CADY, Chief Justice.
In this appeal from a judgment entered for the plaintiffs in a legal malpractice action, we must determine if the district court erred in concluding the plaintiffs failed to state a claim for emotional distress and punitive damages as a matter of law. On our review, we affirm the decision of the court of appeals, reverse the decision
Klever Miranda and Nancy Campoverde are Ecuadorian citizens who emigrated to the United States. Their children, including Cesar, joined them in 1995. Cesar was fourteen years old at the time. In 1998, Klever and Nancy gave birth to another son, Ronaldo, in the United States.
Klever and Nancy entered the United States without documentation. Klever initially obtained employment under a pseudonym, but eventually began to take action to obtain legal immigration status with the aid of an attorney. At some point in the late 1990s, Klever obtained legal authorization to work in the United States, but later lost that status. Klever also filed an asylum application.
In 2005, Klever received notice of a removal order. He was represented by attorney Michael Said. Klever wanted to remain in the United States and obtain citizenship. Said advised Klever that the best plan of action would be for him to return to Ecuador and have Cesar sponsor him and Nancy for citizenship once Cesar obtained citizenship. He advised Klever that Cesar could file a document called Form I-130, which permits a citizen to sponsor a relative's application for citizenship. According to Said, Klever and Nancy could then each file a document called Form I-601 waiver, which permits an applicant who is otherwise ineligible, to be admitted into the country based on "extreme hardship" to a qualifying relative. See 8 U.S.C. § 1182(i) (2006).
Said allegedly told Klever and Nancy his plan contained no risks and had a ninety-nine percent chance of success. Said allegedly explained the plan would only fail if Cesar was not related to Klever and Nancy or had committed a crime in the United States or Ecuador. Said did not advise Klever and Nancy of any other options to consider because he did not believe any other options existed.
Pursuant to the plan conceived by Said, Klever left for Ecuador in 2005. Before Nancy left in 2007, Said completed the Form I-601 waiver documents so she could have them in her possession to file with the Ecuadorian consulate once Cesar became a citizen. Said also prepared a memorandum for each waiver application. The memorandums detailed the extreme hardship that would befall Klever and Nancy if their applications were denied. Said wrote in Klever's memorandum:
The memorandums were substantially similar. Klever and Nancy paid Said $11,000 for his legal services.
Before Nancy left for Ecuador, she asked Said if the applications would be successful, stating she would prefer to remain in the United States if the applications would not be successful. Said reiterated his belief that the plan had a ninety-nine percent likelihood of success. Nancy left the United States, knowing Cesar was very close to obtaining his citizenship. Believing she would be returning to the United States within a short period of time, she only packed one suitcase.
Cesar became a citizen a short time later. He promptly filed the Form I-130 documents Said had prepared in advance. Klever and Nancy then each filed the Form I-601 with the Ecuadorian consulate. However, their applications were denied. The Ecuadorian consulate also informed Klever and Nancy that they were subject to a ten-year bar to readmission because they had left the United States voluntarily. See id. § 1182(a)(9)(B)(i).
Klever and Nancy later learned that Form I-601 waivers are only available when the qualifying relative is the spouse or parent of the applicant. Id.
Klever, Nancy, and Cesar brought a legal malpractice action against Said. The action included a claim for emotional distress damages, as well as punitive damages. The case ultimately proceeded to trial. As a part of their case, Klever and Nancy called an expert witness who opined that the strategy pursued by Said likely had no chance of success.
Said admitted at trial he knew Cesar and Ronaldo were not qualifying relatives. He also stipulated that no reasonable attorney would have attempted to use a Form I-601 to obtain lawful residency for Klever and Nancy. Nevertheless, Said maintained that he had been successful ten to fifteen times in the past using children as qualifying relatives. Said testified that, in his experience, consular officials used discretion to grant Form I-601 waivers when a child of the applicant was the sponsor.
Klever and Nancy's expert testified that the immigration statute only grants consular officials discretion to reject the application of an applicant who meets the statutory minimum requirements but is undesirable for other reasons. Klever and Nancy's expert further testified that officials had no discretion to grant applications of individuals who do not meet the minimum requirements. Moreover, Klever and Nancy's expert testified that even if a consular agent had granted the waivers in contravention of the statute, the error would have been noticed when they applied for citizenship. In turn, the error would have foreclosed the opportunity for Klever and Nancy to become citizens. Instead of obtaining citizenship, Klever and Nancy would have been deported.
Although Said claimed previous success in using children as qualifying relatives, he failed to produce any documentation of this success, despite his claim that such records existed and despite a court order to produce the records.
Prior to submitting the case to the jury, the district court granted Said's motion for directed verdict on the claims for emotional distress and punitive damages. It held that past and future emotional distress damages were not available. The court acknowledged emotional distress is more likely in the immigration context, but concluded the evidence failed to satisfy the legal standard for emotional distress damages in negligence actions. The court also held that punitive damages were not available in this case, reasoning Klever and Nancy had proffered no evidence suggesting willful, wanton, or reckless conduct. Thus, the district court only allowed the claim for economic damages to be considered by the jury. This claim was based on the attorney fees paid to Said. Ultimately, the jury found Said negligent and awarded Klever and Nancy $12,500.
Klever and Nancy appealed. Among other issues, they argued the district court erred in failing to submit their claim for emotional distress and punitive damages.
We transferred the case to the court of appeals. It reversed the district court decision and found that the claims for emotional
Said sought, and we granted, further review. He raises two issues for our review: First, whether a contract for legal services in the immigration context is the kind of special relationship in which emotional distress is foreseeable and, second, whether punitive damages were appropriate in the case. We only address those issues on further review.
We review a district court's ruling on a motion for directed verdict for correction of errors of law. Spaur v. Owens-Corning Fiberglas Corp., 510 N.W.2d 854, 858 (Iowa 1994); see also Iowa R.App. P. 6.907. We consider the evidence presented at trial in the light most favorable to the nonmoving party. Beeman v. Manville Corp. Asbestos Disease Comp. Fund, 496 N.W.2d 247, 254 (Iowa 1993). "Every legitimate inference that reasonably may be deduced from the evidence must be afforded the nonmoving party; and if reasonable minds can differ as to how the issue should be resolved, a jury question is engendered." Henkel v. R & S Bottling Co., 323 N.W.2d 185, 187-88 (Iowa 1982).
We recognize "a duty to exercise ordinary care to avoid causing emotional harm" when supported by the nature of the relationship between the parties and the nature of the acts engaged in by the defendant within the context of the relationship.
Lawrence v. Grinde, 534 N.W.2d 414, 420-21 (Iowa 1995) (quoting Meyer v. Nottger, 241 N.W.2d 911, 921 (Iowa 1976) (alteration in original)). The question we face in this case is whether this exception is applicable to the attorney-client relationship and the actions of the attorney that are claimed to be negligent. We have not yet applied the exception to a tort claim of attorney malpractice.
On the other hand, in an early case sounding in negligence, we suggested a damage award for emotional distress would be inappropriate unless accompanied by physical injury. See Collins v. City of Council Bluffs, 35 Iowa 432, 436 (1872). In Collins, we stated:
Id. In tort actions grounded in negligence unaccompanied by some special relationship, this rule has persevered through time. See Clark, 653 N.W.2d at 170-71; Niblo v. Parr Mfg., Inc., 445 N.W.2d 351, 354-55 (Iowa 1989); Lee v. City of Burlington,
Iowa was not alone in the early recognition of emotional distress damages. See, e.g., Fairchild v. Cal. Stage Co., 13 Cal. 599, 601 (1859); Linsley v. Bushnell, 15 Conn. 225, 235-36 (1842); Lewis v. Hoover, 3 Blackf. 407, 408 (Ind.1834); Malone v. Murphy, 2 Kan. 250, 261-62 (1864); Wadsworth v. Treat, 43 Me. 163, 167 (1857); Canning v. Inhabitants of Williamstown, 55 Mass. 451, 452 (1848). Yet, many courts during this time also viewed emotional distress damages as limited to certain classes of cases. As the Supreme Court of Mississippi stated,
W. Union Tel. Co. v. Rogers, 68 Miss. 748, 9 So. 823, 825 (1891). Stated in the inverse, some courts viewed awards of emotional distress damages as the exception and not the rule. See Gatzow v. Buening, 106 Wis. 1, 81 N.W. 1003, 1009 (1900). Lord Wensleydale famously captured the prevailing rule when he wrote, "Mental pain or anxiety the law cannot value, and does not pretend to redress, when the unlawful act complained of causes that alone[.]" Lynch v. Knight, (1861) 11 Eng. Rep. 854 (H.L.) 863; 9 H.L. Cas. 577, 598.
A significant early limitation on the award of emotional distress damages in Iowa can be observed in our refusal to award emotional distress damages in a breach-of-contract action. See Stone v. Chi. & Nw. R. Co., 47 Iowa 82, 88 (1877). This limitation in contracts actions has influenced the development of emotional distress damages in negligence actions because the two actions were often joined together. In Stone, we said:
Id. Yet, this limitation was not absolute, as revealed in our cases dealing with marriage contracts. See Royal, 40 Iowa at 618. Moreover, less than twenty years after Stone, we opined damages might be available for emotional distress under some more conventional contracts. See Mentzer v. W. Union Tel. Co., 93 Iowa 752, 753, 760-61, 62 N.W. 1, 1, 4 (1895).
Over time, we have backed away from our statement in Stone, as the gradual evolution of our general rules of contract have seemed to support expanding the types of damages available in certain breaches of contracts. This evolution actually began with the seminal case of Hadley v. Baxendale, (1854) 156 Eng. Rep. 145, 151 9 Exch. 341, 354. In Hadley, the court famously said:
Id. at 344.
In this manner, some commentators now recognize Hadley to be the first step to making the law of contracts more like the law of torts. See Alexander J. Bolla, Jr., Contort: New Protector of Emotional Well-Being in Contract?, 19 Wake Forest L.Rev. 561, 561 (1983) [hereinafter Bolla]. After all, as we have previously recognized, Hadley essentially looks to what the parties to the contract actually knew and contemplated or reasonably should have known and contemplated. See DeWaay v. Muhr, 160 N.W.2d 454, 459 (Iowa 1968). While Hadley may be viewed as articulating two rules, the difference between its two statements is illusory; parties reasonably should contemplate the natural and probable consequences of a breach of contract. See id.
The progression of contract law to resemble portions of tort law has been understandable. After all, modern contract law owes a debt of existence to tort law. As pointed out by Professor Ames, the writ of assumpsit
Therefore, we can draw an important lesson for modern contractual relationships from Hadley. The lesson, which is implicit in the Lawrence rule, teaches that when parties to a transaction should reasonably have contemplated that emotional distress will naturally flow from a breach of the contract, the foreseeable consequential damages the plaintiff could recover should include damages for emotional distress.
However, an important limitation on this development is that not all contracts are created equal. To be clear, the inquiry under Lawrence is not simply whether the parties contemplated emotional distress as a result of a breach during the negotiation and formation of the contract, but whether the subject matter underlying the contractual arrangement was one in which emotional distress was a "particularly likely result." See Restatement (Second) of Contracts § 353 cmt. a, at 149 (1981); see also Mentzer, 93 Iowa at 761, 62 N.W. at 3 (considering "the subject matter of the contract" important); Sullivan v. O'Connor, 363 Mass. 579, 296 N.E.2d 183, 188-89 (1973) ("It is all a question of the subject matter and background of the contract, and when the contract calls for an operation on the person of the plaintiff, psychological as well as physical injury may be expected to figure somewhere in the recovery, depending on the particular circumstances."); Bolla, 19 Wake Forest L.Rev. at 565 ("Thus far, the most critical element of the contort recovery has involved the subject matter of the contract and the attendant special relationship between the promisor and promisee.").
The Restatement rule is similar: "Recovery for emotional disturbance will be excluded unless the breach also caused bodily harm or the contract or the breach is of such a kind that serious emotional disturbance was a particularly likely result." Restatement (Second) of Contracts § 353, at 149. Notably, the comment to section 353 distinguishes between situations in which the subject matter underlying the contract renders emotional distress damages unavailable "[e]ven if they are foreseeable" and cases in which emotional distress damages are available because the subject matter "is of such a kind that serious emotional disturbance was a particularly likely result." Id. § 353 cmt. a, at 149. For example,
Id. § 353 cmt. a illus. 1, at 149. But,
Id. § 353 cmt. a illus. 3, at 150.
Therefore, on the one hand, emotional distress is not a "particularly likely result" or a natural and probable consequence of some ordinary commercial and insurance contracts.
On the other hand,
Meyer, 241 N.W.2d at 921 (quoting Lamm v. Shingleton, 231 N.C. 10, 55 S.E.2d 810, 813 (1949)). This notion is already reflected from the general standard of care for professionals who hold themselves out as specialists — these specialists understand that certain types of harm will naturally befall their customers if they breach the contract. Id. at 920-21.
As the Lamm court explained, emotional distress damages can be impliedly contemplated by the terms of a contract dealing with personal or sensitive subject matter. See 55 S.E.2d at 813-14. As stated in the context of a contract to provide funeral home services,
Id.
We recognized these same considerations when we began to observe the link between contracts and emotional damages over a century ago. In Mentzer, we permitted an award of emotional distress damages surrounding the negligent failure to deliver a telegram concerning the death of the recipient's mother in time for the recipient to attend her funeral. 93 Iowa at 770-71, 62 N.W. at 6. Because the jury found the defendant liable under both a tort and contract, we analyzed the availability of emotional distress damages under both theories. See id. at 759-67, 62 N.W. at 3-5.
We discussed the damages contemplated by the contract. See id. at 761-62, 62 N.W. at 4. We noted the transmission of information regarding the death of a loved one is sensitive, and if a person does not learn of the funeral in time to attend because of a failure to transmit the information, the person "naturally and almost inevitably suffers mental pain and anguish." Id. at 761, 62 N.W. at 4. Emphasizing that the defendant telegraph company was aware of the nature of information at issue and its time sensitivity, we relied on Hadley and opined the defendant reasonably should have contemplated the probability of emotional distress. See id. at 760-61, 62 N.W. at 3-4.
We noted a "general rule" prohibiting damages for mental suffering for breach of "ordinary contracts." Id. at 761, 62 N.W. at 4. The general rule we observed dated to the common law. Id. But, we did not find the common law dispositive:
Id. After all, we acknowledged at the outset of the opinion that the law of the past must sometimes yield to the changed circumstances and increased understanding of the present. Id. at 757, 62 N.W. at 2.
Id.
Focusing on the facts of the case at hand, we explained that the subject matter of the contract was important:
Id. at 761-62, 62 N.W. at 4. We added that while mental anguish is rarely contemplated explicitly in many contracts, courts uniformly allowed recovery of emotional distress damages for breaches of marriage. Id. at 762-63, 62 N.W. at 4; see also Royal, 40 Iowa at 618. Quoting another telegraph case, we clarified that when a contract contemplates a different kind of benefit between the parties, a different measure of damages ought to be allowed:
Mentzer, of course, was a case involving negligent failure to deliver information via telegraph. Id. at 753, 62 N.W. at 1. Information regarding business transactions could surely have been transmitted by telegraph, but under Mentzer, the negligent failure to transmit pecuniary information would not necessarily expose the telegraph company to emotional distress damages. See id. at 770, 62 N.W. at 7. Thus, the basis for an award of emotional distress damages came from the specific contract to deliver sensitive, intimate information regarding the death of the plaintiff's mother, not the general type of contract itself. See id.
After Mentzer, we affirmed its holding when presented with similar facts. See Bernstein v. W. Union Tel. Co., 169 Iowa 115, 129, 151 N.W. 108, 112 (1915); Cowan v. W. Union Tel. Co., 122 Iowa 379, 381, 98 N.W. 281, 281 (1904). However, we backed away from its reasoning somewhat as we marched through the twentieth century. See Wambsgans v. Price, 274 N.W.2d 362, 365-66 (Iowa 1979); Frederick v. W. Union Tel. Co., 189 Iowa 1338, 1342-43, 179 N.W. 934, 936-37 (1920); Sanborn State Bank, 147 Iowa at 643-44, 126 N.W. at 780-81. We did this largely by distinguishing Mentzer. See, e.g., Frederick, 189 Iowa at 1342-43, 179 N.W. at 936-37 (refusing to permit an award of emotional distress damages based on negligent failure to transmit an interstate telegraph message). For example, in Sanborn State Bank, we distinguished Mentzer, and many of the cases it relied on, as being a "class of contracts upon breach of which the injured party may, if he so elect, bring an action sounding in tort." 147 Iowa at 643, 126 N.W. at 780. Furthermore, emotional distress unconnected to physical injury was often referred to as "fright" throughout the twentieth century. E.g., Blakeley v. Shortal's Estate, 236 Iowa 787, 791, 20 N.W.2d 28, 31 (1945); Holdorf v. Holdorf, 185 Iowa 838, 841, 169 N.W. 737, 738 (1918); Lee, 113 Iowa at 357, 85 N.W. at 619. For much of the middle of the twentieth century, different attitudes emerged regarding emotional distress, and a different rule generally prevailed.
Of course, Meyer revived Mentzer nearly forty years ago in the context of negligent preparations in a contract for funeral services. See Meyer, 241 N.W.2d at 920. Since that time, we have gradually become more permissive of claims for emotional distress. In 1981, five years after Meyer, we recognized a claim for negligent infliction of emotional distress connected to witnessing a serious injury to a family member.
During this progression, the focus in Mentzer on the underlying subject matter of the contract has persisted in our modern jurisprudence involving emotional distress awards under contracts.
Stewart v. Rudner, 349 Mich. 459, 84 N.W.2d 816, 823 (1957). But, nonpecuniary contracts do exist:
Id.
Mentzer, and cases like it, are important to this case because legal malpractice actions sound in tort, yet owe their existence in part to contract law.
Turning more to the cause of action in this case, we have thus far refrained from actually holding emotional distress damages may be awarded for legal malpractice. See id. at 423. In Lawrence, a plaintiff brought a legal malpractice action against his attorney in a bankruptcy action who negligently failed to disclose in the bankruptcy questionnaire and schedules a settlement that the plaintiff had entered into with a business associate within a year prior to the bankruptcy. Id. at 416. When the federal government subsequently learned of the settlement, the plaintiff was indicted for bankruptcy fraud. Id. at 417. After the federal court found plaintiff not guilty of bankruptcy fraud, he sued his attorney, seeking both economic loss damages and emotional distress damages. Id.
We held emotional distress damages were not available. Id. at 423. We noted that a close reading of those cases revealed that emotional distress damages are available only "in situations which involve both a close nexus to the action at issue and extremely emotional circumstances." Id. at 421. We expanded on this thought, stating, "Damages for emotional distress which arise out of acts which invade an interest protected by tort law are recoverable only if the claimed emotional distress `naturally ensues from the acts complained of.'" Id. at 422 (quoting Merenda v. Super. Ct., 3 Cal.App.4th 1, 4 Cal.Rptr.2d 87, 89 (1992), disapproved of in part by Ferguson v. Lieff, Cabraser, Heimann & Bernstein, 69 P.3d 965, 974 (Cal.2003)). We noted that most courts do not consider emotional distress as reasonably foreseeable in most legal malpractice cases. See id. (collecting cases). Nonetheless, we observed, "in `special cases involving peculiarly personal subject matters' do the majority of jurisdictions recognize that mental anguish may be a foreseeable damage resulting from attorney negligence." Id. (quoting Selsnick v. Horton, 96 Nev. 944, 620 P.2d 1256, 1257 (1980)).
The Lawrence majority drew a dissent from Justice Carter. Justice Carter disagreed slightly with the legal framework, arguing the physical injury requirement is justified for certain reasons; and in situations in which the reasons underlying the rule do not apply, the rule should not either. Id. at 423-24 (Carter, J., dissenting). The primary focus of Justice Carter's dissent was a pointed disagreement with the conclusion the majority reached. Justice Carter wrote:
Id. at 424. If nothing else, the contrast between the majority and dissenting opinions revealed that the line between an award for emotional damages in legal malpractice was not sharply defined.
Other courts have arrived at the same result as the Lawrence majority in cases in which the attorney is retained for solely economic reasons. See, e.g., Boros v. Baxley, 621 So.2d 240, 244-45 (Ala.1993); Reed v. Mitchell & Timbanard, P.C., 183 Ariz. 313, 903 P.2d 621, 627 (Ct.App.1995); Quezada v. Hart, 67 Cal.App.3d 754, 136 Cal.Rptr. 815, 820 (1977), disapproved of by Pleasant v. Celli, 18 Cal.App.4th 841, 22 Cal.Rptr.2d 663, 669 (1993); Aller v. Law Office of Carole C. Schriefer, PC, 140 P.3d 23, 26-27 (Colo.App.2005); McClain v. Faraone, 369 A.2d 1090, 1094 (Del.Super.Ct.1977); Maere v. Churchill, 116 Ill.App.3d 939, 72 Ill.Dec. 441, 452 N.E.2d 694, 697-98 (1983); Richards v. Cousins,
Yet, we observe other courts have permitted awards of emotional distress damages when emotional distress is a natural and foreseeable consequence of a breach of contract or attorney malpractice. See, e.g., Wagenmann v. Adams, 829 F.2d 196, 221-22 (1st Cir.1987) (applying Massachusetts law) (holding emotional distress damages are available when attorney negligence results in the client being "forcibly deprived of his liberty and dispatched to a mental hospital"); Holliday, 264 Cal.Rptr. at 455-56 (holding emotional distress damages were appropriate when plaintiff had been wrongfully convicted of manslaughter because of his trial attorney's negligence); Person v. Behnke, 242 Ill.App.3d 933, 183 Ill.Dec. 702, 611 N.E.2d 1350, 1353 (1993) ("We hold that a valid claim exists for noneconomic damages resulting from a plaintiff's loss of custody and visitation of his children which allegedly resulted from an attorney's negligence."); Henderson v. Domingue, 626 So.2d 555, 559 (La.Ct.App. 1993); Kohn v. Schiappa, 281 N.J.Super. 235, 656 A.2d 1322, 1324 (1995); McEvoy v. Helikson, 277 Or. 781, 562 P.2d 540, 542, 544 (1977) (holding plaintiff could obtain emotional distress damages when attorney negligence surrounding divorce and child custody proceedings resulted in plaintiff's
As with the recovery of emotional distress damages in breach-of-contract actions generally, the rule appears to ask courts to consider the underlying interest invaded by the attorney's negligence. See Lawson v. Nugent, 702 F.Supp. 91, 95 (D.N.J.1988) (holding plaintiff was allowed to offer proof of emotional distress in a legal malpractice action alleging plaintiff spent twenty extra months in maximum security prison because of his attorney's negligence); Hilt, 707 P.2d at 96 (distinguishing cases based on the underlying interests invaded, such as the right to a parent-child relationship or the right to have the deceased's remains left undisturbed, rather than the interest in receiving competent legal services); see also Joseph J. Kelleher, An Attorney's Liability for the Negligent Infliction of Emotional Distress, 58 Fordham L.Rev. 1309, 1322-23 (1990) (arguing traditional tort rules limiting recovery in legal malpractice cases to pecuniary damages do not adequately protect personal client interests). Stated best, "`The critical inquiry becomes whether the kind of interest invaded is of sufficient importance as a matter of policy to merit protection from emotional impact.'" Holliday, 264 Cal.Rptr. at 456 (quoting Hilt, 707 P.2d at 95).
This question can turn on the adequacy of the remedy a court can give. See Hilt, 707 P.2d at 96. Explaining why the plaintiff could not recover emotional distress damages when her attorney's negligence caused her to lose the equity in her home, the Hilt court said:
Id. In contrast, a court permitting emotional distress damages in a legal malpractice case surrounding unauthorized disclosure of information in an adoption proceeding said:
Kohn, 656 A.2d at 1324.
Wagenmann, 829 F.2d at 222.
To help identify those relationships in which negligent conduct is especially likely to cause severe emotional distress, we have primarily considered any remoteness between the negligent conduct and the harm to the plaintiff. See Lawrence, 534 N.W.2d at 422; see also dePape v. Trinity Health Sys., Inc., 242 F.Supp.2d 585 (N.D.Iowa 2003). The role of remoteness, for example, was highlighted in Lawrence. In Lawrence, the negligent preparation of a bankruptcy petition by an attorney required the intervention of the actions of another entity before the threat of emotional damage to the client would emerge. 534 N.W.2d at 422-23. This type of causation is a common component of legal malpractice claims. To resolve the question whether a duty existed in Lawrence, we looked to the policy considerations that drove our decision in Millington v. Kuba, 532 N.W.2d 787 (Iowa 1995), to reject a claim of negligent infliction of emotional distress arising out of the wrongful cremation of a body of the father of the plaintiffs. Despite the highly emotional component of the relationship between the family and funeral director in Millington, we observed in Lawrence that the plaintiffs in that case "were too far removed from the defendants' alleged negligent conduct to cause the imposition of a duty on the defendants to exercise ordinary care to avoid causing emotional harm to the plaintiffs." Lawrence, 534 N.W.2d at 422. The plaintiffs in Millington neither experienced nor observed the cremation, but were located out of state at the time. 532 N.W.2d at 793. Thus, remoteness between acts of negligence and the plaintiff militates against a duty of care by making the emotional harm less likely to result from the relationship.
In the area of attorney malpractice, remoteness is often a factor because the emotional harm to the client normally results from an adverse decision by a court or other entity that was influenced by the earlier alleged negligent act of the attorney that may or may not have made it more likely that the adverse decision would follow. As we observed in Lawrence, if the government had decided not to prosecute the plaintiff for fraud, the negligence of the bankruptcy attorney would not have supported a claim for emotional damages. 534 N.W.2d at 422. The negligent act by the attorney in the case was not the type that made it very likely to produce emotional harm associated with becoming the target of a criminal prosecution.
In contrast, in Oswald, negligent conduct of a doctor and hospital staff within a physician — patient relationship was found especially likely to cause severe emotional distress when the conduct was specifically directed at the plaintiff. 453 N.W.2d at 639. This same approach of finding negligent conduct to be especially likely to cause severe emotional distress when the plaintiff is in the direct path of the course of conduct arising from the relationship was observed in Meyer and Mentzer.
The firm did not advise him to take a certain series of tests, which would allow him to obtain one of the two methods of entry available to him, the H-1B visa. Id. at 592. The H-1 B visa allows immigrants to establish residency. Id. The firm apparently pinned its hopes — and Dr. dePape's future — to the TN temporary entry visa. See id. at 594-97. Unlike the H-1B, the TN visa does not permit applicants to enter with the intention of establishing indefinite residency in the United States. Id. at 594.
The firm sent all its TN visa applicants through Buffalo, New York, which the court found suggested the firm knew its strategy was a sham. Id. at 597. Prior to the immigration interview, Eiss revealed to Dr. dePape the firm had lied on his application and indicated he only entered the United States to conduct a temporary community health assessment, not permanently emigrate to become a family doctor. Id. at 599. The lawyer also advised Dr. dePape to lie during the immigration interview. Id. at 600.
During the immigration interview, the immigration official became suspicious of Dr. dePape and asked why he really wanted to enter the United States. Id. When Dr. dePape answered that he planned on becoming a family physician in Fort Dodge, the official rejected his application and sent Dr. dePape back to Canada. Id.
Upset, Dr. dePape called the firm, but could reach no one. Eventually, he reached Hutto, who advised him to enter as a visitor, drop off his rental car, and then fly to Fort Dodge. Id. Then, Hutto said, they would come up with "plan B." Id. Trusting Hutto, Dr. dePape and his fiancée agreed to take this course of action, but were immediately caught by immigration officials. Id. Immigration officials called Dr. dePape a liar and searched his vehicle, resulting in emotional distress. Id.
Dr. dePape then brought a diversity action in federal court alleging legal malpractice under Iowa law. Id. at 591 & n. 1. Regarding emotional distress, the court recounted the general rule of emotional distress damages absent physical injury in tort actions and the contractual-relationship exception. Id. at 615. The court distinguished Lawrence on the ground that the legal malpractice put the plaintiff "directly in harm's way" rather than creating an opportunity for emotional distress "one step removed" from the legal malpractice. See id. at 616. The court was well aware that it was immigration officials, and not Dr. dePape's lawyers, who humiliated him. See id.
The court explained:
Id.
Two lessons can be gleaned from the court's holding: First, the court implicitly acknowledged immigration proceedings involve a personal interest, rather than pecuniary one, the invasion of which justifies the imposition of a different measure of damages. See id. Second, the court recognized that although an unsuccessful, but legitimate, attempt at entry might understandably cause emotional distress to the client, the attorney would not be liable for the failed legitimate attempt. See id.
It is generally foreseeable that emotional distress would accompany the prolonged separation of a parent and child. See McEvoy, 562 P.2d at 542, 544; see also Person, 183 Ill.Dec. 702, 611 N.E.2d at 1353 (holding plaintiff could obtain emotional distress damages for loss of custody of children resulting from attorney negligence). In McEvoy, as part of a divorce decree, a husband gained custody of a child subject to visitation rights by his ex-wife. 562 P.2d at 542. He was concerned that his ex-wife, a Swiss citizen, might take the child back to Switzerland, where he would be unable to see the child. Id. As such, the decree required the lawyer to obtain her passport when she visited the child. Id. When the lawyer failed to obtain the passport, the ex-wife took the child to Switzerland. Id. The court held that the actions of the ex-wife in taking the child was foreseeable and the father could recover damages flowing from the breach of duty, including emotional distress damages. Id. at 543-44.
The United States Supreme Court has also commented on the high emotional stakes of immigration and deportation. In Bridges v. Wixon, the Court stated:
326 U.S. 135, 164, 65 S.Ct. 1443, 1457, 89 L.Ed. 2103, 2120 (1945). Similarly, in Ng Fung Ho v. White, the Court stressed the high stakes of deportation in a discussion of due process: "To deport one who so claims to be a citizen deprives him of liberty.... It may result also in loss of both property and life, or all that makes life worth living." 259 U.S. 276, 284, 42 S.Ct. 492, 495, 66 L.Ed. 938, 943 (1922) (citation omitted).
In this case, Said understood, from the beginning, the emotional component of the relationship. In the memorandum he authored
This is not a case that requires us to reconsider the rule we have developed over the years to determine if damages for emotional harm are recoverable in an action for negligence. The exception to the rule, applied to the facts presented to the jury in this case, support emotional distress damages. The relationship involved a transaction charged with emotions in which negligent conduct by the attorney was very likely to cause severe emotional distress. Of course, it is not necessary to go further to decide just where the line between duty and no duty may be drawn. Here, we can draw the line at the nature of this attorney-client relationship and the likelihood that serious emotional harm would result from negligently undertaking the illegitimate course of action. While the relationship was formed for the purpose of establishing a path to citizenship and a means to keeping the family united, Said only pursued an illegitimate course of conduct that had no chance of success if the independent decision-maker followed the law. The negligent conduct was doomed to directly result in a separation of the family for a decade. In this light, it was the type of relationship in which negligent conduct was especially likely to cause severe emotional distress, supporting a duty of care to protect against such harm.
We reiterate that our holding today is limited: Klever and Nancy's claim for emotional distress damages is viable under the standard we set forth nearly twenty years ago in Lawrence. Our law regarding emotional harm has fluctuated over the years, and the vicissitudes of time have shaped a general rule and a substantial exception. We need not depart from this framework today to decide the issue presented.
As intimated by Said, awards of emotional distress damages against attorneys may have a chilling effect on the practice of public interest law. See Holliday, 264 Cal.Rptr. at 458. As the California Court of Appeals stated, however,
Id. Importantly, it is not just the nature of the relationship that supports emotional distress damages, but the high likelihood of such damages from negligent acts engaged in by the lawyer. The duty arises when those acts are illegitimate and, if pursued, are especially likely to produce serious emotional harm. Therefore, the standard is not one that threatens the practice of law, but is consistent with the ideals that protect the integrity of the practice of law.
Said argues Klever and Nancy failed to introduce evidence to support an award of punitive damages. He also argues he maintained a good-faith belief that the consulate officials would exercise discretion and grant the applications of Klever and Nancy because he had successfully used a child as a qualifying relative for other clients in the past.
Punitive damages are a valuable component of our system of civil justice. Coster v. Crookham, 468 N.W.2d 802, 810 (Iowa 1991). As the name suggests, they punish bad behavior and deter future bad conduct. Northrup v. Miles Homes, Inc. of Iowa, 204 N.W.2d 850, 861 (Iowa 1973).
Punitive damages, however, are not available for conduct that is "merely objectionable." Coster, 468 N.W.2d at 811. A plaintiff seeking punitive damages must prove "by a preponderance of clear, convincing, and satisfactory evidence, the conduct of the defendant from which the claim arose constituted willful and wanton disregard for the rights or safety of another." Iowa Code § 668A.1(1)(a) (2005).
We have explained of the standard,
Wilson v. Vanden Berg, 687 N.W.2d 575, 586 (Iowa 2004) (quoting McClure v. Walgreen Co., 613 N.W.2d 225, 230 (Iowa 2000)). Stated differently:
Vipond v. Jergensen, 260 Iowa 646, 650, 148 N.W.2d 598, 600-01 (1967).
Under this record, a reasonable jury could conclude that a lawyer acts with willful or wanton conduct by pursuing a course of action with knowledge that it is contrary to the plain language of the governing statute. In fact, the plaintiffs' expert testified extensively that Said's proffered strategy was meritless. Given the high stakes of an immigration application, advising clients to engage in a strategy that is meritless (with the singular hope that the official exercises discretion not apparent from the face of the statute), without similarly advising them of the significant risks attending the strategy, can be said to "manifest a heedless disregard for or indifference to the rights of others in the face of apparent danger or be so obvious the operator should be cognizant of it, especially when the consequences of such actions are such that an injury is a probability rather than a possibility." Id. Said not only failed to make these risks clear, but he also told Klever and Nancy they somehow had a good chance of success by pursuing this strategy. This evidence is enough to at least infer Said was reckless. This evidence also supports a deductive inference that Said lied: (1) if
The district court erred in concluding emotional distress damages and punitive damages were not available to Klever and Nancy. Accordingly, we affirm the decision of the court of appeals, reverse the decision of the district court, and remand the case for a new trial on damages. The trial shall be limited to the claims for emotional distress and punitive damages.
All justices concur except WATERMAN, J., who dissents, and MANSFIELD, J., who takes no part.
WATERMAN, Justice (dissenting).
I respectfully dissent. Today's opinion marks the first time an Iowa appellate court has allowed a claim for emotional distress to proceed in a legal malpractice action. The majority errs by failing to apply Iowa's long-standing general rule disallowing emotional distress awards in professional negligence actions against attorneys. See Lawrence v. Grinde, 534 N.W.2d 414, 417, 422-23 (Iowa 1995) (vacating emotional distress award against bankruptcy attorney whose negligent mistake led to plaintiff's indictment, arrest, and trial on felony fraud charges). Lawrence is not overruled by the majority and remains good law. I disagree that today's case falls within the limited exception allowing claims for emotional distress in professional negligence actions arising from "`contractual services that carry with them deeply emotional responses in the event of breach.'" Id. at 421 (quoting Oswald v. LeGrand, 453 N.W.2d 634, 639 (Iowa 1990)).
Oswald, a medical malpractice action, involved the death of plaintiff's newborn baby. 453 N.W.2d at 637. The facts here are quite different. Plaintiff Klever Miranda is a noncitizen who was in the country illegally and was already subject to a federal deportation order when he retained attorney Michael Said in 2002. Said ultimately advised Miranda and his noncitizen wife, plaintiff Nancy Clotilde Campoverde, to return to their native Ecuador and attempt reentry. They had been living in the Des Moines area along with their adult children and grandchildren. Relying on Said's advice, Klever and Nancy traveled to Ecuador, but were denied reentry to the United States and triggered a ten-year bar on reentry. Their children and grandchildren, all U.S. citizens, remained in Iowa. But for Said's bad advice, plaintiffs would have continued to reside with their family in Iowa, albeit illegally. Plaintiffs sued Said for malpractice, and the Polk County jury found Said acted negligently and awarded damages in the amount of attorney fees the plaintiffs had paid Said. Said does not challenge the negligence finding on appeal. Plaintiffs, however, appealed the district court's directed verdicts dismissing their claims for mental anguish and punitive damages. The court of appeals reversed and remanded for retrial on plaintiffs' claims for mental distress and punitive damages, the decision my colleagues affirm today. I would instead affirm the district court's rejection of those claims.
(Emphasis added.)
"The vast majority of jurisdictions do not allow recovery of emotional distress damages in legal malpractice cases where the claim of malpractice is not premised on intentional acts, physical injury, or particularly egregious conduct." Vincent v. DeVries, ___ Vt. ___, ___ A.3d ___, ___, 2013 WL 2278097, ¶¶ 20-25 (Vt. May 24, 2013) (surveying caselaw and vacating emotional distress award against attorney whose negligence threatened plaintiff with loss of his home); accord Lawrence, 534 N.W.2d at 422 ("The majority view among American jurisdictions is that emotional distress is not a reasonably foreseeable consequence of and does not `naturally ensue' from an act of legal malpractice." (quoting Merenda v. Super. Ct., 3 Cal.App.4th 1, 4 Cal.Rptr.2d 87, 89 (1992), disapproved of in part on other grounds by Ferguson v. Lieff, Cabraser, Heimann & Bernstein, LLP, 30 Cal.4th 1037, 135 Cal.Rptr.2d 46, 69 P.3d 965, 974 (2003))). I would follow Lawrence and the vast majority of other jurisdictions.
Today's opinion allowing an emotional distress recovery should be limited to immigration cases in which family members become separated across international borders because of egregiously bad legal advice. The jury verdict essentially established that Said's negligent immigration advice broke up an intact Iowa family. My colleagues in the majority hold a jury could find Said acted so recklessly, willfully, and wantonly that punitive damages may be awarded. The holding of this case should not be extended to allow emotional distress awards based on an attorney's simple negligence. Nor should this case be extended to allow recovery for mental anguish in marital dissolution and custody cases because in such cases the family was already fractured by the parents' physical and legal separation and divorce, with attendant stress and mental anguish for family members, before any attorney negligence during the pending litigation.
The majority makes clear that emotional distress damages cannot be recovered from lawyers who negligently handle their clients' business or financial matters, while distinguishing this case because it involves
In Timms, the court held emotional distress damages were not recoverable in a legal malpractice action that alleged the lawyer's negligence resulted in the plaintiff's loss of custody of her children for two years. 713 F.Supp. at 949-50, 955-56. The Timms court observed that mental anguish is experienced in a wide variety of litigation and that to allow recovery for that element of damages for mishandling a child custody case would open the door to such recoveries in all legal malpractice cases:
Id. at 955.
I would exercise the same restraint as the Timms court and continue to disallow
I do not doubt plaintiffs in this case were heartbroken to be denied reentry into the United States and to be separated from their children and grandchildren still living in Iowa. The majority relies in part on our "recogni[tion] of a claim for negligent infliction of emotional distress connected to witnessing a serious injury to a family member." See Barnhill v. Davis, 300 N.W.2d 104, 108 (Iowa 1981). In Barnhill, the court drew the line at bystanders who contemporaneously witnessed the accident causing serious injury or death of a close family member. Id. We recently declined to move that line to allow recovery when the parent "arrived at the scene immediately after the accident occurred [and] ... found [her son] lying in the street, unattended and seriously injured." Moore v. Eckman, 762 N.W.2d 459, 460, 462-63 (Iowa 2009). We held the parent's emotional distress claim failed as a matter of law even though "her grief may be as great or greater than one who observes the accident." Id. at 463. We adhered to stare decisis and declined to open the door wider to emotional distress awards despite the foreseeability of the mental injuries:
Id. at 462 (quoting Fineran v. Pickett, 465 N.W.2d 662, 664 (Iowa 1991)). In Fineran, we declined to extend Barnhill to allow emotional distress claims by the accident victim's parents and sister who arrived at the accident scene two to five minutes after the car struck her bicycle and left her unconscious on the roadway. Fineran, 465 N.W.2d at 663-64. We should exercise the same restraint by declining to extend Miranda in future legal malpractice actions.
The Restatement (Third) of Torts adheres to "the general rule that an actor is not liable for negligent conduct that causes only emotional harm." Restatement (Third) of Torts: Liability for Physical and Emotional Harm § 47 cmt. b, at 176 (2012). The general rule precludes recovery for "negligently caused pure emotional harm ... even when it is foreseeable." Id. § 47 cmt. i, at 180. An exception allows recovery for serious emotional harm caused by negligent conduct that "occurs in the course of specified categories of activities, undertakings, or relationships in which negligent conduct is especially likely to cause serious emotional harm." Id. § 47(b), at 175. The "specified relationship" is one "fraught with the risk of emotional harm." Id. § 47 cmt. b, at 176. The examples given include "hospitals and funeral homes for negligently mishandling a corpse and ... telegraph companies for negligently mistranscribing or misdirecting a telegram that informs the recipient, erroneously, about the death of a loved one." Id. None of the accompanying comments or illustrations involves legal malpractice.
Courts continue to recognize sound policy reasons against opening the door wider to claims for negligently inflicted emotional distress. The Hedgepeth court noted three: "avoiding fictitious or trivial claims, the difficulty of establishing (or disproving) the nature and extent of the alleged mental injury, and limiting liability." Id. at 795 (citing Restatement (Second) of Torts § 46 cmt. b, at 72 (1965); id. § 436A cmt. b, at 461-62). "Absent compelling reasons, courts and legislatures should be especially reluctant to create new incentives for litigation." Timms, 713 F.Supp. at 956. "The tort law should encourage a certain level of emotional toughness." Meyer, 241 N.W.2d at 918. We should not engender more litigation by relaxing proof requirements for emotional distress claims.
I fear today's decision will have a chilling effect on the willingness of attorneys to practice immigration law in Iowa despite the growing demand for legal services in that field. Malpractice insurance premiums no doubt will increase in light of the newly imposed risk of open-ended tort liability for a client's emotional distress upon deportation or denial or reentry to the United States. Fees will necessarily increase to cover the increased insurance premiums, or lawyers will refrain from practicing immigration law to avoid the higher risks and overhead costs. This is an access-to-justice issue. Allowing emotional distress claims in legal malpractice actions will result in fewer lawyers practicing in the field and higher rates charged by those who do. Persons who need immigration law advice will pay more or have a harder time finding representation. Rather than promoting these impediments to the access to legal services, we should instead follow the lead of New York's highest court, which last year declined to allow emotional distress claims against lawyers whose mistakes led to a client's longer imprisonment. Dombrowski v. Bulson, 19 N.Y.3d 347, 948 N.Y.S.2d 208, 971 N.E.2d 338, 340-41 (2012). The Dombrowski court recognized that expanding malpractice liability would limit access to justice:
Id. Similarly, it is a bad idea to expand the malpractice liability of lawyers practicing immigration law. The societal benefit of compensation for particular plaintiffs will be offset by the reduction in access to immigration law advice and representation. And, it will be hard to draw the line in the next malpractice case against a criminal defense attorney. Surely incarceration warrants emotional distress damages for legal malpractice if such damages are now recoverable by a client who is deported or denied reentry to the United States.
We should continue to disallow emotional distress awards in a legal malpractice action in which the attorney is merely found negligent. See Vincent, ___ A.3d at ___, 2013 WL 2278097, at ¶ 20 ("The vast majority of jurisdictions do not allow recovery of emotional distress damages in legal malpractice cases where the claim of malpractice is not premised on intentional acts, physical injury, or particularly egregious conduct."); cf. dePape v. Trinity Health Sys., Inc., 242 F.Supp.2d 585, 616 (N.D.Iowa 2003) (awarding emotional distress damages in a legal malpractice action in which client was detained at the border after lawyer advised him "to lie to INS officials in order to gain entry to the United States under false pretenses" — conduct both intentional and egregious).
For these reasons, today's majority opinion should be limited to its facts and should not be applied to open the door any wider to emotional distress recoveries in legal malpractice actions.
8 U.S.C. § 1182(a)(9)(B)(i).
This is not to say that breach or threatened breach of an insurance contract or other commercial contract will not constitute intentional infliction of emotional distress. See Amsden v. Grinnell Mut. Reins. Co., 203 N.W.2d 252, 254-55 (Iowa 1972). In Amsden, we observed that an insurance company that maliciously threatens to withhold payments violates the duty of good faith and fair dealing, and "`violation of that duty sounds in tort notwithstanding that it may also constitute a breach of contract.'" Id. at 254 (quoting Fletcher v. W. Nat'l Life Ins. Co., 10 Cal.App.3d 376, 89 Cal.Rptr. 78, 93 (1970)). Although we did not consider the conduct of the insurance company in Amsden extreme or outrageous, we suggested breach of a contractual duty might otherwise be a sufficient basis for awarding damages for emotional distress. See id. at 255.
Other courts have also permitted recovery of damages for intentional infliction of emotional distress in the context of a claim of breach of the duty of good faith and fair dealing. See, e.g., Goodson v. Am. Standard Ins. Co. of Wis., 89 P.3d 409, 417 (Colo.2004); State Farm Mut. Auto. Ins. Co. v. Shrader, 882 P.2d 813, 833 (Wyo.1994). At least one court has held the breaching party liable for intentional infliction of emotional distress outside the context of the duty of good faith and fair dealing. See Simon v. Solomon, 385 Mass. 91, 431 N.E.2d 556, 562 (1982) (holding landlord could be held liable for tenant's emotional distress damages for reckless infliction of emotional distress in the course of the landlord's breach of the warranty of habitability).
Id.
We note that other courts will permit awards of emotional distress damages in legal malpractice actions when the conduct is willful or wanton, but do not appear to inquire into the subject matter of the underlying contract. See, e.g., Timms v. Rosenblum, 713 F.Supp. 948, 954-55 (E.D.Va.1989) (holding plaintiff was not entitled to emotional distress damages when defendant had not acted intentionally or recklessly); Hamilton v. Powell, Goldstein, Frazer & Murphy, 167 Ga.App. 411, 306 S.E.2d 340, 344 (1983); Lickteig v. Alderson, Ondov, Leonard & Sween, P.A., 556 N.W.2d 557, 560-62 (Minn. 1996) (holding emotional distress damages are recoverable in the context of legal malpractice involving pecuniary matters when the attorney's behavior satisfies a heightened culpability standard); Long-Russell v. Hampe, 39 P.3d 1015, 1018 (Wyo.2002) (adopting Lickteig); see also Bowman v. Doherty, 235 Kan. 870, 686 P.2d 112, 117-18 (1984) (applying a similar rule in the context of deprivations of civil rights). While a reasonable jury could find that Said's conduct was willful or wanton, we need not consider this line of authority because Klever and Nancy were entitled to present a claim for emotional distress damages to the jury under the reasoning announced in Lawrence.
As we have explained, recovery for stand-alone emotional harm has historically been more circumscribed than recovery for physical harm, and courts have expressed the limitations in no-duty, limited-duty, and modified-duty rulings over the years. See, e.g., Clark v. Associated Retail Credit Men of Washington, D.C., 105 F.2d 62, 64 (D.C.Cir. 1939) ("The law does not, and doubtless should not, impose a general duty of care to avoid causing mental distress."); Hedgepeth v. Whitman Walker Clinic, 22 A.3d 789, 796 (D.C.2011) ("[B]y framing the question in terms of `duty,' instead of proximately caused damages, courts have purposely developed the common law to balance competing societal interests.... Having rejected a `general' duty of care to avoid causing emotional distress, courts ... have imposed liability for the negligent infliction of emotional distress only in limited situations, when additional factors are present that avoid or mitigate [historical policy concerns]."); Asuncion v. Columbia Hosp. for Women, 514 A.2d 1187, 1189 (D.C.1986) (observing "some state courts in recent years have recognized" a duty, "at least for physicians, to refrain from negligently inflicting emotional distress"); cf. Magruder, 49 Harv. L.Rev. at 1045 n. 49 ("The question here really is whether the law should recognize a duty of care to convey bad news tactfully so as to minimize the risk of physical consequences from sudden shock. In the absence of authority on the point, it may be surmised that such a duty would be recognized only in a very extreme case.").
As we have also explained, however, courts have long found liability for conduct causing serious emotional damage in limited classes of cases, invoking policy considerations in the process. While courts have often considered whether an actor reasonably should have foreseen emotional harm in determining whether emotional harm is recoverable, the Restatement (Third) explains, and we agree, that foreseeability alone cannot appropriately be employed as the standard for limiting liability for emotional harm. See Restatement (Third) § 47 cmt. i, at 180. Instead, consistent with our analysis in Thompson and consistent with the approach of the Restatement (Third), we think the policy issues "surrounding specific categories of undertakings, activities, and relationships must be examined to determine whether they merit inclusion" among the exceptions to the general historical rule of no liability for emotional damages. Id. Our consideration of historical and contemporary policy concerns guides our liability analysis and compels our conclusion that liability may be appropriate in the narrow class of cases recognized here. See, e.g., id. Reporters' Note § 47 cmt. f, at 190 ("`When the defendant owes an independent duty of care to the plaintiff, there is no risk of unlimited liability to an unlimited number of people. Liability turns solely on relationships accepted by the defendant....'" (quoting 2 Dobbs § 396, at 611)); Dan B. Dobbs, Undertakings and Special Relationships in Claims For Negligent Infliction of Emotional Distress, 50 Ariz. L.Rev. 49, 57 (2008) ("[The] fear of unlimited lawsuits that so often causes emotional distress in judges and lawyers is wholly misplaced when it comes to duties based on undertakings or special relationships. Only those in the relationship with the defendant or to whom he undertakes a duty could possibly recover based on the undertaking.").
Finally, we also observe this approach appears fundamentally consistent with the approach taken by Restatement (Second) of Contracts discussed above. See Restatement (Second) of Contracts § 353, at 149. Indeed, although courts have historically phrased the inquiry in terms of foreseeability, contract scholars have long recognized the rule regarding awards of emotional distress damages in contract actions is infused with policy considerations related to protection from emotional harm, not the emotional harm's foreseeability: Professor Farnsworth points out the prohibition on awards of emotional distress damages in breach-of-contract actions may have existed as an independent policy-based limitation on the amount of damages in contract actions even when emotional distress damages were foreseeable and certain. See 3 E. Allan Farnsworth, Farnsworth on Contracts § 12.17, at 291 (3d ed.2004). As Professor Corbin puts it, "While some courts [refuse to permit emotional distress damages for breach of contract] because such damages are too remote to have been within the contemplation of the parties, it seems apparent that most courts have forged `a rule of policy defining the limits of business risk.'" 11 Joseph M. Perillo, Corbin on Contracts § 59.1, at 535-36 (rev. ed.2005) (quoting Charles T. McCormick, Handbook on the Law of Damages § 145, at 593 (1935)).
Id. Our court has not adopted section 53. I view incarceration and involuntary civil commitments as akin to a physical injury (loss of mobility and freedom). Yet New York's highest court, in Dombrowski v. Bulson, recently held emotional distress damages are not recoverable from a criminal defense lawyer whose negligence lengthened his client's incarceration. 19 N.Y.3d 347, 948 N.Y.S.2d 208, 971 N.E.2d 338, 340 (2012) ("We see no compelling reason to depart from the established rule limiting recovery in legal malpractice actions to pecuniary damages."). Plaintiffs in today's case were not incarcerated; they were denied reentry into the United States where they lacked lawful residency status. They continue to live freely in their home country.