgment on the issue of collateral estoppel.

By order filed May 6, 1992, the Cabell County Circuit Court granted the appellees’ motion for summary judgment following a hearing and oral argument. The court ruled that Mrs. Walden was collaterally estopped from bringing a second action based upon issues which had been fully adjudicated in the Lincoln County Circuit Court action. Specifically, the court stated:

Sealed exhibits from the Lincoln County Circuit Court divorce action, filed in support of the Motion for Summary Judgment by the defendants, reveal that a final divorce decree with the Separation and Property Settlement Agreement approved and attached was entered by Judge W. Jack Stevens on October 18, 1990; that plaintiff, by different counsel than the defendants, filed a motion in Lincoln County to set aside the Final Divorce Decree and Separation and Property Agreement on or about February 7, 1991 based upon the same or similar grounds asserted herein; that a hearing was held on March 4,1991 on said motion before Judge E. Lee Schlaegel, Jr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ware v. Ware
687 S.E.2d 382 (West Virginia Supreme Court, 2009)
Fernandez v. Fernandez
624 S.E.2d 777 (West Virginia Supreme Court, 2005)
Mitchell v. Mitchell
517 S.E.2d 300 (West Virginia Supreme Court, 1999)
Laney v. State Farm Mutual Automobile Insurance
479 S.E.2d 902 (West Virginia Supreme Court, 1996)
Lawyer Disciplinary Board v. Frame
479 S.E.2d 676 (West Virginia Supreme Court, 1996)
Walden v. Hoke
429 S.E.2d 504 (West Virginia Supreme Court, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
429 S.E.2d 504, 189 W. Va. 222, 1993 W. Va. LEXIS 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walden-v-hoke-wva-1993.