Continuous Representation Doctrine Does Not Suspend SOL in Malpractice Claim Over Trust Drafting

A Minnesota appeals court holds that the statute of limitations in a legal malpractice case against an attorney who drafted trusts for a client is not tolled by the continuous representation doctrine. Carlson v. Houk (Minn. Ct. App., No. A14-0633, Nov. 17, 2014).

In 1999, G. William Carlson and his mother hired attorney Larry Houk to provide estate planning advice. Mr. Houk drafted two trusts for Mr. Carlson's mother and provided advice to Mr. Carlson on multiple occasions between 1999 and September 13, 2006. Mr. Carlson never explicitly fired Mr. Houk, but he hired his current attorney in October 2007.

On September 6, 2013, Mr. Carlson filed a lawsuit against Mr. Houk for legal malpractice, claiming that Mr. Houk provided negligent advice that resulted in tax penalties and disputes with the IRS. The trial court held that the six-year statute of limitations barred the claim. Mr. Carlson appealed, arguing that the continuous representation doctrine should suspend (or toll) the statute of limitations. The continuous representation doctrine tolls the statute of limitations for legal malpractice until the attorney's representation concerning a particular transaction or subject matter is over.

The Minnesota Court of Appeals affirms, holding that the claim is barred by the statute of limitations. The court notes that Minnesota courts have not adopted the continuous representation doctrine, but that even if it applied, it does not apply to the facts in this case. According to the court, Mr. Carlson's "complaint describes multiple discrete instances in which [Mr. Carlson] incurred damages as a result of [Mr. Houk]’s faulty advice, all of which can be tied to a specific date. The latest date to which respondent’s faulty advice can be tied is September 13, 2006." The court rules that that date is an appropriate time to start the running of the statute of limitations.  

For the full text of this decision, go to: https://mn.gov/lawlib/archive/ctapun/2014/opa140633-111714.pdf

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