Decisions Address Separate Entity Rule and Time Limitation Issues
Patrick M. Connors of Albany Law School discusses notable Civil Practice decisions from the recent term of the New York Court of Appeals.
August 21, 2015 at 12:44 PM
13 minute read
This piece summarizes civil procedure decisions handed down by the New York Court of Appeals during its 2014-2015 term. Given our space limitations, we have addressed only a portion of the Court's holdings in this arena, with an emphasis on those decisions that are most relevant to everyday practice in The Empire State. Readers searching for a discussion of the other relevant opinions from the Court during the 2014-2015 term will want to review the biannual supplements to Siegel, New York Practice (Thomson, Connors ed., July 2015 Supplement; January 2016 Supplement [forthcoming]).
Continuous Representation Toll
The statute of limitations was once again busy destroying the hopes of plaintiffs and realizing the dreams of defendants during the past year. Several Court of Appeals decisions grappled with statute of limitations issues, including two opinions addressing the continuous representation doctrine in actions alleging legal malpractice and attorney misconduct.
Claims alleging legal malpractice, which would otherwise be barred by the statute of limitations, are sometimes saved by the doctrine of continuous representation. See Siegel, New York Practice §42. In Grace v. Law, 24 N.Y.3d 203 (2014), a law firm withdrew from representing the plaintiff in a medical malpractice action against the Veterans Administration in federal court after discovering it had a conflict of interest. Following this withdrawal, a law firm that previously represented the plaintiff in an administrative proceeding against the Veterans Administration took over the prosecution of the federal action. The exact date of the transfer of the representation was not clear, but on Dec. 8, 2008, an order was signed by the federal district court directing the substitution of counsel.
Plaintiff, who was dissatisfied with the results of the administrative proceeding and federal court action, commenced a legal malpractice action against both law firms on Dec. 5, 2011. The law firm that withdrew from the representation in the federal court action moved for summary judgment based on the three-year statute of limitations in CPLR 214(6), claiming that plaintiff should have known by Sept. 26, 2008 that the firm was no longer able to represent him and that successor counsel would be taking over the representation. The plaintiff countered that he did not learn of the substitution of counsel until Dec. 8, 2008, when the official order substituting counsel was signed by the federal district court.
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