Justia Legal Ethics Opinion Summaries

Plaintiff-appellant Joanne Peake purchased a home from Marviel and Deanna Underwood. About two years later, Peake brought an action against the Underwoods and the Underwoods' real estate agent, Paul Ferrell. Peake sought to recover damages for defendants' alleged failure to disclose defective subfloors in the home. After the case had been pending for more than one year, Ferrell moved to dismiss and for monetary sanctions against Peake and her counsel Norman Shaw under Code of Civil Procedure section 128.7, arguing Peake's claims were factually and legally frivolous because the undisputed evidence showed Ferrell had fulfilled his statutory and common law disclosure duties, and Peake had actual notice of facts disclosing prior problems with the subfloors. Peake declined to dismiss the action during the statutory safe harbor period, and instead amended her complaint to add claims similar to claims she had previously dismissed. The trial court found Ferrell met his burden to show Peake's claims were "without legal or evidentiary support" and Peake's continued maintenance of the lawsuit demonstrated "objective bad faith" warranting sanctions. As sanctions, the court dismissed Peake's claims against Ferrell and ordered Peake and her attorney to pay Ferrell for his attorney fees incurred in defending the action. On appeal, Peake and Shaw challenged the sanction order. The Court of Appeal concluded that the trial court acted within its discretion in awarding the section 128.7 sanctions. View "Peake v. Underwood" on Justia Law

Greg Bell and his attorney, Philip Cramer, were party and counsel in court proceedings originating from an appropriation action filed by the Madison County Board of Commissioners against Bell and his wife to acquire a sewer easement on Bell’s property. The court of common pleas held that the Board was entitled to an easement. Thereafter, Bell, through Cramer, filed a complaint asserting various causes of action related to the appropriation case. The case was dismissed the case based on res judicata. Thereafter, Bell, represented by Cramer, filed an action for a writ of mandamus requesting that the court of appeals order the Board to provide him with due process in the taking of his real property rights and to comply with a consent agreement. The court of appeals dismissed the complaint, and the Supreme Court affirmed. Thereafter, the Board filed a motion for sanctions against Bell and Cramer. The court of appeals granted the motion for sanctions in the amount of $21,137, concluding that Bell and Cramer had engaged in frivolous conduct. The Supreme Court affirmed, holding that the mandamus action was clearly frivolous and adversely affected the Board, and the fees awarded were reasonable. View "State ex rel. Bell v. Madison County Bd. of Comm’rs" on Justia Law

In an earlier litigation, Kleem retained Julian Vanni and Vanni & Associates (collectively, Vanni) to appraise certain real property in dispute between the parties. The trial court entered judgment in favor of Kleem and against Southwest Sports Center. Southwest subsequently filed suit against Kleem and Vanni. The case was assigned to Judge Richard McMonagle. Vanni sought a writ of prohibition to prevent Judge McMonagle from hearing the litigation, arguing that the judge lacked jurisdiction based on the jurisdictional-priority rule, claim preclusion, and witness immunity. The court of appeals dismissed the case, concluding that Judge McMonagle did not patently and unambiguously lack jurisdiction and that Vanni had an adequate remedy in the ordinary course of law. The Supreme Court affirmed, holding that Judge McMonagle did not patently lack jurisdiction and that Vanni had an adequate remedy by way of appeal.View "State ex rel. Vanni v. McMonagle" on Justia Law

Stewart Title Guaranty Company hired the law firm Witherspoon, Kelley, Davenport & Toole, PS to defend its insured, Sterling Savings Bank, from a claim of lien priority on real property by a construction company. The claim was resolved in favor of the construction company, and Stewart Title sued the firm for malpractice. Witherspoon moved for summary judgment arguing it owed a duty to the client Sterling Bank and not Stewart Title, and that the alleged malfeasance (not arguing equitable subrogation) was not a viable argument in the lien priority suit. The trial court ruled against Witherspoon on the first, no-duty, ground but agreed with it on the second, no-breach, ground. The court therefore granted summary judgment in favor of Witherspoon. Stewart Title appealed. Upon review, the Supreme Court affirmed the trial court in dismissing Stewart Title's malpractice case on the basis that Witherspoon owed Stewart Title no duty. The Court did not address the subrogation issue.View "Stewart Title Guar. Co. v. Sterling Sav. Bank" on Justia Law

After the court concluded that respondent litigated in bad faith and that this matter was unnecessarily prolonged due to petitioners' ambiguously-drafted Petition to Quiet Title, the court directed petitioners to submit a statement of reasonable attorney fees which they believed reflected the cost imposed on them by respondent's purely vexatious legal maneuvers. Petitioners submitted an affidavit for attorney fees but respondent failed to respond. Thus, respondent waived any objection to the statement of fees. The court awarded petitioners $1,250.00 in attorneys' fees under the bad faith exception to the American Rule, to be paid by respondent within thirty days from the date this matter becomes final.View "Branson, et al. v. Branson" on Justia Law