Branch Banking & Trust Co. v. Gerrard
Branch Banking & Trust Co. v. Gerrard
Opinion of the Court
*738This is an appeal from an order dismissing a litigation malpractice suit as time-barred. Nevada follows the rule that a litigation malpractice claim does not accrue, and the two-year statute of limitations in NRS 11.207(1) does not start to run, until the client's damages are no longer contingent on the outcome of an appeal. This case asks us to determine how this rule applies when, without seeking a stay of remittitur from this court, the client unsuccessfully petitions for a writ of certiorari from the United States Supreme Court. We hold that a litigation malpractice claim accrues upon the issuance of remittitur from this court and that, unless the remittitur is stayed, the filing of an unsuccessful petition for a writ of certiorari does not extend the statute of limitations. Because appellant filed its malpractice action more than two years after we issued the remittitur in the case involving the alleged malpractice, we affirm the district court's order dismissing this suit as time-barred.
I.
Appellant Branch Banking & Trust hired respondents Gerrard & Cox, d/b/a Gerrard Cox & Larsen and attorney Douglas Gerrard (collectively, Gerrard) to represent it in a lawsuit contesting the priority of deeds of trust on a piece of property. The district court entered judgment against Branch Banking, and a three-justice panel of this court affirmed. R&S St. Rose Lenders, LLC v. Branch Banking & Tr. Co., Docket No. 56640 (Order of Affirmance, May 31, 2013). There followed timely petitions for rehearing, NRAP 40, and for en banc reconsideration, NRAP 40A, both of which were denied. R&S St. Rose Lenders, Docket No. 56640 (Order Denying Rehearing, Sept. 26, 2013; Order Denying En Banc Reconsideration, Feb. 21, 2014). This court issued its remittitur and closed the appeal on March 18, 2014. Branch Banking then filed a timely petition for a writ of certiorari with the United States Supreme Court, which the Supreme Court denied on October 6, 2014.
On October 5, 2016, Branch Banking filed the complaint underlying the current appeal against Gerrard, alleging legal malpractice in the property case. Gerrard moved to dismiss on the grounds the statute of limitations had expired. The district court agreed and entered an order dismissing the complaint for failure to state a claim upon which relief could be granted. Branch Banking appeals.
II.
A.
NRS 11.207(1) provides a two- or four-year statute of limitations for legal malpractice claims, running from the date the client discovers or should have discovered the claim (two years) or the date the client suffered damage (four years), whichever expires earlier. Our case law engrafts a "litigation malpractice tolling rule" onto NRS 11.207(1) 's two-year "discovery" rule. See Brady, Vorwerck, Ryder & Caspino v. New Albertson's, Inc.,
The litigation malpractice tolling rule holds that, in cases involving litigation malpractice, "the damages for a malpractice claim do not accrue until the underlying litigation is complete and, thus, a malpractice claim does not accrue and its statute of limitations does not begin to run during a pending appeal of an adverse ruling from the underlying litigation." Brady, Vorwerck, Ryder & Caspino,
The parties agree that Branch Banking "discovered" the malpractice in time for NRS 11.207(1) 's two-year limitations period to apply. They disagree on when the appeal in the property case was resolved such that, under the litigation malpractice tolling rule, Branch Banking's "damages" accrued and the two-year limitations period started to run. Branch Banking maintains that its legal malpractice claim did not accrue, thereby tolling the statute of limitations, until the Supreme Court denied its writ petition on October 6, 2014. And, because it filed its legal malpractice complaint within two years of the Supreme Court's denial of the petition, on October 5, 2016, Branch Banking insists its complaint was timely. Gerrard counters that the statute of limitations began to run at the latest on March 18, 2014, when this court issued its remittitur in the property case, and that since more than two years elapsed from that date before Branch Banking filed its malpractice complaint, the district court correctly dismissed the complaint as time-barred.
The facts are uncontested, so de novo review applies. See Holcomb Condo. Homeowners' Ass'n v. Stewart Venture, LLC,
B.
In Nevada, an appeal concludes and appellate jurisdiction ends upon issuance of the remittitur from this court to the district court. See NRAP 41(a) ; Dickerson v. State ,
Nevada's litigation malpractice tolling rule traces back to Semenza v. Nevada Medical Liability Insurance Co .,
The Supreme Court denied Branch Banking's petition for certiorari in the property case. But Branch Banking urges that, had the Supreme Court granted certiorari and reversed, its situation would be the same as the respondent's in Semenza. Citing Semenza and K.J.B. , Branch Banking presses us to extend the litigation malpractice tolling rule until the 90 days to petition for certiorari expires or, if a timely petition is filed, until the Supreme Court proceedings conclude. Cf. Haase v. Abraham, Watkins, Nichols, Sorrels Agosto & Friend, LLP,
Statutes of limitation "embody important public policy considerations in that they stimulate activity, punish negligence, and promote repose by giving security and stability to human affairs"; they "tend to promote the peace and welfare of society, safeguard against fraud and oppression, and compel the settlement of claims within a reasonable period after their origin and while the evidence remains fresh in the memory of the witnesses." Petersen v. Bruen ,
To function properly, statutes of limitation demand bright-line rules. Joel Erik Thompson, Ltd. v. Holder,
Tying the litigation malpractice tolling rule to the issuance of the remittitur not only avoids uncertainty and unnecessary delay, it also comports with other provisions of Nevada law. A defendant who appeals a judgment of conviction, for example, has one year after the Nevada appellate court issues its remittitur to file a petition for a writ of habeas corpus. NRS 34.726. A civil litigant who appeals a judgment and obtains an order granting a new trial has three years from the date the remittitur is filed in the district court to *741bring the case to trial. NRCP 41(e). And a party who loses before the court of appeals has the right to petition this court for discretionary review which petition, if timely filed, automatically stays issuance of the remittitur until this court resolves the petition. NRAP 41(b)(2) ; see also NRAP 41(b)(1) (similarly providing for an automatic stay of the remittitur on timely filing of a petition for rehearing or for en banc reconsideration).
III.
The issuance of the remittitur "provides a 'bright-line' event to count from; and in counting time, a bright-line rule serves all." Joel Erik Thompson,
We concur:
Gibbons, J.
Hardesty, J.
The district court mistakenly stated that the remittitur issued and the statute of limitations began to run on May 31, 2013. The date this court issued its remittitur was March 18, 2014. The mistake does not affect the analysis, since both dates occurred more than two years before Branch Banking filed its malpractice complaint.
Reference
- Full Case Name
- BRANCH BANKING & TRUST COMPANY, a North Carolina Corporation v. Douglas D. GERRARD, Esq., Individually and Gerrard & Cox, a Nevada Professional Corporation, d/b/a Gerrard Cox & Larsen
- Cited By
- 5 cases
- Status
- Published