Justia Legal Ethics Opinion Summaries

Articles Posted in Legal Ethics
by
Plaintiff appealed a judgment after the trial court's grant of defendants' motion for terminating sanctions. Chase moved for terminating sanctions based on its unsuccessful attempts to depose plaintiff's brother and plaintiff's threats of physical violence. The court held that courts have the inherent authority to dismiss a case as a sanction and the authority should be exercised only in extreme situations, such as where the conduct was clear and deliberate and no lesser sanction would remedy the situation. The court concluded that, based on plaintiff's conduct, this case required a terminating sanction. The court cited plaintiff's failure to pay sanctions, harassing behavior, highly contemptuous statements made to the court, brandishing pepper spray and use of a stun gun. The court rejected plaintiff's arguments and affirmed the judgment. View "Crawford v. JPMorgan Chase Bank, N.A." on Justia Law

by
Petitioners, a bipartisan group of citizens, requested that a three-judge court be convened to consider their claim that Maryland’s 2011 congressional redistricting plan burdens their First Amendment right of political association. The district court dismissed the action, concluding that no relief could be granted. The Fourth Circuit affirmed. The Court held that 28 U.S.C. 2284 entitles petitioners to make their case before a three-judge court because, under section 2284(a), the present suit is indisputably an action challenging the constitutionality of the apportionment of congressional districts. The Court further held that the subsequent provision of section 2284(b)(1), that the district judge shall commence the process for appointment of a three-judge panel “unless he determines that three judges are not required,” should be read not as a grant of discretion to the district judge to ignore section 2284(a), but as a compatible administrative detail. The Court went on to say that this conclusion is bolstered by section 2284(b)(3)’s explicit command that “[a] single judge shall not . . . enter judgment on the merits.” Finally, the Court held that respondents' alternative argument, that the District Judge should have dismissed petitioners' claim as "constitutionally insubstantial" under Goosby v. Osser, is unpersuasive. Accordingly, the Court reversed and remanded. View "Shapiro v. McManus" on Justia Law

by
Blume Construction, Inc. appealed a district court judgment affirming a Job Service North Dakota decision, finding Blume did not file a valid appeal and the agency's determination assigning Blume a final penalty tax rate. Blume received a notice of determination from Job Service informing Blume that it would be assigned a penalty tax rate for unemployment insurance. The notice stated the agency conducted an audit and concluded there was a transfer of ownership and payroll between Blume and another company that was knowingly done to obtain a lower tax rate for unemployment insurance. The notice informed Blume it would be assigned the highest tax rate assignable for the next three years. The notice advised Blume the determination would become final unless a written appeal was made to Job Service within fifteen days. Job Service received an electronic appeal request for Blume signed by Craig Fidler. Fidler was identified as a licensed attorney from Colorado. Fidler was not licensed to practice law in North Dakota. In approximately May 2014, Fidler notified the referee he was unable to secure a sponsoring attorney licensed in North Dakota. During that same time period, the referee was informed a North Dakota attorney would be representing Blume. Blume argued the referee erred in finding Blume's attorney engaged in the unauthorized practice of law and the appealed request the attorney filed was void. Finding no reversible error, the Supreme Court affirmed. View "Blume Construction, Inc. v. North Dakota" on Justia Law

by
This appeal stemmed from a copyright dispute over the 2012 motion picture "Killer Joe." Plaintiff filed suit against defendant for copyright infringement and defendant counterclaimed for a declaratory judgment. The district court dismissed the suit, dismissed the counterclaim as moot, and denied defendant's requests for attorney’s fees and to make a record. Defendant appealed. The court concluded that the district court did not abuse its discretion in denying defendant attorney fees because plaintiff may properly sue "John Doe" to ascertain an ISP subscriber and because plaintiff promptly dismissed its lawsuit once it learned defendant was not the infringer and thus had proper motives to sue the subscriber. Further, defendant cites to no authority that a party’s financial status affects whether attorney’s fees under the Copyright Act, 17 U.S.C. 505, should be awarded. Therefore, it was not an abuse of discretion for the district court to fail explicitly to consider the factor of financial status. The court rejected defendant's remaining claims and affirmed the judgment. View "Killer Joe Nevada v. Leaverton" on Justia Law

by
Robert Cooper retained McDonald Carano Wilson LLP (Appellant) to represented him in a personal injury action. Three years into the representation, the district court granted Appellant’s motion to withdraw. Appellant perfected a charging lien for more than $100,000 in attorney fees and costs. Thereafter, Cooper retained another law firm, which obtained a $55,000 settlement for Cooper. The district court concluded that Appellant could not enforce its charging lien because it withdrew before settlement occurred. The Supreme Court reversed, holding that the district court erred in its judgment because Nev. Rev. Stat. 18.015’s language unambiguously allows any counsel that worked on a claim to enforce a charging lien against any affirmative recovery. Remanded for additional findings to determine whether Appellant was entitled to a disbursement and, if it is, the amount of that disbursement. View "Wilson v. Bourassa Law Group, LLC" on Justia Law

by
NOM appealed the district court’s denial of its motion under 26 U.S.C. 7431(c)(3) to collect attorneys’ fees from the IRS. NOM had filed suit against the IRS seeking damages for unlawful inspection and disclosure of confidential tax information by IRS agents. NOM sought statutory damages, actual damages, punitive damages, and costs and attorneys’ fees. the district court concluded that NOM was not a “prevailing party” under section 7430(c)(4)(A) because (1) it did not “substantially prevail[] [in litigation against the IRS] with respect to the amount in controversy, or . . . the most significant . . . issues presented,” and, alternatively, (2) the government’s position in the litigation was “substantially justified” under 7430(c)(4)(B). The court could not say that the government acted unreasonably prior to the summary judgment stage of the litigation by waiting to see what NOM’s evidence was and then challenging its sufficiency. In this case, the government adopted a reasonable strategy in conceding statutory damages, but challenging the existence and amount of both actual and punitive damages. The court agreed with the district court that the government’s litigation position was “substantially justified,” which, by itself, is sufficient to find that NOM was not a “prevailing party” under the statute. Accordingly, the court affirmed the judgment. View "National Org. for Marriage v. IRS" on Justia Law

by
Plaintiff appealed the district court's award of costs to defendant after the district court dismissed plaintiff's underlying qui tam case against defendant with prejudice based on judicial estoppel. The court concluded that the district court abused its discretion in awarding excessive costs for expert witness fees and awarding costs for the following: (1) expedited transcripts; (2) shipping, tabbing, and binding costs; and (3) PACER fees. Altogether, these costs amount to $7768.89. Accordingly, the court modified the award of costs by subtracting this amount. View "Long v. GSDMIdea City, L.L.C." on Justia Law

by
Several Albuquerque residents sued Mayor Richard Berry in his official capacity as Mayor of Albuquerque in state court over the City’s redistricting plan enacted after the 2010 census. This case arose out of an award of attorneys’ fees imposed as a sanction on attorneys who brought a voting-rights lawsuit on the residents' behalf against the Mayor. After dismissing the case, the district court found the attorneys unreasonably multiplied proceedings in what it called a meritless case and sanctioned them under 28 U.S.C. 1927. They argued the award was an abuse of discretion. The Mayor cross-appealed, arguing the court abused its discretion by declining to award fees under several other provisions the Mayor raised as grounds for sanctions. The Tenth Circuit reviewed the case and concluded that most of the attorneys’ arguments lacked merit. However, the Court vacated the award of fees and remanded for the trial court to consider whether a different trigger for the imposition of sanctions was appropriate. View "Baca v. Berry" on Justia Law

by
Plaintiff filed suit against the company managing the prison he was incarcerated in, and others, for multiple violations of his constitutional rights. On appeal, plaintiff challenged the district court’s denial of his motion for appointment of counsel to help litigate his civil rights claims against defendants. The district court denied the motion because it had no funding with which to compensate an appointed attorney, and it could find “no attorneys in the area willing or able to take the case pro bono.” Then the district court entered summary judgment against plaintiff. The court vacated and demanded, concluding that federal courts have inherent power to order counsel to accept an uncompensated appointment under the limited factual circumstances here. On remand, the district court must consider whether a compulsory appointment is warranted. View "Naranjo v. Thompson" on Justia Law

by
Plaintiff filed suit under the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. 1400 et seq., seeking attorneys' fees after she proved in an administrative hearing that a school district had violated her child’s right to a free appropriate public education by repeatedly placing him in isolation during school hours. The court concluded that the district court erred in applying section 1415(i)(2)(B)’s limitations period to this action for attorneys’ fees under the IDEA by a party that prevailed at the administrative level. Because the statute contains no limitations period for such actions, the district court should have borrowed one from state law. The court held that the limitations period for such an action does not begin to run until the time for seeking judicial review of the underlying administrative decision passes, and that plaintiff’s action was timely under any limitations period that could be borrowed. Accordingly, the court reversed the district court's grant of summary judgment and remanded for further proceedings. View "D.G. v. New Caney Indep. Sch. Dist." on Justia Law