Young v. Datsopoulos

817 P.2d 225, 249 Mont. 466, 48 State Rptr. 786, 1991 Mont. LEXIS 223
CourtMontana Supreme Court
DecidedAugust 21, 1991
Docket90-150
StatusPublished
Cited by8 cases

This text of 817 P.2d 225 (Young 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
Young v. Datsopoulos, 817 P.2d 225, 249 Mont. 466, 48 State Rptr. 786, 1991 Mont. LEXIS 223 (Mo. 1991).

Opinions

JUSTICE McDONOUGH

delivered the Opinion of the Court.

This is an appeal from the District Court of the Fourth Judicial District, Missoula County. Plaintiff appeals a partial summary judgment for defendants, which bars a large portion of her legal malpractice claims. We reverse and remand.

The following issue is dispositive of this appeal:

Do genuine issues of material fact exist as to when the statute of limitations began to run, making partial summary judgment inappropriate?

In December 1982, Craig Young, then thirty-one years of age, left his home in Missoula, Montana, on a business trip to Texas. Slightly over one month later, on January 12, 1983, his stabbed and gunshot body was found alongside a Texas roadway.

Between Craig’s departure for Texas and the discovery that he had been murdered, his family became concerned about his uncharacteristic failure to communicate with them. His parents and his younger brother and sister went through his personal and business papers in an effort to locate clues as to his whereabouts. They knew Craig had had a business association with Jack Dickie, who lived in Texas. The exact nature of that business was not known to the family. They did know that Craig was involved in the development of mining claims, that Craig and Dickie may have been operating in “gray areas” of the law, and that Craig never appeared to have much money.

During the family’s search through Craig’s papers, they found newspaper clippings indicating that Dickie had been involved in murders committed to collect the decedents’ life insurance policies. [468]*468The family learned that a life insurance policy which Craig had obtained the previous summer was in the amount of $3 million. They also found evidence of promissory notes worth $2.5 million from Craig to Vanguard World Holdings (Vanguard), a Panamanian corporation.

The family contacted the defendant law firm, knowing that the firm had done legal work for Craig. The law firm gave the family the name of a private investigator in Texas and also suggested that they contact the Texas Rangers. After Craig’s body was found, the Youngs retained the defendant law firm to probate his estate.

In his will, Craig had named his father, Charles E. Young, and Jack Dickie as co-personal representatives of his estate. The Young family objected to any involvement of Dickie, who they strongly suspected was responsible for Craig’s death. According to Peggy Young, defendants Reep and Vancanagan, attorneys with the defendant law firm, advised her and Charles E. Young that there was no basis for opposing Dickie’s appointment as co-personal representative unless a criminal investigation connected him to Craig’s death. Though Dickie remained as a co-personal representative, he agreed to forego fees for acting as such and he did not participate actively in the probate of the estate. The estate did pay Dickie’s attorney fees incurred during the dispute over whether he should remain as co-personal representative.

United Pacific Insurance Company, which had issued the $3 million insurance policy on Craig’s life, hired a private investigator who became convinced that Dickie had murdered Craig and that Dickie owned or controlled Vanguard. However, United Pacific eventually paid the face amount of the $3 million policy to the estate, and has never sought repayment. That life insurance policy was the only substantial asset of the estate.

The notes Craig had signed in favor of the Vanguard corporation had been issued in exchange for corporate stock and forty-nine Montana mining claims Craig had staked several years earlier. As part of a paper shuffle, Dickie and Craig had transferred these and other assets among several shell corporations, inflating their stated values with each transfer, until Craig’s assets reached a paper value of over $10 million. This had been done to support the application for the insurance on Craig’s life, which was a prerequisite to a $3 million loan Dickey ostensibly was arranging from a British labor union. Whether the Youngs understood all of this is disputed.

Peggy Young maintains that the members of the defendant law firm told the Youngs that absent evidence that Craig’s signature had [469]*469been forged, there was no basis for refusing to pay the $2.5 million promissory notes to Vanguard. The law firm contends that it advised the Youngs that a possible defense to the notes would be failure of consideration, but that because such a defense would challenge Craig’s credibility in stating his net worth to the life insurance company to obtain the policy, the defense was not raised. Peggy Young maintains that no such advice was given.

On January 30, 1984, Charles E. Young, as co-personal representative of Craig’s estate, agreed to settle the Vanguard claim for $2.14 million. The amount of the settlement was, in fact, suggested by Peggy Young. The remaining $1 million in insurance money went to the Youngs, as Craig’s heirs. The estate inventory eventually listed Craig’s mining claims as having no actual value at all. On the advice of defendants, the estate also abandoned certain legal claims defendants had been litigating on Craig’s behalf against defendants Shuman, Munro, and Jenkins. Dickie was subsequently convicted in federal court on racketeering charges, which included matters relating to Craig’s murder.

In October 1985, the Internal Revenue Service, in auditing Craig’s estate’s federal estate tax return, disallowed the deduction of the Vanguard claim from the estate assets due to failure of “adequate and full consideration, since it was merely a paper transaction.” A $1.2 million deficiency was assessed against the estate. The Youngs contacted separate counsel for assistance with the IRS matter.

On September 3, 1987, the parties to this action executed an agreement to toll the running of the statute of limitations. Therefore, that is the effective filing date of the complaint, in which Peggy Young and Charles E. Young, as executor for the estate of Craig Young, were originally named as plaintiffs. In May of 1988, Charles E. Young died. His death further complicates the question of who knew what, and when. Peggy Young succeeded him as personal representative of Craig’s estate and as the plaintiff in this case.

The complaint alleges breach of contract, negligence, bad faith, negligent misrepresentation, and contractual bad faith. Peggy Young claims that the defendants committed legal malpractice by misadvising the Youngs or by failing to advise them properly concerning removal of Jack Dickie as a co-personal representative, the possible defense to the Vanguard claim of lack of consideration, and abandonment of the claims against Shuman, Munro, and Jenkins. She also asks for indemnity for the Youngs’ attorney fees, costs, and expenses in defending against the IRS claim.

[470]*470Defendants moved for summary judgment based on a statute of limitations defense; waiver, ratification and estoppel; and unclean hands, unjust enrichment, and in pari delicto. The District Court initially denied the motion. However, on the defendants’ request for amendment of the order denying summary judgment, the court awarded defendants partial summary judgment on a theory that the statue of limitations for attorney malpractice had expired before the Youngs filed their complaint.

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Young v. Datsopoulos
817 P.2d 225 (Montana Supreme Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
817 P.2d 225, 249 Mont. 466, 48 State Rptr. 786, 1991 Mont. LEXIS 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-datsopoulos-mont-1991.