Justia Legal Ethics Opinion Summaries
Articles Posted in Contracts
Berry Law v. Kraft Foods Group
Plaintiff, a law firm, appealed the district court's dismissal of its implied-in-fact contract and quasi-contract claims against Kraft. The dispute stemmed from the Firm's advice to Kraft regarding an antitrust claim. The court concluded that the Firm's implied-in-fact contract claim failed because the complaint does not plausibly allege that Kraft was "reasonably notified" that the Firm expected to be paid for any work completed before that point. The Firm's quasi-contract claim failed because the Firm's services were rendered simply in order to gain a business advantage. Accordingly, the court affirmed the judgment of the district court. View "Berry Law v. Kraft Foods Group" on Justia Law
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Contracts, Legal Ethics
Ferguson v. Yaspan
The Fergusons offered to sell their attorney, Yaspan, an interest in a London flat they owned. At Yaspan’s suggestion, the Fergusons hired independent counsel and the parties exchanged five drafts before signing a written agreement in 1995. This agreement enabled the Fergusons to recover nearly all of their original purchase price for the flat and still own half of it. Both the Fergusons and the Yaspans wanted to be partners with each other and not each others’ children, so they agreed that whichever couple outlived the other would have the right to buy out the deceased couple’s interest before that interest could pass to anyone else. The Fergusons were then 70 and 68 years old; the Yaspans were 49 and 47. The trial court concluded that Mrs. Ferguson’s 2011 petition to set aside the agreement as a product of Yaspan’s undue influence was untimely and without merit. The court of appeal affirmed, rejecting arguments that the trial court erred by looking at the fairness of the Agreement as a whole rather than focusing on terms Ferguson identified as unfair, and giving insufficient weight to the statistical likelihood that the buyout provision would favor the Yaspans. View "Ferguson v. Yaspan" on Justia Law
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Contracts, Legal Ethics
Danko v. O’Reilly
Danko practiced law with the firm of O’Reilly & Collins, until, in 2009, Danko sued O’Reilly, as an individual, and O’Reilly & Collins, for unpaid wages. Before trial, O’Reilly, as an individual, obtained directed verdict. In 2012, judgment was entered in favor of Danko for more than $2,000,000. Danko filed moved to amend the judgment and the costs and fee order “to include Terry O’Reilly as a judgment debtor for all amounts owed to Michael Danko” on the ground that O’Reilly knew that the firm owed Danko more than $2 million, but drew out all the firm’s available funds without reserving any amounts to satisfy the debt he knew was owed to Danko, telling Danko “you will not be able to execute on any judgment.” The court of appeal affirmed the trial court’s amendment of the judgment, citing Code Civ. Proc., 187. The court rejected arguments that the amendment was entered in violation of a stay in the bankruptcy of the firm; the amendment was precluded by the doctrine of res judicata; and the amendment was contrary to the principles governing collateral estoppel. View "Danko v. O'Reilly" on Justia Law
City & Cnty, of San Francisco v. Cobra Solutions, Inc.
Cobra was a prequalified vendor of information technology goods and services to the city. In 1999-2000, Cobra submitted invoices based on invoices submitted by its subcontractor, Monarch. Monarch had not performed the work, but was a sham corporation run by Armstrong, then-manager of information technology for a city agency. The city paid the invoices. After uncovering another scheme involving Armstrong and a different vendor, the city received complaints that Cobra had not paid subcontractors for work for which the city had paid Cobra. Cobra did not submit to an audit request. The City Attorney had represented Cobra on matters including city contracts while in private practice. Although he had personally been screened from matters related to Cobra, the court ordered the city to retain independent counsel, but stayed proceedings pending appeal. The California Supreme Court affirmed the disqualification. A jury returned verdicts against Cobra and rejected all counterclaims. The court of appeal held that Cobra waived appeal of its motion to preclude the city from using evidence procured with the participation of the City Attorney; reversed as to intentional misrepresentation, negligent misrepresentation, and violation of the false claims acts; and remanded for a new trial limited to those claims. View "City & Cnty, of San Francisco v. Cobra Solutions, Inc." on Justia Law
In re Zutrau v. Jansing & ICE Sys., Inc.
After Plaintiff fell behind on her payments to Attorney in the underlying litigation, Attorney filed a motion to withdraw as counsel for Plaintiff and requested a charging lien in the amount of approximately $300,000. Plaintiff did not oppose Attorney’s withdrawal but did oppose the entry of a charging lien. The Court of Chancery found that a charging lien was appropriate and granted a charging lien in the amount of $200,000 against any judgment in this action, holding (1) a fee agreement between the parties did not preclude the entry of a charging lien; (2) the total amount of the charging lien that was appropriate in this case should not exceed Plaintiff’s lowest-possible net recovery of $263,872; and (3) Attorney was not liable to the experts for their fees, so there was no basis for include those fees in the charging lien. View "In re Zutrau v. Jansing & ICE Sys., Inc." on Justia Law
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Contracts, Legal Ethics
Choiniere v. Marshall and Beach, PPLC
Plaintiffs Paul Choiniere and P&D Consulting, Inc. sued defendants, attorney Anthony Marshall and his law firm, Harris Beach, PLLC, alleging that they made negligent and intentional misrepresentations while representing a client in a matter involving commercial loan guaranties. Choiniere argued that he relied upon the misrepresentations when deciding not to call a $1 million loan that he made in September 2003, and P&D Consulting argued that it relied upon the misrepresentations when deciding to loan an additional $1.3 million in June 2004. Upon review of the dispute, the Supreme Court reversed the trial court's decision granting defendants summary judgment. In sum, the Court held that there were several material issues in dispute that preclude summary judgment, including the viability of the guaranty agreement after an April 28, 2004 letter, whether plaintiffs' reliance on the April 28 letter was justifiable, whether Marshall was authorized to send the letter, and whether there are any economic damages. View "Choiniere v. Marshall and Beach, PPLC" on Justia Law
Lee v. Hanley
Plaintiff-appellant Nancy Lee hired Attorney William Hanley to represent her in a civil suit. After the litigation settled, Lee sought a refund of unearned attorney fees and unused expert witness fees she had advanced to Hanley. Not having received a refund, Lee hired Attorney Walter Wilson and terminated Hanley. Attorney Hanley thereafter refunded certain expert witness fees, but no attorney fees. More than a year after hiring Wilson, Lee filed a lawsuit against Hanley seeking the return of the unearned fees. Hanley filed a demurrer to Lee’s second amended complaint, based on the one-year statute of limitations contained in Code of Civil Procedure section 340.6. The court sustained the demurrer and dismissed the action with prejudice. Lee appealed. Upon review, the Court of Appeal held that to the extent a claim is construed as a wrongful act not arising in the performance of legal services, "such as garden variety theft or conversion, section 340.6 is inapplicable. . . . Here, the facts alleged in Lee’s second amended complaint could be construed as giving rise to a cause of action for the theft or conversion of an identifiable sum of money belonging to her. This being the case, we cannot say that Lee’s second amended complaint demonstrates clearly and affirmatively on its face that her action is necessarily barred by the section 340.6 statute of limitations." Because this action had not reached a point where the court could determine whether the wrongful act in question arose in the performance of legal services, and thus, whether or not section 340.6 applied, the demurrer should not have been sustained.
View "Lee v. Hanley" on Justia Law
ING Global v. United Parcel Service Oasis Supply Corp.
After the jury returned a verdict in favor of ING on its breach of contract claims, the jury awarded ING attorney's fees under Georgia law. UPS moved under Rule 59(e) to amend the judgment to set aside the award of attorney's fees or, alternatively, for a new trial on the issue of attorney's fees. The court held that the district court erred in setting the verdict aside in light of UPS's failure to move for relief under Rule 50(a) and the existence of evidentiary support in the record for the jury's verdict. The court also concluded that a new trial was not warranted. Accordingly, the court reversed the order granting UPS's motion and remanded with instructions to reinstate the verdict and resolve ING's motion to set attorney's fees. View "ING Global v. United Parcel Service Oasis Supply Corp." on Justia Law
In the Matter of the Estate of Louis St. Martin, Deceased: Forbes v. Hixson
James Forbes settled a personal-injury action while he was represented by Louis St. Martin. Forbes later sued St. Martin, challenging the validity of his contingency-fee arrangement and the associated attorneys’ fees. The Chancery Court granted summary judgment to St. Martin; the Court of Appeals reversed the chancery court’s decision and remanded the case for further proceedings. Upon review of the matter, the Supreme Court reversed the Court of Appeals’ judgment, finding that summary judgment in favor of St. Martin was proper.
View "In the Matter of the Estate of Louis St. Martin, Deceased: Forbes v. Hixson" on Justia Law
Freese v. Mitchell
This case arose out of a fee dispute between associated attorneys arising out of mass-tort cases in Copiah County between 2005 and 2010. The first appeal arose out of a joint-venture agreement between Don Mitchell and the law firm of Sweet & Freeese, PLLC. The second appeal stemmed from an alleged oral referral agreement between McHugh Fuller Law Group, PLLC, and the members of the joint venture. The appellants in this consolidated appeal challenged the County Chancery Court’s denial of their motions to compel arbitration of claims brought against them by Mitchell and the McHugh Fuller Law Group, PLLC. Finding no error, the Supreme Court affirmed.
View "Freese v. Mitchell" on Justia Law