Justia Legal Ethics Opinion Summaries

Century Negotiations, Inc. engaged in the unauthorized practice of law by conducting debt-settlement negotiations on behalf of Ohio consumers, as charged by the Ohio State Bar Association.The Board found that Century Negotiations engaged in the unauthorized practice of law by conducting debt-settlement negotiations for more than 3,000 Ohio customers. The Board concluded that no civil penalty was warranted because the company, inter alia, agreed not to engage in the unauthorized practice of law in the future. The Supreme Court adopted the Board’s findings and recommendation and issued an injunction prohibiting Century Negotiations from engaging in further conduct that constitutes the practice of law in Ohio. View "Ohio State Bar Ass’n v. Century Negotiations, Inc." on Justia Law

Home Advocate Trustees, LLC (HAT) engaged in the unauthorized practice of law by providing legal counsel to Ohio residents whose Ohio real property was in foreclosure, as charged in a complaint by the Ohio State Bar Association.A panel of the Board of Commissioners on the Unauthorized Practice of law granted default judgment against HAT and recommended that the Supreme Court issue an injunction prohibiting HAT from engaging in further acts of the unauthorized practice of law and impose a civil penalty. The Board adopted the panel’s findings and recommendation. The Supreme Court adopted the Board’s findings of fact and determination that HAT engaged in the unauthorized practice of law, adopted the Board’s recommendation that an injunction prohibiting HAT from attempting to represent the legal interests of others performing legal services in Ohio, and agreed that HAT’s conduct warranted the imposition of civil penalties. View "Ohio State Bar Ass'n v. Home Advocate Trustees, L.L.C." on Justia Law

The district court granted summary judgment to Effort for Aids in an action seeking to enjoin the Health Insurance Marketplace Innovation Act of 2013 (HIMIA), but denied attorney's fees under 42 U.S.C. 1988(b). The Eighth Circuit reversed the denial of attorney's fees, holding that Effort for AIDS's claims all arose from Missouri's passage of the HIMIA regulating Effort for AIDS, and thus the claims arose from a common nucleus of operative fact. The court remanded for further proceedings. View "St. Louis Effort For AIDS v. Lindley-Myers" on Justia Law

California-American, a water utility, and Marina and Monterey, public water agencies, entered into contracts to collaborate on a water desalination project, stating that the prevailing party of “any action or proceeding in any way arising from [their a]greement” would be entitled to an award of attorney fees and costs. After learning that a member of Monterey’s board of directors had a conflict of interest, having been paid for consulting work to advocate on behalf of Marina, California-American sued to have the contracts declared void under Government Code section 1090. Monterey agreed that the contracts were void. Marina filed cross-claims seeking a declaration that the contracts were “valid and enforceable.” Years of litigation culminated in a holding declaring the agreements void. Marina challenged post-judgment orders that California-American and Monterey were entitled to costs as prevailing parties under Code of Civil Procedure sections 1032 and 1717 and granting them specific attorney fees awards. The court of appeal affirmed, rejecting Marina’s argument that they were not entitled to awards because the underlying contracts were declared void. The illegality exception to the rule of mutuality of remedies applies when the contract's subject matter is illegal but does not apply when the litigation involves the “invalidity” or “unenforceability” of an otherwise legal contract. View "California-American Water Co. v. Marina Coast Water District" on Justia Law

The Eleventh Circuit affirmed the district court's dismissal of plaintiff's claims alleging that her constitutional rights were violated when she was denied access to hearings at the Atlanta Immigration Court. The court affirmed the district court's determination that the immigration court judge was entitled to absolute immunity. The court held that the judge was acting within his judicial capacity when he closed immigration hearings, in which plaintiff was not a party to, nor counsel for, any of the parties. The court held that absolute immunity protected the judge both from plaintiff's Bivens claim and her claim for injunctive relief. Finally, plaintiff has failed to satisfy the difficult burden of showing that the district court abused its unique and substantial discretion in deciding whether to exercise jurisdiction over plaintiff's claim for declaratory judgment. View "Stevens v. U.S. Attorney General" on Justia Law

The Supreme Court reversed the decision of the trial court disqualifying Defendants’ counsel under North Carolina Rule of Professional Conduct 1.9(a), which balances an attorney’s ethical duties of confidentiality and loyalty to a former client with a party’s right to its chosen counsel. Rule 1.9(a) permits disqualification of an attorney from representing a new client if there is a substantial risk that the attorney could use confidential information shared by the client in the former matter against that same client in the current matter. The Supreme Court held (1) rather than applying an objective test as to the scope of the representation and whether the matters were substantially related, the trial court disqualified Defendants’ counsel based on the former client’s subjective perception of the past representation, which Rule 1.9(a) prohibits, as well as the now replaced “appearance of impropriety test”; and (2) therefore, the trial court applied the incorrect standard under Rule 1.9(a) in disqualifying Defendants’ counsel. View "Worley v. Moore" on Justia Law

IH’s patent relates to a method of purchasing goods at a local point-of-sale system from a remote seller. IH sued Bed Bath & Beyond for infringement. Two months later, the district court granted BBB summary judgment, concluding that the Supreme Court’s intervening decision, Alice Corp. v. CLS Bank, rendered the asserted claims invalid under 35 U.S.C. 101 because the asserted claims are directed to the abstract idea of “local processing of payments for remotely purchased goods.” The Federal Circuit affirmed. BBB moved for an award of attorney fees under 35 U.S.C. 285, arguing that, once Alice issued, IH should have reevaluated its case and dismissed the action. The district court granted BBB’s fees motion, holding that, “following the Alice decision, IH’s claims were objectively without merit,” and awarded BBB its attorney fees beginning from the date of the Alice decision, including fees incurred during the section 101 appeal. The Federal Circuit affirmed. IH’s claims were “dubious even before the Alice decision” and Alice was a significant change in the law as applied to the facts of this particular case. View "Inventor Holdings, LLC v. Bed Bath & Beyond, Inc." on Justia Law

Optional filed suit against DAS and its counsel, Akin and Parker, for conversion and fraudulent transfer. Akin and Parker filed special anti-SLAPP motions to strike all claims asserted against them. The Court of Appeal affirmed the trial court's grant of defendants' motions, holding that Optional v. DAS Corp. (2014) 222 Cal.App.4th 1388, was not the "law of the case" for purposes of this appeal; defendants made a prima facie showing that plaintiff's claims arose from defendants' constitutionally protected petition rights where the gravamen of plaintiff's claims was protected activity, namely defendants' representation of DAS in litigation; and plaintiff did not show a probability of prevailing on its claims where the litigation privilege defeated plaintiff's claims. View "Optional Capital, Inc. v. Akin Gump Strauss, Hauer & Feld LLP" on Justia Law

The Supreme Court denied in part and granted in part a petition for a writ of mandamus or prohibition filed by Petitioner, an attorney who was being investigated by the State Bar of Nevada for potential ethical violations after he testified at his personal bankruptcy proceedings that he had not implemented a reliable or identifiable system of accounting for his client trust account. The State Bar served Petitioner with two subpoenas duces tecum seeking production of client accounting records and tax records. Petitioner objected to the subpoenas, asserting his Fifth Amendment right against self-incrimination. The chairman of the Southern Nevada Disciplinary Board (Board) rejected Petitioner’s objections to the subpoenas. This petition for writ relief followed. The Supreme Court held (1) with regard to the requested client accounting records, this court adopts the three-prong test under Grosso v. United States, 390 U.S. 62 (1968), to conclude that the right against self-incrimination does not protect Petitioner from disclosure; but (2) with regard to the requested tax records, the Board must hold a hearing to determine how the records are relevant and material to the State Bar’s allegations against Petitioner and whether there is a compelling need for those records. View "Agwara v. State Bar of Nevada" on Justia Law

In 2007, Kaufman filed a class‐action lawsuit based on Amex’s sale of prepaid gift cards. The packaging declared the cards were “good all over.” Kaufman alleged that these cards were not worth their stated value and were not “good all over” because merchants were ill‐equipped to process “split‐tender” transactions when a holder attempted to purchase an item that cost more than the value remaining on his card. After 12 months Amex automatically charged a “monthly service fee” against card balances. Kaufman alleged Amex designed the program to make it difficult to exhaust the cards' balances. Following the denial of Amex’s motion to compel arbitration, settlement negotiations, and the entry of intervenors, the court certified the class for settlement purposes but denied approval of a settlement, citing the inadequacy of the proposed notice. Response to notices of a second proposed settlement was “abysmal.” A supplemental notice program provided notice to 70% of the class; the court again denied approval. After another round of notice, the court granted final approval in 2016, noting the small rate of opt‐outs and objectors. The court awarded $1,000,000 in fees and $40,000 in expenses to the Plaintiffs’ counsel, $250,000 to additional class counsel, and $700,000 in fees to intervenors' counsel: attorneys would receive $1,950,000. The court concluded the total value of the claims was $9.6 million, that, considering the number of claims and the value of supplemental programs, the total benefit to the class was $1.8 million, and that recovering $9.6 million was unlikely. The Seventh Circuit concluded that the court did not abuse its discretion, despite the settlement’s “issues.” View "Goodman v. American Express Travel Related Services Co., Inc." on Justia Law