Opinion ID: 1762983
Heading Depth: 1
Heading Rank: 9

Heading: Failure to Consult

Text: Finally, Martinson asserts that legal malpractice was established when Hjellum, upon discovering the discrepancies between the March 1979 and December 1978 financial statements, failed to seek an explanation of the discrepancies from his clients. Martinson's argument is primarily based on Canon 7, DR 7-102(B)(1), EC 7-5 and EC 7-8 of the North Dakota Code of Professional Responsibility. The Code of Professional Responsibility does not undertake to define standards for civil liability of lawyers for professional conduct [Preliminary Statement, North Dakota Code of Professional Responsibility], and courts have held that violations of the Code constitute only rebuttable evidence of legal malpractice. Woodruff v. Tomlin, 616 F.2d 924 (6th Cir.), cert. denied, 449 U.S. 888, 101 S.Ct. 246, 66 L.Ed.2d 114 (1980); Lipton v. Boesky, 110 Mich.App. 589, 313 N.W.2d 163 (1981). Thus, assuming that there was such a violation in this case, it merely constituted evidence to be considered by the trier of fact. The March 1979 financial statement listed the Martinsons' net worth as $46,076. Hjellum testified that when he found the December 1, 1978, financial statement of the Martinsons, he discovered a $237,000 reduction in the statement of March 29th from the statement of December 1st, `78, a period of less than four months when there would have been practically no depreciation or wear and tear on these articles. Another financial statement of the Martinsons dated December 14, 1979, revealed their net worth to be $210,079. Hjellum testified that he saw no reason to discuss the discrepancies with the Martinsons or assert that no deficiency-judgment action could be brought based on the agreement with Oakes because he had acquired the correct information and would not lie for them. Having carefully reviewed the record, we cannot conclude that the trial court's finding that Hjellum acted reasonably under the particular circumstances of this case is clearly erroneous. We further note that, in any event, the proximate cause of the Martinsons' damage was their furnishing of the inaccurate financial statement, not Hjellum's failure to consult with them about the discrepancies. For the reasons stated in this opinion, Hjellum's motion to dismiss the appeals is granted in part and denied in part, and the judgment is affirmed. ERICKSTAD, C.J., and PEDERSON and GIERKE, JJ., concur. Justice PAUL M. SAND, who died on December 8, 1984, was a member of this Court at the time this case was submitted.