PENNSYLVANIA INSURANCE GUARANTY ASSOCIATION, Appellant,
v.
Michael D. SIKES, Esq., and Merritt, Sikes & Craig, P.A., Appellees.
District Court of Appeal of Florida, Third District.
*1052 Arthur J. Morburger, Stephen M. Zukoff, Miami, for appellant.
Stephens Lynn Klein & McNicholas and Philip D. Parrish and Robert M. Klein, Miami, for appellees.
Before FERGUSON, JORGENSON and COPE, JJ.
FERGUSON, Judge.
The issue in this case is whether an insurer may maintain a cаuse of action for legal malpractice against its attorney for an allegedly negligent pleading in an automobile accident case, which was curablе except for a judicial error, where the judgment against the insurer is settled while an appeal is pending. We hold that it may not, and affirm the summary judgment for the attorney.
The undеrlying case involved a wrongful death action where the insurance company hirеd Michael Sikes to defend its insureds who owned a truck which had been rearended by the deceased. The deceased's estate alleged that the driver of the truck had negligently operated the vehicle and had caused the fatal collision. The defendant's answer, drafted by Sikes, failed to deny the allegations of negligence. Sikеs did, however, deny negligence in its affirmative defense of comparative negligеnce. Discovery proceeded on the issues of both liability and damages. On the dаy of trial, the plaintiffs moved to proceed solely on the issue of damages contending that the defendant's answer was insufficient to deny liability. Sikes argued that liability had alwаys been contested, had been the subject of extensive discovery, and that the answer was sufficient to support the defense of comparative negligence. After the court rejected Sikes's argument, Sikes moved to amend his answer. His motion was dеnied and the trial proceeded on the issue of damages only.
The jury returned a $253,000 vеrdict in favor of the estate. Sikes recommended that the judgment be appealed. Contrary to Sikes's recommendation, Pennsylvania Insurance Guaranty Association (PIGA) settled the case for twenty cents on the dollar before the appeаl was perfected. PIGA then filed a legal malpractice claim against Sikes.
In support of a motion for summary judgment, Sikes asserted that the trial court abused its discretiоn in denying his motion for leave to amend the answer in that no prejudice would have bеen suffered by the plaintiff. The court agreed with Sikes that the answer he had drafted was аdequate to place plaintiff's contributory negligence in issue at the trial. Further, it rulеd that Sikes should have been granted leave to amend and that the insurer would have bеen successful in reversing the judgment on appeal. On that basis, summary judgment was entered for Sikes from which this appeal is brought.
PIGA argues that whether Sikes's actions constituted malрractice and whether that malpractice was the proximate causе of its loss are issues for the trier of fact to determine. We need not reach thаt issue.
An appeal is not a new action; it is a continuation of the original proceeding. Wilson v. Clark,
We hold, on the facts of this case, that the settlement of the underlying personal injury case, while the appeal was pending, constituted an abandonment of any claim that PIGA's loss resulted from legal malpractice rather than judicial error. See Diaz v. Piquette,
The summary judgment is affirmed.
