DOWD F. GREENE, Jr. and wife, NANCY P. GREENE v. PELL & PELL,
L.L.P., GERALD A. PELL and RALPH W. GORRELL
Attorneys--malpractice--negligent representation--bankruptcy
proceeding
The trial court did not err by granting a directed verdict in
favor of defendants in a professional malpractice action based on
defendant attorneys' alleged negligent representation of plaintiffs
in a bankruptcy proceeding, because: (1) whether the bankruptcy
judge would have granted a motion for a stay if defendants had
requested one is mere speculation; (2) plaintiffs did not present
any evidence they would have prevailed on appeal when plaintiffs'
own expert testified he saw no error on the part of the bankruptcy
judge when the witness reviewed the bankruptcy proceeding
transcript; and (3) plaintiffs failed to show proximate cause in
order to have the issues decided by the jury.
Appeal by plaintiffs from judgment entered 28 September 1999
by Judge Russell G. Walker, Jr. in Guilford County Superior Court.
Heard in the Court of Appeals 29 March 2001.
Brown & Associates by Donald M. Brown, Jr. for plaintiffs-
appellants
Henson & Henson by Perry C. Henson, Jr. and Amanda M. Willis
for defendants-appellees
THOMAS, Judge.
Plaintiffs Dowd and Nancy Greene appeal from a directed
verdict granted in favor of defendants in an action for
professional malpractice. Plaintiffs set forth one assignment of
error. For the reasons stated herein, we affirm.
The facts are as follows: Plaintiffs operated a garage-doorbusiness and owned five separate properties, including a
house, a
rental house, a commercial building, a 139-acre tract and a 55-acre
tract. They filed for bankruptcy in 1993. After having one of the
parcels sold at what they considered to be a low price, plaintiffs
sought the services of defendants, the law firm of Pell & Pell,
L.L.P., and two attorneys with the firm, Gerald A. Pell and Ralph
W. Gorrell. Plaintiffs had earlier been represented by two
different law firms at various stages of the bankruptcy proceeding.
Defendants were retained for the overall purpose of
challenging the order already entered confirming the sale of the
property. Plaintiffs claim they were told that if they could post
a bond of $50,000 to $100,000, defendants would obtain a stay
enjoining the bankruptcy trustee from closing on the properties.
At the hearing, defendants asked the court to set aside the sale,
but the motion was denied. Then, upon inquiry of the court
regarding a stay, defendants said that part of the motion was moot
because it was intended only for the time period until the court
could hear the motion to set aside.
Defendants then filed notice of appeal as to the order
confirming sale, and a motion to stay, but prior to the hearing of
that motion, the trustee sold the property. At the hearing itself,
the bankruptcy court found that the motion to stay pending the
outcome of the appeal had been rendered moot. Defendants had
failed to request an expedited hearing for the motion to stay. Plaintiffs' testified they told defendants from the very beginning
they could post an adequate bond if a stay were granted.
Defendants represented plaintiffs for several additional
months in the bankruptcy action, but eventually plaintiffs brought
suit against defendants both under breach of contract and
professional malpractice in the case at bar.
Prior to the start of trial, the court granted defendants'
motion to dismiss the breach of contract claim. A jury was
empaneled to hear the malpractice claim, however, with both sides
presenting evidence. At the close of the evidence, both sides
moved for a directed verdict. The trial court denied plaintiffs'
motion, but granted that of defendants. The court found, first,
that plaintiffs failed to present evidence of any negligent act
and, second, that they failed to show any proximate cause between
the acts of defendants and the alleged damages. Plaintiffs appeal
to this Court.
By their only assignment of error, plaintiffs argue two
grounds for the reversal of the trial court's order. First, they
contend there is a genuine issue of material fact which should have
been submitted to the jury. Second, they contend the court
improperly refused to allow plaintiffs to submit an offer of proof
concerning an expert's testimony. We disagree with the former. We
do not reach the latter because it was not assigned as error and is
thus not properly before us, pursuant to Rule 10(c)(1)) of the N.C.Rules of Appellate Procedure.
A directed verdict is proper when there is no evidence of an
essential element of plaintiff's claim. McMurray v. Surety Federal
Savings & Loan Assoc., 82 N.C. App. 729, 348 S.E.2d 162 (1986),
cert. denied, 318 N.C. 695, 351 S.E.2d 748 (1987) (emphasis added).
To establish a claim for professional malpractice, the plaintiff
must show: (1) the nature of the defendant's profession; (2) the
defendant's duty to conform to a certain standard of conduct; and
(3) a breach of the duty proximately caused injury to the
plaintiffs. Reich v. Price, 110 N.C. App. 255, 429 S.E.2d 372,
cert. denied, 334 N.C. 435, 433 S.E.2d 178 (1993).
It is the last element at issue in the instant case.
Plaintiffs argue defendants proximately caused them injury by
failing to ask the trial court for a stay at the 7 April 1999
bankruptcy hearing and by failing to request an expedited hearing
for a stay pending appeal before the actual sale of the properties.
Plaintiffs' alleged injuries result from the low sale price of the
properties and from the legal fees spent after the alleged
malpractice occurred.
Plaintiffs cite Gram v. Davis, 128 N.C. App. 484, 495 S.E.2d
384 (1998), as authority. In Gram, the plaintiff sued his attorney
because the attorney, after performing a title search, failed to
inform him that the lot he purchased, which was adjacent to
lakefront property, had a restrictive covenant preventing him fromusing the lakefront property to access the lake. He was unable to
sell the lots after he had completed grading services on the
property because the grading company recorded a lien on the
property in the amount of $76,000, which the plaintiff assigned as
damages. The defendants argued the proximate cause of the
plaintiff's injuries was the lien. This Court found that the lien
was not an insurmountable obstacle to prevent plaintiff from
selling the property; thus, it was not the proximate cause of [the]
plaintiff's damages. Id. at 489, 495 S.E.2d at 387. We held a
directed verdict was not appropriate where the plaintiff had
testified that he would have paid the lien amount in order to sell
the lots. Id.
However, in the instant case, defendants argue plaintiffs
failed to show proximate cause because they did not establish that
the motion for a stay would have been granted had defendants
requested it at the April hearing. To guess at whether the
bankruptcy judge, now deceased, would have granted the motion would
be speculation. We note, however, that the bankruptcy judge stated
I don't think I have seen many cases that have
been anymore hard fought by the debtors than
[plaintiffs] have fought in this case. At an
early stage they filed . . . a voluntary
Chapter 13 pro se . . . [T]hey decided to
convert it to Chapter 11 . . . .
And we proceeded and nothing went well in
the case, and it got converted. And they
changed attorneys again. . . . [A]t the last
minute [the plaintiffs' attorney] comes in and
wants me to sign an ex parte order enjoining
. . . this sale[.] And for the third time I,again, benefitted the debtors, but I assured
him that when I did so that if he didn't come
up with his sale that this auction was going
to take place.
Further, plaintiffs did not present any evidence they would have
prevailed on appeal. Plaintiffs' own expert witness testified he
saw no error on the part of the bankruptcy judge when he reviewed
the bankruptcy proceeding transcript. Thus, even if a stay had
been granted, there is no evidence plaintiffs' position would
ultimately have differed.
In a motion for a directed verdict, all of the evidence
favoring the non-moving party must be taken as true, giving the
non-moving party the benefit of every reasonable inference which
may be legitimately drawn therefrom with all contrasts, conflicts
and inconsistencies resolved in the non-moving party's favor.
Murphy v. Edwards, 36 N.C. App. 653, 659, 245 S.E.2d 212, 216-17,
disc. review denied, 295 N.C. 551, 248 S.E.2d 728 (1978).
Plaintiffs have shown some evidence of each of the elements of
professional malpractice, except the crucial element of proximate
cause, which keeps them from having the issues decided by a jury.
It is well-settled that directed verdicts, or any summary
adjudications for that matter, are not well-suited for negligence
cases because the issues are for the jury. Crane v. Caldwell, 113
N.C. App. 362, 438 S.E.2d 449 (1994); Taylor v. Walker, 320 N.C.
729, 360 S.E.2d 796 (1987); Williams v. Power & Light Co., 296
N.C. 400, 250 S.E.2d 255 (1979). However, in this case, plaintiffsdid not put forth any evidence to show defendants proximately
caused an injury.
AFFIRMED.
Judges MARTIN and BIGGS concur.
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