Opinion ID: 1678006
Heading Depth: 1
Heading Rank: 7

Heading: did the haberers introduce sufficient evidence to create a jury issue on the question of damages?

Text: Due to our ruling on Issues I and II, this will not need to be addressed in detail, as the issue of damages in the case within the case and on the land transaction must be tried. Proof of damages proximately caused by negligence is a fundamental element of a malpractice action. When the alleged legal malpractice consists of a client's assertion that the defendant lawyer has mishandled a claim or lawsuit, proof of damages necessarily involves analysis of the value of that underlying cause of action. Burke, 417 N.W.2d at 211; Whiteaker, 382 N.W.2d at 114. An attorney is liable for all damages proximately caused by the wrongful act or omission. Taylor Oil Co. v. Weisensee, supra ; Dessel v. Dessel, 431 N.W.2d 359 (Iowa 1988); Mallen & Smith, supra, § 16.4. Compensatory damages for negligence are those which flow directly and proximately from a defendant's breach of his duty to plaintiff. Scognamillo v. Olsen, 795 P.2d 1357, 1361 (Colo.App.1990). If the defendant attorney's negligence results in entry of a judgment when there otherwise would not have been judgment, the proper measure of damages is the entirety of the prior judgment regardless of the theory upon which the prior judgment was entered or the nature of the damages assessed thereunder. Id.; Hunt v. Dresie, 241 Kan. 647, 740 P.2d 1046 (1987). Thus, the punitive damages assessed in the underlying case are part and parcel of the damages plaintiffs suffered as a result of the defendant's alleged negligence. Scognamillo, supra, 795 P.2d at 1361. The trial court granted Rice's directed verdict motion in both the underlying case and the primary case due to Haberers' failure to show that their business would have been successful. The trial court in effect limited the Haberer claim under rules applicable to cases seeking to recover lost profits. This ignores the underlying case and any damages determined therein. The underlying case has a claim that First Bank allegedly breached its promise to lend money to Haberer. Where a breach of contract has prevented an anticipated gain and made proof of loss difficult to ascertain, the injured party has a right to damages based upon his reliance interest, including expenditures made in preparation for performance, or in performance, less any loss that party in breach can prove with reasonable certainty the injured party would have suffered had the contract been performed. Hartzman v. Hightower Productions, Ltd., 53 Md.App. 656, 456 A.2d 82 (1983). The law distinguishes between those cases in which there is a question about the fact of whether damages have been incurred and those in which only the measure or amount of damages is uncertain. Keegan v. First Bank of South Dakota, 470 N.W.2d 621, 624 (S.D.1991); Schmidt v. Wildcat Cave, Inc., 261 N.W.2d 114 (S.D.1977); Wang v. Bekken, 310 N.W.2d 166 (S.D.1981). In the former case, reasonable certainty is required in proving the fact and cause of the loss; once those elements have been proven, the amount of damages need not be shown with the same degree of certainty. Keegan, supra; 22 Am.Jur.2d Damages, §§ 486-87. In a nutshell, Haberer did produce sufficient evidence to create a jury issue on the issue of damages in both the underlying cause of action and the primary cause of action. The trial court erred in directing a verdict in favor of Rice. We reverse and remand for proceedings consistent with this opinion. SABERS, J., concurs. MILLER, C.J., and HENDERSON and AMUNDSON, JJ., concur specially. McMURCHIE, Circuit Judge, for WUEST, J., disqualified.