Justia Legal Ethics Opinion Summaries

VeriPic, and its CEO, Kwan, sued a competitor, Foray, and affiliated individuals, including Foray’s president, Hennings, alleging business disparagement. Before trial, Foray and Hennings moved for sanctions against the plaintiffs’ former counsel, the Grellas law firm, seeking monetary sanctions under Code of Civil Procedure section 2023.030(a), for misuse of the discovery process. The trial court sua sponte issued an order to show cause ordering the plaintiffs and Grellas to show why sanctions should not issue for “egregious and deliberate” “litigation abuse” in their filings. All the defendants subsequently moved for sanctions. The court ultimately ordered various sanctions against Kwan and VeriPic, including dismissal with prejudice of VeriPic’s remaining claims, for plaintiffs’ fraud on the court. However, the court denied the defendants’ motion for monetary sanctions against plaintiffs and Grellas for misuse of the discovery process.The court of appeal reversed in part, finding that the trial court abused its discretion in denying the request for monetary sanctions against VeriPic and Kwan. The defendants have not carried their burden of showing error by the trial court in declining to impose sanctions on Grellas. There is no substantial evidence that Grellas advised the plaintiffs to engage in the misuse of the discovery process. View "Kwan Software Engineering, Inc. v. Hennings" on Justia Law

The Tampa Bay Buccaneers were sued in at least five class action complaints, each one alleging that the Buccaneers sent telefax advertisements in violation of the Telephone Consumer Protection Act (TCPA). In one class action, lawyers from the AW Firm, who had previously filed suit on behalf of a different plaintiff, added another class action representative, M&C. Shortly after an unsuccessful mediation was conducted, defendant, an attorney at the AW Firm who was principally involved in the mediation, left the firm to join the Bock Firm. The Bock Firm then filed a separate class action against the Buccaneers, which resulted in a proposed settlement.M&C then filed suit against the Bock Firm in state court, alleging that they had breached fiduciary duties owed to it as a named class representative. M&C and its counsel claimed that defendant gave attorneys at the Bock Firm confidential information about settlement negotiations in the AW Firm's class action, which assisted the Bock Firm in settling their class action quickly and to the detriment of the class. The district court granted summary judgment for defendant and the Bock Firm.The Eleventh Circuit held that the duties owed to a class representative do not differ from the duties owed to a class. The court also clarified the duties owed by class counsel in class actions generally and in the context of this case specifically. In this case, the court determined that in filing this action M&C and a principal at the AW Firm launched an impermissible collateral attack on the Bock Firm's attempt to certify and settle a class action. The court explained that their assertions should have been made only before the court that was exercising jurisdiction over the Rule 23 putative class action — the court in which the request to certify a settlement class and approve the settlement was made. The court found no error in the district court's determination that M&C failed to establish that it was damaged by any alleged breach of a fiduciary duty owed to it by defendant. Accordingly, the court affirmed the district court's grant of summary judgment in favor of defendant and the Bock Firm. View "Medical & Chiropractic Clinic, Inc. v. Oppenheim" on Justia Law

In this case, the real parties in interest and plaintiffs were former store managers for petitioner-defendant Big Lots Inc., who claimed they spent less than 50 percent of their worktime on managerial tasks and, as a result, should have been paid overtime compensation for hours worked in excess of a standard 40-hour week. Big Lots was an Ohio corporation. When this lawsuit was first filed, it retained a California law firm, Haight Brown & Bonesteel LLP (Haight Brown), as counsel of record. Big Lots later sought the superior court’s permission for attorneys from an Ohio law firm, Vorys, Sater, Seymour & Pease LLP (Vorys), to also represent it. The trial judge ultimately granted applications filed by three different attorneys in the Vorys firm. But after later being advised that these Ohio attorneys were attempting to represent various current and former Big Lots managers in depositions noticed by plaintiffs, the court revoked pro hac vice authorization for all three lawyers. Big Lots petitioned for a writ of mandamus to overturn that order. The Court of Appeal agreed with the trial judge that there was a between an attorney’s representation of the defendant corporation in a lawsuit and his or her representation of current or former employee witnesses. "Pro hac vice admission as to one client does not necessarily allow a lawyer to represent a different client even if substantive law does not otherwise prohibit it." The Court nonetheless concluded the total revocation of pro hac vice status for the Vorys attorneys was not supported by the record then before the trial court. The petition to vacated the revocation order was granted, but the matter was returned to the trial court for additional hearings/orders deemed necessary. View "Big Lots Stores v. Super. Ct." on Justia Law

The Judiciary Commission of Louisiana filed a disciplinary proceeding against respondent, Justice of the Peace Cody King on one count that alleged respondent violated Canons 1, 2, 2A, 3A(1), 3A(7), and 3B(1) of the Code of Judicial Conduct (1996) and La. Const. Art. V, section 25(C). In 2018, the Attorney General's Office filed the first of three complaints against Respondent with the Office of Special Counsel of the Commission, asserting that Respondent failed to respond to constituents in his district, and likewise failed to respond to letters or calls from the Attorney General's office. In 2019, Hannah Zaunbrecher filed a complaint, asserting: (1) Respondent was difficult to reach; (2) he overcharged Ms. Zaunbrecher for an eviction she filed; (3) he did not set a court date in the eviction matter despite repeated requests from Ms. Zaunbrecher after the eviction was filed; and (4) Respondent failed to refund the unearned filing fee. The OSC sent letters to Respondent notifying him of each complaint. Respondent did not reply despite later acknowledging that he received them. After a hearing on these charges, the Commission filed a recommendation with the Louisiana Supreme Court concluding that the above violations had been proven. To this, the Supreme Court agreed with the Commission’s recommendation, and ordered the removal of Respondent from office, that he reimburse the Commission the costs incurred in the investigation and prosecution of the case, and further, that he pay restitution for an unearned filing fee he failed to return to Parish Leasing Company, LLC. View "In re: Justice of the Peace Cody King, Ward 6, Morehouse Parish" on Justia Law

The Louisiana Supreme Court granted this writ application to determine whether “collectibility” was a relevant consideration in a legal malpractice action. Specifically, the issue presented was whether plaintiff’s damages in this legal malpractice action were limited to the amount she could have actually collected on a judgment against the tortfeasor in the underlying lawsuit. Elaine Ewing was injured in an automobile accident in 2015, when her vehicle was hit by a vehicle driven by Marc Melancon. Her counsel failed to forward the original petition for damages within seven days as required by La. R.S. 13:850. The original petition was filed on April 22, 2016, after the one-year prescriptive period had passed. Ms. Ewing’s suit was dismissed on an exception of prescription. Ms. Ewing subsequently filed a legal malpractice action against her attorney and Westport Insurance Corporation, counsel's malpractice insurer. Defendants filed a motion for partial summary judgment asserting the court should apply the “collectibility rule.” Defendants alleged Ms. Ewing’s recovery could be no greater than her potential recovery in the underlying personal injury lawsuit, and recovery in this case should have been capped at Mr. Melancon’s insurance policy limits. The Supreme Court held that proof of collectibility of an underlying judgment was not an element necessary for a plaintiff to establish a claim for legal malpractice, nor could collectibility be asserted by an attorney as an affirmative defense in a legal malpractice action. View "Ewing v. Westport Ins. Co., et al." on Justia Law

Fox Lake patrol officer Zander was charged with misconduct arising from multiple job-related incidents. The chief recommended termination. Zander's union, FOP, assigned Attorney Carlson, an FOP employee. Zander had no input into the choice of an attorney, had no retainer agreement with Carlson, and was not charged for Carlson’s services. Under the Illinois Municipal Code (65 ILCS 5/1-1-1), police officers who face removal or discharge are entitled to a hearing before the local board of fire and police commissioners unless a collective bargaining agreement (CBA) provides for arbitration. The CBA between Fox Lake and FOP gave officers the option of pursuing either avenue. On Carlson’s advice, Zander chose arbitration. The arbitrator upheld the termination. Zander sued, alleging legal malpractice and that FOP has no right to employ attorneys to furnish legal services under its direction to FOP members, and cannot control what attorneys assigned to help FOP members may do and “should be vicariously liable.”The circuit court dismissed, citing the U.S. Supreme Court’s "Atkinson" holding, which immunizes union members and officers against personal liability for actions taken while acting as a union representative in the context of the collective bargaining process. The court noted the parallels between federal labor law and the Illinois Public Labor Relations Act. The Illinois Supreme Court agreed. But for the collective bargaining agreement. FOP would have owed Zander no duty. Zander’s claim against the union fell within the exclusive jurisdiction of the Illinois Labor Relations Board. View "Zander v. Carlson" on Justia Law

Alemarah sued her former employer, GM, in both state and federal court, claiming employment discrimination based upon identical factual allegations. The state suit asserted state claims, the federal suit, federal claims. The state court dismissed that case after a case evaluation ($400,000); the federal district court granted GM summary judgment. Alemarah challenged the court’s grant of summary judgment, its denial of her motion to recuse the judge, and an award ($4,715) of costs.The Sixth Circuit affirmed. The court properly granted summary judgment. Under Michigan law, the state court’s order dismissing her claims after acceptance of the case evaluation was a judgment on the merits, Alemarah and GM were parties in both case, and the matter in the second case could have been resolved in the first, so res judicata bars every claim arising from the same transaction that the parties, exercising reasonable diligence, could have raised. The court acknowledged that a reasonable observer could conclude that the district judge’s statement in a letter to Alemarah’s counsel expressed anger and another of the judge’s actions could be seen as punitive but those actions were not “so extreme as to display clear inability to render fair judgment.” GM submitted as costs the amount it paid for deposition transcripts that it attached to its summary judgment motion; the costs were allowable. View "Alemarah v. General Motors, LLC" on Justia Law

Robert Grundstein appealed the Vermont Board of Bar Examiners’ determination that he failed to establish his eligibility for admission to the Vermont bar in connection with his 2019 application for admission by examination. He argued that, for numerous reasons, the Board erred in evaluating his application pursuant to the Rules of Admission to the Bar of the Vermont Supreme Court in effect at the time his application was submitted. After its review, the Vermont Supreme Court concluded the Board correctly applied the Rules and affirmed. View "In re Grundstein" on Justia Law

While representing a client at a mandatory settlement conference (MSC) before a temporary judge, petitioner Kevin Moore was rude and unprofessional. Among other things, Moore: (1) persistently yelled at and interrupted other participants; (2) accused opposing counsel of lying while providing no evidence to support his accusation; (3) refused to engage in settlement discussions; and (4) effectively prevented the settlement officer from invoking the aid and authority of the supervising judge by asserting this would unlawfully divulge settlement information. To make matters worse, Moore later acknowledged that his contemptuous behavior was the result of a tactical decision he had made to act in such a manner in advance of the MSC. After a hearing, respondent court convicted Moore of four counts of civil contempt, imposed a $900 fine for each count ($3,600 total), and ordered the payment of attorney fees and costs to the opposing party. Moore challenged all four contempt convictions and the associated sanctions. After review, the Court of Appeal concluded the record and applicable law required that three of Moore’s convictions be overturned; the Court affirmed one conviction and the punishment required for that offense. The clerk of the appeallate court was ordered to make the required notification to the State Bar for whatever additional action the Bar may consider appropriate. The award of attorney fees and costs here was precluded by statute. View "Moore v. Superior Court" on Justia Law

The Hearing Panel of the Judicial qualifications Commission ("JQC") recommended that Judge Robert "Mack" Crawford be "removed from office" for violating Rule 1.1 of the Georgia Code of Judicial Conduct ("CJC") which said "Judges shall respect and comply with the law." Judge Crawford resigned as Superior Court judge of the Griffin Judicial Circuit upon investigation by the JQC. The complaint alleged that Crawford violated CJC Rule 1.1 in two ways: (1) by “impermissibly converting money from the registry of the Superior Court of Pike County . . . when he ordered the Pike County Clerk via handwritten note to disburse $15,675.62 in funds from the court registry to him via check” and “then cashed and used a portion of the check for his personal benefit and deposited the remainder of this money in his personal checking account,” although he later returned the funds; and (2) by “failing to follow the proper procedure for the disbursement of funds, even if the money had been his, as required by law,” noting the certification requirement for withdrawal of funds from a court registry contained in Uniform Superior Court Rule 23. In 2002, when Crawford was in private practice, he had deposited the funds into the registry from his client trust account in connection with a lawsuit. The JQC complaint acknowledged that Crawford claimed that at least some of the money was owed to him as attorney fees and expenses.The Hearing Panel did not recommend that Crawford be permanently barred from seeking or holding judicial office. The JQC Director did not file a notice of exceptions, thereby accepting the Hearing Panel’s recommendation. Under rules promulgated by the Georgia Supreme Court, the Court had to file a written decision either dismissing this matter or imposing a sanction. The Court elected to dismiss. View "Inquiry Concerning Judge Robert M. Crawford" on Justia Law