Paterek v. Petersen & Ibold

Edward Paterek was injured in a car accident caused by the negligence of 17-year-old Kristopher Richardson. Richardson had $100,000 of automobile-liability insurance but no assets or earning capacity. Paterek and his wife, Irene (the Patereks) (plaintiffs) retained Jonathon Evans of the law firm Peterson & Ibold (collectively, P&I) (defendants) to bring a personal-injury action against Richardson. P&I filed a lawsuit, dismissed it without prejudice, and failed to refile it within one year of the dismissal as required. The suit was dismissed. The Patereks sued P&I for legal malpractice. Edward Paterek died, and Irene became executor of his estate. At trial, it was stipulated that Richardson was at fault in the car accident, Evans missed the deadline to refile the Patereks’ suit, and Richardson had a $100,000 automobile-liability policy but no other assets or earning capacity to satisfy a judgment. The jury found for Irene and awarded Edward’s estate $282,000 for Edward’s medical bills and pain and suffering and $100,000 for loss of consortium to Irene. The trial court granted P&I’s motion for judgment notwithstanding the verdict, ruling that the Patereks’ recovery was limited to Richardson’s $100,000 insurance policy. The court’s decision was reversed on appeal, and the case was remanded for an order reinstating the jury verdict. P&I appealed.