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The Eleventh Circuit reversed the district court's award of sanctions against plaintiff and his attorneys in an action against Pro Transport and its owners, seeking to recover unpaid wages under the Fair Labor Standards Act (FLSA). The court held that Slater v. U.S. Steel Corp., 871 F.3d 1174 (11th Cir. 2017) (en banc), made clear that plaintiff and his attorneys did not act in bad faith or took legal action that had no reasonable chance of success in litigating the FLSA claim. Therefore, the district court abused its discretion by imposing sanctions. View "Antonio Silva v. Pro Transport, Inc." on Justia Law

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The Eleventh Circuit affirmed the district court's judgment in favor of petitioner in an action under the International Child Abduction Remedies Act to recover fees and costs. The court held that respondent failed to establish under the Act that an award of necessary expenses could be clearly inappropriate. In this case, the record developed on the merits of the wrongful removal petition was replete with evidence contradicting respondent's good faith argument. Therefore, the court affirmed the award of attorney fees, costs and expenses in the total amount of $89,490.26. View "Rath v. Marcoski" on Justia Law

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The Supreme Court held that the Honorable Ryan D. Johanningsmeier, Judge of the Knox Superior Court 2, engaged in judicial misconduct by his conduct in, and his failure to recuse from, a friend’s traffic-infraction case. Accordingly, the Court reprimanded Judge Johanningsmeier. The Indiana Commission on Judicial Qualifications charged that Judge Johanningsmeier’s actions violated six provisions of the Code of Judicial Conduct. The parties agreed that the appropriate sanction under the circumstances was a public reprimand plus assessing costs of the proceeding against the judge. The Supreme Court agreed and reprimanded Judge Johanningsmeier, assessing costs of the proceeding against the judge. View "In re Honorable Ryan D. Johanningsmeier" on Justia Law

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Defendants contracted to purchase a Lafayette home, waived contingencies, discovered undisclosed matters, terminated the contract, and sought to recover their $116,220 deposit, hiring the MMB law firm. Their claims went to arbitration. MMB informed defendants that they owed $431,141.92 in legal fees, providing a draft settlement agreement for a discounted payment of $331,000 with an affirmative representation that the parties each had received independent counsel. Defendant sent MMB revisions, stating that “Clients further contend that Law Firm failed to adhere to the Clients’ direction on one or more occasions and further question the Law Firm’s handling, strategy and representation.” The arbitrator awarded the seller $116,250 on his breach of contract claim, and $75,000 in attorney fees and costs. Defendants executed the Agreement. agreeing to pay MMB $150,000. The Agreement contains mutual general releases. waiving all claims “whether now known or unknown.” MMB’s assignee, SCJLW, sued. Defendants asserted the agreement was unenforceable for lack of consideration because MMB committed legal malpractice; that their signatures were fraudulently induced; and that MMB failed to disclose its malpractice exposure in violation of their ethical duties. They admitted not making payments under the Agreement. The trial court entered judgment for $150,000, plus $81,460.20 in interest. The court of appeal affirmed. Plaintiff set forth a prima facie case for breach of contract; defendants failed to make even a prima facie case for lack of consideration. View "Property Cal. SCJLW One Corp. v. Leamy" on Justia Law

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The Eighth Circuit affirmed the district court's judgment confirming an arbitrator's award of attorney's fees and expenses to Beumer. The court held that the arbitrator acted within the scope of his authority and did not violate the arbitration agreement's provision when he determined that attorneys' fees were "costs" and not "loss" under Missouri law. Therefore, these costs were not subject to the limitation of liability. The court held that ProEnergy failed to demonstrate grounds to vacate the arbitration award under 9 U.S.C. 10, and denied Beumer's motion for sanctions. View "Beumer Corp. v. ProEnergy Services, LLC" on Justia Law

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As a high school student in North Dakota, Dagny Knutson was an internationally ranked swimmer. She committed to Auburn University because one of its coaches, Paul Yetter. In March 2010, Mark Schubert, USA Swimming’s head coach, told Knutson that Yetter was leaving Auburn University. Schubert advised Knutson to swim professionally rather than at Auburn or another university. He orally promised her support to train at a “Center for Excellence” formed by USA Swimming in Fullerton, California, including room, board, tuition, and a stipend until she earned her degree. At Schubert’s suggestion, Knutson retained a sports agent, and shortly thereafter, she turned professional, accepted prize money, and signed an endorsement agreement. A few months after Knutson moved to Fullerton, Schubert’s employment was terminated by USA Swimming. Schubert told Knutson not to worry, and assured her that USA Swimming would keep the promises he had made to her. However, Knutson became concerned because she was not receiving any money from USA Swimming. Knutson retained attorney Foster to represent her in an attempt to get USA Swimming to honor the oral agreement made by Schubert. Foster did not disclose to Knutson his close personal ties to the aquatics world, or that he had long-time relationships with USA Swimming, and other swimming organizations. Knutson testified that Foster never told her that he represented Schubert or that he declined to represent Schubert against USA Swimming because he felt there was a conflict of interest due to his relationships with people within USA Swimming. In September 2014, Knutson sued Foster for fraudulent concealment and breach of fiduciary duty. After a three-week trial, the jury found in favor of Knutson and awarded her economic and noneconomic damages. The trial court granted Foster’s motion for a new trial on the grounds that Knutson did not prove Foster’s conduct was the cause of Knutson’s damages and that Knutson had failed to offer substantial evidence of her emotional distress damages. The Court of Appeal reversed and reinstated the jury's verdict because the motion for a new trial was granted on erroneous legal theories. The Court held: (1) claims of fraudulent concealment and intentional breach of fiduciary duty by a client against his or her attorney are subject to the substantial factor causation standard, not the “but for” or “trial within a trial” causation standard employed in cases of legal malpractice based on negligence; and (2) where the plaintiff’s emotional distress consisted of anxiety, shame, a sense of betrayal, and a continuing impact on personal relationships, the testimony of the plaintiff alone was sufficient to support emotional distress damages. View "Knutson v. Foster" on Justia Law

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Plaintiff Cheryl Moore, M.D. appealed a superior court order granting summary judgment to defendants attorney Charles Grau and Upton Hatfield, LLP, on plaintiff’s claims for legal malpractice, violation of the New Hampshire Consumer Protection Act, and entitlement to an accounting and forfeiture of fees. Plaintiff was a member of Young & Novis, P.A. (Y&N), along with her partner, Dr. Glenn Littell. Y&N provided pathology services to the intervenor, Wentworth-Douglass Hospital (WDH), until WDH elected to terminate Y&N’s services. Prior to the termination, an attorney acting on Y&N’s behalf solicited trial counsel for a potential wrongful termination suit against WDH. Plaintiff retained Grau and his firm. On the date for Y&N’s contract was terminated, plaintiff allegedly permitted her husband, Dr. Thomas Moore, to access Y&N computers connected to WDH’s network. Plaintiff’s husband and Littell then downloaded confidential documents and destroyed certain electronic data. WDH sued plaintiff, her husband, and Littell in federal district court. Years later, the parties reached a tentative settlement. During negotiations preceding the tentative settlement, the hospital defendants were jointly represented by Grau and Upton Hatfield. In mid- August, however, plaintiff hired a separate attorney, Peter Callaghan, to represent her in finalizing the settlement. Plaintiff ultimately sued Grau and the firm for malpractice; the trial court granted summary judgment, concluding plaintiff’s claims against defendants “originate[d] or [grew] out of or flow from her relationship with WDH,” and, therefore, fell within the prohibition of Paragraph 4 of the Settlement Agreement. Having determined that the Settlement Agreement barred the suit, the court found it unnecessary to address the defendants’ remaining arguments or to decide a pending motion to quash. Plaintiff unsuccessfully moved for reconsideration. The New Hampshire Supreme Court determined the settlement agreement, by its terms, did not cover plaintiff's malpractice claims against Grau or the firm. Therefore, summary judgment was improperly granted, and the Court reversed. View "Moore v. Grau" on Justia Law

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The Eleventh Circuit affirmed the district court's dismissal of the case with prejudice for failure to state a claim, but on an alternative ground. The court held that counsel for homeowners filed a multi-count, incomprehensible complaint that flouted the Federal Rules of Civil Procedure and this Circuit's well-established precedent. The court found that plaintiffs obstructed the due administration of justice in the district court by attempting to prosecute an incomprehensible pleading to judgment. Furthermore, plaintiffs were doing the same here by urging this court to uphold the sufficiency of their amended complaint. The court instructed counsel to show cause why the court should not order him to pay defendants double costs and their expenses, including the attorney's fees they incurred in defending these appeals. View "Jackson v. Specialized Loan Servicing LLC" on Justia Law

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The Court of Appeal reversed the trial court's order denying a petition to vacate an arbitration award and granting a petition to confirm it. In this case, the arbitrator did not comply with several applicable disclosure requirements, which gave rise to multiple grounds for disqualification. The court held that the arbitrator was actually aware of at least one of the grounds for disqualification, and thus the resulting arbitration award was subject to vacatur. The court held that, by not disclosing the four pending arbitration with counsel for Chase, the arbitrator violated the continuing disclosure duties under Ethics standard 7(d). View "Honeycutt v. JPMorgan Chase Bank, N.A." on Justia Law

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Anthony Robins, Jr. was convicted by jury for aiding and abetting two first-degree murders and an attempted first-degree murder. While incarcerated prior to trial, Robins’s cell was searched and handwritten notes he had prepared in anticipation of a meeting with counsel were seized and delivered to the prosecuting attorney. The district court granted Robins partial relief from a violation of his attorney-client privilege but placed the burden on him to object at trial if the State offered evidence or argument arising from the privileged materials. Robins argued the district court erred in fashioning this remedy, and the Idaho Supreme Court agreed. In light of the circumstances, the Supreme Court vacated his judgment of conviction and remanded the case with instructions to hold an evidentiary hearing to determine whether the State can overcome the presumption of prejudice arising from its violation of Robins’s attorney-client privilege. If the State can overcome the presumption, the Court held a new trial had to be conducted from which the prosecutor's office had to be recused. View "Idaho v. Robins" on Justia Law