Nustar Farms, LLC v. Zylstra

880 N.W.2d 478 (2016)

Facts

Attorney Stoller began representing Ds in 2002. Stoller represented them in a number of legal matters between 2002 and 2014, including financial issues, business acquisitions, and real estate transactions. Ds also used the services of other attorneys throughout this time period. On January 24, 2007, D met with Stoller to discuss estate planning and manure easement agreements. Ds were shareholders in Sibley Dairy, LLP. D showed Stoller a multipage document containing multiple manure easement agreements that Ds intended to enter into with P. Stoller asserts that he only briefly glanced at the easement agreements and then advised D that he should seek the advice of another attorney. Stoller acknowledges he made notations on the first page of the document. Stoller argues that the notations do not indicate he read the entirety of the multipage manure easement agreements. D claims that he asked Stoller to review the manure easement agreements and provide advice. D alleges that Stoller examined the agreements during the meeting and advised him to go ahead and complete and sign them. Stoller claims the notations were made at D's request to help D remember what to discuss with one of the attorneys that Stoller suggested D contact. Both parties agree that Stoller suggested D find an attorney with more experience in the area of manure easements. Stoller sent a follow-up email with two attorney references who he thought could assist Ds with the easements. The email also confirmed that Stoller 'briefly looked at them.' Stoller wrote, 'The changes you were talking about should be run by [the other attorney] and I suggest that if approved they be included in the easements. I would also think that some permit would be necessary.' During this conference, they also discussed estate planning matters. Stoller billed Ds for 1.20 hours and described the meeting as, 'Conference with D on manure easement; review easements and agreement.' There is nothing in the record to indicate that Stoller represented Ds when they executed the manure easement agreements with P or that he had any further involvement in the sale of Sibley Dairy. Stoller continued to represent Ds in a number of other legal matters between 2007 and 2014. In December 2013, Stoller began representing them in a small claims matter. The case was submitted to the small claims court on February 10, 2014, but the court did not issue its ruling until May 30. Stoller began representing P in early May in an action regarding loan covenants. Also in early May, Stoller began contacting Ds on behalf of P. In part, this involved Ds' failure to provide P with a deed to property involving ingress. Stoller contacted Ds about their need to sign the deed. On May 13, Stoller sent Ds an email that stated it was the third time he had contacted them about the deed to ingress property sold by Ds to P. Stoller threatened a lawsuit by May 14, 2014. Stoller also wrote in his email, 'I have tried to remain neutral in those matters and advised both parties that I could represent neither.'  Stoller informed Ds that he would no longer be representing them in any future matters. Ds retained Sandy to represent them in their dealings with P. Sandy alerted Stoller that Ds found his representation of P to be a conflict of interest based on his prior legal representations of Ds. Sandy requested that Stoller cease further representation of P when those interests conflicted with the Zylstras. On June 5, Stoller sent Ds a letter notifying them of the judge's ruling in the small claims case and informing them that he believed the decision was appealable. Stoller further notified the Ds of their rights to appeal and the deadlines associated with such an appeal. On July 9, Stoller filed a multicount petition for P against Ds. Ds filed a pre-answer motion to dismiss based on statute of limitations grounds. They also filed a motion seeking to disqualify Stoller. The district court denied both motions. Ds appealed.