Justia Legal Ethics Opinion Summaries

The client was the target of a grand jury investigation into alleged violations of the Foreign Corrupt Practices Act. The grand jury served a subpoena on the client’s former attorney and the government moved to enforce this subpoena and compel testimony, under the crime-fraud exception to the attorney-client privilege. The client sought to quash the subpoena by asserting the attorney-client privilege and work product protection. After questioning the attorney in camera, the district court found that the crime-fraud exception applied and compelled testimony. The Third Circuit affirmed, holding that the district court applied the correct standard in determining whether to conduct an in camera examination of a witness, requiring a showing of a factual basis adequate to support a good faith belief by a reasonable person that in camera review of the materials may reveal evidence to establish the claim that the crime-fraud exception applies. The court did not abuse its discretion in applying that standard, in determining procedures for the examination, or in ultimately finding that the crime-fraud exception applied. View "In Re: Grand Jury Subpoena" on Justia Law

Convicted of robbing three banks, Johnson was sentenced to 220 months’ imprisonment. At trial Prince told the jury that he and Johnson had planned and executed the robberies together. Williams testified that Prince asked her to give him a ride one day and was accompanied by a stranger. She drove them several places, lastly a grocery store. Prince and the stranger entered the store and robbed the branch bank inside. Williams picked a photo of Johnson from an array of six photos. On appeal, Johnson argued that the judge should not have allowed Williams and the agent who conducted the array to testify about the identification because the Seventh Circuit has suggested that police show photographs sequentially rather than in an array. The Seventh Circuit affirmed the conviction, noting that Johnson did not attempt to show that all photo spreads are unnecessary and suggestive, or make it impossible for counsel to use the tools of the adversary process to explore an identification’s reliability. All six photos met Williams’s description and the array was not suggestive. The court also imposed a fine on Johnson’s attorney for omitting, from his brief, the court’s reasons for declining to exclude the identification. View "United States v. Johnson" on Justia Law

Re and Leach owned warehouses in Englewood, Florida. After leasing space in Leach’s warehouse, Daughtry told his agent that he did so because Leach stated that a sewer line essential to Re’s warehouse crossed Leach’s property without permission and lacked permits. The agent shared the information who Re, who hired assailants to beat Leach and threaten worse unless he broke the lease. Re was convicted under the Hobbs Act, 18 U.S.C. 1951, for using extortion to injure Leach’s business in interstate commerce. The Seventh Circuit affirmed. In a petition under 28 U.S.C. 2255, Re claimed that his lawyers rendered ineffective assistance: trial counsel by stealing from Re and appellate counsel by omitting an argument certain to prevail. The district court denied the petition. The Seventh Circuit affirmed, rejecting an argument that threatening someone without “obtaining” money, or value, in return, does not meet the Hobbs Act definition. A jury could find that Re’s goal in having Leach beaten was to obtain Daughtry as a tenant to get rental payments. A post-trial crime by a lawyer against his client does not spoil the trial as a matter of law; prejudice must be shown. Re could not establish prejudice. The lawyer who embezzled his funds played only a peripheral role in the trial. View "Re v. United States" on Justia Law

Steidl and Whitlock were convicted of 1987 murders, largely based on testimony by two supposed eyewitnesses. Long after the convictions, an investigation revealed that much of the testimony was perjured and that exculpatory evidence had been withheld. The revelations led to the release of the men and dismissal of all charges. Steidl had spent almost 17 years in prison; Whitlock had spent close to 21 years. They sued. By 2013, both had settled with all defendants. Because the defendants were public officials and public entities, disputes arose over responsibility for defense costs. National Casualty sought a declaratory judgment that it was not liable for the defense of former State’s Attorney, McFatridge, or Edgar County, agreeing to pay their costs under a reservation of rights until the issue was resolved. The Seventh Circuit ruled in favor of National Casualty. In another case McFatridge sought a state court order that the Illinois Attorney General approve his reasonable expenses and fees; the Illinois Supreme Court rejected the claim. In a third case, National Casualty sought a declaratory judgment that another insurer was liable for costs it had advanced. The Seventh Circuit affirmed that the other company is liable. It would be inequitable for that company to benefit from National’s attempt to do the right thing, especially since it did not do the right thing and contribute to the defense costs under a reservation of rights. View "Nat'l Cas. Co. v. White Mountains Reinsurance Co." on Justia Law

The district court denied habeas corpus relief under 28 U.S.C. 2254 to petitioner but issued a certificate of appealability (COA) on five issues. The district court then appointed appellate counsel under the Criminal Justice Act, 18 U.S.C. 3006A. Counsel subsequently filed an opening brief under Anders v. California, seeking permission to withdraw. At issue on appeal was what procedure appointed counsel in a habeas appeal should follow when seeking to withdraw. The court concluded that Ninth Circuit Rule 4-1 directly addressed the issue; counsel followed the proper procedure under Rule 4-1(c)(6); and, on the merits, the certified issues provided no basis for appellate relief and the court declined to expand the COA to cover the uncertified issues identified in the Anders brief. Accordingly, the court granted the district court's judgment and granted the motion for counsel to withdraw as counsel of record for petitioner. View "Graves v. McEwen" on Justia Law

Wilson Lucom was an American expatriate who wished to bequeath assets worth more than $200 million to a foundation established for impoverished children in Panama. Plaintiff, Lucom's attorney, filed suit against the Arias Group/Arias Family, Lucom's wife and step-children, under the Racketeering Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1961-1968, alleging that the Arias Group participated in a criminal conspiracy to thwart plaintiff through acts of intimidation, extortion, corruption, theft, money laundering, and bribery of foreign officials, so that the Arias Group could steal the Estate assets for themselves. At issue on appeal was RICO's four-year statute of limitations on civil actions and the "separate accrual" rule. Under the rule, the commission of a separable, new predicate act within a 4-year limitations period permitted a plaintiff to recover for the additional damages caused by that act. The court concluded that none of the injuries in plaintiff's complaint were new and independent because all of his alleged injuries were continuations of injuries that have been accumulating since before September 2007. The court agreed with the district court that plaintiff had done little more than repackage his 2007 abuse of process complaint. Therefore, plaintiff's civil RICO complaint was untimely, and the district court did not err when it granted summary judgment in favor of the Arias Group. View "Lehman, et al. v. Lucom, et al." on Justia Law

Stern represented Allen in a discrimination suit, after which they became romantically involved. Allen and her husband had separated and had executed a settlement agreement awarding Allen $95,000, to be paid in installments. A month later, Allen visited a bankruptcy attorney, Losey, giving Stern’s name as “friend/referral” on an intake form. In filing for bankruptcy, Allen did not disclose the marital settlement. While her bankruptcy was pending, Allen received the money. A month after her bankruptcy discharge, Allen transferred the settlement proceeds to Stern, who opened a CD in his name. The attorney for Allen’s ex-husband informed the bankruptcy trustee that Allen failed to disclose the settlementand the discharge was revoked. Allen pleaded guilty to making a false declaration in a bankruptcy proceeding, 18 U.S.C. 152(3). She told a grand jury that Stern had not referred her to Losey and was convicted of making a material false statement in a grand jury proceeding, 18 U.S.C. 1623. The court admitted Losey’s client-intake form as evidence of perjury. Stern was convicted of conspiring to commit money laundering, 18 U.S.C. 1956(h). The Seventh Circuit affirmed Allen’s conviction, holding that the intake form was not a communication in furtherance of legal representation and was not subject to attorney-client privilege. Reversing Stern’s conviction, the court held that the judge erred in excluding Stern’s testimony about why he purchased the CDs. View "United States v. Stern" on Justia Law

The parties dispute whether the Prison Litigation Reform Act (PLRA), 42 U.S.C. 1997e(d)(2), limited the amount that plaintiff, a prisoner who qualified as a prevailing party who would ordinarily be entitled to an award of attorney's fees, could recover from defendant for attorney's fees incurred in defending his judgment on appeal to 150 percent of the monetary relief awarded to him at trial. The court held that the fee cap in section (d)(2) did not apply to attorney's fees earned in conjunction with an appeal in which prison officials sought unsuccessfully to reverse a verdict obtained by the prisoner before the district court. The court granted plaintiff's motion for attorney's fees on appeal and referred the matter to the Appellate Commissioner to determine the amount of such fees, as well as the amount of reimbursable costs. View "Woods v. Carey" on Justia Law

Defendant, the founder and former CEO of HealthSouth, was found guilty of federal funds bribery, honest services fraud, and conspiracy to commit the latter offenses. Defendant subsequently appealed the district court's denial of his motion for a new trial filed while Siegelman I was before the Supreme Court on certiorari, and the denial of his motion to recuse the trial judge. The court concluded that there was no abuse of discretion in Judge Henkle's denial of the motion to recuse under 28 U.S.C. 455(b) where the judge's ex parte meeting with the Marshals regarding a disputed factual issue did not lead an objective disinterested lay observer to entertain significant doubt about the judge's impartiality and the judge did not have personal knowledge of disputed evidentiary facts concerning the proceeding, nor was he likely to be a material witness. Addressing five of the six grounds defendant relied on in seeking a new trial, the court also concluded that there was no abuse of discretion in Judge Fuller's handling of the motion for new trial under Federal Rule of Criminal Procedure 33(b)(1). Accordingly, the court affirmed the judgment of the district court. View "United States v. Scrushy" on Justia Law

Bistline pled guilty to knowingly possessing 305 images and 56 videos of child pornography on his computer, many of which depicted 8- to 10-year-old girls being raped by adult men. His recommended Guidelines sentence was 63 to 78 months’ imprisonment. The district court sentenced Bistline to a single night’s confinement in lockup, plus 10 years’ supervised release. The Sixth Circuit vacated, noting that Bistline’s guidelines range should have been “the starting point” for considering the factors in 18 U.S.C. 3553(a) and that the court was entitled to consider Bistline’s age, health, and family circumstances, but that those could not justify the sentence imposed. On remand, the district court again imposed a sentence of one day’s confinement and 10 years’ supervised release, stating: “If I have got to send somebody like Mr.Bistline to prison, I’m sorry, someone else will have to do it. I’m not going to do it.” The Sixth Circuit vacated and remanded for reassignment and resentencing. View "United States v. Bistline" on Justia Law