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Lockhart v. Greive8/3/1992
Steven A. Lockhart appeals from an order dismissing his breach of contract and professional negligence claims against his former attorneys, John W. Murphy and David A. Welts. Respondents/cross appellants Murphy and Welts appeal the amount of attorney's fees and costs awarded them by the trial court under RCW 4.84.185 and CR 11. We affirm the summary judgment of dismissal and reverse the award of attorney's fees and costs to respondents.
Facts
On March 20, 1983, Lockhart sustained personal injuries when he lost control of his motorcycle at a railroad crossing in Snohomish County. He contacted several attorneys and was ultimately referred to attorney John W. Murphy in early February 1986. Murphy was associated in the practice of law with David A. Welts. Lockhart and Murphy subsequently met, briefly discussed the case, and signed an agreement entitled "Contract to Hire Attorney", wherein Murphy agreed, subject to certain conditions, to represent Lockhart. At that time, fewer than 2 months remained before the third anniversary of Lockhart's accident -- March 20, 1986.
In the contract signed by Murphy and Lockhart, Murphy agreed to advance all costs on behalf of the client until the case was concluded, and Lockhart agreed to pay all such costs. The agreement also provided that if at any time the claim appeared to the attorney to be without merit, the attorney would have the right to so advise the client and withdraw from the case.
Murphy proceeded to investigate the case by contacting two attorneys with whom Lockhart had previously consulted, reviewing an investigator's memorandum containing notes from interviews with a witness to the accident and a Washington state patrolman, and reviewing measurements of the scene and diagrams prepared by the investigator. Murphy believes that he also visited the scene as well. Murphy reviewed a letter to Lockhart from a previous attorney
that indicated a concern that a jury could conclude that Lockhart lost control of his motorcycle due to his drinking.
In late February 1986, Murphy instructed his secretary to inform Lockhart that he would not represent him in the action, but would file a summons and complaint in order to toll the statute of limitations. On March 3, 1986, Lockhart called from Hawaii and spoke with Murphy's secretary. She told him that Murphy would not be representing him, but that a complaint would be filed. It is unclear as to whether there was any agreement to the arrangement at that time.
On March 4, 1986, Lockhart called the firm once again and spoke with Murphy directly. According to Lockhart, Murphy told him he was underfinanced to do any additional work on the case and did not have the funds to hire expert witnesses. Lockhart testified that he understood, as of March 4, that Murphy would not represent him in the action, but would file a complaint to toll the statute of limitations. During a March 14, 1986, phone conversation, Murphy reiterated to Lockhart that he and Welts would not be representing him.
Lockhart returned to Seattle and met with R.R. (Bob) Greive of the law firm of Greive and Serrin on March 18, 1986. Greive agreed to take the case, had Lockhart sign a contract of employment, and instructed Lockhart to retrieve his file from Murphy and Welts.
Murphy filed a summons and complaint in the action on March 18, 1986. Burlington Northern Railroad Company, Snohomish County, and the State of Washington were named as defendants. Lockhart v. Burlington Northern R.R., 50 Wash. App. 809, 810, 750 P.2d 1299, review denied, 111 Wash. 2d 1022
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