KOHOUTEK, LTD. v. HARTLEY, ROWE & FOWLER
| Decision Date | 30 November 2000 |
| Docket Number | No. A00A2064.,A00A2064. |
| Court | Georgia Court of Appeals |
| Parties | DOUGLAS KOHOUTEK, LTD. v. HARTLEY, ROWE & FOWLER, P.C. et al. |
OPINION TEXT STARTS HERE
Robert H. Benfield, Jr., Atlanta, for appellant.
Gorby, Reeves, Peters & Burns, Michael J. Gorby, Karen E. Cooper, Daniel E. Turner, Christine A. Carson, Atlanta, for appellees.
On October 20, 1995, Douglas Kohoutek, Ltd., a real estate investment limited partnership, sued Hartley, Rowe & Fowler, P.C., G. Michael Hartley, Walter P. Rowe, Joseph H. Fowler, Tom L. Lane Jr., Linda S. Karlo, and Jeffrey P. Richards for professional negligence due to an eight and one-half month delay in filing the UCC 1 statement on September 14, 1990, to secure a note executed on January 27, 1990, which created a collateral security gap. Prior to September 14, 1990, the defendant was aware that the UCC filings had not been made timely and that the defendants might be professionally negligent. The defendants moved for summary judgment based upon the running of the statute of limitation, which was granted. The plaintiff contends that the statute of limitation was tolled by fraud through concealment, failure to disclose, and continued representation and that there existed material issues of fact for the jury as to such fraud. We do not agree and affirm.
1. Plaintiff contends that the trial court erred in granting summary judgment on the running of the statute of limitation because there existed a material issue of fact that fraud tolled the running of the statute.
In a legal malpractice action the applicable statute of limitation is four years from the breach of the duty. See OCGA § 9-3-96; Gibson v. Casto, 233 Ga.App. 403, 404(2), 504 S.E.2d 705 (1998), modified on other grounds, 271 Ga. 667, 523 S.E.2d 564 (1999). At trial, to toll the running of the statute of limitation, plaintiff has the burden of proof to overcome this affirmative defense; however, on motion for summary judgment, after the defendant presents evidence that the statute of limitation has run, plaintiff must come forward with some evidence to demonstrate on motion for summary judgment that some evidence exists to create a material issue of fact that the statute has been tolled for jury determination. Houston v. Doe, 136 Ga.App. 583, 585-586(3), 222 S.E.2d 131 (1975).
The statute of limitations is tolled in malpractice actions when a defendant intentionally conceals an act of professional negligence from a plaintiff, causing the plaintiff to be deterred from bringing a claim. Our Code provides that if a defendant is guilty of a fraud by which the plaintiff has been debarred or deterred from bringing an action, the period of limitation shall run only from the time of the plaintiff's discovery of the fraud. This provision has always been strictly construed to require (1) actual fraud involving moral turpitude, or (2) a fraudulent breach of a duty to disclose that exists because of a relationship of trust and confidence....[I]n situations such as exist in this appeal, where the gravamen of the underlying action is not a claim of fraud, but rather of malpractice, the statute of limitations is tolled only upon a showing of a separate independent actual fraud involving moral turpitude which deters a plaintiff from filing suit. In such cases, before the running of the limitation period will toll, it must be shown that the defendant concealed information by an intentional act— something more than a mere failure, with fraudulent intent, to disclose such conduct, unless there is on the party committing such wrong a duty to make a disclosure thereof by reason of facts and circumstances, or the existence between the parties of a confidential relationship.
(Punctuation and footnotes omitted.) Hunter, Maclean &c., P.C. v. Frame, 269 Ga. 844, 846(1), 507 S.E.2d 411 (1998) ("Frame"); see also OCGA § 9-3-96; Riddle v. Driebe, 153 Ga.App. 276, 280-281, 265 S.E.2d 92 (1980).
Where a confidential relationship exists, a plaintiff does not have to exercise the degree of care to discover fraud that would...
To continue reading
Request your trial
-
Miller v. Kitchens
...fact that fraud tolled the running of the statute, which he failed to do in this case. Douglas Kohoutek, Ltd. v. Hartley, Rowe & Fowler, P.C., 247 Ga.App. 422, 423-424(1), 543 S.E.2d 406 (2000); Houston v. Doe, 136 Ga.App. 583, 585-586(3), 222 S.E.2d 131 (b) Plaintiff contends that the tria......
-
Barnes v. Turner, A03A2331.
...[194 Ga.App. 457, 458, 390 S.E.2d 668 (1990) ]. (Emphasis supplied.) See also, e.g., Douglas Kohoutek, Ltd. v. Hartley, Rowe & Fowler, P.C., 247 Ga.App. 422, 423(1), 543 S.E.2d 406 (2000); Denson v. Maloy, 239 Ga.App. 778, 779(1), 521 S.E.2d 666 (1999); Long v. Wallace, 214 Ga.App. 466, 467......
-
Hope v. Quantum3 Grp. LLC (In re Seltzer)
...that the elements of O.C.G.A. § 9–3–112 have been met. See O.C.G.A. § 24–14–1 ; see also Douglas Kohoutek, Ltd. v. Hartley, Rowe & Fowler, P.C., 543 S.E.2d 406, 407, 247 Ga.App. 422, 423 (2000) (stating burden shifts to plaintiff upon defendant's establishing prima facie statute of limitati......
-
Carrier v. Ravi Zacharias Int'l Ministries, Inc.
... ... Ctr. v. Farleigh Int'l ... Ltd. , 483 F.Supp.3d 195, 200-02, 204-05 (S.D.N.Y. 2020) ... and breach of trust); Douglas Kohoutek, Ltd. v. Hartley, ... Rowe & Fowler, P.C. , 247 ... ...