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935 N.W.2d 654
N.D.
2019
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Background

  • James Broten was the personal representative of his father’s estate and was sued by his sisters for breach of fiduciary duty; he retained attorney Ralph Carter in 2011.
  • Broten provided Carter ~60 boxes of records he believed would support his defense; Broten repeatedly asked Carter about review of the records.
  • The records were not disclosed during discovery while Carter represented Broten; they were disclosed after Carter was replaced.
  • On August 15, 2013 the district court found Broten breached fiduciary duties (reserving damages); on January 21, 2014 the court awarded $1,300,054 in damages.
  • Broten sued Carter for legal malpractice on January 14, 2016 (claiming Carter failed to review/disclose the records). Carter moved for summary judgment, arguing the two-year statute of limitations barred the suit; the district court granted summary judgment and awarded costs including expert fees for experts who did not testify.
  • Broten appealed the summary judgment and the award of expert expenses; the Supreme Court affirmed the summary judgment and the costs award, while a dissent argued the court lacked appellate jurisdiction because a treble-damages claim remained unadjudicated.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Accrual date/statute of limitations for legal malpractice Broten: accrual tolled until Jan 21, 2014 (damages certain after damages order); thus suit filed within two years Carter: action accrued Aug 15, 2013 when court found breach; two‑year limitations expired before suit Court: objective discovery rule applied; reasonable minds can draw only one conclusion that Broten was on notice on Aug 15, 2013; summary judgment affirmed
Award of expert witness fees for experts who did not testify Broten: experts were unnecessary to resolve the statute‑of‑limitations motion, so their fees should not be taxed Carter: experts were disclosed per scheduling order and reasonably necessary to rebut plaintiff’s experts and prepare for trial Court: district court did not abuse discretion; experts’ work and scheduling support awarding their expenses
Appealability / adjudication of treble‑damages claim (N.D.C.C. §27‑13‑08) Broten (and dissent): the §27‑13‑08 claim was not adjudicated; absent Rule 54(b) certification appeal is premature Carter / majority: parties treated statute of limitations issue together; judgment dismissed complaint "in its entirety" and Broten did not argue below that §27‑13‑08 was separate Majority: did not find jurisdictional defect and affirmed; Dissent: would dismiss appeal for lack of jurisdiction and vacate judgment so district court can adjudicate the §27‑13‑08 claim

Key Cases Cited

  • Pettinger v. Carroll, 912 N.W.2d 305 (2018) (summary judgment standard and de novo appellate review)
  • Larson v. Norkot Mfg., Inc., 627 N.W.2d 386 (2001) (malpractice action accrues when client has incurred some damage)
  • Wall v. Lewis, 393 N.W.2d 758 (1986) (adoption of discovery rule in legal malpractice actions)
  • Riemers v. Omdahl, 687 N.W.2d 445 (2004) (discovery rule uses objective notice standard)
  • Jacobsen v. Haugen, 529 N.W.2d 882 (1995) (cause of action accrues when damage and wrongful act coincide)
  • Richter v. Jones, 378 N.W.2d 209 (1985) (district court discretion to allow disbursements and determine reasonableness)
  • Pratt v. Heartview Foundation, 512 N.W.2d 675 (1994) (expert fees may be taxed even if expert does not testify)
  • N.D. DOT v. Schmitz, 910 N.W.2d 874 (2018) (district court may decline non‑testifying expert expenses; awarding or denying such expenses reviewed for abuse of discretion)
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Case Details

Case Name: Broten v. Carter
Court Name: North Dakota Supreme Court
Date Published: Nov 20, 2019
Citations: 935 N.W.2d 654; 2019 ND 268; 20190098
Docket Number: 20190098
Court Abbreviation: N.D.
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    Broten v. Carter, 935 N.W.2d 654