RUTH GREEN, APPELLANT,
v.
STANLEY JAY BARTEL, NORIEGA AND BARTEL, P.A., AND NORIEGA, BARTEL, CHOPP, SCHATZ, LEVINE AND SHUFORD, P.A., APPELLEES

Fla. 3d DCA | 1978-12-19
No. 78-221
Before BARKDULL and HUBBART, JJ., and CHARLES CARROLL (Ret.), Associate Judge.
365 So. 2d 785 Florida District Court of Appeal, Third District (1978) Positive Treatment
Cited by 21 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

Ruth Green appealed the dismissal of her legal malpractice action against her former lawyers for allegedly misappropriating settlement proceeds without her authorization. The court reversed, holding that the statute of limitations question presented a factual issue unsuitable for resolution on a motion to dismiss.


Holding

The dismissal was error. Although the action was filed more than two years after the alleged wrongful act, the statute of limitations runs from when the cause of action 'is discovered or should have been discovered with the exercise of due diligence.' Whether Green discovered or should have discovered the cause of action within two years is a question of fact unsuitable for resolution on a motion to dismiss.


Headnotes

[1] A statute of limitations requiring actions to be filed within two years of discovery of the cause of action does not bar an action if the discovery date is not affirmativ…

[2] The determination of when a plaintiff discovered, or should have discovered with due diligence, the existence of a cause of action is a question of fact for the trier of…

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Key Quotes

“the statute provides that the two-year limitation period shall run 'from the time the cause of action is discovered or should have been discovered with the exercises of due diligence.'”

Establishes that the statute of limitations is measured from discovery, not from the date of the wrongful act, making timing a question of fact.

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Facts & Procedural History

Ruth Green employed the law firm Noriega and Bartel, P.A. to handle a wrongful death action for her deceased husband. The firm settled the case and re…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

This appeal is by the plaintiff from an order dismissing her complaint with prejudice.

The action was by Ruth Green, individually and as executrix of the estate of Benjamin C. Green, deceased, against the above-styled appellees, a firm of lawyers. The complaint presented three counts. In the first count, it was alleged that the above-named law firm of Noriega, Bartel, Chopp, Schatz, Levine & Shuford, P.A., was the successor to the law firm of Noriega and Bartel, P.A.; that by retainer agreement the plaintiff, Ruth Green, had employed the defendants, Stanley Jay Bartel and Noriega and Bartel, P.A., to file an action on behalf of said plaintiff individually and as executrix of her deceased husband’s estate against Montie Lawrence Josephson and Government Employees, Insurance Company (Case No. 73-2971 in the Circuit Court of Dade County) for damages for wrongful death of Benjamin C. Green; that her said attorneys arranged a settlement of the action for $21,382.38 and obtained a settlement of plaintiff’s claim against her insurer, Colonial Penn Insurance Company, in the amount of $3,421.33; that pursuant to such settlement with the tort action defendant, her said attorneys had received payment by two drafts from Government Employees Insurance Company, each dated April 23, 1974, one being for $1,382.38 made payable to “Ruth Green, 1540 NE 191st Street, Miami, Florida and Noriega and Bartel, P.A.”; and one for $20,000 being made payable to “Ruth Green, individually and as Executrix of the Estate of Benjamin C. Green, Deceased, 1540 NE 191st Street, Miami, Florida and Noriega and Bartel, P.A.”; that said attorneys, without her knowledge or permission endorsed her name on said drafts, along with their own endorsements, and deposited the drafts in the trust account maintained by said attorneys; that the said procedure was employed with reference to the amount received in settlement from the plaintiff’s insurer, Colonial Penn Insurance Company.

It was further alleged that thereafter the said attorneys deducted their fee and costs from the amounts so received in the action settlement, leaving a balance of $15,374.48 held by them to which the plaintiff was entitled, and that said defendants-attorneys, on or about April 30, 1974, disbursed the said $15,374.48 to one “Adelita Quejado-Green, as attorney for Ruth Green”; that such payment by the attorneys of said funds due to plaintiff was never authorized by plaintiff individually or as executrix; that said attorneys, without her authority, also had endorsed her name on the check received pursuant to the settlement of $3,421.33 from her insurer, Colonial Penn Insurance Company, and delivered her proceeds therefrom to Adelita Quejado-Green; and it was alleged that the plaintiff had not received the proceeds from the settlements.

Based on those allegations, the plaintiff sought damages, charging the defendants with negligence in Count I, breach of contract in Count II, and breach of fiduciary relation in Count III.

The defendants moved to dismiss, asserting as a ground that “it affirmatively appears from the face of the complaint that the action is limitations bound in that the action was not filed within two years as required by Fla.Stat., Section 95.11(4)(a).”

Acting thereon the court entered an order dismissing the cause with prejudice, holding it affirmatively appeared on the face of the complaint that the action was not filed within two years of the alleged malpractice.

Since the claimed wrongful conduct occurred on April 30, 1974, and plaintiff’s action was filed on April 18, 1977, the trial court was correct in finding that it appeared on the face of the complaint the action was not filed within two years of the alleged malpractice. But that fact alone was not ground for dismissal, because the statute provides that the two-year limitation period shall run “from the time the cause of action is discovered or should have been discovered with the exercises of due diligence.”

Here, where the matter before the court was limited to the plaintiff’s complaint and the defendants’ motion to dismiss, there was nothing to show when, prior to the action, the plaintiff had learned of the alleged improper disposition of her funds by defendants or when the same should have been discovered by the plaintiff by the exercises of due diligence.

In the statute, by its wording, it is recognized that in this type of action a lapse of more than two years from the time of an alleged wrongful action to the time of filing suit will not bar the action, unless the existence of the cause of action became known or should have been discovered by the exercise of due diligence, more than two years prior to the filing of the action.

From the allegations of the complaint it can be assumed that in April of 1974, sometime prior to the alleged wrongful act, the plaintiff knew that settlements were being made by her attorneys, since ordinarily it would be required that she be informed thereof and give her consent thereto. But the fact that the plaintiff could be charged with knowledge that the settlements were being made and that her lawyers would receive proceeds of the settlements would not be basis upon which to conclude that the plaintiff knew that the settlement proceeds so received by her attorneys would not be held for her but would be disbursed by them to another person.

When a lawyer receives the proceeds of a settlement of a client’s claim, he holds the same in trust and becomes accountable therefor for the client [State ex rel. The Florida Bar v. Ruskin, 126 So. 2d 142, 143 (Fla.1961)] for recovery of which from the lawyers the client may proceed in assumpsit or by suit for accounting. Armour & Co. v. Lambdin, 154 Fla. 86, 16 So. 2d 805 (1944); In re: Brown’s Estate, 134 So. 2d 290, 293 (Fla. 2d DCA 1961). For such, the two-year statute would not apply.

However, this action did not involve an effort by the plaintiff-client to obtain from her attorneys monies held by them to which she was entitled. The complaint did not allege that the settlement monies were held by the attorneys, but on the contrary it alleged they no longer held such monies by reason of having disbursed the same to another party, making the action one in malpractice for an alleged wrongful act of the attorneys.

It was error to dismiss the cause. The defendants’ motion to dismiss should have been denied. Whether the plaintiff discovered, or by due diligence should have discovered the existence of the cause of action at some time more than two years prior to the date of the filing of her complaint was a question of fact [Downing v. Fame, 228 So. 2d 622, 625 (Fla. 1st DCA 1969); Edwards v. Ford, 279 So. 2d 851 (Fla. 1973)] and it has been held that genuine issues relating to such question of fact are to be determined by the trier of facts, and are not to be resolved on summary judgment. Schettor v. Jordan, 294 So. 2d 130 (Fla. 4th DCA 1974); Pinkerton v. West, 353 So. 2d 102 (Fla. 4th DCA 1977); Rosen v. Sparber (Fla. 3d DCA 1978), Case No. 78-496, Opinion filed December 5, 1978. Cf. Steiner v. Ciba-Geigy Corporation, 364 So. 2d 47 (Fla. 3d DCA 1978).

Accordingly, the judgment is reversed and the cause is remanded for further proceedings.


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Citator

Cited By (11 total)

  • First Union Nat'l Bank v. Turney, 824 So. 2d 172 (Fla. 1st DCA 2001)
    …imitations begins to run when there has been notice of an invasion of legal rights or a person has been put on notice of his right to a cause of action.’ Kelley v. School Board of Seminole County, 435 So. 2d 804, 806 (Fla. 1983).”); Green v. Bartel, 365 So. 2d 785, 787 (Fla. 3d DCA 1978). . See generally Harrell v. Branson, 344 So. 2d 604, 607 (Fla. 1st DCA 1977) (stating that constructive fraud "is deemed to exist where a duty under a ... fiduciary relationship has been abused.”) (quoting Douglas v. Ogle, 8…
  • Puchner v. Bache Halsey Stuart, Inc., 553 So. 2d 216 (Fla. 3d DCA 1989)
    …dual, by the exercise of reasonable diligence, should have known he had a cause of action against the defendant is, ordinarily, an issue of fact which should be left to the jury. Burnside v. McCrary, 382 So. 2d 75 (Fla.3d DCA 1980); Green v. Bartel, 365 So. 2d 785 (Fla.3d DCA 1978). Furthermore, the obligation of a fraud victim to exercise due diligence is less demanding where the perpetrator is rendering an expert service while standing in a fiduciary capacity. See Harrell v. Branson, 344 So. 2d 604 (Fla. 1s…
  • Hofer v. Ross, 481 So. 2d 939 (Fla. 2d DCA 1985)
    …of law that the statute of limitations has run against the Hofers solely on the allegations in their second amended complaint. Therefore, the trial court erred in dismissing this complaint on the basis of the statute of limitations. Green v. Bartel, 365 So. 2d 785 (Fla. 3d DCA 1978). See also Daytona Development Corp. v. McFarland, 454 So. 2d 761 (Fla. 2d DCA 1984), petition for review denied, 462 So. 2d 1107 (Fla.1985); Smith v. Hussey, 363 So. 2d 1138 (Fla. 2d DCA 1978). Accordingly, we reverse and remand…

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