Evans v. Pillsbury Madison Sutro

In Evans v. Pillsbury, Madison & Sutro (1998) 65 Cal.App.4th 599, a limited partnership and its general partner were represented by a law firm (PMS) and the law firm's attorney, Joseph. (Id. at pp. 601-602.) The limited partnership and general partner brought a declaratory relief action against two limited partners over the nature of their investments. The latter parties filed an amended cross-complaint against the limited partnership, the general partner, PMS and Joseph. Causes of action against PMS and Joseph alleged negligent misrepresentation, professional negligence, breach of fiduciary duty and conspiracy. PMS and Joseph filed a general demurrer to all causes of action of the cross-complaint and, as to the conspiracy count, demurred on the ground that the cross-complaint was filed without compliance with section 1714.10. The trial court overruled the demurrer to the conspiracy cause of action and sustained the demurrers to the other causes of action without leave to amend. (Evans, at p. 602.) On appeal, Division Four of this court reversed the trial court's order overruling the demurrer to the conspiracy cause of action. The Evans court concluded the conspiracy cause of action against Joseph and PMS was covered by section 1714.10(a) and the exception set out in section 1714.10(c)(2) applied only to Joseph, but not to PMS. Because the conspiracy claims against Joseph and PMS were contained in one cause of action in the cross-complaint, Evans held that section 1714.10 required that the entire cause of action be barred because the law firm was entitled to the protections of the prefiling requirements in section 1714.10(a). (Evans, supra, 65 Cal.App.4th at pp. 604-607.)