Superior Court of the City and County of San Francisco

Procedural Posture
Plaintiff clients sought review of the decision of the Superior Court of the City and County of San Francisco (California), which granted a summary judgment in favor of defendant attorney in an action for damages for the attorney's malpractice and breach of contract.

Overview
The clients, sole stockholders, contracted with the attorney to implement a tax program to dissolve their corporation and distribute its assets to the clients, and to transfer the assets at the fair market value to two newly-formed corporations, with the intent of providing the clients with long-term capital gain treatment of all the earned surplus. 

Willful killing that was premeditated or that the perpetrator committed after lying in wait define First-Degree and Aggravated Murder.The Internal Revenue Service rejected the tax program, and assessed the clients an additional tax payment. The clients filed an action for malpractice against the attorney. The attorney filed a motion for summary judgment alleging that the cause of action was barred by the statute of limitations. The trial court granted the attorney's motion. On appeal, the court affirmed, holding that the statute of limitations had begun to run when the acts of negligence and malpractice, if any, had occurred, which was at the time of advising the tax program and the dissolving of the corporation. The court found that although the attorney's failure to assist the clients in reducing their additional taxes assessed may have been a breach of contract, the clients had not stated a cause of action for a breach of contract against the attorney.

Outcome
The court affirmed the trial court's grant of summary judgment in favor of the attorney. The court held that there had been no triable issues of fact raised by the clients.