Justia Legal Ethics Opinion Summaries

In 1999, Christeson was convicted of three counts of capital murder and sentenced to death. The Missouri Supreme Court affirmed Christeson’s conviction and sentence and denial of his post-conviction motion for relief. Under the one-year limitations period imposed by the Antiterrorism and Effective Death Penalty Act, 28 U. S. C. 244(d)(1), Christeson’s federal habeas petition was due on April 10, 2005. Nine months before that deadline, the court appointed attorneys Horwitz and Butts to represent Christeson, 18 U. S. C. 599(a)(2). The attorneys subsequently acknowledged that they failed to meet with Christeson until six weeks after his petition was due. There is no evidence that they communicated with him at all. They finally filed the petition 117 days late. The district court dismissed; the Eighth Circuit denied a certificate of appealability. Christeson, who has severe cognitive disabilities, relied entirely on his attorneys, and may not have known of the dismissal. About seven years later, the attorneys contacted attorneys Merrigan and Perkovich to discuss Christeson’s case. Christeson’s only hope for merits review was to move under FRCP60(b) to reopen final judgment on the ground that AEDPA’s statute of limitations should have been equitably tolled. Horwitz and Butts would not file that motion, premised on their own malfeasance. In 2014, Merrigan and Perkovich unsuccessfully moved to substitute counsel. The Eighth Circuit dismissed, reasoning that they were not authorized to file on Christeson’s behalf. The Missouri Supreme Court set an October 29, 2014 execution date. The district court denied a second motion as untimely, stating that Horwitz and Butts had not “abandoned” Christeson, and reasoning that allowing the motion would permit “‘abusive’” delays in capital cases. The Eighth Circuit affirmed. The Supreme Court stayed execution and reversed, stating that the denials contravened its 2012 decision, Martel v. Clair, concerning the “interests of justice” standard, and noting the obvious conflict of interest with respect to the original attorneys. View "Christeson v. Roper" on Justia Law

P&C filed suit on behalf of Penn, LLC against Prosper Corporation, Prosper’s owners, and their counsel, the Arnold Firm, alleging violations of the Racketeering Influenced and Corrupt Organizations Act, fraud, conversion, unjust enrichment, and breach of fiduciary duty in connection with the management of Penn and Prosper’s joint venture, BIGresearch. There had been court and arbitration proceedings since 2004, but Penn never before named the Arnold Firm as a defendant. The Arnold Firm served P&C with a letter purporting to satisfy the obligations of Fed. R. Civ. P. 11, threatening to seek sanctions if the matter was not dismissed, and claiming that the action was frivolous and had been filed for the “improper and abusive purpose” of disrupting the Arnold Firm’s attorney-client relationship with Prosper and its owners. The district court ultimately dismissed the Arnold Firm from the action, but denied a motion for Rule 11 sanctions against P&C. The Sixth Circuit affirmed on the alternative ground that the Arnold Firm’s failure to comply with Rule 11’s safe-harbor provision made sanctions unavailable. The Arnold Firm’s warning letter expressly reserved the firm’s right to assert additional grounds for sanctions in its actual motion. View "Penn, LLC v. Prosper Bus. Dev. Corp." on Justia Law

The Nelsons sued Chicago law firm Freeborn & Peters for malpractice, seeking $1.3 million in damages and were awarded more than $1 million. The malpractice claim arose from a transaction that the law firm handled involving acquisition of a shopping center under construction in Algonquin, Illinois. The law firm represented both the contract purchaser and the Nelsons, who invested in the venture, which suffered losses following the downturn of September 2008. The Seventh Circuit affirmed, finding that any error in the allocation of damages did not hurt the law firm or any creditors. View "Nelson Bros. Prof'l Real Estate, LLC v. Freeborn & Peters, LLP" on Justia Law

Plaintiffs Paul Choiniere and P&D Consulting, Inc. sued defendants, attorney Anthony Marshall and his law firm, Harris Beach, PLLC, alleging that they made negligent and intentional misrepresentations while representing a client in a matter involving commercial loan guaranties. Choiniere argued that he relied upon the misrepresentations when deciding not to call a $1 million loan that he made in September 2003, and P&D Consulting argued that it relied upon the misrepresentations when deciding to loan an additional $1.3 million in June 2004. Upon review of the dispute, the Supreme Court reversed the trial court's decision granting defendants summary judgment. In sum, the Court held that there were several material issues in dispute that preclude summary judgment, including the viability of the guaranty agreement after an April 28, 2004 letter, whether plaintiffs' reliance on the April 28 letter was justifiable, whether Marshall was authorized to send the letter, and whether there are any economic damages. View "Choiniere v. Marshall and Beach, PPLC" on Justia Law

Appellant Erika Fabian brought this action for legal malpractice and breach of contract by a third-party beneficiary, alleging respondents attorney Ross M. Lindsay, III and his law firm Lindsay & Lindsay made a drafting error in preparing a trust instrument for her late uncle and, as a result, she was effectively disinherited. Appellant appealed the circuit court order dismissing her action under Rule 12(b)(6), SCRCP for failing to state a claim and contended South Carolina should recognize a cause of action, in tort and in contract, by a third-party beneficiary of a will or estate planning document against a lawyer whose drafting error defeats or diminishes the client's intent. Upon review of the matter, the Supreme Court agreed, reversed and remanded for further proceedings. View "Fabian v. Lindsay" on Justia Law

The district court awarded attorneys fees to Lynn Urrutia against appellants Ty Harrison and Robert Schutte under Idaho Code section 12-120(3), 12-121, and 12-123, as well as sanctions against the appellants' attorney under Idaho Code section 12-123 and I.R.C.P. 11. These awards stemmed from the divorce of Lynn and Johnny Urrutia in 2007 and the divorce decree's division of the marital property. "'The most egregious conduct of defendants,' in the district court's opinion, was the filing of the Third Amended Counterclaim, which 'states two causes of action against Lynn: (1) that the second lien has priority over Lynn's claims and (2) that Lynn as the owner of the property was unjustly enriched.' The judge noted that the Second Lien, with a priority date of 2008, could not conceivably be higher in priority than Lynn's deed of trust, which was recorded in 2007. He observed that the Appellants knew the $220,000 claimed in the Second Lien, like the First Lien, contained numerous items that did not constitute improvements to the arena property and were not lienable under the mechanic's lien statutes. And, even though the Appellants knew that the owner of record of the arena property was Sundance Arena, LLC, they sought personal recovery against Lynn under an unjust enrichment theory for improvements made to the property, which she did not own." Finding no reversible error, the Supreme Court affirmed the award of fees and sanctions to Lynn Urrutia. View "Urrutia v. Harrison" on Justia Law

This case was a permissive appeal of an order denying the appellants' motions for summary judgment. The central issue was whether an attorney who, as counsel for a corporation, issued an opinion letter stating that a stock redemption agreement did not violate the law, could be held liable to the shareholder whose stock was redeemed if the opinion was incorrect and the redemption agreement was later declared void as violating state law. The Supreme Court held that the claim against appellant Richard Riley was barred by res judicata and that there could be a claim against the remaining appellants where the opinion letter was addressed to respondent and stated that he could rely upon it. View "Taylor v. Riley" on Justia Law

In 2002, David hired the Attorneys to represent him in petitioning for his appointment as probate conservator of the person and estate of his mother, Donna. In his petition, David represented there were no conservatorship assets and that all of Donna’s assets were held in her Trust, so that no bond was required. Donna actually owned significant assets, including real property and several individual retirement accounts (IRAs), individually and not as assets of her Trust. The probate court appointed David as conservator of both Donna’s person and estate and waived bond. The Attorneys continued to represent David and allegedly “knew that Donna . . . had assets in her name that under California law were assets of the conservatorship,” but never informed the probate court of their existence nor petitioned the court to require or increase a bond. David subsequently misappropriated over one million dollars. Stine, a subsequently-appointed licensed professional fiduciary sued David for financial elder abuse and conversion and the Attorneys for legal malpractice. The trial court dismissed the Attorneys. The court of appeal reversed holding that the successor trustee is not subject to any defense that can be interposed against David and David’s malfeasance. View "Stine v. Dell'Osso" on Justia Law

In lieu of undergoing a formal audit, Louisiana law requires justices of the peace to file a sworn annual financial statement with the Louisiana Legislative Auditor. Officials who fail to file timely financial statements are notified that their names have been placed on a noncompliance list. According to a database maintained by the Legislative Auditor, respondent failed to file her annual financial statement for 2007, 2008, 2009. As of May 2013, when the hearing was held in this matter, respondent was still out of compliance for those years. In December 2010, the Chief Executive Officer of the Commission authorized the Office of Special Counsel to open a file regarding respondent based on the news report from a New Orleans television station that respondent's name had been placed on the Auditor's list. The Supreme Court found that the record established by clear and convincing evidence that respondent failed to comply with the filing requirement of La. Rev. Stat. 24:514, thereby subjecting her to discipline. Respondent was ordered suspended without pay for twelve months, with six months deferred conditioned on her filing the requisite sworn annual financial statements for years 2007, 2008, and 2009 within three months of the date of this judgment. Respondent was further ordered to reimburse and pay to the Commission $246.70 in costs. View "In re Justice of the Peace Meyers" on Justia Law

In December 1995, Teresa Schmidt slipped and fell while visiting a Tacoma grocery store. She retained Timothy Coogan to represent her in a claim against the store. Just days before the statute of limitations ran, Coogan filed a complaint naming the wrong defendant. He subsequently filed two amended complaints, but the trial court dismissed the case as barred by the statute of limitations. Schmidt filed a complaint against Coogan, asserting claims for negligence and breach of contract. The case went to trial in November 2003, and the jury returned a verdict in favor of Schmidt and granted recovery for past economic and noneconomic damages. The trial court granted a new trial on the issue of damages only, finding that Coogan was denied a fair trial: Schmidt's counsel gave an improper closing argument, and the damages were so excessive as to unmistakably indicate that the verdict was the result of passion and prejudice. The Court of Appeals affirmed the trial court's order granting a new trial. In 2010, Schmidt moved for leave to amend the complaint to add a claim for outrage/reckless infliction of emotional distress, alleging that Coogan harassed, intimidated, and belittled her when she raised the problem of the statute of limitations before it expired. In the 2003 trial, the jury was instructed to determine general damages arising out of Coogan's conduct and malpractice. In the second trial, however, Coogan challenged the availability of general damages in legal malpractice cases. Because her counsel could not find settled authority either affirming or denying the availability of emotional distress damages in Washington, Schmidt sought to add a claim that encompassed the damages. The trial court denied Schmidt's motion to amend. Schmidt also filed a motion for summary judgment on the availability of general damages and a motion in limine. The court denied both motions. After Schmidt rested her case in the damages-only trial, Coogan moved for judgment as a matter of law, arguing that collectibility was an essential element of legal malpractice and that Schmidt presented no evidence that a judgment against Grocery Outlet would have been collectible. The court denied the motion, and the jury again returned a verdict in favor of Schmidt. Coogan appealed the jury verdict, and Schmidt cross appealed on the ground that general damages are available in attorney malpractice claims and that the trial court erred in denying her motion to amend the complaint. The Court of Appeals concluded that collectibility was an essential component of damages that Schmidt failed to prove, and it reversed the trial court's denial of Coogan's motion. This case presented two issues of first impression for the Supreme Court: (1) whether the elements of legal malpractice include the collectibility of an underlying judgment; and (2) whether emotional distress damages are available in legal malpractice cases. The Supreme Court reversed the Court of Appeals and affirm the trial court's judgment, holding that the uncollectibility of an underlying judgment is an affirmative defense to legal malpractice that defendant-attorneys must plead and prove. Furthermore, the Court held that the trial court properly denied emotional distress damages because Coogan's actions were not particularly egregious, nor was the subject matter personal. View "Schmidt v. Coogan" on Justia Law