Zahrbock v. Star Brite Inn Motel

2010 S.D. 73, 2010 SD 73, 788 N.W.2d 822, 2010 S.D. LEXIS 113, 2010 WL 3505715
CourtSouth Dakota Supreme Court
DecidedSeptember 8, 2010
Docket25263
StatusPublished
Cited by18 cases

This text of 2010 S.D. 73 (Zahrbock v. Star Brite Inn Motel) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zahrbock v. Star Brite Inn Motel, 2010 S.D. 73, 2010 SD 73, 788 N.W.2d 822, 2010 S.D. LEXIS 113, 2010 WL 3505715 (S.D. 2010).

Opinions

GILBERTSON, Chief Justice.

[¶ 1.] Jonette Anson (Anson) failed to file a personal injury claim within the [823]*823three-year statute of limitations. The circuit court denied her motion to extend the statute of limitations under the doctrine of equitable tolling. We affirm.

FACTS

[¶ 2.] On December 23, 2004, Eleshia Zahrbock, Peyton Gerry, Justin Zahrbock, and Anson were guests at the Star Brite Inn (Star Brite), a Yankton motel. The four guests were overcome by carbon monoxide that leaked into their rooms and suffered varying degrees of harm. Within a few weeks of the accident, Anson was contacted by Eleshia and Justin Zahrbocks (Zahrbocks) and Gerry about hiring an attorney to represent them in a suit against Star Brite.

[¶ 3.] On February 7, 2005, at the Zahrbocks’ suggestion, Anson and Zahrb-ocks met with Sioux Falls attorney Chad Swenson. During the meeting, Swenson discussed a carbon monoxide poisoning expert from Denver that he had used in similar cases in the past. He also mentioned his prior experience in a Yankton law firm. Swenson was excited about the prospects of the case and was willing to take the case immediately. Before leaving Swenson’s office, Anson signed a retainer agreement with Swenson. Swenson told Anson he would be in touch after he filed the suit. A few weeks after the initial meeting with Swenson, Anson received an unsigned copy of a draft of a complaint that included Zahrbocks, Gerry, and Anson as plaintiffs. Anson believed that Swenson had filed the complaint and that the lawsuit had been commenced based on her receipt of the unsigned copy of the complaint.

[¶ 4.] As early as March 2005, Anson realized she was having trouble getting Swenson to return her calls. Anson was instructed by Swenson to send him copies of all medical bills associated with her injuries, which she did but she did not receive a confirmation of receipt or updates in reply. On March 14, 2005, Anson wrote Swenson a letter complaining that she had tried to reach him numerous times and that it appeared Swenson was not getting her messages. Thereafter, Anson continued to call at least once a month to get updates and usually spoke with Swen-son’s secretary.

[¶ 5.] In either April or May of 2005, Swenson spoke briefly with Anson over the telephone and told her the case was progressing as planned. He told Anson he was in negotiations with defense counsel. Swenson also advised Anson to continue with her medical care.

[¶ 6.] Anson was unable to speak with Swenson again until the fall of 2005, when she met with Swenson in his Sioux Falls office. Swenson told Anson during a brief meeting lasting no more than ten to fifteen minutes that the case was progressing as planned and not to be concerned. He also asked her, in a manner that suggested to Anson that the case was progressing in her favor, how many hotels she wanted to own. Swenson advised Anson he would not be retaining the Denver expert at that time to avoid incurring costs until they were further along in the case. This was the last time Anson was able to speak personally with Swenson.

[¶ 7.] Anson continued to call Swen-son’s office for updates, but her efforts to contact him were unsuccessful. She left messages with the office secretary through the fall of 2006. After that time, she was able to reach only an answering machine. In the fall of 2006, Anson was in Sioux Falls and stopped by Swenson’s office in an effort to reach him. She arrived around 2 p.m. in the afternoon and found the office door locked. Anson thought Swenson might be in court and did not think anything was amiss. Anson contin[824]*824ued to call and leave messages for Swen-son one to two times per month over the course of the next eleven to twelve months. Finally, in August of 2007, Anson discovered Swenson’s number had been disconnected. She immediately called every Chad Swenson in the Sioux Falls telephone directory but failed to reach Swenson.

[¶ 8.] Anson’s work took her to Colorado for three months immediately following her discovery that Swenson’s telephone number had been disconnected. She planned to make further attempts to reach Swenson or retain another attorney when she returned to South Dakota. In January 2008, shortly after returning from Colorado, but before she was able to make any further effort to either locate Swenson or retain a new attorney, Anson received a letter from Nichole Carper in her capacity as counsel for Zahrbocks in their suit against Star Brite.

[¶ 9.] Carper’s letter informed Anson that Swenson had been disbarred. Anson immediately retained Carper to represent her in the matter. However, the three-year statute of limitations had expired on Anson’s claim on December 23, 2007. An-son also eventually ascertained that just a few weeks before filing their suit on December 11, 2007, Zahrbocks had learned from Justin Zahrbock’s sister, who was an attorney in Sioux Falls, that Swenson had been disbarred and they were able to secure counsel and file their claim before the statute of limitations expired. Anson learned from Carper that Swenson had never filed a suit as Anson believed he had, and Carper had timely filed a claim in Zahrbocks’ name on December 11, 2007. Up until that time, Anson was unaware that a statute of limitations existed and that it had expired without Swenson filing the suit.

[¶ 10.] Anson eventually also learned from Carper that Swenson was temporarily suspended from the practice of law by this Court on February 22, 2007, and was subsequently disbarred on June 14, 2007. In addition, Swenson failed to notify all clients by mail of his disbarment as required by SDCL 16-19-78.1 Anson was unable to obtain a copy of her file from Swenson.

[¶ 11.] On May 22, 2008, Anson moved to file an amended complaint. Star Brite resisted arguing the statute of limitations in SDCL 15-2-14(3) had expired on De-[825]*825ceraber 23, 2007. By leave of court, Carper filed an amended complaint on December 8, 2008, in an attempt to include Anson as a plaintiff, arguing the doctrine of equitable tolling should apply to allow the complaint. Star Brite filed a motion to dismiss the claim as untimely.

[¶ 12.] After a hearing on the matter, the circuit court issued a memorandum decision. It found that there were extraordinary circumstances that triggered the doctrine of equitable tolling. However, it also found that Anson did not exhibit reasonable and good-faith conduct sufficient to apply the doctrine. The circuit court entered an order dismissing Anson’s claim as barred by the statute of limitations. Anson appeals raising one issue:

Despite a finding of extraordinary circumstances, did the trial court err when it found Anson did not exhibit reasonable and good-faith conduct sufficient to apply the doctrine of equitable tolling and permit her claim despite the expiration of the statute of limitations.

STANDARD OF REVIEW

[¶ 13.] This Court recently determined its standard of review for equitable tolling in Dakota Truck Underwriters v. S.D. Subsequent Injury Fund.

We have, however, recognized that in reviewing the application of the doctrine of equitable estoppel, we are presented with a fully reviewable mixed question of law and fact. See Crouse v. Crouse, 1996 S.D.

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Cite This Page — Counsel Stack

Bluebook (online)
2010 S.D. 73, 2010 SD 73, 788 N.W.2d 822, 2010 S.D. LEXIS 113, 2010 WL 3505715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zahrbock-v-star-brite-inn-motel-sd-2010.