Merzlak v. Purcell

• Decision Date: 12 March 1992
• Docket Number: No. 91-357,91-357
• Parties: Joe R. MERZLAK and Janene L. Merzlak, Plaintiffs and Appellants, v. James E. PURCELL and Henningson & Purcell, a Montana professional services corporation, Defendants, Respondents and Cross-Appellants.
• Court: Montana Supreme Court

Page 1278

830 P.2d 1278

252 Mont. 527

Joe R. MERZLAK and Janene L. Merzlak, Plaintiffs and Appellants, v. James E. PURCELL and Henningson & Purcell, a Montana

professional services corporation, Defendants,

Respondents and Cross-Appellants.

No. 91-357.

Supreme Court of Montana.

Submitted on Briefs Dec. 5, 1991.

Decided Feb. 13, 1992.

Rehearing Denied March 12, 1992.

Robert B. Gould, James M. Driscoll, Seattle, Wash., for plaintiffs and appellants.

R.D. Corette and William M. O'Leary, Corette, Pohlman, Allen, Black & Carlson, Butte, for defendants, respondents and cross-appellants.

WEBER, Justice.

Appellants Joe R. Merzlak and Janene L. Merzlak (Merzlaks) brought an action for legal malpractice against their attorney James E. Purcell and his law firm Henningsen & Purcell, P.C. (Purcell). The Fourth Judicial District Court, Missoula County, found Purcell negligently represented the Merzlaks, ordered the return of $12,398.20 in attorney's fees together with interest, and denied punitive damages. Merzlaks appeal the amount of the judgment. Purcell cross-appeals. We reverse and remand.

We find the following issues dispositive:

1. Did the Merzlaks satisfy all elements necessary to prove legal malpractice against Purcell?

2. Did the court improperly award the Merzlaks $12,398.20 in attorney's fees plus interest?

On November 12, 1982, the Merzlaks, passengers in a vehicle driven by Kerry Hansen, were injured in a head-on collision. The accident occurred on an icy bridge, on Interstate 90, west of Superior, Montana. Joe Merzlak, Janene Merzlak, Kerry Hansen, and Kerry's wife, Ruth Hansen were traveling from Butte to Spokane when a semi-tractor truck and trailer owned by Livestock Transport Company of Washington (Livestock) struck the vehicle. The Livestock vehicle, traveling east on Interstate 90, veered into Hansen's westbound lane to avoid a vehicle disabled in the eastbound lane. The impact killed Kerry Hansen, and injured the Merzlaks and Ruth Hansen. Purcell represented the Merzlaks in their settlement negotiations with Livestock's insurer. This representation underlies the Merzlaks' malpractice claim against Purcell. Purcell settled the Merzlaks' claims with Livestock's insurer for $50,000. Merzlaks claim this settlement amount was undervalued.

The District Court found Purcell negligently represented the Merzlaks by failing to obtain informed consent for settlement, settling without current medical information, and simultaneously representing the Merzlaks, Ruth Hansen and the estate of Kerry Hansen.

I

Did the Merzlaks satisfy all elements necessary to prove legal malpractice against Purcell?

Attorney malpractice is professional negligence. In order to recover in a professional negligence action, "the plaintiff must prove that the professional owed him a duty, and that the professional failed to live up to that duty, thus causing damages to the plaintiff." Lorash v. Epstein (1989), 236 Mont. 21, 24, 767 P.2d 1335, 1337, quoting Carlson v. Morton (1987), 229 Mont. 234, 238, 745 P.2d 1133, 1136.

The proper measure of damage in an attorney malpractice action is the difference between the client's recovery and the amount that would have been recovered by the client except for the attorney's negligence. "... [A] claim of malpractice must be supported not only by a showing of malpractice by ... [the attorney], but by a showing that 'but for' their negligence, [the client] ... would have recovered additional amounts ..." Weaver v. Law Firm of Graybill (1990), 246 Mont. 175, 179, 803 P.2d 1089, 1092.

Purcell contends that the Merzlaks did not prove Purcell's conduct caused them damage. As later discussed, the District Court agreed with that contention. Failure to prove damages is fatal to an attorney malpractice action. Kinniburgh v. Garrity (1990), 244 Mont. 350, 355, 798 P.2d 102, 105.

In its Memorandum, Findings of Fact and Conclusions of Law, the District Court properly concluded that in order to establish a cause of action for legal malpractice there must be a showing that the attorney owed his client a duty...