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Barrasso Usdin Kupperman Freeman & Darver, L.L.C. v. Burch

Citations: 163 So. 3d 201; 2015 WL 1251293Docket: Nos. 2014-CA-1020, 2014-CA-1021

Court: Louisiana Court of Appeal; March 18, 2015; Louisiana; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by the plaintiffs challenging a trial court judgment that upheld exceptions of res judicata and peremption in favor of their former attorney and his insurer. The plaintiffs initially retained the attorney's firm to manage a lawsuit concerning their mother's asset management. Following a settlement and the attorney's demand for outstanding fees, the plaintiffs filed a reconventional demand alleging malpractice, which the trial court dismissed as perempted. Upon further action by the plaintiffs against the attorney under the Louisiana Unfair Trade Practices and Consumer Protection Act (LUTPA), the court reaffirmed its previous rulings on peremption. The appeals court examined whether the elements of res judicata were satisfied, affirming the trial court's judgment that the claims were barred, as they arose from the same transaction and were previously adjudicated. The court also upheld the exception of peremption, emphasizing that the plaintiffs failed to file their claims within the statutory periods, despite their fraud allegations. The court concluded that the plaintiffs' LUTPA claims were similarly untimely, as the peremptive period expired prior to filing. Consequently, the appellate court validated the trial court’s rulings, maintaining the dismissal of the plaintiffs’ claims.

Legal Issues Addressed

Continuous Representation Doctrine and Peremption

Application: The court affirmed that the continuous representation rule does not apply to peremption, which is based on contra non valentem, relevant only to prescription.

Reasoning: The law clarifies that the 'continuous representation rule' does not suspend the peremptive period, as it is based on contra non valentem, which applies only to prescription, not peremption.

Fraud Exception to Peremption

Application: The court found that the Burches' claims of fraud did not extend the peremptive period as the claims were not filed within one year of the discovery of the alleged fraud.

Reasoning: Although fraud may extend the three-year peremptive period, it does not exempt the Burches from the one-year requirement, which mandates that any malpractice action based on fraud must be initiated within one year of the fraudulent act or discovery.

LUTPA Claims and Peremption

Application: The court ruled that the Burches' LUTPA claims were also perempted as they were not filed within the one-year peremptive period following the alleged wrongful acts.

Reasoning: The trial court's decision to grant Roberts' exception of peremption regarding LUTPA was thus upheld.

Peremption in Legal Malpractice Claims under La. R.S. 9:5605

Application: The Burches' claims were dismissed as perempted because they were filed beyond the one-year peremptive period after discovery of the alleged malpractice.

Reasoning: Both of the Burches’ legal malpractice complaints were filed beyond the one-year peremptive period, leading to the affirmation of the trial court's judgment that granted the exception of peremption.

Res Judicata under La. R.S. 13:4231

Application: The court held that the Burches' claims were barred by res judicata as the issues had been conclusively determined in a prior judgment involving the same parties and causes of action.

Reasoning: To establish that a second action is barred by res judicata, five elements must be satisfied: 1) the judgment must be valid; 2) it must be final; 3) the parties involved must be the same; 4) the causes of action in the second suit must have existed at the time of the final judgment in the first suit; and 5) the causes of action in the second suit must arise from the same transaction or occurrence as the first suit.