Justia Legal Ethics Opinion Summaries

Americaribe, a general contractor, appealed the district court's award of attorney's fees to Fidelity, the surety on a performance bond issued for a construction subcontract between Americaribe and the subcontractor CPM. The Eleventh Circuit reversed and held that Fidelity was not entitled to recover the attorney's fees it incurred in this litigation because neither the performance bond nor the subcontract provided for such an award of prevailing party attorney's fees. Because the district court abused its discretion in awarding Fidelity attorney's fees, the court remanded for further proceedings. View "International Fidelity Insurance Co. v. Americaribe-Moriarity JV" on Justia Law

The Supreme Court ordered that Respondent Ronald L. Chapman be suspended without compensation from office as a Judge of the General Court of Justice, District Court Division Twenty-Six, for thirty days for conduct violating Canons 1, 2A, 3A(5), and 3B(1) of the North Carolina Code of Judicial Conduct and for conduct prejudicial to the administration of justice that brings the judicial office into disrepute, in violation of N.C. Gen. Stat. 7A-376, holding that the Judicial Standards Commission’s recommended thirty-day suspension without compensation was appropriate.The Commission Counsel filed a statement of charges against Respondent, alleging that he had engaged in inappropriate conduct by failing to issue a ruling for more than five years on a motion for permanent child support. Based on its findings of fact and conclusions of law, the Commission recommended that the Supreme Court suspend Respondent without pay for a period of thirty days. The Supreme Court concluded that the recommended sanction was appropriate and ordered that Respondent be suspended without compensation for thirty days. View "In re J.C." 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

In Cherokee Funding v. Ruth, 802 SE2d 865 (2017), the Georgia Court of Appeals decided that neither the Industrial Loan Act, nor the Payday Lending Act, applied to certain transactions in which a financing company provides funds to a plaintiff in a pending personal-injury lawsuit, the plaintiff is obligated to repay the funds with interest only if his lawsuit is successful, and his obligation to repay is limited to the extent of the damages that he recovers in the lawsuit. The Georgia Supreme Court granted certiorari to review the decision in Cherokee Funding. Ronald Ruth and Kimberly Oglesby sustained injuries in automobile accidents, and they retained attorney Michael Hostilo to represent them in connection with lawsuits to recover damages for their injuries. While their lawsuits were pending, Ruth and Oglesby obtained funds from Cherokee Funding pursuant to financing agreements that Hostilo signed on their behalf. Cherokee Funding would provide funds to Ruth and Oglesby for personal expenses, and for the most part, their obligation to repay those funds was contingent upon the success of their lawsuits. If they recovered nothing, they would have no obligation to repay. If they recovered damages, however, they would be required to repay the amounts that Cherokee Funding had provided, as well as interest at a rate of 4.99 percent per month and various other “fees,” up to the amount of their recovery. In no event would they be required to pay Cherokee Funding any amounts in excess of their lawsuit recovery. In fact, Ruth and Oglesby would not have been in default under the financing agreements if they dismissed their underlying lawsuits and kept the money they received from Cherokee Funding. Cherokee Funding provided $5,550 to Ruth in several small installments between April 2012 and June 2013. Ruth settled his case for an unspecified amount; Cherokee Funding sought to recover more than $84,000 from Ruth pursuant to the terms of his agreement. Similarly, Oglesby settled her lawsuit for an unspecified amount, and money was deducted from her settlement proceeds to repay Cherokee Funding. The two then sued Cherokee Funding seeking relief for themselves and a putative class of similarly situated people to whom Cherokee Funding provided funds under agreements facilitated by Hostilo. The Georgia Supreme Court affirmed the appellate court’s determination that the Payday Lending Act nor the Industrial Loan act applied in this case. View "Ruth v. Cherokee Funding, LLC" on Justia Law

For the reasons discussed in this opinion, by a prior order, Dana Marie Santino was removed from office on the grounds that Santino’s conduct “does not evidence a present fitness to hold judicial office.”On July 2, 2018, the Supreme Court issued an order removing Santino from the office of county judge of Palm Beach County, Florida. Here, the Court provided an opinion explaining the reasons for removal. The Judicial Qualifications Commission hearing panel concluded that Santino violated Judicial Canons 7A(3)(a), (3)(b), (3)(c), (e)(i), and (e)(ii) and Rule 4-8.2(a) and (b) of the Rules of Professional Conduct for making false and misleading statements about her opponent, Gregg Lerman, in e-mail advertisements and on social media during her 2016 election campaign and recommended that she be removed from office. The Supreme Court held that Santino’s campaign misconduct warranted removal under these facts. View "Inquiry Concerning Judge Dana Marie Santino" on Justia Law

The Court of Appeals upheld the determination of the New York State Commission on Judicial Conduct sustaining four charges of misconduct against Petitioner, a Judge of the Civil Court of the City of New York, Queens County, and the conclusion that Petitioner should be removed from office, holding that the charges were sustained by the evidence and that the sanction of removal was appropriate.The Commission determined that Petitioner violated the Rules Governing Judicial Conduct, including rules 100.1, 100.2(A), 100.2(B), 100.3(B)(1), and 100.3(B)(3). The Court of Appeals held that the Commission’s determined sanction of removal was warranted, considering Petitioner’s conduct as a whole and all of the relevant circumstances, and ordered that Petitioner be removed from office. View "In re O'Connor" on Justia Law

The Court of Appeals accepted the State Commission on Judicial Conduct’s recommendation that Petitioner Leticia D. Astacio be removed from her judicial office as a Judge of the Rochester City Court, Monroe County, holding that Petitioner’s actions violated sections 100.1, 100.2(A), 100.2(C), 100.3(B)(3), 100.3(E)(1)(a)(i), and 100.4(A)(2) of the Rules Governing Judicial Conduct.Before the Court, Petitioner did not challenge the Commission’s findings of fact and determination to sustain all charges of misconduct, but, rather, asked the Court to reduce the sanction from removal to censure. After considering the full spectrum of Petitioner’s behavior and its impact on public perception of the judiciary, the Court of Appeals held that the Commission’s determination should be accepted and that Judge Astacio be removed from office. View "In re Leticia D. Astacio" on Justia Law

Applicant Ahmed Hamid-Ahmed appealed a Vermont Board of Bar Examiners (Board) denying his application to take the Vermont bar exam. Applicant has a bachelor’s degree with a major in criminal justice and a Master of Laws degree (LLM) from Widener University School of Law. However, he does not have a Juris Doctor (JD) or a substantially equivalent law degree from a foreign or domestic non-approved law school, he has not enrolled in a law office study program, and he has not been admitted to any other bar, foreign or domestic. Despite this, applicant argues that he is eligible to take the bar exam under Vermont Rule of Admission to the Bar 8(c)(4)’s “curing provision” by virtue of his LLM. He further argues that the Board violated his due process rights when it denied his application but did not explicitly notify him of the process for appealing that decision to the Vermont Supreme Court. Because appellant did not meet the requirements outlined in the Vermont Rules of Admission to the Bar, the Supreme Court affirmed. View "In re Ahmed M. Hamid-Ahmed" on Justia Law

The Supreme Court granted the writ of prohibition sought by Petitioner, the Honorable Margaret L. Workman, Chief Justice of the Supreme Court of Appeals of West Virginia, and halted the impeachment proceedings against her, holding that the prosecution of Petitioner for the allegations set forth in Article IV, Article VI, and Article XIV of the Articles of Impeachment was prohibited.Petitioner was impeached on three of the eleven Articles of Impeachment approved by the House of Delegates. Articles IV and VI alleged that Petitioner improperly authorized the overpayment of senior-status judges, and Article XIV included charges that Petitioner and three other justices failed to implement various administrative policies and procedures. Petitioner filed this proceeding to have the Articles of Impeachment against her dismissed, naming as Respondents the president and president pro tempore of the Senate, the clerk of the Senate, and the West Virginia Senate. The Supreme Court granted a writ of prohibition, holding (1) the prosecution of Petitioner for the allegations at issue violated the separation of powers doctrine; (2) Respondents lacked jurisdiction over the alleged violations in Articles IV and VI and lacked jurisdiction over the alleged violation in Article XIV as drafted; and (3) the failure to set forth findings of fact and to pass a resolution adopting the Articles of Impeachment violated due process principles. View "State ex rel. Workman v. Carmichael" on Justia Law

After plaintiffs successfully prosecuted their cases, the Treasury Department determined that plaintiffs had outstanding debts to various government entities. However, plaintiffs had assigned to counsel any legal fees to which they might be entitled under the Equal Access to Justice Act (EAJA). The Treasury Department, rather than paying out the fees directly, reduced plaintiffs' debts by equal amounts under the Treasury Offset Program and thus the attorneys received nothing.The Seventh Circuit held that it would be imprudent to entertain new administrative claims that were only minimally related to the judgments, and declined to exercise ancillary jurisdiction over plaintiffs' collateral challenges to the regulations. Accordingly, the court affirmed the district courts' judgments. In this case, the district courts properly granted attorney fees under the EAJA, and the government properly applied those fees to plaintiffs' outstanding debts. View "Harrington v. Berryhill" on Justia Law