RICHARD W. STORY, District Judge.
This case comes before the Court on Plaintiff's Motion for Partial Summary Judgment [239] and the Court's Scheduling Order [263] in which it directed the parties to brief whether Plaintiff waived its breach of fiduciary duty claim. After reviewing the record, the Court enters the following Order.
This case involves alleged legal malpractice arising out of a medical malpractice lawsuit ("underlying case"). The underlying case was filed on August 20, 2004, by Michelle Buttacavoli and her daughter, Nicole Buttacavoli, alleging that their medical providers committed medical malpractice during Nicole's birth. The medical providers were insured by the Plaintiff in this case—First Professionals Insurance Company ("FPIC"). After the underlying case was filed, Plaintiff retained Defendant Owen, Gleaton, Egan, Jones & Sweeney, LLP ("OGEJS") to represent the medical providers in the underlying case.
The alleged legal malpractice occurred when Defendant Kolczak, an attorney at OGEJS, violated a court order. This prompted the judge in the underlying case to issue a sanctions order striking the medical providers' defensive pleadings. In August 2010, the Buttacavolis' lawyer sent Plaintiff a demand letter offering to settle the case in full for $2 million. Initially, this offer expired after ten days, but the Buttacavolis extended it multiple times. It ultimately expired on November 29, 2010. Six days prior, on November 23, Plaintiff's insurance coverage attorney emailed, faxed, and mailed a formal demand to OGEJS enclosing the Buttacavolis' demand and demanding that OGEJS pay the $2 million demand. On November 29, OGEJS responded that neither it nor its malpractice carrier would contribute anything towards settlement at that time. FPIC ultimately accepted and paid the $2 million demand.
Plaintiff filed this legal malpractice suit on February 8, 2012, setting forth claims for legal malpractice (Counts I, II, and III), fraud, (Count IV), attorneys' fees (Count V), and punitive damages (Count VI). Plaintiff later amended its Complaint to include a breach of fiduciary duty claim.
Plaintiff filed its Motion for Partial Summary Judgment [239] on February 14, 2016. After concerns arose that Defendants' counsel, Hawkins Parnell Thackston & Young, LLP ("HPTY") might be forced to withdraw if Plaintiff pursued its breach of fiduciary duty claim, the Court issued briefing on whether Plaintiff had waived that claim and, if it had not, whether HPTY would in fact be required to withdraw.
After reviewing the parties' submissions, the Court finds that Plaintiff has not waived its breach of fiduciary duty claim. The Court also finds that, even if Plaintiff pursues this claim, HPTY is not required to withdraw from this case. Having resolved this issue, the Court now turns to Plaintiff's Motion for Partial Summary Judgment [239].
Federal Rule of Civil Procedure 56 requires that summary judgment be granted "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." FED. R. CIV. P. 56(a). "The moving party bears `the initial responsibility of informing the . . . court of the basis for its motion, and identifying those portions of the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, which it believes demonstrate the absence of a genuine issue of material fact.'"
The applicable substantive law identifies which facts are material.
Moreover, in resolving a motion for summary judgment, the court must view all evidence and draw all reasonable inferences in the light most favorable to the non-moving party.
Plaintiff moves for summary judgment on three issues: (1) Defendants' comparative negligence defense; (2) Defendants' voluntary payment defense; and (3) whether it is entitled to over $700,000 in prejudgment interest. This Order will address only the prejudgment interest issue. The Court will rule upon the remaining issues in a separate Order.
Plaintiff argues that if it obtains judgment for the $2 million settlement payment then it is entitled to prejudgment interest on that payment. (Pl.'s MPSJ Br., Dkt. [239] at 12.) Plaintiff relies on the demand letter it sent to OGEJS on November 23, 2010, which demanded that OGEJS pay the Buttacavolis' $2 million demand by November 29, 2010. (Pl.'s SMF, Dkt. [239-1] ¶ 80.) Plaintiff argues that this demand letter set forth a liquidated demand that automatically bears interest under O.C.G.A. § 7-4-15. (
The Court will begin with the statute, which provides that:
O.C.G.A. § 7-4-15. As an initial matter, it is not even clear that this statute applies in this case. A thorough review of cases analyzing O.C.G.A. § 7-4-15 has failed to reveal a single case where the court discusses an extra-contractual demand. Rather, in all of the cases the Court has reviewed, the issue of liquidation relates to demands made to fulfill contractual obligations.
Even assuming that O.C.G.A. § 7-4-15 does apply, the Court finds that Plaintiff's demand was not liquidated. Under Georgia law, "[a] demand is liquidated when the sum owed is fixed and certain, meaning `there [is] no bona fide controversy over the amount.'"
Again, Plaintiff argues that the $2 million demand was liquidated because this sum represented the full extent of FPIC's policy limits. (Pl.'s MPSJ Br., Dkt. [239] at 13.) But these policy limits are in dispute. Plaintiff claims they are $2 million; Defendants claim they are $1 million. Thus, the parties are engaged in a "bona fide controversy" as to whether the demand was for an appropriate amount.
In accordance with the foregoing, Plaintiff's Motion for Partial Summary Judgment [239] is
As Plaintiff has not waived its breach of fiduciary duty claim, Plaintiff may pursue that claim at trial.
After considering the issues in the case, the Court has determined that each side will have 25 hours at trial.