This appeal arises from a February 8, 1990, order of the Washington County Circuit Court granting the appellees' motion for summary judgment in a legal malpractice action. The appellants also challenge the circuit court's imposition of attorneys' fees and costs against them as sanctions pursuant to M.R.C.P. 11 and the Mississippi Litigation Accountability Act, Miss. Code Ann. §
In 1979, Leo Stevens, Jr.'s health began to decline. In May, 1979, doctors informed him that he was terminally ill. On the same day that Leo Stevens, Jr. received this grim news, his wife Doris took him to attorney Walter Swain for preparation and execution of a will leaving all assets to her. Apparently perceiving himself to be helplessly subject to his wife's dominating influence, Leo Stevens, Jr. asked Lake at some point in September, 1979, to prepare an inter vivos trust into which he could convey his share of the partnership. The parties differ over whether Lake discussed the trust with Marion Stevens before drafting it. The appellants allege that Marion participated with Leo Stevens, Jr. and Lake in the discussion of what the language of the trust should include. Lake says that he called Marion on the phone before the trust was executed to make sure he was agreeable to the arrangement but maintains that Marion was not a party to the discussions leading up to the drafting of the trust. Lake's brief accepts as fact that Leo Stevens, Jr. and Marion Stevens discussed the proposed trust between themselves before it was drafted. Lake prepared a final draft of the trust on October 2, 1979. The next day, October 3, 1979, Leo Stevens, Jr. went to Lake's office where he executed the trust along with a quitclaim deed transferring all his assets into the trust. Later that same day, Leo Stevens, Jr. informed Marion Stevens and Marion's wife, Rosalie, that he had fixed his affairs in such a way that Doris could not interfere and that Marion would be in charge if anything happened to Leo.
A little over a month later, on November 11, 1979, Leo Stevens, Jr. died. The trust and quitclaim deed had never been recorded. According to Lake, the death was a "complete and utter shock" to him. On November 12, 1979, he recorded the quitclaim deed but not the trust.
On November 13, 1979, Lake invited Marion Stevens and Leo Stevens, III, the decedent's son, to come to his office the next day. On November 14, 1979, Marion Stevens and Leo Stevens, III attended a conference at Lake's office at which Lake presented and discussed the provisions in the trust. According to the appellants and Leo Stevens, III, nothing was said about the failure to record the trust.
On November 15, 1979, Lake wrote a letter to Greenville Production Credit Association, a creditor of the Stevens Brothers Partnership, in which he stated: "In my opinion the trust and the conveyance to the trust will withstand any attack that may be made by Mrs. Stevens or by anyone else."
On November 16, 1979, attorney Walter Swain advised Lake that Doris Stevens had gone to Jackson to consult with another attorney about Leo Stevens, Jr.'s will. Lake conversed by telephone with John Kuykendall, an attorney hired by Doris Stevens, on November 27, 1979. On the sixth day of December, 1979, Lake held a conference with Doris Stevens and her attorneys John Kuykendall and Minor Sumners. Kuykendall asserted the validity of the will in which Leo Stevens, Jr. had bequeathed all his assets to his wife and maintained that since the inter vivos trust was not recorded prior to Leo Stevens, Jr.'s death, the instrument was ineffective. Lake informed Marion Stevens that same day that the trust was void and that the only available means of salvaging the situation was to buy Doris' inherited interest in the partnership. Lake explained to Marion Stevens that Leo Stevens, Jr. had expressly instructed him not to record the trust for the time being, being afraid that his wife would find out about it and force him to revoke it.
On or before April 29, 1980, Lake prepared a quitclaim deed which conveyed to Doris Stevens that portion of the partnership which Leo Stevens, Jr. had attempted to preserve for Marion Stevens by means of the October, 1979, trust and quitclaim deed. The quitclaim deed from Marion Stevens to Doris Stevens recited:
Whereas, that certain "Stevens Family Trust" and Quitclaim Deed, both of which were dated October 3, 1979, were *1180 withheld from recordation in the land records of Washington County, Mississippi, by specific direction of the Trustor Leo R. Stevens and, therefore, never took effect.
Marion Stevens executed the quitclaim deed containing the above-quoted language on April 29, 1980. Marion Stevens briefly entered a partnership agreement with Doris Stevens, but in June of 1980, Marion and Rosalie Stevens bought out Doris Stevens' interest. Lake and the law firm to which he belonged continued to represent Marion and Rosalie Stevens until January 22, 1987, at which time the firm severed its relationship with the Stevens since it had started representing one of the Stevens' creditors.
Marion and Rosalie Stevens began to encounter financial difficulties. At some point in 1987, the Stevens contacted Michael Farrell, an attorney who practiced with the firm of Satterfield and Allred, to discuss the possibility of filing bankruptcy. Having already been retained to represent one of the Stevens' creditors, Satterfield and Allred declined to represent the Stevens. Farrell did mention to the Stevens, however, that Lake's failure to record the Stevens Family Trust could possibly involve malpractice. The Stevens were referred to attorney William Howell for representation in their bankruptcy proceedings. Howell listed the contingent malpractice claim against Lake and his firm on the bankruptcy petition, but the bankruptcy trustee declined to pursue the claim.
On October 8, 1988, the Stevens filed a complaint against J. Albert Lake and his law firm, Lake, Tindall, Hunger Thackston, engaging as counsel S. Dennis Joiner, who subsequently associated David Reynolds to assist him in pursuing the action.1 They alleged that Lake had been negligent and breached his fiduciary trust in connection with the filing or failure to file a trust drawn up on behalf on Marion R. Stevens' brother, Leo R. "Diddy" Stevens, shortly before his death in 1979.
Lake raised a number of affirmative defenses; most notably, that the Stevens' claims were barred by the limitations set forth in Miss. Code Ann. §§
A bifurcated hearing on the motions for summary judgment and for fees and costs was held on May 10, 1989, and recessed until November 22, 1989. The Washington County Circuit Court granted Lake's motion for summary judgment on August 8, 1989. In the interim, the Stevens filed an objection to Lake's motion for sanctions, as well as a motion to dismiss the motion for sanctions. The Stevens' motion and objection were denied by the Circuit Court on January 2, 1990. The Circuit Court, however, dismissed with prejudice the motion for sanctions against three attorneys, James H. Herring, Robert W. Long and Andrew Kilpatrick, who had not signed the pleadings.
A final judgment was entered on February 8, 1990, charging the Stevens and their attorneys, S. Dennis Joiner and David Reynolds, with $30,719.00 attorneys' fees and $2,479.14 in expenses, totalling $33,198.14. The Stevens then filed a motion to alter or amend the final judgment so as to sanction only their attorneys, which was overruled by the Washington County Circuit Court. The circuit court also ordered written proffers regarding testimony by Joiner's expert witnesses, H.L. "Sonny" Merideth, Jr. and Professor Aaron Condon, to be excluded from the record. At the November 22, 1989, hearing on the sanctions, counsel for Joiner and the trial judge had agreed that the written proffers would be submitted within ten days of the hearing. However, they were not filed until twenty days after the entry of the final judgment. *1181
A. Was the limitations statute tolled through fraudulent concealment?
The Stevens first argue that Lake fraudulently concealed their cause of action by falsely asserting that Leo Stevens, Jr. had told him not to record the trust. Miss. Code Ann. §If a person liable to any personal action shall fraudulently conceal the cause of action from the knowledge of the person entitled thereto, the cause of action shall be deemed to have first accrued at, and not before, the time at which such fraud shall be, or with reasonable diligence might have been, first known or discovered.
In evaluating this argument, we are presented with a two-fold question. First, we look at whether a genuine issue of material fact exists as to whether Lake lied when he told the Stevens that he had refrained from recording the trust at Leo Stevens, Jr.'s request. If a genuine issue of material fact exists on this issue, we must further determine whether the fraud remained undiscoverable by reasonable diligence for such a long time that the date on which the Stevens filed their complaint fell within the tolled limitations period.
The Stevens insist that the appellees failed to show that no genuine issue of material fact existed concerning whether Lake lied about what Leo Stevens, Jr. told him. The appellees retort by arguing that the Stevens have failed to clearly and convincingly show that Lake's representation was false.
According to Haygood v. First Nat. Bank of New Albany,
In the case sub judice, the only evidence that Leo Stevens, Jr. did in fact tell Lake not to record the trust pending further instructions is Lake's own affidavit. However, the Stevens' evidence that Leo Stevens, Jr. did not tell Lake to hold the documents until further notice is also meager. They rely primarily on: (1) Lake's attempt to salvage the trust by recording Leo Stevens Jr.'s quitclaim deed on November 12; (2) the fact that Lake did not tell them about the failure to record when he presented the trust to them on November 14, 1979; and (3) Lake's November 15, 1979, letter to a creditor of the Stevens partnership in which he stated that the trust would "withstand any attack." The Stevens infer from these alleged facts that Lake knew that the failure to record the *1182 trust was due to his own carelessness, not to Leo Stevens, Jr.'s instructions, and that he was seeking to cover up his negligence.
To determine whether §
Even assuming arguendo that Lake misrepresented what Leo Stevens, Jr. told him, we find that the Stevens, through the exercise of reasonable diligence, should have been able to discover his negligence prior to 1982. Our review of the record indicates that there is very little that the Stevens allege today that they did not know in December of 1979. Thus, their argument that the statute of limitations was tolled by Lake's fraudulent concealment of his negligent acts is without merit.
B. Did the continuing attorney-client relationship between Lake and the Stevens toll the running of the limitations period?
The Stevens further argue that as long as an attorney-client relationship existed between themselves and attorney Lake, the statute of limitations could not run. Lake and his firm represented the Stevens until January 22, 1987, so according to the Appellants, the statute of limitations did not begin to run until that date. We reject the analogy drawn by the Appellants between the case sub judice and cases which have held that the Statute of Frauds does not apply as between parties who are bound by a fiduciary relationship. See Neyland v. Neyland,The premise of "the continuous representation rule" is that "the cause of action in an attorney malpractice case should not accrue until the attorney's representation concerning aparticular transaction is terminated." 2 Mallen Smith, Legal Malpractice § 18.12 at 115 (3d ed. 1989). The treatise goes on to note that
Id. at 119; see also K73 Corp. v. Stancati,[t]he inquiry is not whether an attorney-client relationship still exists but when the representation of the specific matter terminated. . . . Representation on unrelated matters does not suffice [to toll the running of an applicable statute of limitations].
The record reveals that attorney Lake last represented the Stevens on matters relating to the failed trust of Leo Stevens, Jr. in June of 1980. Although he continued to represent the Stevens Partnership on other matters until January of 1987, we find that the post-1980 representation did not toll the limitation on actions arising out of Lake's handling of the Stevens Family Trust. *1183
C. Are the plaintiffs entitled to recover "continuing damages" for injuries resulting from Lake's alleged negligence but accruing within six years of the date on which suit was filed?
The Stevens contend that the failure of Leo Stevens, Jr.'s trust caused the Stevens partnership to suffer financial detriment throughout the 1980s, culminating ultimately in the 1987 bankruptcy. They take the position that regardless of when their cause of action for Lake's original act of alleged negligence accrued, a new cause of action accrued with each year's financial losses. Recovery should therefore be permitted, the Stevens argue, for all losses occurring during the six years preceding the filing of their complaint.In so arguing, we find that the Stevens have misconstrued the "continuing injury" doctrine. It is true that continuing or repeated injuries can give rise to liability even if they persist beyond the limitations period for the initial injury. SeeHendrix v. City of Yazoo City,
[W]here a tort involves a continuing or repeated injury, the cause of action accrues at, and limitations begin to run from, the date of the last injury, or when the tortious acts cease. Where the tortious act has been completed, or the tortious acts have ceased, the period of limitations will not be extended on the ground of a continuing wrong.
A "continuing tort" is one inflicted over a period of time; it involves a wrongful conduct that is repeated until desisted, and each day creates a separate cause of action. A continuing tort sufficient to toll a statute of limitations is occasioned by continual unlawful acts, not by continual ill effects from an original violation.
C.J.S., Limitations of Actions § 177 at 230-31 (emphasis added);see also Hendrix,
The principle of "continuing injury" obviously does not apply to the case sub judice. If attorney Lake injured the plaintiffs, his act of negligence occurred entirely in 1979 and, so far as the record reflects, was never repeated.
The Stevens further contend that the trial court erred in awarding sanctions pursuant to Miss. Code Ann. §
Rule 11(b), which provides for sanctions, reads, in pertinent part, as follows:
If any party files a motion or pleading which, in the opinion of the court, is frivolous or filed for the purpose of harassment or delay, the court may order such a party, or his attorney, or both, to pay to the opposing party or parties reasonable expenses incurred by such other parties and by their attorneys, including reasonable attorneys' fees.
Similarly, Miss. Code Ann. §
(1) Except as otherwise provided in this chapter, in any civil action commenced or appealed in any court of record in this state, the court shall award, as part of its judgment and in addition to any other costs otherwise assessed, reasonable attorneys fees and costs against any party or attorney if the court, upon the motion of any party or on its own motion, finds that an attorney or party brought an action, or asserted any claim or defense, that is without substantial justification, or that the action, or any claim or defense asserted, was interposed for delay or harassment, or if it finds that an attorney or party unnecessarily expanded the proceedings by other improper conduct including, but not limited to, abuse of discovery procedures available under the Mississippi Rules of Civil Procedure.
* * * * * *
(3) When a court determines reasonable attorney's fees or costs should be assessed, it shall assess the payment against the offending attorneys or parties, or both, and in its discretion may allocate the payment among them, as it determines most just, and may assess the full amount or any portion to any offending party or attorney.
Further, §
Given no apparent conflict between the plain language of the statutes and the rule, and the Stevens' failure to identify any alleged conflicts, we find that their argument that the statute is void and of no effect is without merit.
In Moore v. Western Surety Co.,
We find nothing in the record to indicate that the Stevens or their attorneys acted in bad faith. Moreover, we do not find that the case set forth by the Stevens' attorneys was so without any hope for success as to render it frivolous.
As we stated in Tricon Metals Services, Inc. v. Topp,
In the case sub judice, we have no question about the merits of the Stevens' claim against Lake. In Tricon, we found that where a defendant has a complete defense to a plaintiff's claim, such as when the action is clearly barred by the statute of limitations, the plaintiff has no hope of success. Id. at 1336. Despite our affirmance of the summary judgment motion against the Stevens, it cannot be said that the Stevens' claim, despite the weakness of their arguments, was clearly barred by the applicable statute of limitations.
Accordingly, finding that the trial court erred in imposing sanctions, we reverse and render on this issue.
Let the record show that previous to this in chambers, in which a record was not made, Mr. Liston on behalf of Mr. Joiner informed the Court that he intended to offer two experts as practicing lawyers to testify that Mr. Joiner acted reasonably, or words to that effect, in assessing this case and the Court ruled that in its opinion Canon 3 of the Code of Judicial Conduct would make this improper in that I could see no difference in hearing their testimony that my going to a lawyer's office after this proceeding was over and asking that lawyer's opinion of the case.
And for that reason, the motion of Mr. Lake was granted, denying the testimony of the two expert witnesses.
Joiner's objections to Lake's proposed expert witness likewise were sustained.
Mississippi Rules of Evidence 702 affords trial judges a certain degree of discretion in allowing expert testimony.Fowler v. State,
The Circuit Court's reliance on Canon 3(A)(4) of the Code of Judicial Conduct was misplaced. Canon 3(A)(4) reads as follows:
A judge should accord to every person who is legally interested in a proceeding, or his lawyer, full right to be heard according to law, and except as authorized by law, neither initiate nor consider ex parte or other communications concerning a pending or impending proceeding. A judge, however, may obtain the advice of a disinterested expert on the law applicable to a proceeding before him if he gives notice to the parties of the person consulted and the substance of the advice, and affords the parties reasonable opportunity to respond.
The prohibition in Canon 3 is against ex parte communications, which were not at issue in this case. Further, it was not the judge who sought the "advice of a disinterested expert," but rather, the parties who sought to introduce the testimony of experts.
As the issue is framed on appeal, the Stevens further complain that the Circuit Court erred in not accepting their proffer of what Condon and Merideth would have testified. However, they totally neglect *1186
to address this part of the issue in their brief. As we stated inR.C. Petroleum, Inc. v. Hernandez,
AFFIRMED IN PART; REVERSED AND RENDERED IN PART.
HAWKINS, C.J., DAN M. LEE and PRATHER, P.JJ., and SULLIVAN, PITTMAN, BANKS and ROBERTS, JJ., concur.
SMITH, J., not participating according to Supreme Court Internal Rules.
