Rich v. Ellingson

Kiersten Rich (plaintiff) had automobile-insurance coverage from State Farm. Rich was involved in two car accidents and hired attorney Jeffrey Ellingson (defendant) to represent her in suing State Farm for benefits and unfair trade practices (UTP). Ellingson filed a state-court complaint seeking benefits. A summons was issued but never served. After filing an action against State Farm in federal court alleging UTP and breach of contract for failure to pay benefits, Ellingson voluntarily dismissed the state action. The federal court granted State Farm partial summary judgment on the benefits claim because Rich failed to comply with state court procedures, barring a federal claim for the same relief. Rich sued Ellingson and Ellingson’s malpractice-insurance carrier Attorney’s Liability Protection Society (ALPS) (defendant) for legal malpractice. Rich settled with Ellingson and signed a limited general release releasing Ellingson and ALPS from any and all future claims, known and unknown, anticipated and unanticipated, of alleged legal malpractice of any kind arising out of or related to Ellingson’s representation of Rich against State Farm. After Rich’s remaining federal-court claims were dismissed, Rich filed a second legal-malpractice action against Ellingson and ALPS. Ellingson and ALPS argued that the release barred the action. Rich maintained that the parties intended the release to apply only to malpractice alleged before the release was executed and that the consideration paid in exchange for the release was insufficient to have encompassed all possible claims against Ellingson. The court granted summary judgment to Ellingson and ALPS, holding that the release barred Rich’s suit. Rich appealed.