961 F.3d 1190
D.C. Cir.2020Background
- Seed Company filed U.S., PCT, and Japanese patent applications for a dispensing-tape device; the U.S. application was contested by Stevens.
- Armstrong Westerman (the original firm) failed to file an English translation and an affidavit for the PCT application, leading to loss on appeal (Stevens) and rejection of Seed’s patent.
- The original firm split into Westerman (continued representing Seed) and Kratz; James Armstrong (now at Kratz) advised Seed by email to sue Westerman and gave advice about the malpractice statute of limitations.
- Seed sued both Westerman and Kratz for legal malpractice (Count I against both for failing to file the translation/affidavit; Count II against Westerman for post-decision advice; Counts III–IV alleged Armstrong’s advice caused loss of Count I against Kratz).
- On prior appeal the D.C. Circuit held Count I time-barred as to Kratz but not Westerman, allowed Count I to proceed against Westerman, and remanded Counts II–IV for further consideration.
- On remand the district court dismissed Count II as waived by Seed and granted summary judgment to Kratz on Counts III and IV; the D.C. Circuit affirms.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Seed waived damages asserted in Count II | Seed says it only waived damages tied to lost settlement opportunities, not damages for being "lulled" into losing claims vs. Kratz | Westerman says Seed broadly waived all Count II damages in district-court briefing | Waiver was broad and unqualified; district court did not abuse discretion in dismissing Count II |
| Whether Armstrong's advice was the but-for cause of losing Count I against Kratz (Counts III–IV) | Seed says Armstrong’s statute-of-limitations advice misled it about accrual and thus caused the late filing against Kratz | Kratz says Armstrong’s advice related only to Westerman and could not be the cause of losing claims vs. Kratz | A reasonable jury could find but-for causation (factual dispute exists) |
| Whether Armstrong’s advice was the proximate (foreseeable) cause of losing Count I against Kratz | Seed contends Armstrong should have foreseen that its advice would affect timing of suits against all defendants | Kratz argues loss as to Kratz was not a foreseeable result of advice about Westerman and later events (new counsel, tolling failures) were intervening | No reasonable jury could find proximate causation; loss to Kratz was not a foreseeable consequence and intervening acts break causation — summary judgment for Kratz affirmed |
Key Cases Cited
- Seed Co. v. Westerman, 832 F.3d 325 (D.C. Cir. 2016) (prior panel decision addressing statute-of-limitations and remanding Counts III–IV)
- Stevens v. Tamai, 366 F.3d 1325 (Fed. Cir. 2004) (Federal Circuit decision rejecting Seed’s patent due to missing translation/affidavit)
- United States v. Olano, 507 U.S. 725 (U.S. 1993) (definition of waiver as intentional relinquishment)
- Martin v. Ross, 6 A.3d 860 (D.C. 2010) (elements of legal malpractice claim)
- Convit v. Wilson, 980 A.2d 1104 (D.C. 2009) (proximate cause requires foreseeability in malpractice)
- Dalo v. Kivitz, 596 A.2d 35 (D.C. 1991) (intervening acts/superseding cause can break causation)
- Majeska v. District of Columbia, 812 A.2d 948 (D.C. 2002) (proximate-cause can be resolved as a matter of law when evidence cannot support a rational finding)
