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