Berringer v. Steele8/31/2000
REPORTED
In this legal malpractice case, we must determine whether the Circuit Court for Baltimore County erred in granting summary judgment to Nevett Steele, Jr., Esquire, Michael J. Gentile, Esquire, and the Law Firm of Nevett Steele, Jr., P.A. (the "Firm"), appellees, in connection with their post-trial representation of Philip E. Berringer, appellant, who had been convicted of theft and misappropriation of funds by a fiduciary. Berringer presents two general questions for our consideration, which we have rephrased slightly:
I. Did the circuit court err in awarding summary judgment?
II. Did the circuit court abuse its discretion in denying appellant's post-trial motion to alter or amend judgment?
Appellant also raises four issues, which we have rephrased, reordered, and condensed as follows:
I. Did appellant's failure to obtain post conviction relief bar his legal malpractice claim against appellees?
II. Did the circuit court correctly interpret appellant's complaint in determining that he knew appellees did not intend to file a notice of appeal on appellant's behalf and conclude that such knowledge barred recovery?
III. In its memorandum and ruling awarding summary judgment, did the circuit court ignore appellant's allegations of appellees' negligence and breach of contract with respect to their representation of appellant at sentencing?
FACTUAL BACKGROUND
Appellant filed his legal malpractice suit on January 30, 1998, after years of litigation arising from his involvement with the National Computer Ribbon Corporation ("NCRC"), a small manufacturing firm. From April 1986 to June 1993, Berringer was the president, chief executive officer, and a director of NCRC.
In November 1991, Joanne Hardy resigned her position as NCRC's production manager. Shortly thereafter, Berringer indefinitely suspended William Hardy, Joanne's husband, who was an NCRC salesman, director, and shareholder, pending an investigation into the allegedly unauthorized removal of files and documents from NCRC. Mr. Hardy and another director, Frank Schmidt, asserted that the file and document removal were part of their investigation of fraud and embezzlement purportedly committed by Berringer. In January 1992, Berringer terminated Mr. Hardy for alleged conversion of a company automobile.
On May 1, 1992, the Hardys initiated a wrongful termination suit against NCRC, Berringer, and Maria Staab. Staab was a member of the NCRC board, the company's office manager, and its corporate secretary. The Hardys claimed that Mr. Hardy had been terminated, and Ms. Hardy constructively terminated, because they chose to "blow the whistle" on Berringer's fraudulent procurement of over $200,000 in NCRC funds through a company called E&L;Enterprises ("E&L;). After a three-week trial, the jury rendered a verdict against Berringer and NCRC for nearly $3 million, including $650,000 in punitive damages against appellant.
In October 1993, Berringer was charged in Baltimore County with fraudulent misappropriation by a fiduciary and felony theft. The case was tried to a jury in the circuit court (Howe, J., presiding) beginning on December 12, 1994. At trial, appellant was represented by Stewart Lyons, Esquire, an Assistant Public Defender.
The evidence presented at Berringer's criminal trial revealed that NCRC used various subcontractors to perform some of its assembly and processing work. Over a period of time, NCRC paid out more than $227,000 to E&L;based on invoices submitted for subcontracting work allegedly performed for NCRC. The evidence showed, however, that E&L;had
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