H-D Transport v. Pogue

Vint Hughes and H-D Transport, an Idaho partnership, appealed the grant of summary judgment in favor of Michael Pogue and Lawson & Laski, PLLC (collectively Pogue) in a legal malpractice action. Hughes and H-D Transport brought suit against Pogue claiming that at various points starting in October 2011, until present, Pogue had an attorney-client relationship with both Hughes and H-D Transport. In August of 2011, Hughes and Andrew Diges entered into a 50-50 partnership, under the name H-D Transport, to haul hydraulic fracturing fluid. Disagreements arose between the partners concerning the operation and finances of the partnership. On October 21, 2011, Diges hired Pogue to draft a formal partnership agreement. Diges told Hughes that he had hired an attorney to prepare a partnership agreement, and about a month later Pogue, Hughes and Diane Barker, the partnership bookkeeper, participated in a conference call regarding the partnership. Despite the efforts to create a partnership agreement, Pogue, on behalf of Diges, sent Hughes a letter “regarding the problems and irregularities concerning the operation of H-D Transport, and to propose a wind-up of the business.” Pogue filed a complaint requesting declaratory relief, an accounting, and a dissolution of the partnership (the Dissolution Action). In the complaint, Pogue named H-D Transport and Diges as the plaintiffs and Hughes as the defendant. Following trial of the Dissolution Action, the district court entered findings of fact and conclusions of law which largely decided issues in Hughes’ favor. Diges was ordered to repay H-D transport more than $50,000, including $1,500 in partnership funds for legal fees paid to Pogue. Following trial, but prior to the district court’s decision in the Dissolution Action, Hughes and H-D Transport filed the present action naming Pogue and his firm as defendants, alleging two counts of professional negligence and breach of fiduciary duty and two counts of unreasonable restraint of trade under the Idaho Competition Act. The district court granted Pogue’s motion for summary judgment on all claims, concluding Hughes and H-D Transport failed to establish that an attorney-client relationship existed with Pogue. The Supreme Court found that it was unreasonable, under the facts of this case, for Hughes to believe he had an attorney-client relationship with Pogue. The Court therefore affirmed the district court judgment. View "H-D Transport v. Pogue" on Justia Law