Justia Legal Ethics Opinion Summaries

Goldstone and Lanz are Santa Rosa attorneys. Lanz represented Garcia-Bolio in a “Marvin” action and had a contingency fee agreement. The suit settled on the third day of trial. There was a dispute as to the value of the settlement and Lanz’s fee. Lanz sued Bolio, who failed to respond, and her default was taken. Goldstone became Bolio’s lawyer and, following relief from default, filed an answer and a cross-complaint, alleging breach of fiduciary duty, professional negligence, and several ethical violations by Lanz, including that he acted with “moral turpitude.” Lanz defeated Bolio’s cross-claims, leaving only Lanz’s claim against Bolio. Lanz obtained a complete victory at trial, in a decision highly critical of Bolio’s conduct. Lanz then sued Goldstone for malicious prosecution. Goldstone filed an anti-SLAPP (strategic lawsuit against public participation) motion to dismiss. The court of appeal affirmed denial, concluding that Lanz met his burden under prong two of the anti-SLAPP analysis, demonstrating a probability of success on all three elements of malicious prosecution. View "Lanz v. Goldstone" on Justia Law

Six years after a San Jose police officer testified falsely against plaintiff during a preliminary hearing, the city agreed to pay plaintiff $150,000 and not to oppose any motion plaintiff might bring for a declaration of factual innocence of the criminal charges brought against him. The parties agreed that plaintiff’s counsel could seek an award of costs incurred and reasonable attorney’s fees under the Civil Rights Attorney’s Fees Award Act, 42 U.S.C. 1988. Plaintiff sought $1,448,397 in attorney fees and $75,255 in costs, based on “2,419.9 compensable attorney hours … utilizing reasonable hourly billing rates roughly 20% below established market rates[,] i.e[.,] ranging from $425 to $650 per hour,” plus $102,998.75, added for “fees-on-fees work.” Plaintiff also requested a 1.5 multiplier to the lodestar amount “to account for the significant risk counsel has taken in litigating this hotly[ ]contested matter on a wholly contingent basis, with little prospect of settlement until the eve of trial.” The court awarded compensation of $436,807.50, declined to apply the 1.5 multiplier, and awarded costs of $23,935.07. The court of appeals remanded, finding the lower court’s reasoning inadequate. View "Kerkeles v. City of San Jose" on Justia Law

Plaintiff appealed a judgment after the trial court's grant of defendants' motion for terminating sanctions. Chase moved for terminating sanctions based on its unsuccessful attempts to depose plaintiff's brother and plaintiff's threats of physical violence. The court held that courts have the inherent authority to dismiss a case as a sanction and the authority should be exercised only in extreme situations, such as where the conduct was clear and deliberate and no lesser sanction would remedy the situation. The court concluded that, based on plaintiff's conduct, this case required a terminating sanction. The court cited plaintiff's failure to pay sanctions, harassing behavior, highly contemptuous statements made to the court, brandishing pepper spray and use of a stun gun. The court rejected plaintiff's arguments and affirmed the judgment. View "Crawford v. JPMorgan Chase Bank, N.A." on Justia Law

A class action complaint alleged that Honeywell engaged in uncompetitive and illegal conduct to increase its market share of round thermostats and to use its dominant market position to overcharge customers. In 2013, the parties reached a settlement and asked the trial court to preliminarily approve it. The court initially declined to do so because it had concerns about the notice proposed to be sent to class members. Those concerns were subsequently addressed to the court’s satisfaction, and on February 4, 2014, the court preliminarily approved the settlement. The notice of settlement was subsequently published and distributed to class members. The long version was distributed and posted on a website, and the short version was published in various print publications. The trial court found that four objectors to the settlement failed to establish they had standing, but rejected one objection on timeliness grounds and rejected the other three on their merits. The court of appeal affirmed, except for the ruling on standing, finding that the court properly approved the distribution of residual settlement funds and awarded class counsel attorney fees that amounted to 37.5 percent of the settlement fund. View "Roos v. Honeywell Int'l, Inc." on Justia Law

Jan Goldsmith was the San Diego City Attorney. League of California Cities was an association of 473 California cities and their public officials, which, among other purposes, advocates to protect and restore local control for cities to provide for the public health, safety, and welfare of their residents. Real Party in Interest, San Diegans for Open Government (SDOG), submitted a request under the Public Records Act to the City of San Diego (the City) seeking "[a]ny and all e-mails sent to or from [Jan Goldsmith's personal e-mail account] . . . that pertain in any way to the official business of the City of San Diego." Among other records, the City asserted an exemption to the disclosure of e-mails between a purported legal assistant for the League and attorney members of the League on the grounds they were not public records because they did not concern city business, or were otherwise privileged. SDOG filed a petition for writ of mandate seeking declaratory and injunctive relief against the City and Goldsmith to compel disclosure of the e-mails. In a minute order, the trial court directed the City to provide SDOG with a privilege log identifying the documents not produced, along with the legal objection for not producing the documents. After considering the parties' briefing, the trial court declined to perform an in camera review of certain challenged e-mails. The court found the City failed to meet its burden of demonstrating that the e-mails were privileged or exempt under the Act, and ordered the City to produce the e-mails by a certain date. The League filed the instant petition for a peremptory writ of mandate or prohibition in the first instance, or an alternative writ or order to show cause seeking to vacate that part of the court's order requiring disclosure of the e-mails. The Court of Appeal concluded the term "a party," as used in the Act, was not limited to an actual party to the action. Accordingly, the nonparty here had standing to file the instant petition challenging the trial court's order. The Court further concluded the trial court erred by not conducting an in camera review of the documents as requested by the party asserting the documents were exempt from disclosure. Accordingly, we grant the petition and remand the matter for further proceedings. View "League of Cal. Cities v. Super. Ct." on Justia Law

In 2008, Nunez purchased a commercial fishing vessel built in 1944, for $1. Having no fishing or boating expertise, Nunez hired Pennisi to install a refrigeration system and work on the boat’s pumping and electrical systems. The refrigeration system did not work properly; apparently Nunez moved the boat before Pennisi finished work and there was some evidence that the generators were inadequate for the system. Nunez sued Pennisi for the allegedly substandard work. Nunez contends he never read the complaint, but he signed a verification. Pennisi filed a cross-complaint, asserting breach of contract, breach of good faith and fair dealing, and goods and services rendered. The court dismissed claims by Nunez and, after a jury verdict, entered judgment in favor of Pennisi. Subsequently, Pennisi sued Nunez and his attorneys alleging malicious prosecution. The court denied a motion by Nunez under Code of Civil Procedure section 425.162 (anti-SLAPP (strategic lawsuit against public participation) to strike the malicious prosecution complaint and awarded $8,315 in attorney fees to Pennisi. The court of appeal reversed in part, finding that some of Pennisi's claims lacked the minimal merit necessary to avoid being stricken as a SLAPP, but that Pennisi’s malicious prosecution action had minimal merit. View "Nunez v. Pennisi" on Justia Law

Plaintiff filed suit against Mehusa, her former employer, for unpaid overtime, unpaid wages, and violation of California's Equal Pay Act, Labor Code 1197.5. After plaintiff prevailed on her Equal Pay Act claim and defendant prevailed on plaintiff's overtime and wage claims, the trial court awarded plaintiff her attorney fees and defendant its attorney fees and costs. The trial court offset the attorney fees awards for a net award to plaintiff of $3,709.19. Plaintiff appealed, arguing that the trial court erred in ruling that defendant was a prevailing party on plaintiff’s wage claim and awarding defendant attorney fees and costs under section 218.5. The court held in the published portion of this opinion that when there are two fee shifting statutes in separate causes of action, there can be a prevailing party for one cause of action and a different prevailing party for the other cause of action. Accordingly, the court affirmed the judgment. View "Sharif v. Mehusa, Inc." on Justia Law

Plaintiff filed suit against defendants, alleging that they had violated the duty of loyalty owed to her under the Rules of Professional Conduct by pursuing her business partner's interests in the underlying dissolution and copyright actions. Plaintiff alleged that she had an implied attorney-client relationship with each defendant based on her status as a 50 percent owner of Purposeful Press, the company she and her business partner created. The trial court denied defendants' special motion to strike pursuant to Code of Civil Procedure section 425.16 (the anti-SLAPP). In this case, plaintiff's claims arise out of defendants’ breach of professional obligations they allegedly owed to plaintiff as the result of an implied attorney-client relationship arising out of defendants’ representation of Purposeful Press. The court concluded that defendants failed to establish that plaintiff's claims arise from protected activity and did not address the second step of the anti-SLAPP analysis. Accordingly, the court affirmed the judgment. View "Sprengel v. Zbylut" on Justia Law