Justia Legal Ethics Opinion Summaries

After a jury awarded plaintiff $16 in unpaid minimum wages and $16 in liquidated damages and found against her on causes of action alleging she had been raped by her employer, the trial court determined that plaintiff was the prevailing party for purposes of Code of Civil Procedure section 1032 and awarded her $19,523 in costs, as well as $3.20 in attorney fees based on the formula in section 1031 that multiples the wages recovered by 20 percent.In the published portion of the opinion, the Court of Appeal concluded that, in this case where plaintiff lost all of the California Fair Employment and Housing Act (FEHA) claims, lost some non-FEHA claims, and prevailed on some non-FEHA claims, the award of costs is governed by the interaction of section 1032 and Government Code section 12965, subdivision (b). The court concluded that section 12965, subdivision (b) bars plaintiff from recovering the costs caused solely by the inclusion of the FEHA causes of action in this lawsuit. Furthermore, the other costs incurred in the lawsuit are recoverable under section 1032, subject to the discretionary exception in section 1033, subdivision (a). The court directed the trial court on remand to determine which cost items, if any, are barred by section 12965, subdivision (b) before entering an award in accordance with sections 1032 and 1033.The court also concluded that the parties' dispute over attorney fees requires an interpretation of section 1031 and Labor Code section 1194. The court explained that the literal terms of these attorney fees provisions cover this case because of the recovery of minimum wages. In situations where these statutes overlap, the court concluded that section 1194 controls because it is the more specific statute and its attorney fees provision is the most recently enacted. Therefore, the trial court court should have exercised the discretion granted by section 1194 and awarded plaintiff reasonable attorney fees, rather than applying section 1031 and awarding 20 percent of the wages recovered. The court remanded for reasonable attorney fees. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings on the issues of attorney fees and costs. View "Moreno v. Bassi" on Justia Law

Three clients filed separate discrimination cases, which were consolidated for discovery. The defendants obtained summary judgment. The clients filed a notice of appeal, then hired Paddick, who entered into a contingency fee agreement with each client, providing that Paddick would serve as counsel on remand and promising Paddick a 40 percent fee of any trial or settlement proceeds. Paddick prevailed in the appeal, then took 24 depositions, presented two oral arguments, attended two settlement conferences, and filed nine substantive motions or responses. When it came time to retain an expert witness, Paddick was unable to advance the necessary funds. The clients terminated their relationship with Paddick and retained Thompson to pursue their claims for a 35 percent contingent fee. Paddick informed Thompson of his work, noting that “fees remain due.” Thompson did not respond. The case settled for $380,000; Thompson’s share was $133,000. The district court acknowledged the settlements and dismissed the cases.A month later, Paddick successfully moved to intervene to enforce an attorney’s charging lien against the settlement proceeds. The Third Circuit affirmed an order that Thompson pay Paddick $54,562.73 from Thompson’s portion of the recovery. The district court had ancillary enforcement jurisdiction to resolve Paddick’s lien motion. The clients did not produce clear and convincing evidence of duress; imperfect representation does not necessarily bar Paddick from recovery. A client “should never be made to pay twice.” View "Butt v. United Brotherhood of Carpenters & Joiners of America" on Justia Law

In this matter concerning vicarious disqualification of a prosecutor's office, the Supreme Court held that a trial court has broad discretion to vicariously disqualify a prosecutor's office based on an appearance of impropriety.Darren Goldin was indicted for first-degree murder. Goldin sought to disqualify the entire Tuscon branch of the Attorney General's office based on ethical violations committed by Richard Wintory, the assistant attorney general. Wintory was removed from the case. Goldin accepted a plea agreement, the plea was revoked, and charges were reinstated after Goldin prevailed on an ineffective assistance of counsel claim. Upon his return to the trial court, Golden again attempted to vicariously disqualify the Tuscon office. The superior court granted the motion based on the appearance of impropriety and the importance of Defendant's constitutional right to counsel. The court of appeals overturned the superior court's disqualification order. The Supreme Court vacated the court of appeals' opinion, holding that, where actual misconduct may have tainted the proceeding, the trial court did not abuse its discretion in disqualifying the Tucson office. View "State v. Honorable Goldin" on Justia Law

The Orlans law firm, sent a letter on law-firm letterhead, stating that Wells Fargo had referred the Garland loan to Orlans for foreclosure but that “[w]hile the foreclosure process ha[d] begun,” “foreclosure prevention alternatives” might still be available if Garland contacted Wells Fargo. The letter explained how to contact Wells Fargo “to attempt to be reviewed for possible alternatives,” the signature was typed and said, “Orlans PC.”Garland says that the letter confused him because he was unsure if it was from an attorney and “raised [his] anxiety” by suggesting “that an attorney may have conducted an independent investigation and substantive legal review ... such that his prospects for avoiding foreclosure were diminished.” Garland alleges that Orlans sent a form of this letter to thousands of homeowners, without a meaningful review of the homeowners’ foreclosure files, so the communications deceptively implied they were from an attorney. The Fair Debt Collection Practices Act (FDCPA) prohibits misleading debt-collection communications that falsely imply they are from an attorney.The Sixth Circuit affirmed the dismissal of the purported class action for lack of jurisdiction. Garland lacks standing. That a statute purports to create a cause of action does not alone create standing. A plaintiff asserting a procedural claim must have suffered a concrete injury; bare allegations of confusion and anxiety do not qualify. Whether from an attorney or not, the letter said nothing implying Garland’s chance of avoiding foreclosure was “diminished.” View "Garland v. Orlans, PC" on Justia Law

Jensen was charged as a coconspirator in a felony indictment alleging a scheme under which members of the Santa Clara County Sheriff’s Department issued hard-to-obtain concealed firearms permits in exchange for substantial donations to an independent expenditure committee supporting the reelection campaign of Sheriff Smith. Jensen is a sheriff’s department captain identified as the individual within the sheriff’s department who facilitated the conspiracy. Jensen unsuccessfully moved to disqualify the Santa Clara County District Attorney’s Office from prosecuting him, alleging that that office leaked grand jury transcripts to the press days before the transcripts became public which created a conflict of interest requiring disqualification. He also joined in codefendant Schumb’s motion to disqualify the office due to Schumb’s friendship with District Attorney Rosen and Rosen’s chief assistant, Boyarsky.The court of appeal rejected Jensen’s arguments for finding a conflict of interest requiring disqualification: the grand jury transcript leak, Schumb’s relationships with Rosen and Boyarsky, and a dispute between Rosen and Sheriff Smith about access to recordings of county jail inmate phone calls. The trial court could reasonably conclude Jensen did not demonstrate that the district attorney’s office was the source of the leak. Jensen himself does not have a personal relationship with Rosen or Boyarsky. The trial court could reasonably conclude that Jensen did not establish a conflict of interest based on the existence of a dispute between the district attorney and the elected official with supervisory power over Jensen. View "Jensen v. Superior Court" on Justia Law

Schumb was charged as a coconspirator in a felony indictment alleging a quid pro quo scheme in which members of the Santa Clara County Sheriff’s Department issued hard-to-obtain concealed firearms permits in exchange for substantial monetary donations to the reelection campaign of Sheriff Smith. Schumb is an attorney with a history of fundraising for elected officials; he accepted the donations as a treasurer of an independent expenditure committee supporting Sheriff Smith’s reelection. Schumb is a friend of Rosen, the elected Santa Clara County District Attorney, and previously raised funds for Rosen’s campaigns.Schumb unsuccessfully moved to disqualify the Santa Clara County District Attorney’s Office from prosecuting him, arguing that his friendships with Rosen and Rosen’s chief assistant, Boyarsky, created a conflict of interest making it unlikely Schumb would receive a fair trial. Schumb asserted that he intends to call Rosen and Boyarsky as both fact and character witnesses at trial and. despite their personal connections to the case, neither Rosen nor Boyarsky made any effort to create an ethical wall between themselves and the attorneys prosecuting the case. The court of appeal vacated and directed the lower court to enter a new order disqualifying the Santa Clara County District Attorney’s Office in Schumb's prosecution. View "Schumb v. Superior Court" on Justia Law

After petitioner prevailed on an application for a writ of habeas corpus seeking release from federal immigration detention, he sought to recover attorney's fees under the Equal Access to Justice Act. The Fourth Circuit has previously held, pursuant to O'Brien v. Moore, 395 F.3d 499, 508 (4th Cir. 2005), that the Act does not apply to a habeas proceeding seeking release from criminal detention. The court held that the same is true for habeas proceedings seeking release from civil detention. Therefore, the court affirmed the district court's denial of attorney's fees because the Act does not provide a basis for petitioner to recover attorney's fees. View "Obando-Segura v. Garland" on Justia Law

The Court of Appeals agreed with the recommendation of the Maryland Commission on Judicial Disabilities that the Court issue an order removing Amy Leigh Nickerson, a judge of the Orphans' Court for Kent County, holding that Judge Nickerson's conduct violated several provisions of the Maryland Code of Judicial Conduct and that her removal from office was appropriate.The Commission's investigative counsel filed charges against Judge Nickerson originating from allegations of sanctionable conduct arising from a traffic stop of Judge Nickerson that resulted in her arrest. Further, the Commission directed its investigative counsel to investigate a previous outstanding tax lien and judgement entered against Judge Nickerson in favor of the Maryland Comptroller. Judge Nickerson consented to the disposition of the investigations through the entry of a conditional diversion agreement (CDA) and reprimand. When Judge Nickerson failed to satisfy the terms and conditions, the Commission revoked the CDA and recommended that the Court issue an order removing Judge Nickerson from office. The Court of Appeals determined that Judge Nickerson's removal from office was the only outcome that would preserve the integrity of the judiciary, discourage others from engaging in similar conduct, and assure the public that the judiciary will not abide judicial misconduct. View "In re Judge Nickerson" on Justia Law

In this civil action for reimbursement of attorney fees incurred in the successful defense of criminal charges the Supreme Court held that Utah Code 52-6-201 did not require Bret Rawson P.C. to subtract a donation made from a legal defense fund in calculating "reasonable attorney fees and court costs."Defendant, a West Valley City police officer, was charged with manslaughter arising out of conduct in the line of duty. After a preliminary hearing, the charge was dismissed. Defendant assigned his claim to a right of reimbursement of his attorney fees to Rawson. Rawson then filed this action seeking reimbursement of reasonable attorney fees under section 52-6-201. West Valley City filed a motion asserting that the amount of available fees was limited in two ways. The district court denied the motion. The Supreme Court affirmed in part and remanded, holding (1) the district court properly found that a $60,000 donation by a legal defense fund should not be subtracted from the total amount of fees "necessarily incurred" in the defense of the charge against Defendant; and (2) as to the City's argument that the amount of fees "necessarily incurred" was capped by a flat fee agreement entered into between Defendant's defense team and his counsel, the case must be remanded for further proceedings. View "West Valley City v. Rawson" on Justia Law

Reck purchased a new car manufactured by FCA, experienced frequent issues with the vehicle, and unsuccessfully requested its repurchase. Reck sued under the Song-Beverly Consumer Warranty Act, Civ. Code, 1790 After discovery, FCA served Reck with a second Civil Code section 998 offer, proposing to settle the matter for $81,000 plus costs, expenses, and attorney fees. Their counsel, Knight, had incurred $15,000 in legal fees. The Recks rejected the offer. Two days after trial commenced, the case settled for $89,500 plus fees and costs to be determined separately.Counsel sought attorney fees under section 1794(d): $46,487.50 in services provided by Knight and $78,344 in legal services provided by Century Law. FCA objected, arguing that the Recks incurred approximately $100,000 in attorney fees between April 2018, when the $81,000 settlement offer was refused, and August 2018, when they agreed to settle; that adding a second law firm to try the case resulted in unnecessary duplication of effort; and that three of their motions had been denied or withdrawn. The trial court found the case “not particularly complex” and awarded $20,158 in attorney fees with a requested .5 multiplier, finding that the $8,500 difference did not justify an award of fees for any hours spent preparing for trial.The court of appeal reversed. The Song-Beverly Act mandates the recovery of reasonable attorney fees to a prevailing plaintiff based upon “actual time expended.” The trial court did not undertake a lodestar analysis of fees reasonably incurred following the rejection of the settlement offer. In the context of public interest litigation with a mandatory fee-shifting statute, it is an error of law for the court to categorically deny or reduce an attorney fee award on the basis of a plaintiff’s failure to settle when the ultimate recovery exceeds the section 998 settlement offer. View "Reck v. FCA US LLC" on Justia Law