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Canavan v. Lovett12/16/2004
This legal malpractice action was instituted against the Providence Law Firm of Lovett, Schefrin and Harnett (the firm) and several other named defendants arising out of a motor vehicle accident that occurred on January 27, 1988. The Superior Court granted summary judgment in favor of the defendants, reasoning that the plaintiff's cause of action was barred by the applicable statute of limitations for legal malpractice actions as prescribed by G.L. 1956 ยง 9-1-14.3. On appeal, the plaintiff contends that the motion justice erred in determining that the exercise of reasonable diligence would have revealed the alleged malpractice more than three years before the date on which the plaintiff filed suit against the defendants. Alternatively, the plaintiff asks this Court to adopt and apply the "continuous representation doctrine" to toll the statute of limitations for the plaintiff's legal malpractice claims. After reviewing the record in the light most favorable to the nonmoving plaintiff, we decline to fault a lay person under the circumstances presented by this case. For the reasons stated herein, we vacate the judgment of the Superior Court.
I. Facts and Travel
On January 27, 1988, plaintiff James Canavan was driving a truck in the course of his employment with AAA Trucking (AAA) when he was involved in a serious motor vehicle collision with an individual named Karl Talabach. The plaintiff retained the law firm of Lovett, Schefrin and Harnett (later Lovett, Schefrin, Gallogly & Harnett) to prosecute a workers' compensation claim on his behalf. The firm also initiated a liability claim against Talabach, which it assigned to one of its attorneys.
The attorney handling the matter immediately pursued plaintiff's liability claim against Talabach's insurer, Hanover Insurance Company (Hanover). On October 27, 1988, Hanover notified defendant firm that its policy limit with Talabach was $10,000. Believing this inadequate to satisfy Canavan's damages, the firm advised AAA and its insurance carrier that plaintiff would be making an underinsured motorist claim. After Liberty Mutual Insurance Company (Liberty) was identified as AAA's insurance carrier, the firm made a claim against that company for underinsured motorist benefits.
The claim against Liberty was referred to Massachusetts attorney Debra Kohl. On December 18, 1990, Kohl informed the firm that Hanover had paid its $10,000 policy limit, which had been forwarded to AAA's workers' compensation insurance carrier in accordance with Rhode Island law. Attorney Kohl also indicated her intention to settle with Liberty for an additional $10,000, and she further notified the firm that Canavan had provided a copy of his Prudential Motor Vehicle insurance policy to her. Because Kohl was concerned about the existence or extent of underinsured coverage under plaintiff's Prudential policy, she requested that the attorney handling the matter on behalf of Lovett, Schefrin and Harnett review it.
On January 4, 1991, Kohl informed the firm that Liberty had offered $10,000 to settle the claim against it and that plaintiff's Prudential policy provided $300,000 coverage for underinsured motorist benefits. Kohl encouraged the firm to pursue the Prudential coverage and asked its advice on whether to accept the $10,000 from Liberty before the Prudential claim was pursued. On February 14, 1991, the attorney handling the matter for Lovett, Schefrin and Harnett made a claim for underinsured benefits against Prudential, notifying it that the earlier claim against Talabach and Hanover had been settled. At that time, the firm also requested Prudential's permission to settle with Liberty.
In response, Prudential
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