W.W.S.M. Investors v. Greve, Clifford, Diepenbrock & Paras

W.W.S.M. Investors (plaintiff) retained Greve, Clifford, Diepenbrock & Paras (defendant) to assist in stopping the Internal Revenue Service (I.R.S.) from wrongfully levying funds and to recover such funds. Defendant was successful in convincing the LR.S. that its levies were wrong, but failed to provide plaintiff with adequate advice as to how to obtain recovery of the wrongfully levied amounts. Plaintiff filed a claim form in the wrong I.R.S. office, rendering the claim invalid. Only a valid claim would toll the nine-month statute of limitations. After plaintiff’s suit against the I.R.S. for the recovery of wrongfully levied funds was dismissed as untimely, plaintiff brought a legal malpractice action against defendant.

Both parties appeal from the judgment in favor of plaintiff in the legal malpractice action. Plaintiff contends the damages awarded were inadequate and the lien granted by the trial court upon any judgment in its case against the I.R.S. is unworkable. Defendant contends much of the trial court’s decision is now moot due to the Ninth Circuit’s recent decision reversing the dismissal of plaintiff’s case against the I.R.S. Further, defendant contends no…