Apex Towing Co. v. Tolin

Summary

The Supreme Court of Texas held that its Hughes tolling rule applies to legal-malpractice claims arising from an attorney’s prosecution or defense of litigation, regardless of whether the client later hires new counsel or settles the underlying case. Limitations is tolled until all appeals in the underlying litigation are exhausted or the litigation is otherwise finally concluded. The court reversed the court of appeals’ limitations-based summary judgment and remanded for further proceedings.

Holdings

1. The Hughes tolling rule does not require continued representation by the allegedly negligent attorney. When attorney malpractice occurs in the prosecution or defense of a claim resulting in litigation, limitations on the malpractice claim remains tolled until all appeals in the underlying claim are exhausted or the litigation is otherwise finally concluded, even if the client hires new counsel.
2. Neither the hiring of new counsel nor settlement of the underlying litigation removes a legal-malpractice action from the Hughes tolling rule.
3. Apex's malpractice action was timely because the Hughes tolling period ended when the underlying appeal was dismissed on May 19, 1995, and the action was filed on February 19, 1997, within two years thereafter.

Questions Presented

1. Whether the Hughes tolling rule applies to a legal-malpractice action arising from an attorney's prosecution or defense of litigation when the client hires new counsel during the underlying case.
2. Whether the Hughes tolling rule ceases to apply when the underlying litigation is settled.
3. Whether Apex's malpractice action was timely when filed on February 19, 1997.

Disposition

reversed_and_remanded