Opinion ID: 1209978
Heading Depth: 1
Heading Rank: 2

Heading: there are genuine issues of material fact concerning the breach of assumed duty claim.

Text: Jones asserts that there is a genuine issue of material fact concerning whether the law firm voluntarily assumed a duty to act in Jones's behalf. We agree, and conclude that there are other genuine issues of material fact concerning whether the law firm is entitled to summary judgment based on the statute of limitations. Jones's complaint refers to a breach of an assumed duty or contract. A claim for breach of an assumed duty is a negligence action where the duty of care results from a voluntary undertaking. Bowling v. Jack B. Parson Companies, 117 Idaho 1030, 793 P.2d 703 (1990). A voluntary duty is distinct from any other duty the party may have as a result of another undertaking or relationship. The law firm argues that there are no facts to support a determination that the law firm assumed any duty towards Jones. In support of this assertion, the law firm submitted evidence that Jones and Addison were both aware that Runft was acting as NIJC's attorney and that they knew Runft was not acting as Jones's attorney. Runft's status as NIJC's attorney, however, does not entitle the law firm to summary judgment on a claim for breach of an assumed duty, if there is a genuine issue of fact whether Runft undertook a separate duty on the behalf of Jones. We conclude that there is a genuine issue of material fact concerning this claim. In opposition to the law firm's summary judgment motion, Jones contends that the August 5 letter, which instructed Runft to handle the transaction in Jones's best interests, along with Runft's endorsement and delivery of the $320,000 check to the escrow company without communicating to Jones that Runft would not handle the transaction in Jones's best interests create a genuine issue of material fact. Concerning this evidence, the trial court concluded: Ordinarily, a showing that such a charge was communicated and not thereafter specifically repudiated would imply an acceptance thereof, and if acceptance was denied a fact issue would thereby be raised. While such a fact would clearly be material, the Court here finds that the issue thus raised is not genuine. The trial court then concluded that in light of undisputed evidence Jones and Addison knew Runft was not acting as their attorney, the August 5 letter could not present an issue that was genuine. In effect, the trial court weighed the evidence presented on summary judgment, rather than liberally construing the disputed facts and drawing all reasonable inferences in favor of the party resisting the motion. McCoy v. Lyons, 120 Idaho 765, 769, 820 P.2d 360, 364 (1991). In considering a summary judgment motion, it is not the function of the trial court, or of this Court, to weigh the evidence. Jones argues that Runft assumed a duty to act on behalf of Jones contractually or otherwise. The August 5 letter and Runft's failure to repudiate the direction in this letter for Runft to act in Jones's best interests create a genuine issue of material fact whether Runft contractually assumed a duty. The statement in the August 5 letter can be viewed as an offer for Runft to enter a unilateral contract. Although the breach of an assumed duty claim sounds in tort, evidence to support the existence of an assumed duty can be contractual in nature. A contract may ... create a state of things which furnishes the occasion for a tort. If the relation of the plaintiff and the defendants is such that a duty to take due care arises therefrom irrespective of contract and the defendant is negligent, then the action is one of tort. Taylor v. Herbold, 94 Idaho 133, 138 483 P.2d 664, 669 (1971) (citation omitted). The law firm argues that the August 5 letter can not be used as evidence of an assumed duty because the letter was written by Addison and the request in the letter that Runft handle the transaction in the best interests of Jones was never communicated to Jones. It is not required, however, that Jones personally knew of Addison's direction to Runft. Runft does not dispute that Addison was Jones's employee and agent or that Addison had Jones's authority to act on behalf of Jones in the loan transaction. Unless Addison's actions exceeded the scope of his authority, Addison's actions are sufficient to bind Runft to fulfill any duty toward Jones that Runft had assumed. Liberally construing the facts in favor of Jones and making all reasonable inferences in his favor, we conclude there is a genuine issue of material fact whether Runft undertook a voluntary duty to act in Jones's best interests in handling the transaction. Runft's failure to repudiate the unilateral offer contained in the August 5 letter, and his subsequent endorsement and transfer of the $320,000 check to the escrow company creates a genuine issue of material fact concerning his acceptance of this offer. Runft asserts that even if a genuine issue of material fact exists concerning the assumed duty, the statute of limitations bars this claim. As we have discussed above, a breach of an assumed duty claim is a negligence action. Because there is no statute of limitations specifically governing negligence actions that do not involve personal injury or malpractice, we apply the four-year statute of limitations found in I.C. § 5-224. Hoglan v. First Sec. Bank of Idaho, 120 Idaho 682, 819 P.2d 100 (1991). To determine whether this statute of limitations bars the claim, we must determine when the first negligent act occurred. Id. at 685, 819 P.2d at 103. This analysis focuses upon the acts complained of and does not require an analysis of when the plaintiff discovered either the acts complained of or the damage resulting from those acts. Jones's claim for breach of an assumed duty alleges that Runft breached an assumed duty to act in Jones's best interests by modifying portions of the escrow instructions to allow release of the loan proceeds without the Pinecrest assignment. Therefore, the act of negligence of which Jones complains is Runft's allowing the escrow company to close the real estate transaction without the Pinecrest assignment. The closing and the release of the loan proceeds occurred on September 1, 1983. This action commenced against the law firm on August 20, 1988, would be barred by the statute of limitations, unless the application of the some damage rule dictates otherwise. In Stephens v. Stearns, 106 Idaho 249, 678 P.2d 41 (1984), the Court stated: It is axiomatic that in order to recover under a theory of negligence, the plaintiff must prove actual damage. As a general rule the statute of limitations does not begin to run against a negligence action until some damage has occurred. W. Prosser, Handbook of the Law of Torts § 30 (4th ed. 1971) (footnote omitted). Id. at 254, 678 P.2d at 46. The statute under consideration in Stephens was I.C. § 5-241, which provides that a tort action arising out of the design or construction of improvement to real property will be deemed to have accrued and the statute of limitation shall begin to run six years after the final completion of construction, if the action has not previously accrued. Since Stephens, the Court has applied the some damage rule in a succession of professional negligence cases in which I.C. § 5-219(4) was at issue. See Chicoine v. Bignall, 122 Idaho 482, 483-487, 835 P.2d 1293, 1294-1298 (1992). Because the trial court dismissed Jones's assumed duty claim on grounds other than the statute of limitations, the court had no occasion to address when Jones first suffered some damage. Jones asserts that the law firm is estopped from asserting that the statute of limitations bars the assumed duty claim. We do not address this issue, because it is premature. Whether the trial court needs to address estoppel depends on the resolution of the merits of the breach of assumed duty claim, or when Jones suffered some damage, or both.