Justia Legal Ethics Opinion Summaries

The Federal Election Commission opened an investigation into alleged discrepancies in ARMPAC's financial reporting. ARMPAC conceded that it had violated federal election laws and agreed to pay a civil penalty and terminate operations. Appellant, former treasurer of ARMPAC, was named in the Conciliation Agreement in his official capacity as treasurer. Appellant then filed suit against the law firm that represented ARMPAC and three lawyers, alleging that defendants failed to keep him informed about the Commission's investigation of ARMPAC, signed documents on his behalf without permission, and defamed him in the Agreement. The district court dismissed or granted summary judgment to defendants on each of appellant's claims. The district court concluded that appellant's defamation claim based on the signing of the Agreement was barred by the judicial privilege. The district court also concluded that appellant's remaining negligence claim was barred under D.C. law. The court concluded that appellant's defamation claim was based on statements contained within the Agreement reached between the Commission and ARMPAC, and therefore was encompassed within the judicial privilege. The court also concluded that no D.C. case holds that a plaintiff may maintain a negligence action based on the allegedly defamatory communication. Accordingly, the court affirmed the judgment of the district court. View "Teltschik v. Williams & Jensen, PLLC, et al." on Justia Law

In 1985, a manager was shot to death during a robbery of his restaurant. In the following months, a second manager was murdered and another survived similar robberies. In each restaurant, the robber fired two .38 caliber bullets; all six bullets were recovered. The survivor, Smotherman, described his assailant and picked Hinton’s picture out of a photographic array. The police arrested Hinton and recovered from his house a .38 caliber revolver belonging to his mother, who shared the house. The Alabama Department of Forensic Sciences concluded that the six bullets had all been fired from the Hinton revolver. Hinton was charged with two counts of murder. He was not charged with the Smotherman robbery. The prosecution strategy was to link Hinton to the Smotherman robbery by eyewitness testimony and forensic evidence about the bullets and to persuade the jury that, given the similarity of the crimes, Hinton must have committed the murders. Hinton presented witnesses in support of his alibi that he was at work at the time of the Smotherman robbery. The six bullets and the revolver were the only physical evidence. Hinton’s attorney obtained a grant of $1,000 to hire an expert to challenge that evidence and did not request more funding, nor correct the judge’s mistaken belief that a $1,000 limit applied. Under that mistaken belief, Hinton’s attorney found only one person who was willing to testify: Payne. Hinton’s attorney believed that Payne did not have the necessary expertise. The prosecutor discredited Payne. The jury convicted Hinton; the court imposed a death sentence. In state post-conviction proceedings, Hinton alleged ineffective assistance and produced three highly credible experts, who testified that they could not conclude that any of the bullets had been fired from the Hinton revolver. The state did not submit rebuttal evidence. Following a remand by the state’s highest court, the trial court held that Payne was qualified to testify as a firearms and toolmark expert under the then-applicable standard. The Alabama Supreme Court denied review. The U.S. Supreme Court vacated and remanded, holding that Hinton’s attorney rendered ineffective assistance under its “Strickland” test. It was unreasonable to fail to seek additional funds to hire an expert where that failure was based not on any strategic choice but on a mistaken belief that available funding was limited. View "Hinton v. Alabama" on Justia Law

When Plaintiff retained a Maine law firm to represent him in a legal action, he signed an attorney-client engagement letter that contained an arbitration provision. Plaintiff later sued the law firm and individual defendants (collectively, Defendants) for malpractice and violations of Maine's Unfair Trade Practices Act. Defendants moved to compel arbitration and dismiss the action. The district court granted the motion under the Federal Arbitration Act (FAA). Plaintiff appealed, arguing that the district court erred in enforcing the arbitration clause. The First Circuit Court of Appeals affirmed, holding that the district court did not err in granting the motion to compel arbitration and dismissed the action, as (1) Maine professional responsibility law for attorneys permits arbitration of legal malpractice claims so long as there is no prospective limitation on the law firm's liability; and (2) Maine law, like the FAA, is not hostile to the use of the arbitration forum, and Maine would enforce the arbitration of malpractice claims provision in this case. View "Bezio v. Draeger" on Justia Law

Sneed is the surviving spouse of Reginald, who served on active duty 1964-1968 and suffered service-connected disabilities, including post-traumatic stress syndrome, post-concussion syndrome, degeneration of the vertebrae, narrowing of the spinal column, tinnitus, a perforated tympanic membrane, and scarring of the upper extremities. In 2001, Reginald fell and suffered a spinal cord contusion, rendering him a quadriplegic. In 2003, he was living in a nursing home for paralyzed veterans. There was a fire and all of the residents died of smoke inhalation. Sneed sought dependency and indemnity compensation, 38 U.S.C. 1310, alleging that her husband’s service-connected disabilities were a cause of his death. The VA denied the claim. The Board affirmed. Sneed’s notice of appeal was due by August 3, 2011. Sneed retained attorney Eagle, communicated with Eagle’s office “for a year or longer” and stated that “Eagle knew that there was a deadline.” On August 2, 2011 Sneed received a letter stating that Eagle would not represent Sneed in her appeal. Failing to find new counsel, Sneed filed notice of appeal on September 1, 2011, with a letter explaining her late filing. The Veterans Court dismissed the appeal as untimely. The Federal Circuit vacated, holding that attorney abandonment can justify equitably tolling the deadline for filing an appeal. View "Sneed v. Shinseki" on Justia Law

Attorney Stilp represented Miller in claims concerning the construction of Miller’s house by contractor Herman. The district court dismissed. Stilp recommended that Miller terminate the action based on state law. Miller told Stilp that needed time to consider whether to refile., Herman filed a Chapter 7 bankruptcy petition. Herman’s bankruptcy attorney, Jones, prepared schedules listing the addresses of all creditors. Miller was listed as a creditor on the bankruptcy schedules and creditor matrix, but his address was listed as “c/o Thomas Stilp, Attorney” at Stilp’s office address. Notice of the bankruptcy was delivered to Stilp’s office but was routed to another attorney. Neither Stilp nor Miller was informed of the notice. Miller subsequently informed Stilp that he wanted to refile his complaint against Herman. Stilp then discovered that Herman had filed for bankruptcy protection. Miller did not take immediate action and, about a month later, the bankruptcy court entered a discharge order. About 13 months after he learned of Herman’s bankruptcy petition, Miller moved to reopen the case (11 U.S.C. 727(a)(4)(A)). The bankruptcy court denied the motion. The district court and Seventh Circuit affirmed, finding that Miller had been properly served when notice was delivered to Stilp’s firm.View "Miller v. Herman" on Justia Law

In her representation of a client charged with alien smuggling, 8 U.S.C. 1324, Migdal, an attorney who has served as an Assistant Federal Public Defender for nearly 25 years, had a number of disagreements with the federal prosecutor, who ultimately moved for sanctions against Migdal. The prosecutor failed to follow Department of Justice policy requiring supervisory approval of sanctions requests. Despite the government withdrawing the motion and indicating that it did not believe that Migdal acted in bad faith, the district court entered orders strongly publicly reprimanding Migdal. The Sixth Circuit vacated, stating that the record does not support any basis for the orders. View "United States v. Llanez-Garcia" on Justia Law

Steidl and Whitlock were convicted of 1987 murders, largely based on testimony by two supposed eyewitnesses. Long after the convictions, an investigation revealed that much of the testimony was perjured and that exculpatory evidence had been withheld. The revelations led to the release of the men and dismissal of all charges. Steidl had spent almost 17 years in prison; Whitlock had spent close to 21 years. They sued. By 2013, both had settled with all defendants. Because the defendants were public officials and public entities, disputes arose over responsibility for defense costs. National Casualty sought a declaratory judgment that it was not liable for the defense of former State’s Attorney, McFatridge, or Edgar County, agreeing to pay their costs under a reservation of rights until the issue was resolved. The Seventh Circuit ruled in favor of National Casualty. In another case McFatridge sought a state court order that the Illinois Attorney General approve his reasonable expenses and fees; the Illinois Supreme Court rejected the claim. In a third case, National Casualty sought a declaratory judgment that another insurer was liable for costs it had advanced. The Seventh Circuit affirmed that the other company is liable. It would be inequitable for that company to benefit from National’s attempt to do the right thing, especially since it did not do the right thing and contribute to the defense costs under a reservation of rights. View "Nat'l Cas. Co. v. White Mountains Reinsurance Co." on Justia Law

This case arose when plaintiff filed an employment discrimination suit against his employer, Wal-mart. Plaintiff's attorney represented to the court that plaintiff had pled a gender discrimination claim when he had not. The district court subsequently reprimanded the attorney and imposed Rule 11 sanctions on her. The attorney appealed. The court concluded that the district court did not apply the correct legal standard where the district court's analysis indicated that it was applying an objective reasonableness test. Under the proper standard, pursuant to In re Pennie & Edmonds LLP, sua sponte sanctions should issue only upon a finding of subjective bad faith. Accordingly, the court reversed and vacated the district court's judgment. View "Muhammad v. Wal-Mart Stores East, L.P." on Justia Law

Brindley and Thompson entered appearances as counsel for one of two defendants charged with drug offenses. A joint trial was scheduled. Both moved for continuance; the court set a hearing and ordered defendants counsel to be present. Thompson was present; Brindley was not. At a subsequent status conference, the court scheduled a jury trial and set a deadline for pretrial motions. Britton did not file any motions. On November 6, the court set a status conference for November 26 to discuss pretrial motions and ordered Brindley “to be present in person … not through other counsel.” Defendant appeared, but Brindley and Thompson did not and did not contact the court. The court set a show cause hearing; Brindley moved for continuance, claiming that he had not seen the order and had obligations in another trial. He apologized. The district court denied the motion and ordered Brindley to appear on November 30. Brindley appeared, but the court rejected his explanations as lies, held Brindley in contempt under Fed. R. Crim. P. 42(b), and remanded him to custody for two days. The Seventh Circuit vacated. The court erred in using Fed. R. Crim. P. 42(b)ʹs summary contempt procedures, which apply only when there is a compelling reason for an immediate remedy, contempt occurred in the judge’s presence, and the judge saw or heard the contemptuous conduct. The court noted that if the district court chooses, on remand, to proceed under 18 U.S.C. 401, a different judge will preside. View "United States v. Britton" on Justia Law

After the mutual funds, known as the Lancelot or Colossus group, folded in 2008, the trustee in bankruptcy filed independent suits or adversary actions seeking to recover from solvent third parties, including the Funds’ auditor, law firm, and some of the Funds’ investors, which the Trustee believes received preferential transfers or fraudulent conveyances. The Funds had invested in notes issued by Thousand Lakes, which was actually a Ponzi scheme, paying old investors with newly raised money. In these proceedings the trustee contends that investors who redeemed shares before the bankruptcy received preferential transfers, 11 U.S.C. 547, or fraudulent conveyances, 11 U.S.C. 548(a)(1)(B) and raised a claim under the Illinois fraudulent-conveyance statute, using the avoiding power of 11 U.S.C. 544. The bankruptcy court dismissed the claims against the law firm that prepared circulars for the Firms. The Seventh Circuit affirmed. No Illinois court has held that failure to report a corporate manager’s acts to the board of directors exposes a law firm to malpractice liability. The complaint does not plausibly allege that alerting the directors would have made a difference. View "Peterson v. Winston & Strawn, LLP" on Justia Law