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Keywords

lawsuitdamagesattorneynegligencestatutetrialmalpracticestatute of limitationslegal malpracticegood faith
contractbreach of contractplaintiffdefendantdamagesattorneylawyernegligenceappealtrialmalpracticewilllegal malpracticegood faith

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Cosgrove v. Grimes, 774 S.W.2d 662

Facts

In July 1976, Frank Cosgrove was injured in a car accident and sought legal representation from attorneys Ed W. Bass, Jr. and Walter Grimes. Bass failed to file a lawsuit and later transferred the case to Grimes, who filed against the wrong party after the statute of limitations had expired. Cosgrove subsequently sued Bass and Grimes for legal malpractice, alleging negligence and violations of the Deceptive Trade Practices Act. The jury found both attorneys negligent, but the trial court ruled in favor of Grimes based on a good faith defense, which was later challenged by Cosgrove.

In July 1976, Cosgrove was injured when the automobile he was driving was struck from the rear by a car driven by Will Michael Stephens. Timothy Purnell was a passenger in Stephens' car at the time of the accident which occurred on Decker Drive, south of the intersection with Airhart in Baytown, Texas. The Baytown Police Department was called, and an accident report was made by the responding officer.

Issue

The main legal issue was whether the good faith defense applied in legal malpractice actions, specifically regarding attorney negligence.

The main legal issue was whether the good faith defense applied in legal malpractice actions, specifically regarding attorney negligence.

Rule

The court ruled that there is no subjective good faith excuse for attorney negligence, and attorneys are held to the standard of care exercised by a reasonably prudent attorney.

A lawyer in Texas is held to the standard of care which would be exercised by a reasonably prudent attorney.

Analysis

The court analyzed the jury's findings and determined that Grimes' reliance on Cosgrove's information did not absolve him of negligence. The court emphasized that the standard for attorney conduct should be objective, based on what a reasonably competent attorney would do in similar circumstances. The court found that the jury's findings supported Cosgrove's claims of negligence and that the good faith defense should not have been submitted to the jury.

Disregarding the jury's findings concerning good faith, we must now determine whether Cosgrove may recover on his claim of malpractice. An action for negligence is based on four elements. The plaintiff must prove that there is a duty owed to him by the defendant, a breach of that duty, that the breach proximately caused the plaintiff injury and that damages occurred.

Conclusion

The Supreme Court reversed the lower court's judgment and rendered a decision in favor of Cosgrove, awarding him $2,500 for damages suffered due to Grimes' negligence.

We hold that the trial court erred in submitting issues to the jury concerning Grimes' good faith. Based on the jury's answers to the remaining issues, we reverse the judgment of the court of appeals and render judgment that Cosgrove be awarded $2500.00 as compensation for damages suffered as a result of Grimes' negligent prosecution of Cosgrove's cause of action.

Who won?

Frank Cosgrove prevailed in the case because the Supreme Court found that the attorneys' negligence warranted recovery, and the good faith defense was improperly applied.

Cosgrove's malpractice suit alleged negligence, breach of contract, false representations and Deceptive Trade Practices Act ('DTPA') violations under a theory of breach of implied warranty.

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