Peters

I. INTRODUCTION

Plaintiff and appellant Martha Jo Peters is a retired school teacher. In 2005, she

opened a self-directed brokerage account with Scottrade, Inc. (Scottrade). She was

1 allowed to buy stocks in this account on margin, i.e., with money borrowed from

Scottrade. She also had an IRA account with Scottrade. During her first year of trading

stocks, Peters enjoyed success, and her accounts increased substantially in value. Over

the next two years, however, Peters suffered large losses. In an attempt to recoup her

losses and meet margin calls, she borrowed against her house and used funds withdrawn

from her IRA. Eventually, she lost everything.

In 2009, Peters hired defendant and respondent, attorney Kirk Smith, to represent

her in litigation against Scottrade, which she believed bore some responsibility for her

losses. Smith filed an arbitration claim on Peters’s behalf and, one year later, reached a

settlement with Scottrade for $12,000. Although Peters was unhappy with the amount,

she agreed to the settlement.

In 2010, Peters sued Smith for legal malpractice. Two years later, Smith moved

for summary judgment, which the trial court granted. Peters…