Estate of Diana Lykos Voutsaras v. Gary L Bender
Estate of Diana Lykos Voutsaras v. Gary L Bender
Opinion
*669 Plaintiff-appellant, the estate of Diana Lykos Voutsaras (the Estate) appeals as of right the trial court's order granting summary disposition in favor of defendants *811 Kenneth M. Mogill, Mogill Posner & Cohen, Kern G. Slucter, and Gannon Group, P.C. (collectively, the Mogill defendants). 1 This appeal arises, in relevant part, out of the Estate's action against the Mogill defendants for professional malpractice in their services as expert witnesses. The trial court held that a party's own expert witnesses, regardless *670 of any duty to their client, are shielded by witness immunity. We hold that licensed professionals owe the same duty to the party for whom they testify as they would to any client and that witness immunity is not a defense against professional malpractice. Therefore, we reverse and remand.
I. STATEMENT OF FACTS
The underlying litigation involved the foreclosure of a commercial mortgage and note made by Diana and Spiro Voutsaras and held by Gallagher Investments (Gallagher). The Voutsarases hired the law-firm defendants 2 to represent them in the foreclosure proceedings. The Voutsarases, on the advice of the law-firm defendants, filed a counterclaim against Gallagher and a third-party claim against some of the principal actors involved with Gallagher for malpractice. The law-firm defendants then hired the Mogill defendants to provide litigation support and ultimately serve as expert witnesses at trial. Kenneth Mogill was considered to be a preeminent authority on legal ethics in the state of Michigan, and Slucter and Gannon Group were experts in the field of real-estate brokerage and best practices in the field. Ultimately the law-firm defendants informed the Voutsarases that their litigation strategy was bound to fail, and the trial court granted summary disposition against the Voutsarases.
Diana Voutsaras passed away in January 2015, and the Estate then brought the present action against the law-firm defendants and the Mogill defendants. The Estate claimed that the law-firm defendants failed to advise Diana Voutsaras of a favorable settlement offer and that the law-firm defendants deliberately concealed *671 the fact that the Voutsarases' claims were frivolous in order to drive up their costs before trial. The Estate claimed that the Mogill defendants breached their duty to Diana Voutsaras by failing to properly investigate the facts required to formulate their opinions, failing to understand the applicable standards, and failing to provide a competent professional opinion. Noting that the ability to sue one's own expert witnesses was an issue of first impression in Michigan, the trial court engaged in a broad reading of prior witness-immunity standards and granted summary judgment to the Mogill defendants on that theory. This appeal followed.
II. PRESERVATION AND STANDARD OF REVIEW
A. PRESERVATION OF THE ISSUE
An issue is preserved for appellate review if raised in the trial court and pursued on appeal.
Peterman v. Dep't of Natural Resources
,
B. STANDARD OF REVIEW
This Court reviews de novo a trial court's decision to grant summary disposition.
*672
Bowden v. Gannaway
,
III. ARGUMENT
A. DUTY OF AN EXPERT WITNESS WHO IS A LICENSED PROFESSIONAL
The Estate claims that defendants owed to Diana Voutsaras a legal duty and that defendants breached that duty. Duty is "the legal obligation to conform to a specific standard of conduct in order to protect others from unreasonable risks of injury."
Lelito v. Monroe
,
*673
the fact and extent of the client's injury."
Id
. at 537-38,
The trial court granted summary disposition to defendants solely on the basis of witness immunity. Defendants now argue on appeal that regardless of witness immunity, the Estate has failed to show that defendants owed a legal duty to Diana Voutsaras. "An issue not addressed by the trial court may nevertheless be addressed by the appellate court if it concerns a legal issue and the facts necessary for its resolution have been presented."
Sutton v. Oak Park
,
B. WITNESS IMMUNITY AS A DEFENSE TO MALPRACTICE
1. MICHIGAN CASELAW
Defendants and the trial court rely on our Supreme Court's opinion in
*813
Maiden
,
*674 [W]itnesses who testify during the course of judicial proceedings enjoy quasi-judicial immunity. This immunity is available to those serving in a quasi-judicial adjudicative capacity as well as "those persons other than judges without whom the judicial process could not function." 14 West Group's Michigan Practice, Torts, § 9:393, p 9-131. Witnesses who are an integral part of the judicial process "are wholly immune from liability for the consequences of their testimony or related evaluations." Id ., § 9:394, pp. 9-131 to 9-132, citing Martin v. Children's Aid Society ,215 Mich.App. 88 , 96,544 N.W.2d 651 (1996). Statements made during the course of judicial proceedings are absolutely privileged, provided they are relevant, material, or pertinent to the issue being tried. See Martin v. Children's Aid Society , supra ; Rouch v. Enquirer & News of Battle Creek ,427 Mich. 157 , 164,398 N.W.2d 245 (1986) ; Meyer v. Hubbell ,117 Mich.App. 699 , 709,324 N.W.2d 139 (1982) ; Sanders v. Leeson Air Conditioning Corp ,362 Mich. 692 , 695,108 N.W.2d 761 (1961). Falsity or malice on the part of the witness does not abrogate the privilege. Sanders , supra . The privilege should be liberally construed so that participants in judicial proceedings are free to express themselves without fear of retaliation. Id . [ Maiden ,461 Mich. at 134 ,597 N.W.2d 817 .]
We find Maiden only partially applicable, for several reasons.
First, the policy considerations in
Maiden
were clearly focused on the freedom witnesses must have to give
damaging
testimony without any fear of possible reprisal. We agree with defendants and the trial court to the extent that such policy considerations extend beyond witnesses who are formally or functionally adverse. In other words, any witness called by any party enjoys immunity based on the substance of that witness's testimony or evidence. Therefore, to the extent the Estate may assert that the Mogill defendants gave testimony that was
unfavorable
to Diana Voutsaras, such assertions unambiguously run afoul of the witness-immunity
*675
doctrine in Michigan. However, whether witness immunity protects the Mogill defendants from giving
professionally incompetent
testimony, which might or might not be favorable, was clearly not a matter considered by the
Maiden
Court. As our Supreme Court recently explained, to derive a rule of law from the facts of a case "when the question was not raised and no legal ruling on it was rendered, is to build a syllogism upon a conjecture."
People v. Seewald
,
Additionally, the witness-immunity doctrine at issue in
Maiden
addresses only actual testimony. That immunity necessarily extends to any other materials or evidence prepared by the witness for the intended benefit of the court. See
Denhof
,
To the extent that the Estate's claims rest on the Mogill defendants having provided damaging testimony or evidence intended for consideration by the trial court, the Mogill defendants are clearly protected by the doctrine of witness immunity. However, we find nothing in Maiden , or in any other Michigan caselaw, suggesting that any other claim of professional malpractice *676 by a client is precluded merely because the professional was expected to provide expert testimony. We decline to parse which particular claims in this matter are immunized. We hold only that the Mogill defendants are not absolutely immunized from professional-malpractice claims where they already owed a duty of professional care merely because part of their retention included the provision of expert testimony.
2. OTHER JURISDICTIONS
Although not binding, authority from other jurisdictions may be considered for its persuasive value.
Abela v. Gen. Motors Corp.,
In
Briscoe v. LaHue
,
In
Mattco Forge, Inc.
v.
Arthur Young & Co.
,
Arthur Young was not a "neutral expert," but one hired by Mattco. If an expert witness's negligence and breach of contract cause dismissal of the party who hired that expert witness, that does not expand freedom of access to the courts. Applying the privilege in this circumstance does not *678 encourage witnesses to testify truthfully; indeed, by shielding a negligent expert witness from liability, it has the opposite effect. Applying the privilege where the underlying suit never reached the trial stage would also mean that the party hiring the expert witness would have to bear the penalty for the expert witness's negligence. That result would scarcely encourage the future presentation of truthful testimony by that witness to the trier of fact. [ Id . at 404,6 Cal.Rptr.2d 781 .]
The California Court of Appeals found the distinction between one's own witnesses and adversarial witnesses to be of unique importance, because the policies underlying witness immunity "can logically apply ... only to trial testimony of adverse witnesses" and thus were immaterial to "a pretrial dispute between a party and its own expert witness that arose during discovery."
Id. at 406,
In
Murphy v. A A Mathews
,
In
LLMD of Mich., Inc. v. Jackson-Cross Co.
,
*816
The chairman had not personally prepared the lost-profits calculation and could not explain the error.
Id
. The trial court granted a motion to strike the chairman's testimony. The next day, the plaintiffs accepted a settlement offer for $750,000; the firm later recalculated the lost profits at $2.7 million.
Id
. The plaintiffs then sued the firm for breach of contract and professional malpractice.
Id
. at 300,
The Connecticut Superior Court (i.e., a trial court) followed
LLMD of Mich., Inc.
in
Pollock v. Panjabi
,
policy reasons undergirding the absolute privilege accorded witnesses are not implicated here. This is not a case in which the right of a witness to speak freely, in or out of court, is involved. While conduct, objects and experiments may have communicative aspects, the plaintiffs do not complain about what [the spinal biomechanics expert] said or about anything [the kinesiologist], who never testified, said or communicated. Rather, the plaintiffs complain of the defendants' failure to perform work, *681 as agreed upon, according to scientific principles as to which there are no competing schools of thought. [ Id . at 188 (citation omitted),781 A.2d 518 .]
The court concluded that the gravamen of the plaintiffs' claim was to "hold the defendants accountable for not doing what they agreed to do," which did not undermine the witness-immunity policy of ensuring that witnesses could speak freely.
Id. at 194,
We find these cases to be the most persuasive. However, additional state courts have allowed a party to sue its own expert, determining that the policy considerations underlying the doctrine of witness immunity would not be furthered by application in those cases. See
Boyes-Bogie v. Horvitz
,
3. WITNESS IMMUNITY AS A DEFENSE AGAINST MALPRACTICE
It bears repeating that the
Maiden
Court prefaced its discussion of witness immunity by ruling that the
*682
medical examiner was an adverse witness to the plaintiff.
Maiden
,
IV. CONCLUSION
We conclude that the trial court erred by construing the doctrine of witness immunity too broadly. A professional's client is not precluded from maintaining a professional malpractice action by witness immunity except to the extent the action is premised on the substance of evidence or testimony prepared for the benefit of the court. We decline to address any other issues, such as the specific duties owed in this matter or the extent to which plaintiff's specific allegations actually implicate witness immunity. We reverse the trial court's grant of summary disposition pursuant to MCR 2.116(C)(7), and we remand for further proceedings. We do not retain jurisdiction. An important public question *683 of first impression being involved, we direct that the parties shall bear their own costs. MCR 7.219(A).
Swartzle, P.J., and Sawyer, J., concurred with Ronayne Krause, J.
On October 2, 2017, Ingham Circuit Court Judge Matthew J. Stewart entered a stipulated order of dismissal following a settlement agreement between plaintiff Kathleen Gaydos, as the personal representative of the estate of Diana Voutsaras, and defendants Gary Bender, Richard Cascarilla, Lindsay Dangl, Vincent Spagnuolo, and Murphy & Spagnuolo, P.C. (collectively, the law-firm defendants), who were Diana and Spiro Voutsaras's attorneys in the underlying litigation.
See note 1 of this opinion.
That statute provided, in part: " 'A privileged publication or broadcast is one made: ... In any (1) legislative or (2) judicial proceeding, or (3) in any other official proceeding authorized by law, or (4) in the initiation or course of any other proceeding authorized by law and reviewable pursuant to Chapter 2 ....' "
Mattco Forge, Inc.
,
Case-law data current through December 31, 2025. Source: CourtListener bulk data.