Podrebarac v. Horace, Talley, Pharr, & Lowndes, P.A.
231 N.C. App. 70
| N.C. Ct. App. | 2013Background
- Donald Podrebarac and his wife separated in Dec 2007; parties mediated equitable distribution and executed "Mediation Stipulations" on April 29, 2009, which were filed with the court on May 1, 2009.
- The stipulations were signed by parties and counsel but were not notarized; counsel for Mrs. Podrebarac drafted a formal settlement agreement that she later refused to sign.
- Parties began complying with the stipulations’ property division terms through at least April 2012.
- In early 2012 both original counsel withdrew; Mrs. Podrebarac’s new counsel argued the stipulations were unenforceable for lack of notarization and moved to dismiss enforcement efforts.
- On April 29, 2012 the district court granted the motion to dismiss plaintiff’s motion to enforce, finding the stipulations lacked required notarization.
- Plaintiff filed a legal malpractice complaint against his former attorneys on June 14, 2012; defendants moved to dismiss under Rule 12(b)(6) on statute-of-limitations grounds. The trial court dismissed; plaintiff appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiff's malpractice claim is time-barred under the 3-year statute of limitations | Podrebarac contends his injury was not reasonably discoverable until the district court’s April 13–29, 2012 filings/orders showing the stipulations were unenforceable, triggering the discovery rule and tolling the limitations period | Defendants contend the malpractice cause accrued at the signing/filing of the stipulations in 2009 and plaintiff’s suit filed in 2012 is untimely | Court held the discovery rule could apply; liberally construing the complaint, plaintiff reasonably could not have discovered the injury until April 2012, so the June 14, 2012 suit was timely and dismissal on statute grounds was improper |
Key Cases Cited
- Burgin v. Owen, 181 N.C. App. 511 (standard of review for Rule 12(b)(6) dismissal)
- Bolton v. Crone, 162 N.C. App. 171 (three-year malpractice statute and discovery rule framework)
- Chase Dev. Grp. v. Fisher, Clinard & Cornwell, 211 N.C. App. 295 (continuing representation does not extend limitations period)
- Isley v. Brown, 253 N.C. 791 (expectation that a signer reads and understands documents)
- Thorpe v. DeMent, 69 N.C. App. 355 (lay client’s awareness of attorney error and effect on discovery)
- McIntosh v. McIntosh, 74 N.C. App. 554 (procedure for making equitable distribution stipulations enforceable in open court)
