Opinion ID: 901023
Heading Depth: 2
Heading Rank: 1

Heading: summary judgment statute of limitations

Text: [¶ 7.] The point at which a period of limitations begins to run must be decided from the facts of each case, and statute of limitations questions are normally left for a jury. Greene v. Morgan, Theeler, Cogley & Petersen, 1998 SD 16, 575 N.W.2d 457. There are several exceptions to that rule. First, a court may determine a question of fact by summary judgment if it appears to involve no genuine issue of material fact and the claim fails as a matter of law. Daktronics, Inc. v. McAfee, 1999 SD 113, ¶ 16, 599 N.W.2d 358, 362. Second, deciding what constitutes accrual of a cause of action entailing statutory construction, presents an issue of law. Bosse v. Quam, 537 N.W.2d 8 (S.D.1995). [¶ 8.] We must ascertain whether there is any genuine issue of material fact concerning the date the cause of action accrued. If not, and if the applicable limitations period has expired as a matter of law, then the defendant is entitled to summary judgment. Keegan v. First Bank of Sioux Falls, 519 N.W.2d 607 (S.D.1994). [¶ 9.] The statute of limitations for legal malpractice actions in South Dakota is found in SDCL 15-2-14.2, which provides with certain exceptions, that a malpractice action can be commenced only within three years after the alleged malpractice, error, mistake or omission shall have occurred. [¶ 10.] [T]he statute of limitations on a claim of attorney malpractice begins to run at the time of the alleged negligence and not from the time when the negligence is discovered or the consequential damages are imposed. Keegan, 519 N.W.2d at 612. [¶ 11.] The continuous representation doctrine can also toll the statute of limitations for legal malpractice. Greene, 1998 SD 16 at ¶ 10, 575 N.W.2d at 460. The continuous representation doctrine in a legal malpractice action applies when there is a: [C]lear indicia of an ongoing, continuous, developing, and dependent relationship between the client and the attorney[.] This relationship is one which is not sporadic but developing and involves a continuity of the professional services from which the alleged malpractice stems. Furthermore, the application of this doctrine should only be applied where the professional's involvement after the alleged malpractice is for the performance of the same or related services and is not merely continuity of a general professional relationship. Keegan, 519 N.W.2d at 613 (citations and internal quotations omitted) (emphasis added). The continuous representation itself must occur before the three-year statute of limitations has run, to effectively toll it. Id. Continuous representation is at the gist of the issues in this case. [¶ 12.] The professional service from which Ruth claims malpractice arose was Maulis' participation in the negotiation, drafting and endorsement of a contract for deed dated and signed December 27, 1995. There is no evidence that Maulis continued to represent Ruth, individually, after the signing of the contract for deed. However, it is conceded that Maulis continued to represent the estate of James E. Williams until 1998, when the estate was closed. In this instance Maulis had two clients at the time of negotiation of the contract for deed  Ruth in her individual capacity and Ruth in her trust capacity as executrix of the estate. Maulis' representation must be analyzed separately as to each of these clients. [¶ 13.] The trial court found in its memorandum opinion that Ruth had not alleged any specific facts showing that he represented her in her individual capacity any time after December 27, 1995. The trial court found that the attorney-client relationship continued with reference to the estate until sometime after August 13, 1997. However, the court went on to find that Ruth has not alleged any specific facts to show that this representation related to the contract for deed, nor has she alleged any specific facts to show that her relationship with Maulis was continuous, developing or dependent. [¶ 14.] Maulis argues that the representation ended at the very least on August 13, 1997. He argues that (1) any negligent handling of the sale of the real estate is not related to the handling of the legal affairs of the estate; and (2) that any continuous representation ended when Ruth consulted with a different attorney. Maulis' theory is that because the lawyer-client relationship is based upon a trust relationship between client and the lawyer, the consultation with another lawyer marks an end of that relationship. [¶ 15.] Was Maulis' continued representation of the estate a continuation of the same or related services as he performed for the estate in negotiating the contract for deed? [¶ 16.] Maulis concedes he continued to represent Ruth as executrix of the estate until it closed on January 8, 1998. In her deposition, Ruth testified that she hired Maulis because her husband had used him and had trust and confidence in him. He became not only her lawyer, but her financial advisor. [¶ 17.] There is no single rule for what is or is not continuous representation for all cases. This is particularly true in the probate of an estate. It is impossible to state one rule for all cases, because of the differences in the background, complexity and nature of the estate. For example, what is needed to manage and close an estate consisting primarily of real estate is much different than one consisting primarily of investments. Each case requires different types of activity on the part of an attorney. [¶ 18.] In the context of an estate probate, the role of the executrix's attorney handling the negotiation and execution of a contract for deed cannot be looked at as a single isolated event. The sale of the property in question obviously involved the estate. Management of an estate involves inventorying the assets, collecting the assets, managing the assets while in the executrix's possession, allowing and paying claims, and distributing the remainder of the estate and finally closing it out. In this context the estate had to deal with the disposition of the real estate, either through the closing of the original buy-sell agreement, or some other means. The contract for deed and the closing of the estate are clearly related services and are part of a single act of representation. [¶ 19.] After August 1997 was the attorney-client relationship towards the executrix of the estate an ongoing, continuous, developing, and dependent relationship? [¶ 20.] At some point prior to August 13, 1997, Ruth decided to have her personal estate planning reviewed by a different attorney. Maulis argues that this is a clear indication that the attorney-client relationship was no longer ongoing, continuing, developing and dependent. Maulis argues that a letter from attorney James Taylor, dated August 13, 1997, along with an authorization to release information dated August 6, 1997, ended his representation of the estate because it ended the trust relationship between client and lawyer. It did not. [¶ 21.] A close reading of both documents indicates that Maulis was not fired, nor replaced. Rather, the purpose of the letter and authorization was to inform Maulis that Taylor had been hired to help Ruth with a new estate plan. To assist in that process, the authorization allowed Taylor to examine and copy documents. Apparently, it was at that point Taylor discovered that the estate was not yet closed. Whether prompted by this letter, or perhaps other correspondence or discussions (it is not clear from the record) Maulis then closed the estate in January 1998. However, he was still representing Ruth in her capacity as executrix. An attorney who is employed to probate an estate is not employed by and does not represent the estate. Rather, the personal representative (administrator or executor) is the client and the attorney represents them as their counsel. The selection of an attorney by the decedent is not binding upon the personal representative because, if the attorney is derelict in his duties, the personal representative is liable and so he must have the power to select his or her own attorney. Christie v. Dold, 524 N.W.2d 866, 870-871 (S.D.1994). [¶ 22.] Maulis argues that while he was still attorney of record the estate matters were all but ended and the estate merely needed to be closed. The hiring of Taylor, he contends, indicates that the relationship was no longer one of trust and was no longer developing. The word developing is subject to many definitions. Webster's Third New International Dictionary, 618 (1971). Taken in the context of continuous representation it merely means a continuity of professional services, rather than a sporadic or merely episodic representation from time to time, or from occurrence to occurrence, without some other connection. [¶ 23.] Maulis' argument is not persuasive. The problem is that while the trust aspect of the relationship may have been deteriorating, the relationship was ongoing, continuing and dependent, because he had not yet closed the estate. The relationship was naturally winding down and Ruth's trust in Maulis may have been eroding, but he was still her attorney for the purposes of closing out the estate. To decide otherwise creates a slippery-slope of convoluted reasoning almost impossible to define. Every malpractice trial would begin with a search for that point in the relationship where it went sour, whereupon we would then re-visit the statute of limitations. [¶ 24.] Therefore, summary judgment is affirmed as to the dismissal of the complaint brought by Ruth in her individual capacity, but is reversed as to the dismissal of the complaint brought by Ruth in her capacity as executrix.