FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEES:
PATRICK J. HIGGINS, JR. ERIC D. JOHNSON
Granger, Indiana Kightlinger & Gray
Indianapolis, Indiana
IN THE COURT OF APPEALS OF INDIANA
ESTATE OF KELLY S. SPRY, Deceased, )
Joanne Spry, Administratrix, )
)
Appellant-Plaintiff, )
)
vs. ) No. 20A04-0306-CV-268
)
RUTH A. BATEY and GOLD & POLANSKY, )
CHARTERED, )
)
Appellees-Defendants. )
APPEAL FROM THE ELKHART SUPERIOR COURT
The Honorable Stephen E. Platt, Judge
Cause No. 20D02-0209-CT-572
March 4, 2004
OPINION - FOR PUBLICATION
SHARPNACK, Judge
Id. at 34-35. On the same day, Gold & Polansky responded that
it did not believe that the release benefited the Tavern and that it
did not believe the case against the Tavern should be voluntarily dismissed.
In October 2000, counsel for Attorneys sent a letter to counsel for the
Estate detailing legal theories and arguments supporting the argument that the release did
not apply to the Tavern.
The Estate continued to litigate its claim against the Tavern, and the Tavern
filed a motion for summary judgment based upon the release, which the trial
court granted on November 13, 2000. The trial court found that the
release applied to the Estates claim against the Tavern. This court affirmed
the trial courts judgment on appeal. See Estate of Spry v. Greg
& Ken, Inc., 749 N.E.2d 1269 (Ind. Ct. App. 2001), rehg denied.
On September 5, 2002, nearly two years after the trial court granted summary
judgment to the Tavern and two years and two months after the Estate
notified Attorneys of the effect of the release, the Estate filed a complaint
against Attorneys alleging legal malpractice due to their alleged failure to competently advise
the Estate regarding the release. Attorneys filed a motion for summary judgment,
arguing that the Estates claim was barred by the statute of limitations.
Specifically, Attorneys argued that the Estate was aware of its claim against Attorneys
on June 1, 2000. However, according to Attorneys, the Estate did not
file its complaint against Attorneys until September 5, 2002, which was at least
three months beyond the two-year statute of limitations for attorney malpractice claims.
In response, the Estate argued that the statute of limitations did not begin
to run until the trial court granted the Taverns motion for summary judgment
in November 2000. The trial court granted summary judgment to Attorneys, finding
that:
[N]o genuine issues of material fact exists and judgment in this cause may
be entered as a matter of law. The Court further finds that
the [Estate] knew or should have known of its claim on June 1,
2000, when its attorney sent a letter to [Attorneys] advising them to put
their attorney and insurance carrier on notice. The Court further finds that
the instant claim filed on September 5, 2002, was beyond the two[-]year statute
of limitations provided for legal malpractice claims. Accordingly, [Attorneys] are entitled to
judgment as a matter of law.
Id. at 5.
The issue on appeal is whether the trial court erred by concluding that
the statute of limitations had run on the Estates legal malpractice claim against
Attorneys. On appeal, the standard of review of a grant or denial
of a motion for summary judgment is the same as that used in
the trial court: summary judgment is appropriate only where the designated evidence
shows that there is no genuine issue of material fact and the moving
party is entitled to a judgment as a matter of law. Corr
v. Am. Family Ins., 767 N.E.2d 535, 537-538 (Ind. 2002). The moving
party must designate sufficient evidence to eliminate any genuine factual issues, and once
the moving party has done so, the burden shifts to the nonmoving party
to come forth with contrary evidence. Shambaugh & Son, Inc. v. Carlisle,
763 N.E.2d 459, 460-461 (Ind. 2002). The court must accept as
true those facts alleged by the nonmoving party, construe the evidence in favor
of the nonmoving party, and resolve all doubts against the moving party.
Id.
When a trial court enters findings of fact and conclusions thereon in granting
a motion for summary judgment, as it did here, the method of our
review is not changed. Rice v. Strunk, 670 N.E.2d 1280, 1283 (Ind.
1996). In the summary judgment context, we are not bound by the
trial courts specific findings of fact and conclusions thereon. Id. They
merely aid our review by providing us with a statement of reasons for
the trial courts actions. Id.
The statute of limitations for a claim of legal malpractice is two years.
See Ind. Code § 34-11-2-4 (1998); Silvers v. Brodeur, 682 N.E.2d 811,
813 (Ind. Ct. App. 1997), trans. denied. Generally, a cause of action
accrues when a wrongfully inflicted injury causes damage. Keep v. Noble County
Dept. of Public Welfare, 696 N.E.2d 422, 425 (Ind. Ct. App. 1998), trans.
denied. Legal malpractice actions are subject to the discovery rule, which provides
that the statute of limitations does not begin to run until such time
as the plaintiff knows, or in the exercise of ordinary diligence could have
discovered, that he had sustained an injury as the result of the tortious
act of another. Id. For a cause of action to accrue,
it is not necessary that the full extent of damage be known or
even ascertainable, but only that some ascertainable damage has occurred. Id. at
813-814.
The Estate argues that the statute of limitations did not begin to run
until November 13, 2000, when the trial court granted summary judgment to the
Tavern on the Estates claim. According to the Estate, there was no
certainty of an injury resulting from the release until summary judgment was granted
because the law on releases and the effect of general releases was in
a state of change during the 1990s. Attorneys argue that the language
of the release was clear and unambiguous, and, as a result, the Estate
was aware of its claim and that the statute of limitations started to
run at least as early as June 1, 2000, when the Estates attorney
sent a letter to Attorneys regarding the release.
We addressed a similar issue in Basinger v. Sullivan, 540 N.E.2d 91 (Ind.
Ct. App. 1989). There, the plaintiffs attorney filed a timely proposed medical
malpractice complaint seeking the opinion of a medical review panel. Id. at
91-92. After obtaining a favorable opinion from the medical review panel, the
plaintiffs had ninety days to file a complaint against the physician, but the
plaintiffs attorney missed the filing deadline. Id. at 92. On July
5, 1984, the attorney met with the plaintiffs and informed them of the
missed deadline. Id. However, the attorney advised the plaintiffs that he
could still file a declaratory judgment action against the physician. Id.
The plaintiffs authorized the attorney to proceed with the action, but the trial
court granted summary judgment to the physician on January 2, 1985. Id.
The plaintiffs brought a legal malpractice suit against the attorney on August
21, 1986. Id. The trial court granted summary judgment to the
attorney because the complaint was filed outside of the statute of limitations.
Id.
On appeal, the plaintiffs argued that the action did not accrue until January
2, 1985, because they suffered no damages until then. Id. at 92-93.
We disagreed, holding that [t]he argument confuses the distinction between the occurrence
of damage and the amount of the damage. Id. at 93.
As an example, we noted the following:
Where legal malpractice is claimed for an attorneys failure to commence an action
within the period of limitations it is generally held that one of the
necessary ultimate proofs for a recovery of damages is that a recovery would
have been had if the suit had been properly brought. Can it
then be contended that the limitation period does not commence to run on
the attorneys negligence until plaintiffs right to recovery on the original claim has
been judicially established? Clearly, the answer is no. To permit
such reasoning would for all practical purposes preclude the statute from ever commencing
to run.
Id. (internal citations omitted). We concluded that:
The injury and the damage (whatever it may be) occurred to [the plaintiffs]
chose in action against the physician when the limitation period expired without suit
having been commenced. At that point the value, if any, of the
chose in action was damaged and injury occurred. Without question the limitation
period then began to run at least by July 5, 1984 when [the
plaintiffs] were notified that this had occurred.
Id. at 93-94. Consequently, we held that the statute of limitations began
to run at least when the plaintiffs were notified that their attorney had
missed the filing deadline, not when the trial court granted summary judgment on
the plaintiffs declaratory judgment action.
Likewise, here, the Estates argument confuses the distinction between the occurrence of damage
and the amount of the damage. The injury and damage occurred in
May 1999 when the Estate was advised to sign the general release.
The Estate discovered that it had sustained an injury as the result of
the tortious act of Attorneys at least by June 1, 2000, when the
Estates counsel sent Attorneys a letter stating:
It is in the Estates best interest that we address this matter directly
and quickly. We feel that [the Taverns counsels] demand for dismissal is
appropriate and should be done in light of the current Indiana laws on
releases. This action will deprive the dependents and Estate of their claim
against the tavern and its owners. Please contact us or have your
attorney or insurance carriers contact us as soon as possible so that we
can discuss this matter.
Appellants Appendix at 34-35. Thus, the injury and damage were ascertainable at
least in June 2000.
The Estate argues that the state of release law in Indiana at the
time made it uncertain whether the release applied to its claims against the
Tavern. In 1992, our supreme court abrogated the release rule, which generally
held that the release of one joint tortfeasor operate[d] as a release of
all other tortfeasors. Huffman v. Monroe County Cmty. Sch. Corp., 588 N.E.2d
1264, 1266 (Ind. 1992). Our supreme court held that a release
should be interpreted in the same manner as any other contract document.
Id. at 1267. Although the state of release law underwent some transformation
in the 1990s, when the Estate sent the June 2000 letter to Attorneys,
we had already addressed the issue of whether a release like the one
at issue here barred other claims and held that it did. See,
e.g., Stemm v. Estate of Dunlap, 717 N.E.2d 971, 976 (Ind. Ct.
App. 1999), rehg denied; Dobson v. Citizens Gas and Coke Utility, 634 N.E.2d
1343, 1345 (Ind. Ct. App. 1994). It was reasonably clear at least
as of June 1, 2000, that the Estate had been damaged by Attorneys
alleged negligence. Consequently, the statute of limitations began to run at least
as of June 1, 2000, and the Estates September 5, 2002 complaint against
Attorneys was filed outside of the two-year statute of limitations. The trial
court did not err by granting Attorneys motion for summary judgment on this
basis. See, e.g., Basinger, 540 N.E.2d at 94.
For the foregoing reasons, we affirm the trial courts grant of summary judgment
to Attorneys.
Affirmed.
MATHIAS, J. and VAIDIK, J. concur