Thrash v. Deutsch, Kerrigan & Stiles, LLP

This appeal arises from a trial court’s grant of summary judgment dismissing Ike Thrash’s and Dawn Investments LLC’s claims for negligence and breach of fiduciary duty against Deutsch Kerrigan & Stiles, LLP (DKS). The dispute underlying this appeal arose over the purchase of land at a trustee sale. Joel Blackledge, the acting trustee, prepared a trustee's deed in favor of Dawn Investments. Thrash deposited $5.6 million dollars into the trust account of his attorney, Charliene Roemer. The trustee’s deed was then delivered to Dawn Investments, and Thrash authorized the transfer of the funds. The former owner of the property, Coastal Land Development Company, filed for Chapter 11 Bankruptcy. Neither Thrash nor Blackledge was aware of the bankruptcy filing, but William Little Jr., Coastal’s bankruptcy attorney, notified Roemer through email. Subsequently, Thrash and Roemer discovered that the foreclosure sale had been conducted improperly. According to statute, the foreclosure sale must occur one week following the last day of publication; however, the foreclosure sale was conducted one day after the last day of publication. Thrash notified the seller of the error and demanded the funds be returned, but the request was refused. DKS filed suit in circuit court against Thrash, Dawn Investments, and the seller seeking a declaratory judgment that the failure of Blackledge to conduct a foreclosure sale properly was not the proximate cause of Thrash’s and Dawn Investments’ damages. Thrash and Dawn Investments counterclaimed, alleging that Blackledge was negligent and breached his fiduciary duty by improperly conducting the foreclosure sale, leading to Thrash and Dawn Investments to suffer damages. The parties agreed to dismiss DKS’s complaint for declaratory judgment and proceed under Thrash’s and Dawn Investments’ counterclaim. The parties were realigned, naming Thrash and Dawn Investments as Plaintiffs and DKS as Defendant. Both parties filed motions for summary judgment, and the trial court granted DKS’s motion. The Dawn Plaintiffs then filed this appeal. The Supreme Court found that the trial court was correct in finding that DKS did not owe the Dawn Plaintiffs a duty. View "Thrash v. Deutsch, Kerrigan & Stiles, LLP" on Justia Law