L.D.G., Inc. v. Robinson
L.D.G., Inc. v. Robinson
Opinion of the Court
OPINION
I. INTRODUCTION
A bar allowed a man to consume aleohol while he was visibly intoxicated, and the man murdered a woman later in the evening. The lawyer representing the bar in the subsequent dram shop action did not attempt to
II. FACTS AND PROCEEDINGS
A. Facts
Larry Gjovig was the sole shareholder of L.D.G., Inc., a corporation which owned and operated a bar. One night in 1998 the bar served RV. Freeman alcohol; later that night Freeman shot and killed Tracy Eason.
In 2000 the personal representative of Ea-son's estate filed a wrongful death suit against L.D.G. and Gjovig (collectively LD.G.), alleging L.D.G. violated Alaska's dram shop act when it served alcoholic beverages to Freeman while visibly intoxicated, proximately causing Eason's death.
L.D.G. retained Arthur S. Robinson to defend the suit. Robinson did not seek to join Freeman to the action or assert a third-party claim against him for allocation of fault.
Following the jury's verdict, the estate moved for judgment notwithstanding the verdict and a damages trial. The superior court granted the motion, finding that "fair-minded jurors could not have concluded that the intoxication of the murderer, who they found would not have killed Tracy Eason but for that very intoxication, was not a substantial factor in this wrongful death."
The superior court's decision effectively attributed 100% of the fault to L.D.G. After a trial on damages, the superior court entered judgment of $945,911.95 against L.D.G. We
B. Proceedings
L.D.G. sued Robinson, alleging that Robinson's representation fell below the standard of care for an attorney practicing in Alaska when he did not attempt to add Freeman to the underlying action for allocation of fault. Robinson moved to dismiss for failure to state a claim.
L.D.G. opposed the motion, contending that this argument was rejected in Doe v. Hughes, Thorsness, Gantz, Powell & Brundin.
At oral argument on the motion, Robinson argued that his duty was to "act in a manner consistent with the existing law," and because he did so, as a matter of law he was not liable for malpractice. L.D.G. argued that Doe requires an attorney to "weigh the benefit and the possible harms and see which course" to take, and that it was inappropriate to dismiss L.D.G.'s claim without granting the parties an opportunity to present expert evidence on the standard of care or an opportunity to determine Robinson's considerations (if any) in making the decision not to add Freeman.
The superior court granted Robinson's motion to dismiss. The court noted that the applicability of several liability to the dram shop statute was unsettled at the time of the underlying trial and was not resolved until ten years later in Sowinski v. Walker.
L.D.G. moved for reconsideration, arguing that the court should reconsider its decision in light of Doe's holding and Loeb's express reservation for future consideration all issues related to multiple defendants and the several Hability framework.
The superior court denied L.D.G.'s reconsideration motion. It clarified that it did "not know whether [Robinson] vigorously re
L.D.G. appeals the dismissal of the action.
III. STANDARD OF REVIEW
"We review de novo an order dismissing a complaint ... for failure to state a claim upon which relief can be granted."
IV. DISCUSSION
- Alaska Civil Rule 12(b)(6) permits a court to dismiss a complaint for failing to state a claim upon which relief can be granted. To establish its legal malpractice claim against Robinson, L,D.G. was required to allege facts supporting four basic elements: (1) Robinson had a duty "to use such skill, prudence, and diligence as other members of the profession commonly possess and exercise"; (2) he breached that duty; (3) the breach proximately caused L.D.G.'s injury; and (4) "actual loss or damage resulted from the negligence."
The parties dispute whether L.D.G. asserted facts to support the second element. But L.D.G. alleged that Robinson's failure to add Freeman as a party to the lawsuit fell below the standard of care for an attorney practicing in Alaska. It was error for the superior court to conclude that this assertion, which implicates both the contours of Robinson's duty of care and the element of breach, was legally insufficient to entitle L.D.G. to relief,
We agree that the specific question facing Robinson-whether L.D.G. could make Freeman a party for allocation of fault-was unsettled
A person who provides alcoholic beverages to another person may not be held civilly liable for injuries resulting from the intoxication of that person unless the person who provides the alcoholic beverages holds a license ... and (1) the alcoholic beverages are provided to a person under the age of 21 years ... or (2) the alcoholic beverages are provided to a drunken person... .[25 ]
Also at that time, our only decision analyzing fault allocation in relation to AS 04.21.020(2)
In Loeb a store negligently sold liquor to a minor, leading to an automobile accident; one year later the minor committed suicide.
In reaching our conclusion, we focused on the public policy concerns underlying the dram shop act and the statutes requiring licensees to verify a purchaser's age:
The legislature has passed many laws designed to protect minors from the pernicious effects of alcohol. Such laws, particularly those making it unlawful to sell liquor to a minor, reflect society's belief that children are not competent to assess in any meaningful way the risks involved in the use of alcohol. [The store] was able to exploit this lack of competence[ ] when it sold liquor unlawfully to [the minor]. However, we can think of no legitimate reason to allow [the store] to exploit it further{ ] by having its liability to the plaintiff reduced because [the minor] failed to exercise the same degree of care for her own safety reasonably expected of one more able to assess the risks[ ] when she purchased and used the defendant's product. [The store's] argument is particularly unpersuasive in light of the fact that it could have avoided all liability merely by securing, in good faith, proof that [the minor] was of lawful age before selling her liquor.[34 ]
We ultimately held that "a licensee who violates AS 04.21.050[
Importantly, we footnoted our holding with an express caveat:
Because this case does not involve multiple defendants, we need not decide how the recent Tort Reform Act [amended by initiative to provide pure several liability37 ]*220 affects this issue. Multiple defendants might complicate a case when an injured third party brings action against both the minor and the liquor licensee, or when more than one liquor licensee has unlawfully provided the minor with liquor. We reserve for future consideration all issues related to multiple defendants.[38 ]
Robinson argues that Loeb was the governing law at the time he represented L.D.G. But Loeb did not clearly establish the law applicable to Robinson's representation for two reasons. First, in Loeb we reasoned that the public policy of protecting minors prevented the licensee from asserting the minor's fault.
Robinson argues that in this footnote we referred only to cases where a plaintiff, not the defendant-licensee, might assert a claim against the consumer, rather than where the defendant-licensee might bring a third-party action against the consumer or join the consumer as a defendant for fault allocation. Although we initially referenced an "action against both the minor and the liquor licensee" rather than making a more general statement (so as to include those times when the defendant adds the consumer), we noted that we "reserve[d] for future consideration all issues related to multiple defendants."
We therefore must consider an attorney's duty when the law is unsettled on a material issue necessitating a strategic decision by the attorney or the client. We addressed a similar situation in Doe v. Hughes, Thorsness, Gantz, Powell & Brundin.
The surrogate later moved to vacate the decree on the ground that her consent was invalid because it was not obtained in conformity with ICWA.
the issue in the case was whether [the firm] was liable to the [adoptive parents] for a mere error of judgment, or for a mistake in a point of law which, at the time of the advice given, had not been settled by the Alaska Supreme Court, and was a point of law upon which reasonable lawyers could differ.[55 ]
We reversed, noting that because the adoption was potentially subject to ICWA's consent requirements, "the risk in failing to obtain the biological mother's consent to the adoption in conformity with the Act should have been clear to any attorney possessed of the required level of professional competence.
We explained that an attorney's obligations involve the "duty to advise the client of action the client should take in a given set of circumstances."
We specifically addressed the superior court's conclusion that the firm could not be liable for "only an 'error in judgment' concerning a matter about which the law remained unsettled."
[alny uncertainty there might have been about the applicability of [ICWA] made [the firm's] failure to obtain compliance with the Act more, rather than less, blameworthy. The cost of compliance with the [Alet would be by all measures slight when compared to the potential cost of not complying with the Act. The decision to ignore the additional steps required for a "valid" consent was anything but the act of a reasonably prudent lawyer.[62 ]
In this way, we refused to grant immunity to lawyers committing an error in judgment with regard to unsettled law.
Robinson argues that Doe is distinguishable because "[the Doe attorneys failed to
This standard of care was exemplified by the defense counsel and superior court in H & J Corp. v. Murfitt.
The bar appealed the court's determination 'that the dram shop act precluded alcohol sellers from apportioning fault.
v. CONCLUSION
For the reasons stated, we REVERSE the dismissal order and REMAND for proceedings consistent with this decision.
. L.D.G., Inc. v. Brown, 211 P.3d 1110, 1115 (Alaska 2009).
. Freeman v. State, No. A-7658, 2002 WL 460222, at *1 (Alaska App., Mar. 27, 2002).
. L.D.G., 211 P.3d at 1116.
. Id.
. See AS 09.17.080 (providing for apportionment of damages in actions involving fault of more than one person); see also Alaska R. Civ. P. 14 ("At any time after commencement of the action a defending party, as a third-party plaintiff, may cause a summons and complaint to be served upon a person not a party to the action who is or may be liable to the third-party plaintiff for all or part of the plaintiff's claim against the third-party plaintiff.").
. L.D.G., 211 P.3d at 1116 (alteration in original).
. Id.
. Id. (alteration in original).
. Id.
. See AS 09.17.080(a)(2) (providing fault may not be allocated to person if "parties had a sufficient opportunity to join that person in the action but chose not to").
. L.D.G., 211 P.3d at 1136.
. See Alaska R. Civ. P. 12(b)(6).
. 822 P.2d 914, 919-20 & n. 15 (Alaska 1991) (holding in dram shop action brought by minor's estate that licensee could not assert comparative fault of minor who purchased alcohol, but in light of recent enactment of pure several liability "reserv{ing] for future consideration all issues related to multiple defendants").
. 838 P.2d 804, 807 n. 7 (Alaska 1992) (noting law firm could be liable for malpractice in spite of argument that its action was only an "error in judgment" concerning unsettled law).
. 198 P.3d 1134, 1140 (Alaska 2008) (holding that adoption of pure several liability supercedes Loeb and allows licensee to assert comparative fault of minor in dram shop action between minor and licensee).
. See Doe, 838 P.2d at 807 n. 7; Loeb, 822 P.2d at 920 n. 15.
. Cf. Loeb, 822 P.2d at 919-20.
. Larson v. State, 254 P.3d 1073, 1076 (Alaska 2011) (quoting Pepper v. Routh Crabtree, APC, 219 P.3d 1017, 1020 (Alaska 2009)).
. Id. (quoting Pepper, 219 P.3d at 1020).
. Caudle v. Mendel, 994 P.2d 372, 374 (Alaska 1999) (quoting Kollodge v. State, 757 P.2d 1024, 1025-26 (Alaska 1988)).
. Larson, 254 P.3d at 1076-77 (quoting Pepper, 219 P.3d at 1020) (alteration in original).
. Vanek v. State, Bd. of Fisheries, 193 P.3d 283, 286 (Alaska 2008) (citing Kollodge, 757 P.2d at 1026).
. See Stewart v. Elliott, 239 P.3d 1236, 1240 (Alaska 2010) (quoting Shaw v. State, Dep't of Admin., Pub. Defender Agency, 816 P.2d 1358, 1361 n. 5 (Alaska 1991)).
. "Unsettled" is defined as "not decided or determined ... characterized by uncertainty, irregularity, or instability." Weester's THiro New InTERNATIONAL Dictionary 2510 (2002).
. Former AS 04.21.020(a)(1}-(2) (2000).
. 822 P.2d 914 (Alaska 1991).
. Id. at 916.
. Id.
. See Kaatz v. State, 540 P.2d 1037, 1049 (Alaska 1975) (adopting common law comparative negligence); see also AS 09.17.060; ch. 139, § 1, SLA 1986 ("[Clontributory fault chargeable to the claimant diminishes proportionately the amount awarded as compensatory damages for the injury attributable to the claimant's contributory fault, but does not bar recovery.").
. Loeb, 822 P.2d at 918.
. Id.
. Id. (emphasis in original).
. Id. at 919.
. Id. (citations and emphasis omitted).
. AS 04.21.050 requires proof of age whenever the licensee or employee "questions or has reason to question whether [a person] has attained the age of 21 years," and can be the basis of liability under the dram shop statute, AS 04.21.020.
. Loeb, 822 P.2d at 919-20.
. In 1986 the legislature passed the Tort Reform Act, codifying a system of pure comparative negligence but retaining joint and several liability. Ch. 139, §§ 1-11, SLA 1986. A ballot initiative passed two years later replaced joint and several liability with pure several lability. See generally Sowinski v. Walker, 198 P.3d 1134, 1149-50 (Alaska 2008); Smith v. Ingersoll-Rand Co., 14 P.3d 990, 994 (Alaska 2000).
. Loeb, 822 P.2d at 920 n. 15 (emphasis added) (citations omitted). Years after the trial in the present case, we held in Sowinski v. Walker that the legislature's adoption of pure several liability in AS 09.17.080 superseded our determination in Loeb that the violator of AS 04.21.020 could not reduce its liability by the fault of the minor-plaintiff. Sowinski, 198 P.3d at 1155-56 (Alaska 2008).
. Loeb, 822 P.2d at 918-19.
. See id. at 918.
. Id. at 919.
. Id.
. See id. at 918, 920 n. 15.
. Id.
. Id. (emphasis added).
. 838 P.2d 804 (Alaska 1992).
. Id. at 805.
. Id. (citing 25 U.S.C. § 1913(a)).
. Id. Under ICWA, where a parent gives consent to the termination of his or her parental rights, the consent is valid only if it is "executed in writing and recorded before a judge of a court of competent jurisdiction," and is "accompanied by the presiding judge's certificate that the terms and consequences of the consent were fully explained in detail and were fully understood by the parent." 25 U.S.C. § 1913(a).
. Doe, 838 P.2d at 805.
. Id.
. Id.
. Id. at 806.
. Id. (internal alteration marks omitted).
. Id. at 807.
. Id. (emphasis omitted).
. Id. (emphasis omitted).
. Id. (emphasis omitted).
. Id. at 807 n. 7.
. Id. (emphasis in original).
. See Doe, 838 P.2d at 807 n. 7.
. Cf. Tush v. Pharr, 68 P.3d 1239, 1246-47 (Alaska 2003) (providing in attorney malpractice suit that where reasonable minds could differ as to attorney's standard of care, summary judgment is not appropriate); Linck v. Barokas & Martin, 667 P.2d 171, 173-74 (Alaska 1983) (reversing a Rule 12(b)(6) dismissal where plaintiff alleged attorney failed to advise plaintiff of her right to disclaim an interest in her husband's estate to avoid tax liability for gifts to her children).
. Mem. Op. & J. No. 1351, 2009 WL 3681660 (Alaska, Nov. 4, 2009).
. Id. at *1.
. Id. at *2.
. Id.
. Id.
. Id.
. Id. at *3.
. 198 P.3d 1134, 1151-56 (Alaska 2008).
. Murfitt, 2009 WL 3681660, at *5.
Reference
- Full Case Name
- L.D.G., INC. and Estate of Larry Gjovig v. Arthur S. ROBINSON
- Cited By
- 1 case
- Status
- Published