Court Opinion

ID: 9634726
Source: CourtListenerOpinion
Date Created: 2023-08-22 13:21:48.351023+00
Date Added: 2024-06-11T18:09:09.073978
License: Public Domain

O’HERN, J.,
dissenting.
In essence, the majority holds that a client has reason to believe that he or she is a victim of malpractice when an unfavorable trial court ruling is accompanied by a judicial statement that the attorney’s legal reasoning or strategy has *501brought about the unfavorable outcome of the matter. The problem with the analysis is that judges, no less than lawyers, are not perfect. That is why we have appeals. Hence, I believe that the Appellate Division correctly concluded that the statute of limitations on legal malpractice is tolled while a client appeals an underlying judgment. 254 N.J.Super. 530, 604 A.2d 126 (1992).
We begin with the basics. When does such a cause of action accrue? In the typical tort case, to establish a cause of action, the plaintiff must prove tortious conduct, injury, and proximate cause. W. Page Keeton, et al., Prosser and Keeton on the Law of Torts § 30 (5th ed. 1984). In most cases, the factual connection between a defendant’s conduct and the plaintiff’s injury is not genuinely in dispute. “Often, the cause-and-effect relationship is obvious: A’s vehicle strikes B, injuring him; a bottle of A’s product explodes, injuring B; water impounded on A’s property flows onto B’s land, causing immediate damage.” Allen v. United States, 588 F.Supp. 247, 405 (D.Utah 1984), rev’d on other grounds, 816 F.2d 1417 (10th Cir.1987), cert. denied, 484 U.S. 1004, 108 S.Ct. 694, 98 L.Ed.2d 647 (1988).
In a legal-malpractice action the connection is far less obvious. An attorney will often render an opinion that will fall short of acceptance in trial courts. An example is a case such as State v. Bander, 56 N.J. 196, 265 A.2d 671 (1970). Assume that an attorney had given the broker an opinion that to draw a contract between parties in a real estate transaction was permissible because a provision in New Jersey’s statute regulating the unauthorized practice of law provided an exemption for such conduct. Assume too that the trial court would rule, as it did in Bander, that such advice was incorrect and of no effect, resulting in a judgment of conviction of the client who had relied on the attorney’s advice. Would the client have suffered compensable injury because the trial court had determined the attorney’s opinion was deficient? Would the client have suffered compensable injury because he had to appeal the matter to another court before final vindication?
*502Under the majority’s reasoning, the action accrues when the client has reason to believe that the attorney’s opinion is erroneous and that as a result he has suffered injury, such as an adverse ruling. What are the damages that the client has suffered? Certainly a potential loss of liberty or of a broker’s license. Under the majority’s theory, however, the client should start the action without knowing what the extent of damages will be, surely an unnecessary court event. Recognizing that no trial may be conducted in such circumstances, the majority suggests that the ease be placed on the inactive list of cases until the appeal is resolved. Ante at 499, 621 A.2d at 466. In other words, have two lawsuits and two sets of lawyers for the client.
A natural reluctance exists to create what may appear to be a special rule of law for lawyers’ malpractice. In reality, we would not be creating a special rule but applying the principle that an injury must occur before a tort arises. The law of injury differs in legal malpractice cases because, to paraphrase the immortal words of another professional, the case “is not over until it is over.” Legal malpractice is not like a surgical operation on the wrong arm of a patient, nor is it like leaving a support beam out of a bridge. There is no appeal from such mistakes. On the other hand, a lawyer’s opinion is as good or as bad as the court of last resort deems it. To convince courts takes longer in some cases than in others. In recent terms of Court alone, we have reversed lower court rulings on a number of occasions. E.g., Jacob v. Norris, McLaughlin & Marcus, 128 N.J. 10, 607 A.2d 142 (1992); Reuben H. Donnelley v. Director, Div. of Tax., 128 N.J. 218, 607 A.2d 1281 (1992); Weiss v. New Jersey Transit, 128 N.J. 376, 608 A.2d 254 (1992); Zelasko v. Refrigerated Food Express, 128 N.J. 329, 608 A.2d 231 (1992). In turn, we have been reversed on a number of occasions. E.g., Exxon Corp. v. Hunt, 475 U.S. 355, 106 S.Ct. 1103, 89 L.Ed.2d 364 (1986); United Bldg. & Constr. Trades Council of Camden County & Vicinity v. Mayor & Council of *503the City of Camden, 465 US. 208, 104 S.Ct. 1020, 79 L.Ed.2d 249 (1984).
Other jurisdictions have enacted statutes of limitation specifically applicable to attorney-malpractice suits. See Laird v. Blacker, 2 Cal.4th 606, 7 Cal.Rptr.2d 550, 558, 828 P.2d 691, 699, cert. denied, — U.S.-, 113 S.Ct. 658, 121 L.Ed.2d 584 (1992). For example, California has established a one-year statute of limitations for attorney-malpractice actions. California Code of Civil Procedure § 340.6 provides that the statute of limitations for malpractice commences when the client discovers or should have discovered the cause of action. The statute of limitations is tolled “during the times, inter alia, (i) the client ‘has not sustained actual injury,’ (ii) the negligent attorney continues to' represent the client, (iii) the attorney willfully conceals facts constituting the negligence, or (iv) the plaintiff is under a disability that ‘restricts the plaintiff’s ability to commence legal action.’ ” 7 Cal.Rptr.2d at 551, 828 P.2d at 692 (quoting California Code of Civil Procedure § 340.6). In Ohio, “the one-year statute of limitations commences to run either when the client discovers or, in the exercise of reasonable diligence should have discovered, the resulting damage or injury, or when the attorney-client relationship for that particular transaction or undertaking terminates, whichever occurs later.” Omni-Food & Fashion, Inc. v. Smith, 38 Ohio St.3d 385, 528 N.E.2d 941, 944 (1988).
I find myself in agreement, albeit we are both in the minority, with the opinion of Justice Mosk of the California Supreme Court interpreting the concept of injury under the California Legal Malpractice Act. He would construe the concept of injury in malpractice cases with the purpose of “furthering the policies underlying statutes of limitations: i.e., judicial economy, avoiding stale claims, and fairness to the parties.” Laird, supra, 7 Cal.Rptr.2d at 562, 828 P.2d at 703. As he points out:
To force malpractice plaintiffs to file their actions before they know the outcome of the case upon which their claim is based does not promote judicial economy. The status of the malpractice claim is uncertain until the appeal in *504the underlying case is resolved, because if it is ultimately decided in the client’s favor the malpractice suit may well become moot for lack of damages.
[Id. 7 Cal.Rptr.2d at 563, 828 P.2d at 704.]
See also Vail v. Townsend, 29 Ohio App.3d 261, 504 N.E.2d 1183, 1186 (1985) (concluding that law should not discourage client from giving lawyer an opportunity to correct an error); Hughes v. Mahaney & Higgins, 821 S.W.2d 154, 157 (Tex.1991) (stating that “[limitations are tolled for the second cause of action because the viability of the second cause of action depends on the outcome of the first”).
Our Court appears driven to its result at least in part by the familiar parade of horribles — in this case, the specter of the fifteen-year-old lawsuit, ante at 497, 621 A.2d at 465. Such a result is greatly to be avoided, but I suspect that case is far more the exception than the norm. Hence, I would not fashion a rule that creates the cumbersome necessity of creating a conflict between attorneys and clients. As one commentator noted, the recent Texas Supreme Court decision in Hughes, supra, 821 S.W.2d 154, tolling the statute of limitations for malpractice claims until the parties have exhausted all the appeals of the underlying lawsuit “reflects the growing interest in preserving the attorney-client relationship throughout the appellate process.” Dina Bernstein, Recent Development, Limitation of Actions — Legal Malpractice — Legal Malpractice Committed While Working On Cases Which Result In Litigation Tolls The Statute Of Limitations For The Malpractice Claim Until All Appeals For The Underlying Causes Of Action Are Exhausted Hughes v. Mahaney, 821 S.W.2d 154 (Tex.1991), 23 St. Mary’s L.J. 1185, 1194 (1992). Like Justice Mosk, “I am convinced the majority err in holding there is actual injury while the client yet awaits the resolution of an appeal of right she has actually pursued.” Laird, supra, 7 Cal.Rptr.2d at 564, 828 P.2d at 705. I agree with the Appellate Division, the Texas Supreme Court in Hughes, supra, 821 S.W.2d 154, and Justice Mosk that the statute of limitations on *505legal malpractice should be tolled while a client appeals an underlying judgment.
I would affirm the judgment of the Appellate Division.
Justice STEIN joins in this opinion.
For reversal and reinstatement — Chief Justice WILENTZ and Justices CLIFFORD, HANDLER, POLLOCK and GARIBALDI — 5.
For affirmance — Justices O’HERN and STEIN — 2.