Facts
- A landlord was sued by his tenant and retained attorneys to defend the action and assert a claim against the tenant.
- The landlord’s claim against the tenant was a compulsory counterclaim in the tenant’s lawsuit.
- The attorneys successfully defended the tenant’s claims against the landlord.
- The attorneys did not assert the compulsory counterclaim in the tenant’s action and instead filed it as a separate lawsuit.
- The separate lawsuit failed because the claim was required to be brought as a counterclaim.
- The landlord sued the attorneys for legal malpractice, alleging financial losses of approximately $59,273.68 from the failure to plead the compulsory counterclaim.
Issues
- Whether a legal malpractice plaintiff who presents evidence of attorney wrongdoing is entitled to have nominal damages submitted to the jury even if proof of actual, collectible damages is deficient.
- Whether a directed verdict for defendant attorneys is improper when nominal damages remain available based on proof of a legal wrong.
Decision
- The Court of Appeals of Georgia reversed the directed verdict for the attorneys.
- Assuming (without deciding) that the landlord’s proof of actual damages was insufficient, the court held the claim still could proceed to the jury on nominal damages.
- Because nominal damages were legally available upon proof of a legal wrong, the trial court erred by removing the case from the jury through a directed verdict.
Legal Principles
- Nominal damages are recoverable in a Georgia legal malpractice action if the plaintiff proves the attorney wronged the plaintiff (breach of duty), even if actual damages are not proven.
- When evidence would allow a jury to find a legal wrong, the jury must be allowed to consider nominal damages; the court may not direct a verdict solely on an asserted failure to prove compensatory or collectible damages.
- A claim that is compulsory under OCGA § 9-11-13(a) must be asserted as a counterclaim in the original action; failure to do so can support a malpractice theory if it constitutes a breach of professional duty.
Conclusion
The court held that proof of a legal wrong by counsel is sufficient to require submission of nominal damages to the jury in a malpractice case, making a directed verdict improper even where compensatory damages are not adequately shown.