Gulf Coast Investment Corp. v. Brown

We consider whether the tolling rule announced in Hughes v. Mahaney & Higgins, 821 S.W.2d 154 (Tex.1991) and Aduddell v. Parkhill, 821 S.W.2d 158 (Tex.1991), applies when an attorney’s malpractice results in a wrongful foreclosure action by a third-party against a client. We hold that it does.

Gulf Coast Investment Corporation (GCIC) hired Brown & Shapiro (Brown) to conduct a non-judicial foreclosure sale of real property owned by Thomas and Darlene Smith (Smiths). On June 2, 1987, the sale was held. On August 1, 1987, an attorney for the Smiths informed GCIC that the sale was invalid due to…