Opinion ID: 774802
Heading Depth: 2
Heading Rank: 2

Heading: Failure To Sue St. Mary's Hospital

Text: 28 We also agree with the District Court's conclusion that Exclusion B precludes coverage of the Lees' claims asserting that Baratta failed to investigate and file suit against St. Mary's. An allegation in the complaint filed in the Lees' legal malpractice action against Baratta and B&F in October of 1998 demonstrates that Baratta knew that the Lees had a potential claim against St. Mary's. It alleges that the following exchange took place in 1979 when the Lees first approached Baratta with their medical malpractice case: 29 Attorney Baratta advised the Lees not to file any action against St. Mary's Hospital. He stated that he was a personal friend of a Dr. Cahill, who was a physician at St. Mary's Hospital, and that if the Lees did not sue St. Mary's Hospital, he would be able to testify as to the negligence of Sacred Heart Hospital and Dr. Harrison. 30 Baratta and B&F also knew by May of 1996 that Baratta had failed to prosecute that very case against Sacred Heart that allegedly would have been strengthened by forgoing suit against St. Mary's. Finally, as the District Court observed, Baratta had received a letter from the Lees expressing their general frustration over the handling of their case. It alleged that Baratta had brushed off inquiries for a case status report and dragged on and ignor[ed] the case. 31 We conclude that a reasonable attorney in possession of these facts would have foreseen that he had breached a professional duty by failing to investigate and pursue a case against St. Mary's, and that consequently there might be a basis for a legal malpractice claim against him. Baratta presented the Lees with a strategy for maximizing their claims against Sacred Heart, which he then botched through sheer negligence and inattention. Not only did he fail to prosecute the case against Sacred Heart that was allegedly strengthened by forgoing suit against St. Mary's, he also failed to reconsider the decision not to sue St. Mary's when, by his own inaction, he was not pursuing the case against Sacred Heart. Put another way, Baratta in effect excuses his failure to sue St. Mary's by his failure to pursue the suit already brought against Sacred Heart. The alleged understanding not to sue St. Mary's can have no preclusive effect when the predicate for that alleged understanding (to pursue suit against Sacred Heart and to use as a witness against it Dr. Cahill of St. Mary's) does not exist. 32 Moreover, we agree with the District Court that the Lee letter would clearly put a reasonable attorney in the same position as Baratta on notice that the Lees were frustrated about more than just the dismissal of their medical malpractice action against Sacred Heart. 57 F. Supp. 2d at 184. That letter expresses a general frustration with Baratta's failure to spend adequate time developing their case. 33 Thus, we also affirm the District Court's determination that Exclusion B precludes coverage for the Lees' claim alleging that Baratta committed legal malpractice by failing to pursue a case against St. Mary's.