delivered the opinion of the court:
This case arises from a legal malpractice action against the law firm of Schiff, Hardin & Waite and one of its attorneys, Stuart Goodman. At issue is whether the lawsuit is barred under section 13— 214.3 of the Code of Civil Procedure (735 ILCS 5/13 — 214.3 (West 1992)), which contains a two-year statute of limitations and a six-year statute of repose. For reasons which follow, we hold that the suit is not barred as a matter of law, reverse the dismissal of the circuit court, and remand.
The alleged malpractice giving rise to this appeal involved a promissory note executed on April 29, 1985, between Shirley and Julius Goodman and their son-in-law, Richard Dahl. The note was drafted by Stuart Goodman, Julius’ nephew. Goodman represented both the Goodmans and Dahl at the time of the transaction.
Subsequently, on January 26, 1993, Shirley Goodman instituted suit against Dahl to enforce the note. In turn, Dahl filed a third-party action against his former attorneys, Stuart Goodman and the law firm, Schiff, Hardin & Waite (collectively, the attorneys). Dahl filed his suit on November 8, 1993.
The gravamen of Dahl’s complaint was that the attorneys’ dual representation at the time the note was drafted constituted a conflict of interest. Specifically, Dahl claimed the attorneys did not disclose the possible effects of their simultaneous representation. Moreover, the attorneys did not inform him that certain loan terms were unusual and commercially questionable. Nor did the attorneys suggest alternatives to the loan or recommend that certain oral representations be included in the written agreement. Dahl alleged that he would not have entered into the loan agreement if he had been properly advised by the attorneys.
Relevant to this appeal is Dahl’s allegation that he "did not discover” the attorneys’ malpractice until he was sued by Shirley. In particular, Dahl submits that he first "discover[e]d” the attorneys’ negligence when he was made a party to that lawsuit and "served with summons *** on or about July 1, 1992.” 1
The attorneys successfully moved to dismiss Dahl’s complaint pursuant to section 2 — 619(a)(5) on the basis that it was time-barred by the six-year statute of repose for legal malpractice. (735 ILCS 5/13 — 214.3 (West 1992).) After granting the dismissal, the circuit court found no just reason to delay enforcement or appeal of the dismissal. See 134 111. 2d R. 304(a).
Section 13 — 214.3 provides:
"(b) An action for damages based on tort, *** against an attorney arising out of an act or omission in the performance of professional services *** must be commenced within 2 years from the time the person bringing the action knew or reasonably should have known of the injury for which damages are sought.
(c) *** [A]n action described in subsection (b) may not be commenced in any event more than 6 years after the date on which the act or omission occurred.
* ❖ *
(f) This Section applies to all causes of action accruing on or after its effective date.” (735 ILCS 5/13 — 214.3 (West 1992).)
The effective date of the statute was January 1,1991. 735 ILCS 5/13— 214.3 (West 1992).
On appeal, Dahl initially maintains that section 13 — 214.3 does not apply because his cause of action accrued before the statute’s effective date, January 1, 1991, and, therefore, his action is controlled by the five-year limitations period contained in section 13 — 205. (Ill. Rev. Stat. 1991, ch. 110, par. 13 — 205; see, e.g., Garcia v. Pinto (1993),
ACCRUAL OF DAHL’S CAUSE OF ACTION
In order to determine which statute applies, we must first determine when Dahl’s cause of action legаlly accrued. The Illinois Appellate Court has taken different approaches in determining when a cause of action for legal malpractice accrues. One line of cases, illustrated by Dolce v. Gamberdino (1978),
Our supreme court has never directly addressed the question of when a cause of action for legal malpractice accrues. In its most recent decision concerning such actions, the court noted that “[t]he discovery rule delays the commencement of the relevant statute of limitations until the plaintiff knows or reasonably should know that he has been injurеd and that his injury was wrongfully caused.” (Jackson Jordan, Inc. v. Leydig, Voit & Mayer (1994),
The supreme court held that the date of discovery was a question for the jury; only the fact finder could decide when the client should be charged with the knowledge of injury. In Jackson that meant the date when the client was informed another patent existed or the date on which the rival company announced its intention to sue on the patent infringement or on the date in which the court of appeals ruled adversely to the client. Jackson,
The decision in Jackson indicates that the date on which the actual malpractice took place — for example, the date advice is given and acted upon — is not the date of the cause of actions’s accrual. If accrual occurred on the date of the advice, the supreme court in Jackson would not have found that a question of fact existed as to the date of discovery, for the parties did not dispute that the advice was given in 1973. Jackson leaves but little doubt that the accrual theory embraced in Dolce is no longer the law in Illinois. We must, therefore, adopt the rationale set forth in both Kohler and Tucеk, which we believe is more consistent with Illinois case law concerning the discovery of injury and its effect on the accrual of a cause of action.
THE DISCOVERY RULE
Illinois courts have acknowledged the inherent inequities which arise if a plaintiff is unaware of otherwise actionable negligence until after the applicable statute of limitations has passed. The solution to the dilemma is the so-called "discovery rule,” which tolls a limitations period to the time when a person knows or reasonably should know both of his injury and its wrongful cause. See, e.g., Rozny v. Marnul (1969),
The discovery rule was first adopted by the supreme court in Rozny v. Marnul (1969),
In Lipsey v. Michael Reese Hospital (1970),
" 'On a theoretical basis it is impossible to justify the applicability of the discovery rule to one kind of malpractice and not to another. The reason for the application of the discovery rule is the same in each instance. It is manifestly unrealistic and unfair to bar a negligently injured party’s cause of action before he has had an opportunity to discover that it exists.’ ” (Lipsey,46 Ill. 2d at 41 , quoting Frohs v. Greene (1969),253 Or. 1 , 3-4,452 P.2d 564 , 565.)
Indeed, it was this rationale which underlied the appellate court’s decision in Kohler, the first legal malpractice case which applied the discovery rule to such causes of action. (See Kohler,
The relationship between an attorney and the client is one in which the attorney is charged with a duty to act skillfully and diligently on the client’s behalf. Given the duty, the client is presumed unable to discern any misapplication of legal expertise. As the California Supreme Court has stated:
"If [the client] must ascertain malpractice at the moment of its incidence, the client must hire a second professional to observe the work of the first, an expensive and impractical duplication, clearly destructive of the confidential relationship between the practitioner and his client.” (Neel v. Magana, Olney, Levy, Cathcart & Gelfand (1971),6 Cal. 3d 176 , 188,491 P.2d 421 , 428,98 Cal. Rptr. 837 , 844.)
Therefore, it is "the realized injury to the client, not the attorney’s misapplication of the expertise, [which] marks the point in time for measuring compliance with a statute of limitations period.” Hermitage Corp. v. Contractors Adjustment Co. (1995),
Applying the foregoing principles, we hold that Dahl’s cause of action against his attorneys accrued on July 2, 1993, the undisputed date of his discovery. Because section 13 — 214.3 applies to causes of action "accruing” on or after January 1, 1991, it applies to Dahl’s suit.
SECTION 13 — 214.3(c) AND THE STATUTE OF REPOSE
As a preface to our discussion of section 13 — 214.3(c), we note that the legislative intent behind a statute of limitations is necessarily different from the legislative intent behind a statute of repose. "The period of repose gives effect to a policy different from that advanced by a period of limitations; it is intended to terminate the possibility of liability after a defined period of time, regardless of a potential plaintiff’s lack of knowledge of his cause of action.” Mega v. Holy Cross Hospital (1986),
Although in a general sense statutes of repose and statutes of limitations are similar in that they prescribe the periods within which actions may be brought, the terms are not interchangeable. A statute of repose terminates the right to bring аn action when the event giving rise to the cause of action does not transpire within the specified interval. The injured party no longer has a recognized right of action, and the harm that has been done is damnum absque injura — a wrong for which the law affords no redress. (See Rosenberg v. Town of North Bergen (1972),
In this case, section 13 — 214.3(c) contains a period of repose such that no action may be brought if "the act or omission” upon which it is based occurred more than six years prior to the filing. Here, because the alleged acts of negligence occurred in April 1985, the repose period expired six years later, in April 1991. Dahl, however, did not file his complaint against the attorneys until November 1993. Thus, under the statute, Dahl did not timely file his cause of action.
Citing a long line of Illinois Supreme Court cases, Dahl argues that this court should apply the same exception to the legal malpractice statute of repose that has been used to prevent harsh results in other areas of the law, when similar statutory enactments "cut off” a plaintiff’s potential cause of action. Based upon our interpretation of our supreme court’s decisions on this issue, we agree.
In Anderson v. Wagner (1979),
Nevertheless, not all harsh results are the same. In Illinois, an amendment shortening a statute of limitatiоns, of course, will not be retroactively applied so as to terminate a cause of action unless the party has had a reasonable period of time after the amendment’s effective date in which to file an action. (Phillips Products Co. v. Industrial Comm’n (1983),
Although the above-noted rule is stated in terms of statutes of limitations, our supreme court has applied it in cases invоlving statutes of repose. In Moore v. Jackson Park Hospital (1983),
However, in the special concurring opinion in Moore, three members of the court recognized that the causes of action which stem from occurrences prior to the effective date of the amendment and which, under the discovery rule, "accrue” at a later time should not be terminated by a statute of repose on its effective date. (Moore,
In Mega v. Holy Cross Hospital (1986),
We note that several factors present in these decisions are also present in the case before this court. In all instances, prior to legislative action, the limitations periods were, by application of the discovery rule, "open-ended.” The legislature, responding to the ramifications of such a scenario, created repose periods to "cut off” some of the undiscovered causes of actions. In the area of legal malpractice, this same intent is reflected in the legislative debates in which the issue of insurance coverage was specifically mentioned. (See 86th Ill. Gen. Assem., House Proceedings, Mаy 18, 1990, at 59-60 (statements of Representative Preston).) Of particular relevance to our case are the comments of Senator Marovitz: Thus, it is apparent that the legislature sought to create a statute of repose similar to those found in the area of medical malpractice and interpreted by our supreme court in the Anderson, Moore, and Mega decisions. To be sure, the success of the legislature in cutting off the long tail of liability in tort cases has been tenuous. Given the language of the instant statute of repose, it is not without effоrt to understand the application of the "reasonable period” rationale. We wonder whether it is not more appropriately limited to those situations where the legislature has reduced the existing limitations period, for example, from five years to two years (see Orlicki v. McCarthy (1954),
"Case law has established that a cause of action for legal malpractice will not accrue until the client discovers or should havе discovered the facts establishing the cause of action. What [this bill] does *** [is] provide[ ] a two-year Statute of Limitation on attorney malpractice with a six-year limitation after the individual — that’s the — that’s the outer limit — two years after the individual knew or should have known, but no more than six years. We have done similar things in this Body recently for physicians, dentists, registered nurses, hospitals, architects, builders, contractors, public accountants, and the lawyers are really the last one to get on board ***.” (86th Ill. Gen. Assem., Senate Proceedings, June 21, 1990, at 33 (comments of Senator Marоvitz).)
We find Costello v. Unarco to be particularly instructive in ascertaining the effect of applying the exception to the facts of this case. Relying on its prior decision in Mega, the supreme court in Costello applied the exception to a cause of action involving asbestos exposure. The plaintiff, Frank Costello, was exposed to defendant’s asbestos materials at his workplace between 1942 and 1945. As a result of the exposure, Costello developed cancer which was later discovered in September 1980. His widow subsequently brought suit on April 27, 1982. Asserting the ten-year period of repose applicable to products liability actions, the defendant moved for dismissal. The circuit court granted the motion, and the case ultimately went to the supreme court. The court held:
"It appears to us that the rationale of the special concurring opinion in Moore and the majority opinion in Mega applies here. Plaintiff’s cause of action, inchoate at the time of the effective date of the provision for repose, accrued subsequent to that dаte. We need not decide what would be a reasonable period after the effective date of the amendment to discover the condition. The cause was dismissed upon allowance of defendants’ motion to dismiss and for purposes of this appeal the date of discovery alleged in the complaint must be taken as true. The record shows that the action was instituted within three years of the effective date [of the statute] and two years of discovery, and we hold that plaintiffs cause of action was timely filed.” (Costello,111 Ill. 2d at 484 .)
Again, the suрreme court held that the reasonable period of time in which a plaintiff may bring suit for injuries sustained prior to the effective date of a statute of repose can never be more than the repose period itself, computed from the effective date of the statute. Costello,
Applying this rationale to the facts in this case, Dahl’s action must be viewed as timely filed. Dahl both discovered his injury and filed suit within six years of the effective date of section 13 — 214.3.
The attorneys argue, however, that Dahl is unlike the plaintiffs considered in Mega, Moore, and Costello because Dahl’s cause of action was not instantaneously barred as of the effective date of the statute, January 1, 1991. Although we agree with the attorneys that Dahl is unlike the plaintiffs considered in those cases, we find the "distinction” to be without a difference.
Cases such as this fall into two categories. In the first category, the repose period immediately extinguishes the "inchoate” right of action. Our courts have described these cases as ones which are "instantaneously barred” if the repose period were to apply retroactively. Mega, Moore, and Costello are of this species. The second category is where the repose period shortens the time to file an "inchoate” cause of action, which is still viable on the effective date of the new statute, even under its new terms. Sparse case law treats these situations; however, in those cases where the issue has been broached, courts look to whether the time between the effective date of the statute and the new date on which it barred the cause of action allowed thе plaintiff a "reasonable time” to file the suit. (See Mega,
Here, Dahl falls within the latter category of cases. The time between section 13 — 214.3’s effective date and the date Dahl’s cause of action became barred under the new statute’s terms, April 1991, was only three months. We do not believe three months constitute a "reasonable period” within which to discover the injury and file suit, as contemplated by the supreme court. See Clark,
Thus, in accordance with the analyses in Mega and Costello, because he sustained his injury prior to the effective date of section 13 — 214.3, Dahl was required to discover and commence his action no later than January 1,1997. It is undisputed that Dahl did not discover the allegеd negligence until July 2, 1993. Dahl’s complaint, filed within four months of discovery on November 1, 1993, was therefore timely. See Costello,
The order of the circuit court is reversed, and the cause is remanded for further proceedings.
Reversed and remanded.
GORDON and McNULTY, JJ„ concur.
Notes
The July 2, 1992, date appears to be a typographical error. Shirley Goodman’s complaint was filed on January 26, 1993. Therefore, Dahl could not have been served in July 1992 as stated in his third-party complаint. The sheriff’s return indicates that Dahl was served in the underlying action on July 2, 1993. In any event, at the oral argument held in this case, attorneys for both parties based their arguments on the July 2, 1993, date.
Accrual, of course, means "when facts exist which authorize the bringing of an action.” Schreiber v. Hackett (1988),
Two years later, our supreme court addressed whether the discovery rule should apply to defamation actions, actions in which accrual traditionally occurred on the date of publication. In holding the discovery rule applicable to the cause of action, the court pointed out the rule’s operation with various other causes of actions, notably medical malpractice, products liability, and, ironically, attorney malpractice. In fact, the court specifically cited Kohler, stating that " 'a cause of action for legal malpractice does not accrue until the client discovers, or should discover, the facts establishing the elements of his cause of action.’ ” (Tom Olesker’s Exciting World of Fashion, Inc. v. Dun & Bradstreet, Inc. (1975),
