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Antone v. Mirviss
694 N.W.2d 564
Minn. Ct. App.
2005
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*1 645.16(6) plain language § on the of the ty has arisen. See Minn.Stat. Based statute (2002) foregoing analysis, reject conse- and our we (requiring attention as interpretation); appellant’s argu- of see also Minn. without merit additional quences 645.17(1) (2002) ment, (declaring legisla- “repose” § its assertion that the lan- Stat. 541.051, 1(a), guage § of tive intent the absurd unreason- Minn.Stat. subd. able). only injury addresses claims and not indemnity.

claims for contribution and C. Narrow Construction critical,

Although singularly it is not we DECISION on give weight deliberating while these appellant’s Because suit on its claims of considerations to the demand of the su indemnity contribution and occurred with- preme court for strict construction of the parameters § of Minn.Stat. 541.051 unique provisions § 541.051 Minn.Stat. (2002), timely, and thus was we reverse the (2002). Wells, County v. See Kittson Den summary judgment district court’s and re- Assocs., 237, 240-41, brook & 308 Minn. proceedings mand for in further the case. (contrasting Reversed and remanded. approach to this statute with the lib previously eral construction accorded stat embodying impor

utes of limitations “as claims”).

tant in public policy barring stale premised

This rule of construction was in

uncertainty scope of Minn.Stat. 541.051, resulting that persons risk may fairly

affected its terms apprised application of its ANTONE, to their deci Appellant, Richard sions, potential and the harsh result for persons. affected Id. These are reasons MIRVISS, Respondent. Israel applicable that are question the kind of in at issue this case. No. A04-1367. considerations, Based on these we con- Appeals Court of of Minnesota. repose clude that the statute of deems April 2005. appellant’s accrual of contribution in- demnity claims to have occurred at the end year following completion tenth

construction 1993. Because the statute permits commencement of

action following on the claims in the two

years, appellant’s against respon- actions timely.

dents 2004 were

In by interpretation the absence of relief repose,

of the statute of appellant states permitting

cause for its contribution and

indemnity general actions under principles equity justice. Because the district judgment

court’s is reversed under the

statute, we need not reach this issue. *2 Olson, Olson,

Jeffrey Jeffrey A. A. PLLC, Edina, MN, appellant. for Rooney, MN, Edward F. Minneapolis, respondent. *3 Considered and decided SHUMAKER, Presiding Judge; DIETZEN, Judge; CRIPPEN, Judge.* OPINION SHUMAKER, GORDON W. Judge. Appellant-client appeals the district court’s dismissal of legal malpractice action against respondent-attorney, con- tending that the district court erred when it held that the statute of began limitations to run when appellant and his former spouse got married in reliance on an ante- nuptial agreement respondent prepared appellant’s and that action was commenced after the period expired.

FACTS legal malpractice This is a action in appellant Richard Antone claims he sustained attorney, because his respondent Mirviss, Israel improperly antenuptial agreement drafted an that An- spouse tone and his former entered. The district court limi- statute of ruled expired tations had before Antone com- menced granted suit and Mirviss’s motion to dismiss the action. Antone contends the district court erred as a matter of law. As Antone prepared marry for a sec- time, ond attorney he consulted Mirviss about might prevent how he spouse obtaining from certain of his assets if he died or if the dissolved their mar- riage. alleges that Mirviss advised * VI, judge 1 0. Ap- Retired the Minnesota Court of Minn. Const. art. peals, serving by appointment pursuant was entitled to receive. would be antenuptial agreement that an instrument and The district court entered its amended protective proper an judgment awarding portion to draft of that value promised 3, dissolu- January in the event “so 2003.

tion, would not benefit Antone’s fiancée negligence, Premised on theories rela- that occurred any appreciation fiduciary duty, breach of and breach of assets/proper- premarital tive to contract, Antone started this action ties.” September 2003. Mirviss Mirviss on antenuptial agree-

Mirviss drafted suit, arguing moved to dismiss the after con- parties signed that both ment expired statute of limitations had attorneys. respective their sulting with September 2003. The district court parties’ as- *4 agreement disclosed The began that the to agreed; ruled statute spous- limitation on provided and for a sets married, about parties run on the date the marriage event of a al maintenance the years 16 before Antone started the law- dissolution, property it silent as to but was suit; granted and the motion to dismiss. dissolution. rights upon appealed. Antone 21, married on December parties The ISSUE

1986, they signed the ante- day one after a Antone commenced nuptial agreement. alleges that he retained re- Appellant 12 nearly marriage proceeding dissolution antenup- spondent attorney prepare 25, later, He September 1998. years on from prevent spouse tial pendency of the alleges during that of a obtaining certain assets the event first time he discovered for the dissolution alleges He that re- marriage dissolution. antenuptial agreement did that agree- spondent prepare proper failed to a parties’ assets address the division of por- that his obtained ment and spouse from ob- prevent did not in an award 16 property tion of such taining prom- assets that Mirviss marriage. Appellant after the date of protect. ised the award. started suit after 9, 2000, the district court On November ruling that by court err Did the district dissolution, ruling judgment entered to run on began of limitations the statute agreement did not that and, thus, the marriage, the date of authority the court’s to order affect legal malpractice action is time-barred? that would include assets division have been covered alleged were to ANALYSIS Nevertheless, the dis- by agreement. Review Standard of appreciated all of the trict court awarded the correct apply that we can to Antone. Ultimate- So value of such assets review, first address the we remanded the issue standard ly, supreme court Citing of the case. court, procedural posture stating: hold as to the district “We citing any limitations but not statute of portion that a a matter law Mirviss moved procedure, rule of civil during the appreciation market-related response Antone’s Antone v. dismiss the action. property.” is marital (Minn.2002). summary Antone, motion as one for 96, treated the 103 645 N.W.2d P. 56. The Minn. R. Civ. judgment under directive to the dis- supreme court’s dismissing its order court based to determine the district trict court on remand was 12.02(e), R. P. on Minn. Civ. the action appreciated of the value portion 568

failure to state a claim on which relief judgment, can inal district court appellate granted. be decisions, court entry of the district judgment. parties court’s amended 12.02(a)-(f) R. P. provides Minn. Civ. (1) agree the statute of limitations 12.02(e) if, on a motion based on a begins to run legal malpractice when the defense, pleading “matters outside the are accrues, cause of action that the presented to and not excluded cause of action is deemed to have accrued court, the motion shall be treated as one when it is able to survive a motion to summary judgment and disposed of as ” dismiss for failure to a claim state provided in parties Rule 56.... Both may granted. which relief Herrmann submitted various affidavits and other Severson, McMenomy & 590 “matters outside the N.W.2d pleading[s],” and the (Minn.1999). district court did not also exclude Therefore, agree exhibits. begins the district court’s statute to run “after occurs, summary judgment damage dismissal was a in fa- though even the ultimate vor of Mirviss under Minn. R. Civ. P. 56. damage unpredictable.” is unknown or Accordingly, correct Richman, standard of re- Muenzer, Sabes & Inc. v. that applicable summary view is to a judg- (Minn.App.1988). appeal ment. In an summary judg- argues that Antone suffered *5 ment, appellate the court determines “some damage” spouse when he and his genuine whether there is a issue of materi- signed the al fact for trial and whether the district married because Antone then lost right the interpretation court erred in its applica- prevent to claiming tion of the by Cooper law. State v. obtaining an interest in in ques- the assets French, 2, (Minn.1990). 4 460 N.W.2d tion if parties eventually the dissolved Statute of Trigger Limitations their marriage. question appeal sole on is this: survive a motion to dismiss a To triggers “What event legal malpractice legal action, plaintiff a must statute of limitations when allegation is “(1) allege sufficient facts to show the exis attorney improperly prepared an (2) attorney-client tence of an relationship; antenuptial agreement?” ques As to this constituting acts negligence or breach of tion, genuine raise no issue of contract; that such proxi acts were the material fact. When material facts are not mate plaintiffs cause of the damages; and in dispute, question of when a statute (4) that but for defendant’s conduct the begins law, to run is one plaintiff would have been successful in the which this court Ryan reviews de novo. v. prosecution or defense of the action.” 126, ITT Corp., Ins. 450 N.W.2d 128 Life O’Toole, Corp. Blue Water 336 N.W.2d (Minn.1990). (Minn.1983). Here, 281 Antone’s law 541.05, Under Minn.Stat. subd. suit would survive a motion to if dismiss he (1) (1998), the period of limitation within alleged but for negligence Mirviss’s which legal malpractice lawsuit must be contract, and breach of he would not have years. However, started is six the statute any portion lost appreciated value of is silent as to when that period begins question. the assets in Here, run. possible triggering dates are the respective dates of the execution of “damages” element antenuptial agreement, marriage, context of this action is the loss of some dissolution, commencement of the orig- appreciated value. Antone’s claim accrued authority proposi- offered no for the any evi- has on “possible it was point at the money damages action for can consistent tion might produced, be which dence when, grant by any theory, survive a motion to<dismiss pleader’s with v. Minn. might pro- Martens evidence that be demanded.” conceivable relief Co., 732, 739- duced, 616 N.W.2d Mining Mfg. & for an actual loss only potential (Minn.2000) N. States Power (quoting money has occurred. 391, 395, 122 Franklin, 265 Minn. v.Co. “In court stated that: district added). (1963)) (emphasis Minnesota, of limitations on a the statute “possible if it was not conversely, Stated begins to run when legal malpractice claim produced, be any might on evidence advice.” action is taken based theory, pleader’s with the consistent propo for that The court cited Herrmann demanded,” claim will grant the relief holding in Herr sition. But that is not de- Id. The relief Antone dismissed. rule in mann and is not the Minnesota. money damages for in this action is mands Herrmann, 590 N.W.2d at 644. in the mar- value appreciated his loss of compa- Herrmann owned a construction Thus, argu- dissolution. Mirviss’s riage Herrmann, ny. 590 N.W.2d at 642. With dam- Antone sustained “some ment that attorneys, he created a the advice of his right loss of a is in the form of the age” employees. for his pension plan and trust right if of a was only loss tenable type that came Id. The trust was of It was money damages. as ascertainable prohibi- within an Internal Revenue Code Mirviss at time Had Antone sued not. disquali- on transactions with certain tion possible grant it would have been penalty for persons. fied Id. The code damages consistent with evidence engaging in such transactions immedi- negligence theories of supporting Antone’s contract, liability for federal excise taxes and his lawsuit would ate or breach *6 for failure to state interest. Id. been dismissed have sought relief he upon claim which the attorneys later doc- Herrmann’s drafted granted. have been could between partnership uments to create a Antone and his former At the time corporation. trust and an unrelated marriage, partly solemnized their in engaged business partnership Id. The agreement, on the in reliance company. Id. with Herrmann’s Some faulty agree- for the damages under the prohibited the transactions were and unascer- contingent were both ment code, Hermann, employer, became as by the They contingent, were tainable. and interest. Id. for excise taxes liable chal- very agreement now terms of the the prohibi- Herrmann discovered When marriage dissolu- on an eventual lenged, tion, try money to to address spent he on the occur- They contingent tion. were but, the Internal Revenue when problem in the value of the of an appreciation rence later, it years him three audited Services protect. And sought assets prohibited trans- liability for the assessed in the on the court they contingent were at 642-43. actions. Id. actually awarding at action dissolution attorneys for dam- Herrmann sued to Antone’s appreciation some of the least Id. He started legal malpractice. ages money damages spouse. The attorneys years after the suit Antone demanded the relief 10½ constitute trust; 9.years after helped establish solely and action remained malpractice en- involving the trust partnership court until the district entirely potential transaction; years in a gaged prohibited judgment. entered its amended prohibi- after Herrmann discovered the next omission occurred when the tion; attorneys partnership after the Internal drafted the docu- and 6 months Rev- ments but failed to tell Herrmann that if enue Service determined the amount of partnership did business with Herr- at In liability. Herrmann’s Id. 642-43 company mann’s it would violate the tax action, malpractice question was: code restriction and Herrmann would be- begin of limitations “When did the statute come penalties. liable for Id. at 642. The to run?” Id. at 643. supreme court did not hold that this failure Herrmann claimed that the statute be- triggered the statute. Id. at 644. gan to run three before the lawsuit Despite attorneys’ negligent omis- prohibition when he discovered the despite sions and potential for tax code spent money try to correct the trans- penalties respective on the dates gression. argument Id. Because this creation of partnership, the trust and the rule, posited “discovery” on a which had damages Herrmann had no at those times. previously rejected by supreme been monetary sought losses he to recover court, held that the court the statute be- malpractice only poten- action were gan to run prohibit- date the first contingent tial and were engage- on the ed transaction. Id. at 642. signifi- prohibited ment in a transaction. It was cance of that date was that it was point only on the occurrence of the prohib- first immediately at which Herrmann “became ited transaction that Herrmann’s liable for the excise tax and the interest were transformed from contingent, poten- required” by the Internal Revenue Code. tial losses to actual losses for which he at 644. Id. claimed to be entitled to relief. at Id. is instructive for both Herrmann A fair reading of Herrmann re what it holds and what it does not hold. quires the conclusion money when First, it is clear that Minnesota we do damages allegedly by attorney caused neg apply discovery rule in determining ligence or breach of contract are the relief legal malpractice statute of limitations sought action, in a legal malpractice Thus, questions. allegation ascertainable, “some” fixed loss of he did not discover Mirviss’s must occur before the statute of limitations pendency until the of the dissolution is begin will to run. It is not sufficient that *7 irrelevant to the issue before us. damages are contingent, potential, or even probable. Because Herrmann formed the It is apparent also that the statute of trust partnership purpose for the of busi limitations does not automatically begin to ness transactions between the partnership run faulty legal when the given. advice is and his company, tax liabilities were cer alleged malpractice in Herrmann was tainly potential at the moment partner the omission, is, an attorneys that advice that But, ship came into existence. as the su in the exercise of reasonable care should held, preme court the statute ran only given. have That omission first occurred from the time Herrmann incurred an actu when attorneys the helped create the trust liability al for payment money, the irre but did not advise as to the tax code spective of the irrefutable fact that the restriction and monetary consequences the malpractice that occasioned the loss oc of violating that restriction. Id. at 642. years curred earlier. at Id. 643^4. 9½ supreme court did not hold that this arguably negligent omission triggered the Applying here, the Herrmann rule statute of limitations. Id. at 644. though even malpractice allegedly oc- spouse got prove and his able had he started his lawsuit when Antone eurred day marriage. the have allegedly on the after his He could partial reliance married neg- shown that Mirviss antenuptial perhaps there was no had been faulty agreement, ligent, money time An- but his claim was for dam- claim at that because actionable ages. yet not the dam- He could not establish even “some” had sustained tone object legal money damages point. jury at that provide that ages any contingen- could not have awarded amount. His malpractice lawsuit. Until value, claim, time, would for appreciation in the disso- at that have failed cies of the lution, want of essential portion proof and of a of an element. the award occurred, no Antone had appreciated value Pope Although binding, not we find claim and actionable Zanetis, (S.D.Ind.), in- 2002 WL claim the satis- attempt to assert a before Darla persuasive. structive and Before contingences all would faction of three married, Pope attorney Zane- Harold Antone’s loss have resulted a dismissal. antenuptial agreement tis that drafted only potential. was Id. at signed. *1. parties’ both After the divorce, dam- uncertainty Pope Darla sued Zanetis for emphasizes The dissent ages prepara- amount damages is not fatal to as to agreement, antenuptial and tion of legal-malpractice agree action. We But, at her less than the time allowed have not said otherwise. entered, agree- there no she have received without the marriage were would was ment. Id. at *3. at has all. The dissent identified likely wrong not shown but has how limita- asserted the statute of Zanetis wrong damages. into “some” translates summary tions as a defense and moved for terms, very antenuptial agree- its By judgment, contending that action was until a operate ment would not pre- than he started more two after Thus, damages could not oc- dissolution. agreement and that pared actually faulty until instrument cur barred two-year statute operative, though even it was le- became that she Pope argued the action. Id. at *1. entry of mar- binding gally upon un- injured by negligence Zanetis’ riage. til the final. divorce became Id. analogizes The dissent also this case summary judg- the motion for Denying Herrmann, entry into the stating ment, that a of action the court held cause faulty antenuptial agreement is akin to the claim are accrues when all elements of the transaction in that case. prohibited first of those essential present. Id. at *3. One in Herrmann But the omissions occurred Thus, cause damages. “[t]he elements is prohibited the first transaction. of action thus does not accrue unless That event was selected because it was loss, until suffers actual such plaintiff *8 actually money. the plaintiff first time lost Hold- damages that could be shown.” Id. a ing legally cogniza- that must exist there point the instant lawsuit is The entire of can a cause of action injury ble money. solely The case that Antone lost is wrongdoer, court accrue none damages. There about were held: agreement became antenuptial until any ... have not made a identified

operative and the court final award defendants injury suf- plaintiff that sought protect. had to ascertainable property of Antone alleged malpractice fered from Zanetis’ impossible imagine It is to what its divorce until state court issued in Antone would have been amount 572 gave and its final to the at the approval marriage

decree had notice time of the Popes’ plaintiff property If from property division. his non-marital was deleted and, therefore, malpractice agreement unpro- filed suit before was had this then, property tected. His non-marital thus be- it would have been dismissed for of part came a the marital was injury. of an estate and lack subject marital to the claims of his former *6. Id. at spouse. rule The Minnesota is accord. The agree majority I with the began statute of limitations here to run when the context of statute of limitations upon entry the date of the the district of accrues, damage” “some occurs when judgment. court’s amended legal malpractice claim can mo survive a tion to claim dismiss failure to state a DECISION relief can I upon granted. But appellant no damages Because suffered agree majority do not with the that “some the district to until court awarded his for- damage” must be in the form of ascertain spouse property mer was to money damages able for the statute of to him through antenuptial be reserved to generally limitations accrue. See Herr respondent agreement prepared, the stat- Severson, McMenomy mann v. & 590 limitations did to run begin ute of until (Minn.1999) (“[T]he run award, appellant’s the time of the ning of the statute does not depend on timely. lawsuit three later was ability to ascertain the exact amount of Reversed and remanded. (emphasis added); damages”) Olson cf. Aretz, (Minn.App. 346 N.W.2d DIETZEN, Judge (dissenting). 1984) (“Uncertainty as to the of fact respectfully I dissent. Because Antone any damages whether were sustained at all damage” “some suffered at the time of the recovery, is fatal to uncertainty but as to marriage, not.”) and not at the time of the disso- omitted), (quotation the amount is years later, (Minn. lution I affirm would 30, 1984). review denied Oct. court’s grant summary judg- district The Herrmann Court concluded that dismissing ment Antone’s stale the statute upon accrues claim. prohibited occurrence the “first transac Herrmann, their wedding, Before his tion.” 590 N.W.2d at 643-44. spouse sought regard- advice Upon marriage, the antenuptial agreement ing antenuptial agreement. The first operative becomes resolve issues agreement provisions draft property included spousal division and maintenance on property division that An- if protected is, is dissolved. Marriage any therefore, tone’s non-marital defining event and is akin by claims made his former spouse. transaction,” When a “first prohibited as enunci sign Antone’s former refused ated in Hermann. At the time of agreement, property-division portion marriage Antone legal right lost the was deleted and a spousal maintenance ownership claim in his non-marital assets provision alleges inserted. Antone unfettered his former spouse’s inchoate that Mirviss did not draft the interests. See generally Minn.Stat. accordance with wish to (requiring spouse 507.02 to obtain *9 protect non-marital signature other spouse convey of mari reach of his spouse. But Antone property); tal Minn.Stat. 519.07 extinguish (detailing procedures Marriage In re the of Darlene prop- in marital inchoate interest

spouse’s GERBER, petitioner, if other if is erty only spouse insane Respondent, or is otherwise has been deserted divorce). an loss of to a Antone’s entitled a dam- interest his assets was exclusive tort from the proximately flowed

age GERBER, Appellant, John Truman if exact amount malpractice even time of unascertainable at the marriage. County Anoka, intervenor, troubling majority opinion has two Respondent. First, an desiring implications. No. A04-1538. prac- antenuptial agreement will encounter agree- reluctant draft such titioners Appeals Court of Minnesota. they liable for will be held ments because malprac- long alleged advice after the April 12, 2005. Second, because “some tice has occurred. prop- not occur until marital

damage” does proceeding, in a

erty is divided dissolution majority opinion open-end- creates time for a legal extension of

ed contrary gen- is to the This result

claim. limitation, which intent of statutes of

eral cer- provide claims and to

is to bar stale affairs, hold not to

tainty professional malprac- potentially liable

practitioners many years the tort

tice for after has to a care that

occurred and standard of forgotten.

long ago been grant

I affirm district court’s would summary judgment and conclude legal malpractice lawsuit falls six-year limita- statute of

outside

tions.

Case Details

Case Name: Antone v. Mirviss
Court Name: Court of Appeals of Minnesota
Date Published: Apr 12, 2005
Citation: 694 N.W.2d 564
Docket Number: A04-1367
Court Abbreviation: Minn. Ct. App.
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