Webb v. T.D.

                                                 ATO.        95-234
                     IN THE SUPREME COURT OF THE STATE OF MONTANA
                                                        1996


DIANA         L.   WEBB,
                    Plaintiff          and Appellant,
         v.
T.D.,   D.C.;    R.K.S.,              M.D.;     and
C.H.A.,    M.D.,
                    Defendants          and Respondents.



APPEAL         FROM:            District  Court of the Thirteenth     Judicial   District,
                                In and for the County of Yellowstone,
                                The Honorable   Diane G. Bars,    Judge presiding.


COUNSEL OF RECORD:
                    For    Appellant:
                                John M. Morrison,            Meloy     & Morrison,
                                Helena, Montana
                    For    Respondents:
                                Richard F. Cebull,     Brown! Gerbase,   Cebull,
                                Fulton, Harman & Ross, Billings,       Montana
                                (for Respondent    R.K.S.,   M.D.)
                                Ronald L. Lodders,     Crowley,       Haughey,           Hanson,
                                Toole  & Dietrich,    Billings,       Montana
                                (for Respondent    C.H.A.,      M.D.)
                                           -<.j

                                                'Submitted       on Briefs:          November   21,      1995

                     FE!?2 0 1996                                     Decided:       February      20,   1996
Filed:                                                   I
                  2.j
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Justice        Terry           N. Trieweiler                delivered             the opinion          of the Court.
          On September                   9,        1991,      Diana         Webb filed            a claim          with       the
Medical        Legal           Panel against                R.K.S.,          an orthopedist,              and C.H.A.,               a
radiologist.                   After      the Panel rendered                       its    decision,         Webb filed              a
timely      complaint                against         the two doctors                  in the District              Court      for
the      Thirteenth                  Judicial             District           in     Yellowstone             County.            On
August      2,      1993,            Webb filed             an application                with     the      Chiropractic
Legal      Panel against                  T.D.           and named R.K.S.                and C.H.A.         as necessary
and      proper              parties          to     the      action.              On August           3,     1993,         Webb
voluntarily                  dismissed             the     pending         district        court       action        against
R.K.S.      and C.H.A.                 without           prejudice.           The Chiropractic               Legal         Panel
rendered          its        decision          on November 16, 1993.                       On December 13, 1993,
Webb filed              a second complaint                     in the Thirteenth                  Judicial         District
Court      against             all     defendants.                   On February          3, 1995,          the    District
Court     granted             R.K.S.'s         and C.H.A.'s                motions       for    summary judgment               on
the     ground           that        Webb's          complaint             was barred            by the       applicable
statute       of repose.                 Webb appeals                    the District           Court's      order        which
granted       summary judgment.                           We reverse          the District          Court      and remand
for     further          proceedings.
         There          is     one issue            on appeal:
          Is Webb's complaint                        barred          by the five-year               statue        of repose
set   forth        at § 27-z-205,                    MCA?
                                                   FACTUAL BACKGROUND
         Diana          Webb suffered                    a back injury                during     the      course      of     her
employment              in May 1986.                 After         her accident,               Webb consulted             T.D.,
a chiropractor,                      concerning              her         symptoms.        In     October          1986,      her

                                                                     2
employer's                 workers'             compensation                         insurer            referred             her to R.K.s.,                 an

orthopedist,                   for        further                 evaluation.                      On October                 7,      1986,            R.K.S.

performed              a clinical                     evaluation                     and ordered                   a CT-scan,                which         was

read      by C.H.A.,                  a radiologist.                               The next               day,         R.K.S.         wrote            Webb a

letter          in     which          he stated                   that            he had reviewed                       the        CT-scan             and it

looked           "excellent."                          He assigned                      Webb a two                     percent              impairment

rating          and released                    her            to perform               heavy            work      without             restriction.

          In     1989,         while            Webb was working                             for         a construction                     company         in

California,                   she         suffered                    a      severe            aggravation                    of       her        earlier

injury.               Afterward,                 on August                     22,     1989,            Webb again                 consulted             T.D.

about      her         back      condition.                           T.D.        treated           Webb until                  the     end of           1989

without          referring                  her           to     a physician                   for         evaluation.                      In    January

1990,      allegedly                 at     the           insistence                  of Webb's                  husband,            T.D.        referred

Webb to              Arturo          Echeverri,                       a neurologist.                             Dr.     Echeverri                ordered

magnetic              resonance                  imaging                  of      Webb's             spine,             which          revealed             "a

massive          herniation                     of        the     L-5          disc        on the            right           side       compressing

the       S-1        nerve           root            as        well          as      the       rest          of        the      cauda            equina."

Neurosurgeon                  Maurice                 Smith            performed                a laninotony,                         but        Webb was

left      with        residual              nerve              damage as a result                            of prolonged                   nerve        root

compression                 from       the           massively                 herniated                 and fragmented                     disc.          The

January              10,      1990,         MRI           results               were        the          first         indication                 to     Webb

that      she had a disc                         herniation.

          On         September                  9,         1991,             Webb          filed            a     medical              legal            panel

application                 naming              R.K.S.                and       C.H.A.,             in      which            she      alleged            that

R.K.S.           performed                  a        negligent                    physical                 examination                   and           C.H.A.

negligently                   interpreted                       the          CT-scan               on      October              7,      1986.              The
Medical       Legal         Panel rendered              its       decision             on March 18,               1992.          On
April      16,     1992,        within        thirty          days        of     the     Panel          decision,          Webb
filed      a complaint               against         R.K.S.          and C.H.A.                  in     the     Thirteenth
Judicial         District        Court        in Yellowstone                   County.           The summonses were
issued      on that         date,      but were never                    served.
          On June 29, 1992,                  Webb's attorney                   died     in an airplane                  crash.
On June          29,      1993,        a new attorney                     appeared           on Webb's                 behalf.
Shortly          thereafter            he     decided             that         T.D.      should           have         been         a
defendant         in the original                 action.          Accordingly,                  on August         2, 1993,
Webb filed          an application                 with       the        Chiropractic                  Legal     Panel        for
review      of     her      treatment            by T.D.          and named R.K.S.                       and C.H.A.              as
necessary         and proper             parties        to the            action.            On August             3,    1993,
Webb voluntarily                  dismissed            the        pending             district            court         action
against       R.K.S.         and C.H.A.             without          prejudice.                   The Chiropractic
Legal      Panel rendered              its    decision            on November 16, 1993.                         Webb filed
her      second     complaint            in District              Court         against          all     defendants              on
December 13,             1993,       within        thirty          days        of     the    Chiropractic                Legal
Panel decision.
         On February            3,    1995,       the District                  Court       granted            the motions

for      summary judgment                filed      by R.K.S.              and C.H.A.                   The court         held
that      Webb's       injury        occurred          in     October           1986 when the                   defendants
failed      to diagnose              a damaged intervertebral                            disc;          that     six     years
had passed         from the date of injury                         before           Webb filed           her complaint
in district            court;        and therefore,               that         Webb's complaint                  is barred
by the five-year                statute          of repose          found           at 5 27-2-205,               MCA.



                                                              4
                                                                  DISCUSSION
           Is     Webb's         complaint                 barred          by the        five-year            statute             of    repose

set     forth          at      5 27-2-205,                 MCA?

           This        Court       reviews                a district               court's        order         granting               summary
judgment              based        on         the      same            criteria           applied            originally                by    the

district              court.           Brunerv. Yellowstone County (Mont.                               1995),           900 P.2d           901,

903,       52 St.           Rep.       699,         700.          Rule       56(c),           M.R.Civ.P.,                provides           that

summary           judgment             is     proper            only      when         "there      is    no genuine                issue       as

to     any        material             fact         and            .     . the         moving        party          is      entitled           to
judgment              as a matter                of       law."

           In     this         case,         the      District             Court        granted          summary            judgment           in

favor        of    R.K.S.          and C.H.A.                   because           it   held      that        Webb's         malpractice

claim           was      barred             by      the         five-year              statute          of      repose            found        at

§ 27-2-205,                 MCA.            Section             27-2-205,              MCA (1985),             in        effect        at    the

time       of     Webb's         treatment                 in     1986,           provides:

           Action      for injury        or death against              a physician        or surgeon
            . .        [or]     chiropractor           . . . based upon such person's
           alleged          professional             negligence            or      for     rendering
           professional            services        without       consent       or for       error       or
           omission         in such person's              practice,         shall      be commenced
           within       3 years after          the date of injury              or 3 years after
           the plaintiff            discovers       or through          the use of reasonable
           diligence          should     have discovered               the injury,         whichever
           occurs      last,     but in no case may such action                        be commenced
           after      5 vears        from the date of iniurv.                        However,       this
           time     limitation          shall      be tolled          for any period             during
           which such person has failed                       to disclose         any act,       error,
           or omission          upon which such action                  is based and which is
           known to him or through                   the use of reasonable                 diligence
           subsequent          to said        act,      error,      or omission          would      have
           been known to him.

(Emphasis              added).
             Webb contends                                that       the         five-year                      statute           of      repose                 set      forth

in     § 27-2-205,                          MCA,              did        not        begin            to         run     until             1989           because                 the
"date            of        injury"                   was the              date            on which                she      herniated                       the      bulging

disc         which               respondents                        failed               to       diagnose.                Because                   she         filed           her
complaint                   in     1993,                  she contends                        that         it      was filed                   well          within              the

five-year                  period.                      The defendants                             contend,               and the                   District              Court

agreed,                that             Webb's                    date         of          injury,                if      there                was          an         injury,
occurred               on October                            7,     1986,           when the                    defendants                allegedly                      failed
to     diagnose                   her           true          condition.

             Webb further                            asserts              that            even        if        the     "date           of          injury"              was in

1986,            when            R.K.S.                and          C.H.A.               allegedly                 misread               her           CT-scan,                the
statute               of     repose                  still          would            not          have          run because                    the         statute             was

tolled                continuously                                from           the              time            she         filed                  her          original

application                      with            the         Medical             Legal             Panel.               Based           on our               resolution

of        this             issue,                    we       decline                    to       address               the            first               issue,              and

therefore,                   draw           no conclusion                                about        Webb's              "date           of         injury."

             The date                  of        discovery                   has not                 been          contested,                   and therefore,

is     not        an issue                      in      this         case.

             Section               27-2-205,                        MCA,            requires                    that      a medical                      malpractice

action           be "commenced"                                within            three             years          from        the        date          of        injury           or

within            three           years               after          the       plaintiff                    discovers                  the          injury,              but      in

no       case,             later                 than             five         years               from           the      date                of       the         injury.

Section               27-2-102(l)                         (b),           MCA,            states            that         U [flor            the          purposes                  of

statutes                   relating                    to         the        time             within              which           an           action              must           be

commenced                    .     .        .        an       action                is        commenced                 when            the           complaint                   is

filed."               Section                   27-6-702,                 MCA (1985),                      provides               that              "[tlhe          running

                                                                                              6
of       the         applicable               limitation                 period             in      a malpractice                   claim             is

tolled          upon          receipt          by the            director             of     the       application               for         review

     .     .    [and1          does       not     begin               again         until          30 days             after             .        . the

panel's              final       decision             .        . . .'I            Diana      Webb filed                 her     application
on       September              9,       1991,      and          effectively                 tolled             the      running             of     the
applicable                   limitation            period               four        years,           eleven            months,           and        two

days           after            the       date            of      defendants'                      alleged              malpractice                   on

October              7,      1986.          Her       action             was         commenced                  on    April        16,            1992,

before              the      limitation            period               began         to     run        again,           and     therefore,

within          five         years        from     the          date      defendants                 rely        on as the             "date         of

injury."

           Webb's             district           court            complaint                 was      still            pending       when            she

filed          her application                   with           the     Chiropractic                 Legal            Panel     which         named

T.D.           as      the       subject           care           provider,                 and        R.K.S.            and      C.H.A.             as

necessary                 and        proper        parties                to        the          action.               The      statute              of

limitations                    remained             tolled               throughout                   the            pendency            of         the

Chiropractic                    Legal         Panel            decision             pursuant               to        5 27-12-701,                  MCA,

which          provides:

                   (1)       Upon receipt           of an application             by the director,
           the    running          of an applicable                 limitation           period      in a
           malpractice           claim         is tolled         as to each chiropractic
           physician         named as a party            and as to each other person or
           entity       named as a necessary                 or proper         party       for a court
           action       that    might        subsequently          arise      out of the factual
           circumstances             set forth        in the application.
                    (2)      The running          of the applicable             limitation        period
           in a malpractice                claim     does not begin again until:
                    (a)      30 days after             an order         of dismissal,           with     or
           without        prejudice          against     refiling,          is issued;         or
                    (b)      after       the panel's        final      decision         is entered       in
           the permanent              files      of the panel            and a copy is served
           upon the complainant                   or his attorney.


                                                                              7
The Chiropractic                               Legal       Panel        rendered            its        decision             on November                        16,

1993.              Webb filed                   her     second           complaint                in    District              Court              in      which

she      named              all         three          defendants              on December                    13,         1993,           fewer            than
thirty             days           after         the     Panel's           decision                was rendered.

              In         this            case,          both        parties                agree             that         the           statute                  of

limitations                       for     Webb's           claim        was tolled                during            the     pendency                    of her

application                       before          the       Medical            Legal         Panel,             and        for         thirty              days

thereafter.                        The parties                disagree,             however,             on the           effect             of Webb's

first          complaint                  in     the    District              Court,        which            was filed                 on April                16,

1992,          and which                  was voluntarily                      dismissed               on August                 3,     1993.             Webb
maintains                  that           the     filing           of    the       complaint                 tolled           the         statute                of

limitations,                       and that             the      statute            remained             tolled            while             that          suit

was pending.                            Webb further               maintains               that        her          voluntary                dismissal

of      the        district               court         action          did     not        have        the     effect             of      nullifying

that      tolling                  period,            because           her    claim        continued                 to pend               in     another

forum.                   The       respondents,                    however,            contend               that         the          filing             of         a

complaint                  which           was never             served            on a defendant                      does           not        toll          the

statute              of         limitations.                       They        further             contend             that            Rule             41(e),

M.R.Civ.P.,                       prohibits             the      refiling             of     a claim                against             a defendant

when the                 plaintiff               has failed              to     serve        a summons and the                               complaint

before             its        dismissal.

              Rule         41(e),              M.R.Civ.P.,               provides:

                      No action    heretofore      or hereafter     commenced shall        be
              further     prosecuted        as to any defendant           who has not
              appeared     rn the action         or been served       in the action        as
              herein    provided     within     3 years after     the action    has been
              commenced,        and no further         proceedings       shall    be had
              therein,       and    all     actions     heretofore       or    hereafter
              commenced shall        be dismissed       by the court       in which      the

                                                                               8
           same shall      have been commenced,            on its own motion,          or on
           the motion     of any party         interested      therein,     whether    named
           in the complaint          as a party       or not, unless        summons shall
           have been issued          within      1 year,   or unless       summons issued
           within    one year shall         have been served and filed             with the
           clerk   of the court         within      3 years after       the commencement
           of said action,         or unless       appearance     has been made by the
           defendant      or defendants            therein     within      said   3 years.
           When more than one defendant                has been named in an action,
           the action      may within         the discretion        of the trial       court
           be further        prosecuted          against     any defendant         who has
           appeared     within      3 years,       or upon whom summons which has
           been issued       within     1 year has been served and filed                with
           the clerk     within      3 years as herein           required.
Respondents                 contend           that       pursuant               to Rule           41(e)        Webb was prohibited

from       refiling             her       claim        because             she failed               to     serve         the         summons            on
her      first        complaint               before             she voluntarily                    dismissed             it.          They       cite

First Call, Inc. V. Capital Answering Service, Inc.                                   (Mont .       1995 ) ,       8 98 P .2d                 96 ,      52

St.      Rep.         496,          for      the      proposition                     that         the     dismissal                  of      Webb's

first        complaint               bars       her      second           complaint               based        on principles                    of res

judicata .         We disagree,                    however,               with         respondents'                characterization

of FivstCall.             In FirstCall,            the       district             court           dismissed             the      plaintiff's

complaint                without            prejudice                because               the      summons             was          not      served

within           three       years,             as required                by Rule            41(e),           M.R.Civ.P.                   We held

that        when         a district                   court         dismisses                 a complaint                  because                of     a

failure           by the            plaintiff               to     serve          the        summons       within               three         years,

the       action          may not             be refiled.                    In       this        case,        however,               the      court

did      not       dismiss            the       complaint,                and Webb did                   not     fail           to     serve           her

summons            within            three         years           from         the        date     on which              she         filed            her

complaint.                     In     fact,           the         service             of     Webb's            summons               and      second

comolaint                was        accomplished                   within             three        years         from           the        date         on



                                                                            9
which        the        first          complaint                 was filed.                          FirstCall           and Rule                 41(e)           are,

therefore,                   inapplicable                  to       this         case.

          We hold               that         the          statute              of         limitations                    and          the         statute               of

repose         are           tolled          by      the        commencement                          of      an action,                     and      that              an

action             is         commenced                   when             a        complaint                      is         filed.                   Section
27-2-102(l)                  (b),     MCA.         &e&o              Rule        3, M.R.Civ.P.                           This          interpretation

is      consistent                    with         the          language                       of      §     27-2-205,                      MCA,          and           is

supported               both          by Montana                 case           law,            and by the                    case          law      of         other

jurisdictions.                        See, e.g., Blasdel v. MontanaPower Co. (1982) , 196 Mont.                                                                  417,

426,      640 P.2d                  889,      894          (holding                 that            "the       statute                of      limitations

was tolled                   when      the        first          complaint                      was        filed");               Kingv. Lujan                  (N.M.

1982),         646           P.2d          1243,           1244            (holding                  that          the         "[fliling                   of      the
complaint               is      commencement                    of     the          action              which            generally                 tolls           the

applicable                statute            of         limitations").

          In       this             case,          the          statute                   of         limitations                      was         tolled                on
April        16,        1992,          when         Webb filed                       her            complaint                 with          the      District

Court.          The question                       is      whether               Webb's               voluntary                  dismissal                 of      the

suit      without               prejudice                 on August                  3,        1993--one                 day         after         she          filed

her       chiropractic                       legal              panel               application--had                                  the         effect                of

nullifying                the       prior         tolling             of the               statute.                 We previously                         held          in

Tietjenv. Heberlein                 (1918),               54 Mont.                  486,            488,       171        P.          928,         928,          that

where        an action                is     voluntarily                       dismissed                   prior         to      the         commencement

of      a second              action,             the       first              action               does      not         toll          the        statue               of
limitations.                          That         decision                    was         based             on         the           predecessor                       of

Montana's               "saving              statute,"                which               provides                 that          if         an     action               is


                                                                                10
commenced within                   the     applicable             statute           of    limitations,                  and is
thereafter               terminated           "in     any     other         manner           than        bv         voluntary
discontinuance,"                 the plaintiff               may commence a new action                                for     the
same cause after                 the expiration              of the         time         so limited            and within
one year after              such a termination.                    Section           27-Z-407,          MCA (emphasis
added).
         Tietjen is        not dispositive                 of the tolling                 issue       raised          in this

case,      however.            In the first            place,       Tietjen was neither                 a medical             nor

chiropractic              malpractice          case, but rather,                    was an action               brought         to
recover       the         amount of          a succession               tax.          Furthermore,                  Tieijen was

decided       in 1918, years               prior      to 1977 when the Montana Medical                                      Legal
Panel Act          was enacted,              and years            prior        to 1989,        when the Montana
Chiropractic               Legal         Panel       Act     was enacted,                   each        Act         with      its
respective           tolling        provisions.               Sections              27-6-702          and 27-12-701,
MCA. The same is true                      of the predecessor                   to § 27-2-407,                 MCA, which
was originally               enacted         in the 1870s.
        Accordingly,               neither          the statute           nor our decision                     could         have
accounted          for     the tolling           provisions          of the Panel Acts.                        While Tietjen

correctly          applied         the       "saving        statute"           to     the     facts       at         issue      in
that       case,         given      the       legislature's                 enactment             years             later       of

specific          tolling          provisions           uniquely            applicable             to     medical             and
chiropractic               malpractice              cases       pending             before        the         malpractice
panels,      we conclude              that     neither        § 27-2-407,                MCA, nor our decision
in     Tietjen,     is      controlling              based         on     the        facts        here.               Rather,

§§ 27-f-702              and 27-12-701,              MCA, specifically                      provide           for     tolling

                                                             11
while          a claim                is     pending               before             the      respective                panels,              and         it      is

those          statutes                 which          must        be given             controlling                    effect          in         a medical

or chiropractic                            malpractice                 case where,                   as in the               instant              case,        the

facts             implicate                both         the        statute             of      repose,           § 27-2-205,                      MCA,         and
the       panel           tolling                statutes.

            Applying                  the        panel         tolling                 statutes            compels               the         conclusion

that,              in      a         medical             or          chiropractic                     malpractice                      case,              if         a

plaintiff's                     first            complaint                 was        timely          filed            but       is        voluntarily
dismissed                while             the      case        is       pending             before           a malpractice                       panel           in

proceedings                         which           name           the       original                 defendants                      as      necessary

parties,                 §§         27-2-702             and         27-12-701,                     MCA,      provide,                 as         to      those

originally                 named defendants,                               a continuous                tolling                "bridge"                 between

the       first          complaint                  and the            subsequently                   filed           complaint,                  assuming

the       latter               is       timely           filed             under            the      Panel            Acts       and          names            the

original                defendants.

               Furthermore,                      Montana's                 "saving             statute"              does       not        address             the

situation                that           presents              itself             in    this         case        in     which           Webb's             cause

of      action                was          tolled             by       a     separate                action              filed              before             the

dismissal                of         the      original                suit.             When the            second             action              is      filed

prior          to dismissal                      of the        original                suit,         we hold            that          the     commenced

action             continues                 to        pend,           and        so        long      as        the       second              forum            has

jurisdiction                        over         the     action              the        statute            of         limitations                      remains

tolled,                 even         after             the         voluntary                 discontinuance                       of         the          first

action.                 Only        by allowing                    and encouraging                     consolidation                         of        actions

in      this            manner             can         the      objectives                     of     avoiding                duplication                      and

unnecessary                     expense                (which              are        recognized                 in      both          the             Montana

                                                                                 12
Medical        Legal          Panel Act         at    5 27-6-702,                MCA, and the Chiropractic
Legal       Panel Act at 5 27-12-701,                          MCA) be accomplished.
           A similar          situation         was addressed               by the Fourth                  Circuit         Court

of Appeals            in Louisiana              in Levyv. &'telly (La.                  App.     1973),        277 So. 2d

194.           In     Levy,      the      plaintiff               filed          suit       in       state         court           on

September           27, 1967,          within         one year         of his           January        1967 accident,
as required             by the         Louisiana          statute           of     limitations.                    While      the
state       court      action         was pending,             he filed            a second suit               in federal
district        court          on November 22,                1968,        more than             one year            from the
date of his accident.                     The state           court        action         was dismissed                without
prejudice           in January         1972, and the plaintiff                           refiled       in state            court
on March 17, 1972.                     The state          trial        court,           however,        dismissed             the
second        action          as barred          by the            applicable              one-year           statute          of
limitations.
           On appeal,           the     plaintiff             contended            that        the    original             state
court      action       tolled        the statute          of limitations,                     and therefore,               that
the     subsequent            suit     in federal             court,        filed         while       the      first        case
was pending,            was timely.             The plaintiff               also        asserted           that,       because
the statute           of limitations                 remained       tolled         while         the federal            action
was pending,             the second             state     court           action         was not barred                 by the
statute        of limitations.                  The defendants,                   however,           maintained             that
the first           tolling      period       had been nullified                        by the dismissal                of the
first        state       court        action,           and       therefore,              that       the      statute          of
limitations            had run prior             to the date on which the plaintiff                                        filed




                                                              13
the       federal       court         suit.            The defendants               relied         on a Louisiana
statute,           La. Civ.          Code Ann. art.               3519, which            provided:
                  If the plaintiff    in this case, after having made his
          demand, abandons, voluntarily            dismisses,    or fails  to
          prosecute     it at the trial,    the [tolling    of the statute of
          limitations]      is considered     as never having happened.
          The Louisiana              Court of Appeals,                 however,       construed          the statute
to     apply         only       to      suits          filed         after      a    plaintiff           abandoned,
voluntarily            dismissed,              or      failed        to     prosecute        his     case;       in      the
situation           where a plaintiff                   had filed            a second suit           prior      to that
abandonment,             the     court          held       that       the      statute         was continuously
tolled.            Levy, 277 So. 2d at 195-96.

          In effect,         Louisiana's               statute,           La. Civ.       Code Ann. art.            3519,
parallels           our prior          interpretation                of Montana's              "saving       statute,"
in Tietjen , 171 P. 928, where this                              Court       held   that     when an action               is

voluntarily            dismissed         prior         to the commencement of a second action,
the       first        action         did       not       toll        the      statute          of    limitations.

Therefore,           we conclude              that      the language            and reasoning            of Levy and

its    progeny         are persuasive.                   See Tug Alamo, Inc. v. Electronic Service, Inc.              (La.

App. 1973),           275 So. 2d 419; Pj@erv.Correa                           (La. App. 1994),               640 So. 2d

281,      rev’donothergrounds           (La.         1994),       643 So. 2d 1228

          We note       also     that         Levy’s     holding          was recently           affirmed        in the

medical           malpractice          context          by Pfiffner, 640 So. 2d 281,                  in which           the

Fourth       Circuit        Court       of Appeals               in Louisiana           held     that:
                    A second suit               which was filed                  after   the         original
          suit      was dismissed               or abandoned is                 considered           as never



                                                                14
         having      been filed       and prescription1            is applicable.           To
         the contrary,          a second suit         filed      before      the original
         suit    was abandoned or dismissed               interrunts       prescription.
          . . . . If the second suit             is filed        prior   to abandonment
         of the first        suit,   the interruption           nrovided      bv the first
         suit      continues       until   the      second        suit    is    filed     and
         interruotion          continues      after        the     suit    is     dismissed
         because      the second suit        is pendinq.

Pfiffne~,     620 So.           2d at            285      (citations                omitted;            emphasis                    added).

         Contrary               to     the         concerns              expressed                 in        the         dissenting                    and

concurring               opinions,                we are         not         adopting              Louisiana                   law.             We are
merely        citing           the     Levy and Pj?&er                   decisions                 as examples                      of        what     has

been     done           in    one      other            jurisdiction                     under      similar                  circumstances.

Furthermore,                 whether             the     source         of        Louisiana             law        is        the     Napoleonic

Code or           the        Code of             Hammurabi          is         really            irrelevant.                        The        fact       is

that        Louisiana                has         183     years         of         case      law         which            interprets                    its

statutes           and which                is     as valid              for        purposes            of     persuasion                        as the

case        law     of         any         other         jurisdiction                     within             the         United                States.

Furthermore,                  we have             not     hesitated                 in     the      past        to           cite         authority

from       Louisiana             where            we felt           that           the      decisions                   of      that           state's

courts        were           persuasive.                  The Montana                     Supreme          Court              has         relied          on

Louisiana           case         law        no fewer           than          sixty-six               times           since            1945.            The

Court       has,        in    fact,         relied          heavily               on Louisiana                case            law        in    several

instances.                   See, e.g., Patton V. Madison County (1994),                                   265 Mont.                      362,        368,

877 P.2d           993,        996         (holding          that       a Louisiana                  Supreme                 Court            case       "is

instructive                  as to         the     rationale                for     not      extending                   standing                rights


        IIn  Louisiana,      the    term    "prescription"                                                       I' is      very   nearly
equivalent        to what   is    elsewhere      expressed                                                    by       'limitation        of
actions,'      or rather,     the    'bar  of the statute                                                      of limitations."'
Black’s Law Dictionary 1183 (6th ed. 1990) .

                                                                         15
to        those       persons                 not     a part            of    the      subdivision,"              and         quoting
extensively                  from that              case);    IowaMutualIns.Co.v.Davis                  (1988),          231       Mont.

166,        171-72,              752     P.2d         166,    170 (holding                that       a Louisiana                Second
Circuit           Court          of Appeals               decision           was "persuasive"               on the issue                of
whether           mandatory                   liability            insurance            protection           prohibits               the
exclusion               of       named drivers                 from          coverage         under      a motor              vehicle
liability               policy)           ;     In m Estate        of   McLaughlin        (1969),         154      Mont.            318,

321-22;           462        P.2d        882,         884 - 85 ;     and Interstate       Mfg. Co.     Y. Interstate     Products       Co.

 (X965),          146 Mont.               449,        454,    408 P.2d 478,                481.
           We conclude                  that         based on the facts                  in this         case,         all      of the
objectives                 of the statute                 of repose have been accomplished.                                    Webb's
original              application                   was filed            within        five      years       from        the        date
which        respondents                  contend          was her "date               of injury,"           and therefore,
within        the time period                        the Legislature                 has deemed reasonable.                         upon
receipt               of         that          application,                   the      panel         director                notified
respondents                  of Webb's claim.                    See § 27-6-305,               MCA.         Webb's applica-

tion       or complaint                   has been,           at all           times     since       that       date,         pending
before         a tribunal                 with        authority              to entertain           her claim,               and in a
manner that                  tolled            the     statute          of limitation               and repose.                Webb's
summons           and complaint                      were served within                  three      years       from the date
Oil       which            the         original            timely            complaint           was     filed,              and     the
respondents                  demonstrate               no prejudice             from the chronology                    of events.
To require                 more would elevate                       form over           substance.
           We therefore                   hold that          Webb commenced this                      action       within           five
years        from the date                     of her injury,                 as required           by § 27-2-205,                  MCA.


                                                                        16
We further                hold       that    the      statute         of     limitations              was     thereafter

continuously               tolled,          and therefore,             that      the       District          Court      erred

when it      granted              respondents'            motions      for     summary         judgment.             Because
we   hold          that          Webb's      complaint           is    not      barred          by    the         five-year

statute       of     repose          found     at    § 27-2-205,             MCA, we reverse                the    District

Court's       order          and remand             for    further         proceedings.




We concur:




          Chief       Justice




                    Justices




                                                                17
Justice           Karla      M. Gray,           specially            concurring.


          I concur           in the result               the Court                reaches          and in the analysis
and application                      of Montana         law on which                  it     relies         to reach          that
result.                I write            separately           to    note         my disagreement                    with     that
section       of the Court's                   opinion         which discusses                     Louisiana         statutory
and case law.
          Specifically,                    I do not          agree        that      m              addresses         a similar
situation              since,        unlike          the case before                 us,      it     involved         a second
suit      filed         before        the first         suit        was abandoned.                       Nor do I find          the
language           or reasoning               of m           and its         progeny          "persuasive."                 I will
not repeat              here the cogent                discussion             regarding             the Court's             use of
Louisiana              law      in    general,          and m                in     particular,                set    forth      in
Justice           Erdmann's               dissent.           Suffice         it     to      say that           I agree        with
that      discussion.
          Notwithstanding                    my disagreement               with      the inclusion                  of the w
section       in the Court's                    opinion,            however,         I join          in the result              the
Court       reaches              because         it     is      my view             that           the     Court      properly
analyzes           and applies               Montana          law to reach                 that      result.          For that
reason,           it    also         is     my view          that      the        Court's          Lew      discussion           is
dicta      because              it    is     unnecessary             to      the     resolution                of    the     issue
before       us,        which         is     fully      and properly                 reached             on the       basis      of
Montana       law.
Justice             Charles             E.     Erdmann                  dissenting.

            In      reversing                  the             District                   Court,            the         majority              holds       that

Webb's           December              13,         1993,          complaint                 for        an injury                 which        occurred          on

October             7,     1986,             was not               time-barred.'                            The majority                     allows       Webb

to       "bridge"             an untolled                      period           of        time        and therefore                       nullifies           the

five-year                statute              of      repose.                    This            "bridge"                is      not       supported            by
either           Montana               precedent                   or      relevant                   Montana                 statutes.               Despite

this        lack         of      legal              support,               the            "bridge"               will          undoubtedly              see         a
good         deal        of         traffic               in      years              to     come            as        otherwise              time-barred

plaintiffs                find          it     a useful                   detour.

           The           running               of          the            applicable                    limitation                      period           in         a

malpractice                    claim           is         tolled           upon             receipt               of      an       application                for

review           by       the          director                   of       the            medical                legal           panel.               Section

27-6-702,                MCA.                The      statute               does            not        begin             running            again       until

thirty           days         after          the      panel's              final            decision.                    In the         present         case,

the       statute             was       tolled              on September                         9,     1991,            when Webb filed                      her

application                   for       review              with          the         medical               legal             panel--four              years,

eleven           months,              and two              days         after             her        date        of     injury.              The medical

legal        panel            reached               its         final        decision                   on March                 18,       1992.        Thus,

had        nothing              tolled               the         statute,                   the        statute                 would          have      began

running             again             on      April             17,        1992,             and        the            five-year              statute           of

repose           would          have          therefore                  expired                in     mid-June                 1992.




           'The     majority   reaches   no legal    conclusion   as to the "date                                                                               of
injury"           but assumes,    for purposes    of the opinion,    that the date                                                                              of
injury           was 1986.

                                                                                 19
           Webb claims,                      and       the      majority                   so holds,                  that         when        she        filed
her        initial              district                court            complaint                   on      April                 16,      1992,            the
limitation                   period            was        again             tolled            pending                      resolution                of      the

complaint.                    Furthermore,                     the      majority              holds          that             Webb's           voluntary

dismissal               of     the       complaint               on August                  3,      1993,              did      not      nullify             any

tolling              effect           that       the         complaint                had.             The majority                      states            that

the       complaint             was still                 pending              on August               2,        1993,          when Webb filed

her       application                  for       review              with        the        chiropractic                        legal          panel         and
the        statute             again           remained                 tolled             during            the             pendency             of       that

action.                The        majority                therefore                   determined                       that         Webb's             second

district              court       complaint,                   filed          on December                   13,            1993,      within           thirty

days       after         the         chiropractic                    legal           panel's              final              decision,             was not

time-barred.                          Webb         was         originally                    injured                   in      May         1986.                  BY
constructing                   this          bridge,           the       majority                has allowed                       the   filing            of      a

complaint              on December                 13,         1993,          almost         one and one-half                            years            after

the       five-year              statute             of        repose          expired.

           Under             Montana's               "saving                statute"                and      prior                 precedent,                the

first        complaint                 failed             to     toll          the         statute               of         limitations.                     The

defendants               were         never        served              with         the     April          16,         1992,          complaint              and

they       were         therefore                not       placed             on notice                   that             Webb had            commenced

legal        action            against           them.           Webb should                     not       now be allowed                       to        claim

that       the        statute            was       tolled              by simply                 filing               the      complaint.                    The

majority's               reliance                on Blasdel                    v.      Montana              Power              Co.       (1982),             196

Mont.        417,         640 P.2d               889,          for       the        proposition                       that         the     statute                is

tolled           when          the       first            complaint                   is      filed,                  is      misleading.                         In

Blasdel          the          complaint            was in              fact         served          on the                 defendants              and the

                                                                              20
issue        was whether                        the         complaint              tolled             the       statute            of        limitations
for       subsequent                 amendments                     which         were          determined                  to     relate            back           to

the       original                complaint.

            Even        if         the           first             complaint                initially                  had         the          effect              of

tolling              the          statute,                   Montana              law        is         clear           that            once         it        was
dismissed                  its           tolling               effect              was          nullified.                        In         Tietjen                v.

Heberlein                  (1918),                 54        Mont.           486,           171         P.           928,        we          interpreted

Montana's              "saving                 statute"               (presently                 codified              at        5 27-2-407,                 MCA)
and held             that          where              an action             is     voluntarily                   discontinued                     prior             to

the       commencement                        of a second               action,             the        first          action            does      not        toll

the       statute            of      limitations.                          Here,         Webb voluntarily                              dismissed               her

April         16,       1992,                 complaint               prior            to       commencing                  her         December               13,

1993,         action.                         Thus,          the       statute              was         not           tolled             by      the         1992
complaint              and her                  1993         complaint              was time-barred.

            The      majority                    mixes             apples          and       oranges                 when         it      attempts                  to

distinguish                   Tietien                  by     stating             that          it     was        decided               prior          to      the

enactment              of          the          Medical              and         Chiropractic                    Legal            Panel          Acts          and

their        respective                       tolling              provisions.                       Our holding                 in      Tietjen             that

the       tolling                effect            of        a properly                 filed           first          cause            of      action              is

nullified              when              it       is        later          voluntarily                      dismissed                  remains             vital

today.              While           in         Tietien             we relied                on the             version             of        § 27-2-407,

MCA, which              predated                      the     Medical             and Chiropractic                          Legal            Panel         Acts,

the       relevant                language                  that      a plaintiff                     may commence                       a new action

within         one           year             after          the      original              action              is      terminated                   "in       anv

other        manner               than           bv         a voluntary                  discontinuance"                          remains              in      the
current             version               of      the        "saving             statute."                     (Emphasis                added.)

                                                                                  21
           Section               27-l-101,                MCA,       states             that          U [jludicial                 remedies                are
such       as are            administered                    by the             courts           of      justice             or      by         judicial

officers           . . . .I'              Section                27-l-102,             MCA, divides                   judicial                  remedies

into       two classes--"actions"                                  and

former          as "an ordinary                       proceeding                  in     a court             of      justice               .        .'I and

further            stating                  that            " [el very                 other            remedy              is         a          special

proceeding."                      There        is     no indication                      that         the      legislature                      intended

the       term         "action"                in         5 27-2-407,                  MCA,        to       apply           to       proceedings
brought           under           the     Medical                and Chiropractic                        Legal            Panel        Acts.               The

majority,             however,               has          done      just        that.

           Finally,                I     disagree                 with          the          majority's                   reliance                on       and

adoption            of           Louisiana                law.           While           the          courts          of       Louisiana                   are

extremely                  competent                 in          construing                  and        interpreting                           Louisiana

statutes,              it        must     be remembered                         that         Louisiana               is      the       only             state

which       does           not     follow            the         English          common law,                  but        rather               relies       on

the     Napoleonic                     Code for            its      legal         traditions                   and interpretations.
Not      only         is         the     terminology                  different,                   Louisiana's                    entire                legal

tradition              is        different                from       Montana's                 and we should                       be extremely

reluctant              to        adopt       Louisiana                case        law         as controlling                       authority                in

Montana.              This         is    particularly                    true          where       we have both                    Montana               case

law         and            statutes                 which           directly                   address               the           issue                under

consideration.

           The     majority                 notes           that         this          Court          has         relied          on           Louisiana

case       law     no fewer                 than          sixty-six               times          since            1945       as support                    for

its     reliance                 on Louisiana                    authority              in     this         case.           Since              1945      this

Court       has issued                  over        10,500          opinions                 and its         reliance              on Louisiana

                                                                             22
law        in      only              6 percent                       of        those           cases         certainly                   reflects              this

Court's            reluctance                       to     rely             on Louisiana                   authority.

           The Louisiana                           statute                  (La.      Civ.       Code Ann.                 art.         3519)          cited       by

the     majority                provides:

                    If the plaintiff     in this case, after         having made his
           demand,      abandons,    voluntarily        dismisses,       or fails  to
           prosecute      it at the trial,       the [tolling      of the statute  of
           limitations]       is considered        as never happened.

Rather            than        supporting                       the        majority's               position,                 the        plain       language

of     the        statute                supports                   our        interpretation                       of      the         Montana           saving

statute            made             in     Tietien.                         Nevertheless,                    the          Louisiana               court,           in

Levy         v.     Stelly                 (La.            App.               1973),           277        So.2d           194,           construed              the

statute             to         hold            that            if         a     second           suit          is         filed          prior           to     the

abandonment                   of the            first               suit,          the     tolling           effect               of    the      first         suit

continues.                    The facts                   of         the       present           case        are         distinguishable                       from

m          in      that         Webb did                   not         file          a second              suit          prior          to    voluntarily

dismissing                    her        initial                    complaint.                   Filing             applications                    with        the

medical            and         chiropractic                           legal           panels          is     not          analogous               to      filing

district             court                complaints                          and        the      majority's                      reliance               on     the

rationale                in     Levy           is        not         persuasive.

           Five          years           from            October                7,     1986,         is     October                7,    1991.            Giving

Webb credit                   for        the        period             of       time       the       statute             was tolled               while         her

claim           was under                 review                by the               medical           legal         panel,              the      five-year

statute             of         repose                    expired                in       June           1992.                In         building               this

"continuous                     tolling                    bridge"                   the         majority                 has           subverted               the

legislature's                        intent               in        adopting               the       five-year                statute             of      repose




                                                                                      23
for     medical         malpractice            cases      and provided       a road         to the    courthouse
which      neither         Montana           statutes       nor    prior    cases         would   allow.

         I would         affirm        the     District       Court's      determination             that   Webb's

December          13,     1993,       complaint           was time-barred            by    5 27-2-205,       MCA.



                                                                   m2x
                                                                           Justice



Chief    Justice            J.    A.         Turnage       joins     in    the       foregoing        dissenting
opinion.




                                                                           Chief       Justice




                                                             24


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