Justia Legal Ethics Opinion Summaries

Articles Posted in Legal Ethics
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Plaintiffs sued IFP and multiple DOE defendants for violating various labor laws as well as the unfair competition law (UCL)(Bus. & Prof. Code, 17200 et seq.). The amended complaint stated seven claims, the sixth of which alleged the failure to provide rest breaks as required by Labor Code 226.7. Plaintiffs ultimately dismissed this claim with prejudice after settling with the DOE defendants. IFP subsequently moved for attorney's fees under Labor Code 218.5. The trial court awarded fees and the Court of Appeal affirmed. The court concluded, in light of the relevant statutory language and legislative history, that neither Labor Code 1194 nor 218.5 authorized an award of attorney's fees to a party that prevailed on a section 226.7 claim. Accordingly, the court reversed on this claim and affirmed the judgment on plaintiffs' other claims. View "Kirby, et al. v. Imoos Fire etc." on Justia Law

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This case stemmed from a suit filed by plaintiffs against the Water District to enjoin the Water District from pumping polluted canal water into Lake Okeechobee. The Tribe joined the suit on plaintiffs' side. The Tribe subsequently appealed the district court's denial of its motion for attorneys' fees. The court affirmed the district court's finding that the Tribe was not a "prevailing party" because, although the district court had ruled in its favor, the decision was overturned on appeal. View "Miccosukee Tribe of Indians of FL, et al. v. South Florida Water Mgmt., et al." on Justia Law

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Appellant Harrill & Sutter filed a complaint in the circuit court alleging a violation of Arkansas's Freedom of Information Act (FOIA). Appellant had previously filed a medical-malpractice action against three physicians, who were employed by the University of Arkansas for Medical Sciences (UAMS). Mariam Hopkins was hired to represent the physicians. Appellant subsequently filed a FOIA request asserting that because Hopkins represented public employees, Hopkins's file was a public record. Hopkins refused to allow Appellant to inspect the file, and Appellant filed the present case. The circuit court found (1) Hopkins, her firm, and the physicians were not the custodians for the FOIA request to UAMS or to the University of Arkansas Board of Trustees; (2) Appellees did not have administrative control of the public records of those entities; (3) the records sought by Appellant were not public records under FOIA and, therefore, were not subject to a FOIA request; and (4) the litigation files and documents sought by the FOIA request were subject to attorney-client privilege and were work-product. The Supreme Court affirmed, holding that the circuit court did not err in finding that FOIA did not apply. View "Harrill & Sutter, PLLC v. Farrar" on Justia Law

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The attorney, purporting to represent the guardian of Cristina’s financial interests, filed suit in state court, alleging that Cristina, a minor, had been abused by six defendants. Her general guardian had discharged the attorney. The attorney dismissed the suit. The defendants sought sanctions. The attorney filed a notice of removal to federal court. Within a month, and following a "deluge of motions" from the attorney, the federal court remanded the proceeding to state court. The defendants requested an award of attorneys' fees for wrongful removal, 28 U.S.C. 1447(c). The district judge concluded that the attorney had vexatiously multiplied the proceedings, 28 U.S.C. 1927 and ordered him to pay $10,155 to one defendant and $2,432 to another. The Seventh Circuit affirmed under 1447(c). The removal "was worse than unreasonable; it was preposterous."View "MB Financial, N.A. v. Novoselsky" on Justia Law

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Landmark invented an LED billboard and retained Kohler to file a patent application. Kohler filed the 096 application. USPTO indicated that the application contained multiple inventions. Kohler pursued two claims and withdrew others, intending that withdrawn claims would be pursued in divisional applications, to benefit from the 096 filing date. Kohler submitted an incomplete (916) divisional application, not using a postcard receipt to enable prompt notification of deficiencies. Months later, PTO issued notice of incomplete application. Kohler had changed firms. The anniversary of the 096 application’s publication passed; the 096 application became prior art against the 916 application under 35 U.S.C. 102(b). The attorneys did not immediately notify Landmark. Their petition to grant the 916 application an earlier filing date was dismissed. Landmark eventually filed suit alleging malpractice, negligence, and breach of fiduciary duty and reached a partial settlement. The state court dismissed remaining claims for lack of subject matter jurisdiction. Landmark filed the same claims in federal court, adding claims for breach of contract and fraud. The district court dismissed all except the fraud claim under a one-year limitations period and later dismissed the fraud claim under a three-year limitations period. The Federal Circuit reversed. Under California equitable tolling law, the state law fraud claim was timely filed. View "Landmark Screens, L.L.C. v. Morgan, Lewis & Bockius, L.L.P" on Justia Law

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The Vice Chancellor made an interim fee award of $2.5 million to plaintiff's attorneys, after the Court of Chancery's decision in Kurz v. Holbrook and the court's decision in Crown EMAK Partners, LLC v. Kurz. Delaware law rewarded plaintiffs' attorneys who provided a benefit to a Delaware corporation, even if the benefit did not produce immediate monetary rewards. The court held that the record supported the Vice Chancellor's factual finding that the voting rights preserved by the litigation were meaningful, and the court declined the invitation to fine tune the amount he awarded. Accordingly, the court affirmed the judgment of the Court of Chancery. View "Emak Worldwide, Inc. v. Kurz, et al." on Justia Law

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This case involved intellectual property related to the Superman character created by writer Jerome Siegel and illustrator Joe Schuster. In 2010, D.C. Comics filed a lawsuit against Marc Toberoff, owner of a joint venture with the heirs of Shuster and Siegel (Heirs), the Heirs, and three entities in which Toberoff owned a controlling interest (collectively, petitioners), claiming that Toberoff interfered with its contractual relationships with the Heirs. Toberoff had hired lawyer David Michaels to work for one of his companies. Michaels remained in Toberoff's employ for only about three months before absconding with copies of several documents from the Siegel and Shuster files. These documents formed the basis of this lawsuit. About a month after the suit was filed, Toberoff asked the U.S. Attorney to investigate Michaels and, in response, the U.S. Attorney's Office issued a grand jury subpoena for the documents at issue as well as a letter stating that if Toberoff voluntarily complied with the subpoena, the Government would "not provide the...documents...to non-governmental third parties except as may be required by law or court order." At issue was whether a party waived attorney-client privilege forever by voluntarily disclosing privileged documents to the federal government. Given that Congress has declined broadly to adopt a new privilege to protect disclosures of attorney-client privileged materials to the government, the court would not do so here. The court also rejected petitioner's assertion that even if the court rejected selective waiver as a general matter, the court should enforce a purported confidentiality agreement based upon the letter from the U.S. Attorney's Office where petitioners have provided no convincing reason that post hoc contracts regarding how information could be revealed encouraged frank conversation at the time of the advice. The court further rejected petitioners' remaining claims and denied the petition for mandamus. View "Pacific Pictures Corp., et al. v. USDC-CALA" on Justia Law

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This case stemmed from a class action that began more than a quarter century ago where Idaho state prisoners at the Idaho State Correctional Institution (ISCI) prevailed on their claims that, inter alia, because of deliberate indifference, without any connection to a legitimate penological purpose, the inmates were subjected to needless pain and suffering on account of inadequate medical and psychiatric care. The district court issued an injunction to remedy the constitutional violations and the injunctions remained in effect in 2008 and 2009 when the facts giving rise to this case occurred. The Portland law firm of Stoel Rives, LLP was appointed to represent the prisoner class. At issue on appeal was whether Stoel Rives was entitled to an attorneys' fee award in the class action under the Prison Litigation Reform Act (PLRA), 42 U.S.C. 1997e. The court held that, in this case, the judge had discretion to consider whether Stoel Rives's work on a motion to compel conformity to the injunction was "directly and reasonably incurred in enforcing the relief." The district court acted within the bounds of its discretion in awarding fees in a reasonable amount for bringing about that conformity with the injunction. Here, Stoel Rives's work was what one would expect of a lawyer working for a client that could afford its efforts but that was not indifferent to the cost. The firm showed no evidence of milking the case, and the fees were "directly and reasonably incurred." Accordingly, the court affirmed the judgment. View "Balla v. State of Idaho, et al." on Justia Law

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In 2000, husband and wife, with an estate valued at $3 to $4 million, revised their estate plan with the assistance of their Illinois lawyer, a Minnesota lawyer, and a law partner of their son-in-law. The plan included a trust that treated their son and his daughter, India, less favorably than their two daughters and other grandchildren. When they died within a month of each other in 2004, their son and India sued the three lawyers, alleging malpractice and breach of fiduciary duty. The district court rejected a conflict-of-interest argument and dismissed most of the claims as untimely or barred. India's minor status tolled the limitations period, but the court dismissed her claim as premature. The Seventh Circuit affirmed and held that India's claim should have been dismissed with prejudice. The district court properly chose Illinois's statute of limitations over Minnesota's; and properly rejected waiver and equitable-tolling arguments. The court properly dismissed the fiduciary-duty claims as barred by res judicata; there had been state court litigation concerning sale of the family home. There was no evidence to support India’s contention that her grandparents intended her to receive more than the documents provide. View "Ennenga v. Starns" on Justia Law

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In 1999 Beasley filed a patent application for personalized postage stamps. In 2001 the PTO issued notice of allowance. Beasley then entered into a licensing agreement with Avery, specifying that Avery would assume responsibility for prosecution of the patent application and would pay patent prosecution expenses. Beasley appointed Renner to prosecute his application. A Renner attorney filed a supplemental information disclosure statement concerning prior art references. The PTO issued a second notice of allowance. Beasley transferred ownership USPPS. USPPS and Avery entered into an agreement. Later, the PTO vacated its notice of allowance and issued final rejections. Beasley and USPPS alleged that Avery mismanaged the application. Beasley’s suit for was dismissed for lack of standing. USPPS filed suit, alleging breach of fiduciary duty and fraud, based on Avery’s alleged representation that Beasley was the client of Renner. The district court granted summary judgment for defendants. The Fifth Circuit transferred to the Federal Circuit, finding that jurisdiction was based, in part, on 28 U.S.C. 1338 and that the alleged malpractice involves a question of patentability, even if no patent actually issued. The Federal Circuit affirmed, holding that it had jurisdiction and that the complaint was untimely. View "USPPS, Ltd. v. Avery Dennison Corp." on Justia Law