Boerger v. Levin, 812 F. Supp. 564 (E.D.Pa 1993)
PA: Underlying mortgage foreclosure
Student Contributor: Joshua D. Aronson
Facts: The plaintiff hired the defendant to represent him in a mortgage foreclosure action. The plaintiff is suing the defendant for malpractice for his handling of the matter. He claims that the defendant failed to bring the foreclosure action to trial before the defendant in the foreclosure action filed for bankruptcy, thereby staying the foreclosure proceedings. Although the foreclosure action is still pending in the courts, the plaintiff claims this negligence thereby delayed, reduced, and possibly eliminated the plaintiff’s mortgage recovery. The plaintiff is also claiming that he must bring this malpractice action now because of the statute of limitations on the malpractice claim.
Issues:
1) Can a client bring a malpractice action against his attorney for anticipated loses when an actual injury to the client has yet to be established?
2) When does the statute of limitations start on a malpractice claim when the underlying action is still pending in the courts?
Ruling:
1) As to Issue #1 the court held that the plaintiff can point to no actual loss which can constitute an injury at the hands of the defendant. The court further held that since the underlying suit in which the defendant represented the plaintiff had not yet concluded, the plaintiff cannot show that the defendant’s performance proximately caused his injury or even that he was slightly injured at all.
*This holding hinged on Pennsylvania case law which established that legal malpractice plaintiffs must prove actual loss resulting from the defendants conduct.
2) As to Issue #2 the court held that the statute of limitations on a malpractice claim such as this one will not start running until the plaintiff suffers actual damage. In this case since the claim has not yet been settled, the limitations period cannot yet begin.
Lesson:
1)Under Pennsylvania law, a client cannot bring a malpractice claim against his attorney until he suffers an injury as a consequence of his attorney’s negligence.
2) The statute of limitations on a malpractice claim does not start running until the plaintiff suffers actual damage.
Tagged with: actual damage, Damages, Federal, Pennsylvania, Real Estate
Posted in: Damages, Federal, Pennsylvania, Real Estate