Justia Legal Ethics Opinion Summaries

Both parties appealed the trial court's order denying prevailing party attorney fees in an action where GNC admitted liability for the unauthorized use of plaintiff's likeness. The Court of Appeal held that the trial court abused its discretion in its determination that plaintiff was not the prevailing party. In this case, plaintiff achieved an undeniable victory on his Civil Code section 3344 claim: a $213,000 verdict for actual damages versus the $4,800 verdict proposed by GNC; and $910,000 in emotional distress damages versus GNC's recommendation of zero damages. In contrast, GNC prevailed by defeating plaintiff's demand for unauthorized profits. Therefore, the court reversed the order denying plaintiff's motion for attorney fees. View "Olive v. General Nutrition Centers, Inc." on Justia Law

Plaintiff Pamela Palmieri, an attorney hired by real party in interest California Department of Corrections and Rehabilitation (Department) in part to conduct disciplinary cases against prison guards, was herself terminated for misconduct. After a 21-day hearing, she was found culpable of four counts of misconduct, one of which was her discourtesy and dishonesty to an administrative law judge (ALJ) after she was taken to task for her tardiness. She appealed her dismissal to the State Personnel Board (Board) which ultimately upheld her termination. The trial court denied her mandamus petition to overturn her dismissal, and she timely appealed. Finding no reversible error, the Court of Appeal affirmed. View "Palmieri v. Cal. State Personnel Bd." on Justia Law

Walter owned and operated Control Master Products, a wire and cable business. After Walter’s death, Plaintiffs filed a petition to determine their status as beneficiaries under Walter's trust and to challenge Youngman’s right to inherit. Youngman, Walter’s long-time friend and tax attorney, had drafted Walter’s trust. The petition sought to have a condition, which made certain gifts contingent on being employed by Control at the time of the death of Walter and his spouse (Verla), stricken on various grounds, including impossibility. Walter had sold the company’s assets and its employees had been terminated. The probate court concluded the dispute was not ripe because Verla’s death had not occurred. On remand, the probate court found that Youngman and his family were “disqualified from any gift under the trust,” that Ostrosky’s gift lapsed because she had retired before the sale, and Schwan’s and Johnson’s gifts “remain valid and enforceable, but only after Verla[’s] death.” The court of appeal reversed and remanded for findings as to whether Ostrosky’s work for Custom satisfied the trust’s employment condition and modified the trial court decision so that the gifts to Schwan and Johnson remain valid and enforceable, only after Verla’s death, and only if they survive Verla. The court otherwise affirmed. View "Schwan v. Permann" on Justia Law

The Court of Appeal reversed the trial court's judgment reducing a law firm's fee to 10 percent in an action where the law firm represented the family of a pilot who died in a plane crash. The court held that the trial court abused its discretion when it awarded the attorney fees of only 10 percent of the total value of the settlement where the trial court gave too little consideration to California Rules of Court, rule 7.955(a)(2), which required it to take into account the terms of the law firm's representation agreement. The court declined to determine in the first instance what fee would be appropriate under rule 7.955 and remanded for the trial court to consider the matter in the first instance. View "Schulz v. Jeppesen Sanderson, Inc." on Justia Law

Plaintiffs, home mortgage consultants, alleged they were misclassified as exempt employees by Wells Fargo. ILG, a law firm, represented approximately 600 Wells Fargo consultants alleging the same claim as the Lofton class in multiple lawsuits; the ILG suits were dismissed because the underlying claims were resolved in Lofton. In 2014, the court of appeal affirmed an order, requiring ILG to deposit into a court-supervised escrow account over $5 million of settlement proceeds ILG claimed as attorneys’ fees. ILG had concealed that settlement from the Lofton court and its class member clients. The TRO was predicated on an allegation that ILG’s clients were actually members of the class compensated by the $19 million “Lofton” settlement and that ILG was compensating itself out of the separate settlement without court approval. On remand, the trial court concluded ILG was not entitled to attorney’s fees. The monies on deposit with the court were directed to be paid to the class members who participated in the settlement. The court of appeal affirmed. Until the trial court did something about it, ILG had constructive possession of the entire $6 million settlement and control over its disbursement. ILG received due process. Nothing in this record demonstrates that ILG’s services in securing $750 for each of its 600 clients and facilitating their participation in Lofton were worth the $5.5 million it claimed in attorneys’ fees. View "Lofton v. Wells Fargo Home Mortgage" on Justia Law

After attempting to persuade the Tribe to pay him for services provided under construction and rental agreements, Findleton requested that the Tribe mediate and arbitrate pursuant to clauses in the agreements. The Tribe failed to respond. Findleton filed a petition in March 2012, in the Mendocino County Superior Court to compel mediation and arbitration. The court held the Tribe had not waived its sovereign immunity. The Tribe sought attorney fees it had incurred in defending against Findleton’s petition, which the superior court granted. The court of appeal remanded, finding the Tribe had waived its sovereign immunity, reversing the award of fees. On remand, Findleton again filed a petition to compel mediation and arbitration and sought contractual attorney fees he had incurred in the prior appellate proceedings. The Tribe did not oppose the fee motion on the merits but requested that the court defer ruling until the Tribe filed a demurrer challenging the court’s jurisdiction. The superior court rejected that request and granted Findleton’s motion, awarding costs ($4,591.79) and attorney fees ($28,148.75). The court of appeal affirmed. The Tribe has not demonstrated that tribal remedy exhaustion was required here nor would requiring exhaustion at this late date serve any purpose other than further delay of a case that is already six years old. View "Findleton v. Coyote Valley Band of Pomo Indians" on Justia Law

After plaintiff's foreclosure action was dismissed, the trial court ordered plaintiff to pay attorney fees to defendants, finding certain provisions in the deed of trust she signed authorized the fee award. In the published portion of the opinion, the Court of Appeal held that the deed of trust authorized the addition of attorney fees to the loan amount, not a separate award to pay fees. The court also held that the Rosenthal Fair Debt Collections Practices Act provided no independent basis for ordering plaintiff to pay attorney fees. Accordingly, the trial court's order compelling plaintiff to pay attorney fees was reversed and the matter remanded. View "Chacker v. JPMorgan Chase Bank, N.A." on Justia Law

In a wrongful foreclosure action, the Court of Appeal reversed the award of attorney's fees to Nationstar Mortgage that was based on a clause in the deed of trust. The court held that the clause at issue was not an attorney's fee provision. The court also held that simply pleading a right to attorney's fees was not a sufficient basis to judicially estop a party from challenging the opposing party's alleged contractual basis for an award of attorney's fees. Therefore, the trial court erred in relying on judicial estoppel as an alternative basis for its fee award. View "Hart v. Clear Recon Corp." on Justia Law

The Court of Appeal affirmed the trial court's order disqualifying an attorney for a conflict of interest when the attorney represented more than one client, all of whom seek damages from a pool of money controlled by another party. In this case, the attorney simultaneously represented Bridgepoint in an Arizona action and Ram in the instant action. The court held that disqualification was automatic. Furthermore, the trial court reasonably concluded that the attorney obtained confidential information from Bridgepoint when he retained an expert to review Bridgepoint's financial records. Finally, there was a substantial relationship between the subject matter of the attorney's former representation of Bridgepoint in this case and his current representation of Ram. Therefore, the court had multiple independent grounds for disqualifying the attorney. View "Bridgepoint Construction Services v. Newton" on Justia Law

Sander and the First Amendment Coalition sought a writ of mandate to obtain information from the State Bar of California’s bar admissions database--individually unidentifiable records for all applicants to the California Bar Examination from 1972 to 2008 in the categories: race or ethnicity, law school, transfer status, year of law school graduation, law school and undergraduate GPA, LSAT scores, and performance on the bar examination. Making these records available to the public in a manner that protects the applicants’ privacy and anonymity, they believe, will allow researchers to study the potential relationship between preferential admissions programs in higher education and a gap in bar passage rates between racial and ethnic groups. The superior court upheld the State Bar’s denial of the request. The court of appeal affirmed. The court correctly found Petitioners’ request to be beyond the purview of the California Public Records Act (Gov. Code 6250) because it would compel the State Bar to recode its existing data and create new records. View "Sander v. State Bar of California" on Justia Law