(Download) "Itt Small Business Finance Corp. V. Niles" by Supreme Court Of California ~ eBook PDF Kindle ePub Free
eBook details
- Title: Itt Small Business Finance Corp. V. Niles
- Author : Supreme Court Of California
- Release Date : January 28, 1994
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 75 KB
Description
This is a professional negligence action brought against an attorney, defendant Edward I. Niles, based on Niles's alleged failure to exercise reasonable care in preparation of loan documents for plaintiff ITT Small Business Finance Corporation (hereafter ITT). Although Niles prevailed on summary judgment after the trial court concluded that the action was time-barred, ITT persuaded the Court of Appeal to reinstate its cause of action. We now consider the narrow issue whether ITT suffered "actual injury" under the one-year statute of limitations for attorney malpractice actions (Code Civ. Proc., § 340.6; all statutory references are to the Code of Civil Procedure unless otherwise indicated) when ITT (i) incurred legal fees defending a third-party action that disputed the adequacy of the loan documents, or (ii) received substantially less in settlement from its debtor than ITT contemplated under its security agreement. Section 340.6 provides that legal malpractice actions shall commence running when the client discovers or should have discovered the facts constituting the malpractice, but the statute is tolled under section 340.6, subdivision (a)(1), during the time, inter alia, the client "has not sustained actual injury." Applying section 340.6 to the facts of this case, we conclude ITT's action was timely filed. We therefore affirm the judgment of the Court of Appeal.