SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-4138-95T5
DOROTHY DONOHUE, individually and as
Executrix of the Estate of William H.
Donohue, ERIN DONOHUE, KERRY DONOHUE
and SEAN DONOHUE,
Plaintiffs-Respondents,
v.
CLIFFORD N. KUHN, JR.,
Defendant-Appellant.
_________________________________________________________________
Argued May 30, 1995 - Decided July 16, 1996
Before Judges Stern, Wallace and Newman.
On appeal from the Superior Court of New
Jersey, Law Division, Middlesex County.
Michael B. Oropollo argued the cause for
appellant (Harwood Lloyd, attorneys; Mr.
Oropollo, of counsel and on the brief).
Theodore D. Parsons, Jr., argued the cause
for respondents (Parsons, Cappiello &
Nardelli, attorneys; Mr. Parsons, on the
brief).
The opinion of the court was delivered by
STERN, J.A.D.
We granted leave to appeal from an order denying defendant's motion to dismiss this attorney malpractice case on grounds that it is precluded by the entire controversy doctrine. The parties agree that, for purposes of the motion, it must be accepted - as alleged in the malpractice complaint - that plaintiffs retained
defendant to bring a wrongful death, N.J.S.A. 2A:31-1, and
"survivorship," N.J.S.A. 2A:15-3, action against John and
Rosalind Peplinski as a result of the death of William H. Donohue
(on May 9, 1987), but that defendant "did not institute an action
... within the applicable Statute of Limitations."See footnote 1 Represented
by other counsel, on February 26, 1990, plaintiffs filed a
wrongful death and survivorship action. They sought damages
based on their own loss and suffering as well as decedent's. On
September 26, 1990, the wrongful death action was dismissed on
statute of limitations grounds. See N.J.S.A. 2A:31-3. The
survivor claim was permitted to go forward "because said claims
did not accrue until Plaintiffs discovered that they existed,"
apparently because they did not learn until 1989 that Rosalind
Peplinski had given her son the weapon which caused Donohue's
death. No endeavor was then made to seek leave to appeal the
wrongful death dismissal or to make defendant a party to the
pending survivorship action.
About two and-a-half years later, in April 1993, the
survival action (and apparently the balance of the complaint) was
dismissed "on the merits by way of summary judgment," and
plaintiffs appealed. While the appeal from the dismissal of the
survival action was pending, plaintiffs filed the malpractice
case on October 14, 1993.See footnote 2 We reversed the dismissal of the
survivor's action on July 22, 1994, and that matter was
subsequently settled. Defendant then moved to dismiss this case
on entire controversy grounds, but the motion was denied.
Plaintiffs contend that the malpractice complaint should not
be dismissed for two reasons: (1) that it was brought while the
underlying action was pending, and (2) plaintiffs never had a
claim against defendant until the dismissal of the survival
action was reversed. Plaintiffs explain that if we had affirmed
the dismissal of the survival action (which, we are told, had
been dismissed due to the lack of proximate cause), they could
assert no malpractice for not filing the wrongful death action.
We reject the second contention because plaintiffs were legally
obligated to believe they had a viable action when they filed the
complaint. Moreover, they filed their complaint before the
dismissal of the survival action was reversed. In any event, as
their malpractice action is related to the statute of
limitations, they knew of the alleged malpractice when the
wrongful death action was dismissed and plaintiffs never
challenged the statute of limitations dismissal on the appeal
following final judgment.
Defendant insists that, under Circle Chevrolet Co. v.
Giordano, Halleran & Ciesla,
142 N.J. 280 (1995), plaintiffs
should have endeavored to join the malpractice case with the
pending survivorship action once the wrongful death case was
dismissed. Independent of joinder, he asserts that plaintiffs
"were obligated to bring the legal malpractice claim at the time
the wrongful death action was dismissed as untimely."
Plaintiffs insist that they brought their action while their
survivorship case was still "pending" and therefore there is no
basis for dismissal under the entire controversy doctrine. They
contend that the appeal from the dismissal of their survivorship
claim continued the "pending" status of the underlying case.
Plaintiffs further assert that because discovery in the
malpractice action was stayed pending disposition of the appeal
and defendant "fail[ed] to move for consolidation before the
underlying action was settled in December of 1994," after our
reversal of the survival action, defendant "has waived any right
to raise the Entire Controversy defense at this juncture." Of
course, the stay did constitute a management order of the trial
court premised on knowledge of the existence of both matters, but
by then one was pending only on appeal, and the stay of the
malpractice case is irrelevant if that action itself was
precluded by virtue of the entire controversy doctrine.
The entire controversy doctrine applies to parties as well
as claims. Cogdell v. Hospital Center,
116 N.J. 7, 22-23 (1989).
See also Mortgagelinq Corp. v. Commonwealth Land Title Ins. Co.,
142 N.J. 336 (1995); Mystic Isle Dev. Corp. v. Perskie & Nehmad,
142 N.J. 310 (1995); Circle Chevrolet, supra; DiTrolio v.
Antiles,
142 N.J. 253 (1995); R. 4:30A. The doctrine is based on
the fundamental principle that "`the adjudication of a legal
controversy should occur in one litigation in only one court[.]'"
Mystic Isle, supra, 142 N.J. at 322 (quoting Cogdell, supra, 116
N.J. at 15). "`[A]ccordingly, all parties involved in the
litigation should at the very least present in that proceeding
all of their claims and defenses that are related to the
underlying controversy.'" Ibid. The purposes behind the entire
controversy doctrine "include the needs of economy and the
avoidance of waste, efficiency and the reduction of delay,
fairness to the parties, and the need for complete and final
disposition through the avoidance of `piecemeal decisions.'"
Cogdell, supra, 116 N.J. at 15.
The objectives behind the doctrine are
threefold: (1) to encourage the comprehensive
and conclusive determination of a legal
controversy; (2) to achieve party fairness,
including both parties before the court as
well as prospective parties; and (3) to
promote judicial economy and efficiency by
avoiding fragmented, multiple and duplicative
litigation.
[Mystic Isle Dev. Corp., supra, 142 N.J. at
322.]
"[T]he rule is intended to secure joinder in a current action and
to subject joinder issues to the supervisory authority of the
court. The rule is not intended simply to notify a new party of
the imminence of a future lawsuit." DiTrolio, supra, 142 N.J. at
277. See also R. 4:5-1. "[A] party has a continuing obligation
during the course of litigation to disclose the names of any
other parties who should be joined in the action." Id. at 276.
It is now quite clear that the doctrine bars a subsequent
legal malpractice claim where the malpractice is known to the
client and could have been joined in the underlying action. See
Circle Chevrolet, supra. Moreover, the doctrine "applies to
constituent claims that arise during the pendency of the first
action that were known to the litigant."See footnote 3 Id. at 290.
It is true that, for certain purposes, a case is still
"pending" so long as the judgment has not been affirmed on direct
appeal. See State v. Molnar,
81 N.J. 475, 487-89 (1980). But we
do not believe this case was "pending" for purposes of the entire
controversy doctrine because the appeal had not yet been decided.
The entire controversy doctrine relates to the management of
trial court proceedings before judgment. If we had affirmed,
there would have been no case to manage or to join, and we do not
believe that the failure to timely commence an action in the
trial court can be saved by the happenstance of a reversal
following judgment.
Plaintiffs knew or should have known of any possible
malpractice well before the survival action was dismissed, and
were not then represented by defendant. At the least they had an
obligation to inform the trial court of the existence of the
malpractice claim before the survivorship claim was dismissed.
It was for the trial court to "devise a litigation plan that is
efficient and fair to all parties," Circle Chevrolet, supra, 142
N.J. at 293, and "[a] plaintiff's failure to allow the trial
court the opportunity to manage the full controversy at the
outset diminishes the force of any later claim that joinder would
have been inappropriate." DiTrolio, supra, 142 N.J. at 275. The
essential notion of "fairness" justifies application of the
entire controversy doctrine in these circumstances. Certainly,
defendant had a "material interest" in the underlying action and
could have been affected by its outcome; see id. at 273.
Plaintiffs filed their malpractice suit on October 14, 1993,
over three years after the wrongful death action was dismissed
and six months after dismissal of the survivorship claim. They
had ample time to amend their original complaint to name Kuhn as
a defendant after the wrongful death action was dismissed while
the balance of the complaint was still before the trial court.
Plaintiffs knew or should have known of Kuhn's legal malpractice,
if any, at the time the wrongful death claim was dismissed as
untimely.
The order denying judgment for defendant is reversed.
Footnote: 1The appendices before us are not complete. We have constructed the facts from the briefs, the documents in the record which have been presented and oral argument. The critical facts relating to the filing of pleadings and orders are not contested. Footnote: 2Only portions of the undated complaint are in the appendix, but again the parties agree as to the date of filing. In some of the papers defendant's law firm is also named as a defendant, but the parties treat Kuhn as the sole defendant before us. Footnote: 3In Mystic Isle Dev. Corp., the Court held that for purposes of the entire controversy doctrine, "a professional malpractice claim accrues when: (1) the claimant suffers an injury or damage; and (2) the claimant knows or should know that its injury is attributable to the professional negligence." 142 N.J. at 326. Stated differently, "A malpractice action accrues when a party suffers damages and discovers or through reasonable diligence should discover, that the damage is attributable to a professional's negligent advice." Circle Chevrolet, supra, 142 N.J. at 298.