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Proposition 8 ruled unconstitutional: On to the Supreme Court?

Proposition 8 ruled unconstitutional: On to the Supreme Court?

The 9th Circuit Court of Appeals ruled Tuesday that California's Proposition 8 banning same-sex marriage is unconstitutional, a decision that could lead to the Supreme Court's consideration of the controversial social issue.

Supreme Court rules warrant needed for GPS tracking - USATODAY.com

http://www.usatoday.com/news/washington/judicial/story/2012-01-23/supreme-court-GPS/52754354/1

The ruling, which marked the justices' first-ever review of GPS tracking, was unanimous. The justices divided, however, on how the Fourth Amendment protection against unreasonable searches and seizures applies to such high-tech tracking.

Professional Negligence--Court analyzes certainty of damage for statute of limitations purpose

One of the more difficult issues attorneys and courts wrestle with in a professional negligence case is when, exactly, is the client damaged sufficiently to put him or her on notice to start the running of the statute of limitations.  Division I of the Washington State Court of Appeals, recently ruled in a published decision that in a professional negligence matter against a CPA, the statute of limitations did not accrue until a decision by the Washington State Department of Revenue (DOR) became final, binding, and due for payment.  See John Murphey v. Charles D. Grass, CPA & Associates, P.S., No 65919-I, October 31, 2011.

 

            In the Murphey case, Murphey originally hired Grass to prepare payroll and tax returns for his construction business.  By 2000, Murphey's business had expanded, and Grass managed all bookkeeping and accounting services for Murphey's businesses.  In 2004, the DOR initiated random audits of Murphey's two businesses.  Grass could not come up with documentation requested by the DOR at the audit.  At this same time, Murphey learned that the Internal Revenue Services (IRS) had issued tax liens against his business for unpaid employment taxes.  When Grass was confronted about this, he initially lied and said it was a mistake.  Murphey later learned that Grass had numerous unopened tax notices from the IRS related to the unpaid taxes.  Murphey ultimately confirmed the liens were accurate, and he owed approximately $100,000 in employment taxes, interest and penalties.

 

            Murphey fired Grass, and Murphey's attorney sent a letter where he warned Grass that the penalties imposed by the IRS were a result of his errors and omissions, and that once Murphey assessed all his damages, he would make demand upon Grass for repayment.  Murphey's counsel suggested that Grass tender the claim to his errors & omissions carrier.  The DOR, in the meantime, completed its audits of Murphey's businesses in 2006, finding Murphey owed significant taxes and penalties to the State of Washington.  Murphey filed several petitions for correction with the DOR.  On February 13, 2009, the appeals division of the DOR issued a determination denying Murphey's petitions for correction.  Murphey then appealed this to the board of tax appeals.

           

            In November 2009, Murphey filed suit against Grass.  Grass moved for summary judgment, arguing that the statute of limitations began to run in 2005 and 2006.  The lower court granted Grass's motion.  On appeal, the Court of Appeals reversed.  It noted that the statute of limitations begins to run when "all elements necessary to the claim exist and the plaintiff has a right to seek relief in the courts."  Grass argued that the latest the statute of limitations could have begun to run was in March of 2006, when the DOR issued its first tax assessment.  The written assessment set forth the amount of money due, and warned that failure to pay the same by the date due would result in additional penalties. 

 

            While the Court of Appeals acknowledged that the written notice supported Grass's position, it observed that in this case the statute governing the assessment, RCW 82.32.160, permitted the taxpayer 30 days to file a petition for correction, at which point the assessment would become final if a petition was not filed.  Citing to both out-of-state and Washington legal malpractice cases that were relied upon by Grass, the Court found that in all cases the statute of limitations began to run when the "plaintiffs learned of injury that was certain."  In Murphey, the Court found that damages became "certain" when "the appeals division made the assessments, final, binding and due for payment."

Legal Malpractice: Court promulgates "new test" related to the Continuous Representation Rule

Two common exceptions to the statute of limitations in legal malpractice cases are the "continuous representation" rule, and the "discovery rule."  The former tolls the statute of limitations until the end of an attorney's representation of a client in the same matter in which the alleged malpractice occurred. See Janicki Logging & Constr. Co. v. Schwabe, Williamson & Wyatt, P.C., 109 Wash.App. 655, 661, 37 P.3d 309 (2001), review denied, 146 Wash.2d 1019, 51 P.3d 88 (2002).  The latter states that the statute of limitations does not start to run on an attorney malpractice claim until the client discovers, or in the exercise of reasonable diligence should have discovered, facts that give rise to his cause of action.  In April of 2011, Division II found in Hipple v. McFadden, 161 Wash.App. 550, 255 P.3d 730 (2011) that the continuous representation rule applied only if client actually had or reasonably should have had no expectation that attorney would provide further services, and that if the trier of fact did not find the continuous representation rule applied, it was also an issue of fact when the discovery rule took effect.

 

            In the case, Hipple was arrested on a warrant on April 15, 2005, and placed in jail. In the next several days, Hipple contacted the Department of Assigned Counsel (DAC) and was determined eligible for appointed counsel.  On May 9, 2005, Hipple received a letter from DAC notifying him that attorney Carolyn Elsey had been appointed to represent him.  On May 10, 2005, DAC attorney Deborah McFadden filed a special notice of appearance on behalf of Hipple in connection with the contempt matter.  Hipple had initial contacts with Elsey and McFadden until sometime in June 2005, where all efforts to communicate with Elsey and McFadden were unsuccessful.  In September 2006, a third attorney secured Hipple's release on the warrant.  On June 18, 2009, Hipple filed a legal malpractice claim against Elsey and McFadden.  Elsey and McFadden moved to dismiss, arguing the statute of limitations barred the action, and, alternatively, that the complaint did not demonstrate proximate cause. The trial court denied the motion, ruling that under the continuous representation rule, the filing of an appearance by the third, unrelated attorney, on the contempt warrant, was a reasonable point in time for the action to accrue.

 

            On appeal, Division II observed that "[t]he test for determining whether an attorney's representation of a client regarding a specific subject matter continues or ends is a matter of first impression in Washington.  In general, the determinative event for the continuous representation rule is when the representation ended."  The Court looked at various authorities, including Gonzalez v. Kalu, 140 Cal.App.4th 21, 31, 43 Cal.Rptr.3d 866 (2006).  In Gonzalez, the lawyer claimed to end the attorney-client relationship, but the client disputed receiving notice of the termination and alleged that she still believed the attorney was pursuing her claim. The court concluded that resolution of when the representation ended was a question of fact and that where there is unilateral withdrawal or abandonment, the representation ends "when the client actually has or reasonably should have no expectation that the attorney will provide further legal services."  Finding that the reasoning in Gonzalez was persuasive, Division II found that the client's reasonable expectations was "an appropriate standard to apply because it furthers the stated objective of preventing an attorney from being able to wait out an alleged malpractice claim."  Justice Quinn-Brintnall dissented, to express the view that in order for the continuous representation rule to apply and toll the statute of limitations, Hipple must bear the initial burden to prove that McFadden's and Elsey's representation was continuous.  Justice Quinn-Brintnall further expressed the view that Hipple had failed to meet his burden with McFadden and that the lower court should have been ordered to dismiss the case against her.

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