Justia Legal Ethics Opinion Summaries

The question this case presented for the Oregon Supreme Court’s review centered on fees, and whether the legislature intended to depart from the accepted practice of awarding a party entitled to recover attorney fees incurred in litigating the merits of a fee-generating claim additional fees incurred in determining the amount of the resulting fee award in condemnation actions. The trial court ruled that there was no departure, and awarded the property owner in this case the fees that she had incurred both in litigating the merits of the underlying condemnation action and in determining the amount of the fee award. The Court of Appeals affirmed. Finding no reversible error in the Court of Appeals’ decision, the Oregon Supreme Court affirmed. View "TriMet v. Aizawa" on Justia Law

Plaintiffs filed a complaint against Attorney alleging that Attorney failed properly to advertise and conduct non-judicial foreclosure sales of their properties in violation of duties under Plaintiffs’ mortgages, statutory law, common law, and the consumer protection statute. The circuit court dismissed the complaint for failure to state a claim. The Supreme Court affirmed, holding that dismissal was appropriate where (1) the statutory requirements of former Haw. Rev. Stat. 667-5 and 776-7 do not give rise to a private right of action against a foreclosing mortgagee’s attorney; and (2) an unfair or deceptive acts or practices acts or practices claim against Attorney as the foreclosing mortgagee’s attorney was not recognized. View "Sigwart v. Office of David B. Rosen" on Justia Law

In a construction-defect matter filed by a homeowners’ association (HOA) against several developers, an attorney for the HOA previously represented one of the developers. The developers moved to disqualify that attorney under Rules 1.9 and 1.10 of the Colorado Rules of Professional Conduct. The trial court denied the motion, without what the Colorado Supreme Court described as “meaningfully analyzing for purposes” of Rule 1.9 whether this case was “substantially related” to the prior matters in which the attorney represented the developer. Instead, the Court found the trial court relied on issue preclusion, and found that in this situation, the attorney was not disqualified to represent the developer. The Supreme Court concluded the trial court erred by not analyzing the facts of this case under Rule 1.9, and therefore vacated the denial of the developers’ motion, and remanded for further proceedings. View "In re Villas at Highland Park Homeowners Assoc. v. Villas at Highland Park, LLC" on Justia Law

In 1983, the New Jersey Supreme Court affirmed a final consent judgment for a settlement agreement between the New Jersey State Bar Association and the New Jersey Association of Realtor Boards. The terms of the settlement provided that real estate brokers and salespersons may prepare contracts to sell or lease real property, so long as a standard form is used that includes a three-day period for attorney review. Plaintiffs Michael Conley, Jr., and Katie M. Maurer (Buyers) made an offer to purchase a condominium from defendant Mona Guerrero (Seller), and, a few days later, Seller signed and executed the contract. Before the three-day attorney-review period expired, Seller s attorney sent Buyers attorney and their realtor notice of disapproval by e-mail and fax, rather than by the methods approved under the 1983 holding and prescribed in the parties' contract (certified mail, telegram, or personal service). Buyers sued for specific performance, claiming the contract was enforceable because Seller s notification of disapproval was sent improperly. At issue before the Supreme Court was whether the attorney-review provision of a standard form real estate contract had to be strictly enforced, thereby nullifying Seller's notice of disapproval and requiring enforcement of the real estate contract. The Court concluded that, because Buyers received actual notice of disapproval within the three-day attorney-review period by a method of communication commonly used in the industry, the notice of disapproval was valid. The Court also exercised its constitutional authority over the practice of law and found that an attorney's notice of disapproval of a real estate contract could be transmitted by fax, e-mail, personal delivery, or overnight mail with proof of delivery. Notice by overnight mail will be effective upon mailing. The attorney-review period within which this notice must be sent remained three business days. View "Conley v. Guerrero" on Justia Law

Prior to filing condemnation proceedings the Appellee Oklahoma Department of Transportation (ODOT) offered Appellants, Cedars Group, L.L.C., A. Sam Coury and Bush, Ltd. d/b/a Deer Creek Texaco, (collectively, Coury Defendants), $562,500.00 for the acquisition of certain real property. The offer was not accepted and ODOT commenced two condemnation proceedings. In one, a commissioners' report estimated the value of just compensation for the property to be $285,000.00. In the second proceeding, the value of just compensation was estimated as $177,500.00. The combined value of the two commissioners' awards totaled $462,500.00. The Coury Defendants hired Gregg Renegar's law firm to provide representation in the condemnation proceedings. Pursuant to the firm’s attorney-client agreement, the Coury Defendants agreed to pay forty percent of the difference between an award and jury verdict, plus any attorney’s fees allowed by the court. A jury trial was held, and the jury awarded just compensation of $525,000 for the two tracts. Defendants applied for attorney fees. The trial court determined Defendants were not entitled to an award of fees because they never actually incurred any. In the end, the trial court awarded appraisal fees but denied reasonable attorney, engineering and expert witness fees, costs and expenses of Defendants. The Supreme Court affirmed in part and reversed in part; the case was remanded for a determination of reasonable attorney fees, engineering and expert witness fees, and costs. View "Oklahoma ex rel. Dept. of Trans. v. Cedars Group, LLC" on Justia Law

Charles Breland was a developer of real property, with properties in Alabama and Florida. In 2002, Breland hired David Hudgens to provide legal services for him and his companies. According to Hudgens, Breland informed him early during their professional relationship that he "was suffering significant cash flow problems." As a result, Hudgens says, the various law firms with which Hudgens worked while providing Breland and his companies with legal services delayed billing "a significant portion of the attorneys' fees and costs" for those services. Breland disputed that, claiming that he and/or his companies paid Hudgens more than $2.7 million for Hudgens's legal services between 2004 and 2010. In 2009, Breland filed a Chapter 11 bankruptcy petition. Breland filed the required schedules, required disclosure statement, and a proposed plan of reorganization that identified Hudgens & Associates, LLC ("H&A") as an unsecured creditor holding a $1 million claim and identified ETC as an unsecured creditor holding a $390,000 claim. Hudgens filed a proof of claim in the Breland bankruptcy on behalf of H&A for "legal fees" in the amount of $2,334,987.08 and filed proofs of claim on behalf of ETC for "guaranty of note" in the amounts of $879,929.55. Breland did not make payments according to the bankruptcy reorganization plan. Breland conveyed property to Gulf Beach Investment Company of Perdido, LLC which Hudgens alleged was in violation of the reorganization plan. Hudgens filed suit against Breland and Gulf Beach seeking enforcement of the plan, monies owed under the plan, and to void transfer of the property to Gulf Beach. The trial court entered a judgment on the parties' motions for a partial summary judgment, noting that it was not addressing the plaintiffs' "mortgage claim" because it had denied that claim in a September 2015 order. After setting forth extensive findings of fact and conclusions of law, the trial court awarded the plaintiffs $2,189,342.96 (consisting of $1.5 million in principal, plus interest); "denied and dismissed" the defendants' fraud, breach-of-contract, and slander-of-title claims; and certified the judgment as final pursuant to Rule 54(b). The trial court denied the defendants' postjudgment motion, and the defendants appealed. That case was assigned case no. 1150876, and the Alabama Supreme Court consolidated case nos. 1150302 and 1150876 for the purpose of writing one opinion. After review, the Court dismissed both appeals, finding the trial court exceeded its discretion in certifying as final the underlying appeals. View "Equity Trust Co. v. Breland" on Justia Law

Richard Watters petitioned the Alabama Supreme Court for a writ of mandamus to direct the Mobile Circuit Court to vacate its order denying his motion for a summary judgment as to count one of an amended complaint filed by Michael Gamble, in Gamble's capacity as administrator of the Estate of Barbara Ruth Findley Long ("Long"), deceased. Count one asserted a legal-malpractice claim against Watters under the Alabama Legal Services Liability Act ("the ALSLA"), alleging breach of a fiduciary duty. This proceeding involved title to real property located in Conecuh County, which was owned by Robert Findley at the time of his death. Long retained Watters & Associates, of which Watters was a partner, to represent her "in obtaining estate assets" of Findley, her deceased father. Watters filed suit seeking a declaration of Long's ownership in family property located in Conecuh County. The Circuit Court declaring that Long owned a one-sixth interest (approximately 30 acres) in the Conecuh County property Shortly thereafter, Long discharged Watters from any further representation in the declaratory-judgment action. Watters filed an attorney's lien against the Conecuh property to secure the payment of his attorney fees. Family members eventually quitclaimed their interests to Long. Taxes for 2006 weren't paid on the property, and Long's cousin Larry Findley purchased the property at a tax sale. According to Watters, Long asked him for a loan to redeem the property from the tax sale. Watters told Long that Langley would not record the quitclaim deed if Long repaid the loan within 30 days of redeeming the property; that, in the event the deed was recorded, any claim Watters might have against Long for services rendered regarding her deceased father's estate would be satisfied; and that Watters and Long agreed to terms concerning the loan arrangement. This arrangement was never reduced to writing. Long executed a quitclaim deed prepared by Watters, conveying title to the Conecuh property to "Langley & Watters, LLP." In 2010, Watters submitted to the Conecuh Probate Court a letter, enclosing "his client's" application for redemption of the Conecuh property. Long died on April 2, 2013, and a few months later, the Conecuh Probate Court appointed Gamble as administrator of Long's estate. Gamble filed a complaint against Watters, asserting claims of legal malpractice among other things. After review of this case, the Alabama Supreme Court concluded that Watters had another adequate remedy (i.e., an appeal) other than a writ of mandamus. Therefore, the Court denied relief. View "Ex parte Richard L. Watters." on Justia Law

Attorney Larry Stoller filed a multicount petition on behalf of NuStar Farms, LLC against Robert and Marcia Zylstra, alleging that the Zylstras agreed to sell NuStar a parcel of farmland but failed to tender the requisite deed and that the Zylstras did not abide by certain terms contained in certain manure easement agreements. The Zylstras filed a motion seeking to disqualify Stoller as the attorney for NuStar based on a conflict of interest. Specifically, the Zylstras alleged that Stoller’s representation of NuStar was a concurrent conflict of interest with his representation of them. The district court denied the motion. The Supreme Court reversed, holding that the district court (1) did not abuse its discretion in holding that Stoller could not be disqualified under the substantial relationship test; but (2) abused its discretion in not disqualifying Stoller from representing NuStar in the action because Stoller did have a concurrent conflict of interest. View "NuStar Farms, LLC v. Zylstra" on Justia Law

The Almanor Lakeside Villas Owners Association sought to impose fines and related fees of $19,979.97 on the Carsons for alleged rule violations related to the Carsons’ use of their properties as short-term vacation rentals. The Carsons cross-complained for breach of contract, private nuisance, and intentional interference with prospective economic advantage. The Carsons had engaged in short-term rental for many years and believed that they were exempt from new regulations and enforcement efforts. The court ruled against the Carsons on their cross-complaint but also rejected many of the fines as unreasonable. The court upheld fines pertaining to the use of Almanor’s boat slips and ordered the Carsons to pay $6,620.00 in damages. The court determined Almanor to be the prevailing party and awarded $101,803.15 in attorney’s fees and costs. The court of appeal affirmed, concluding that the award of attorney’s fees, compared to the “overall relief obtained” by Almanor, was not so disproportionate as to constitute an abuse of discretion. View "Almanor Lakeside Villas Owners Ass'n. v. Carson" on Justia Law

Appellant C. Tucker Cheadle, as administrator of the estate of Robert F. Obarr, appealed an order denying his motion to disqualify counsel for respondent DP Pham LLC. Pham made three loans to Obarr totaling nearly $3 million, and Obarr secured each loan by granting Pham a lien on a mobilehome park he owned in Westminster (Property). This action arose when Obarr allegedly agreed to sell the Property to two different buyers. In March 2013, Obarr allegedly contracted to sell the Property to S.C.D. Enterprises (SCD). SCD promptly assigned the purchase agreement to Westminster MHP Associates, LP (Westminster), which allegedly opened escrow on the Property with Obarr. According to Westminster, it satisfied all contingencies for the sale within 10 days of opening escrow. In April 2013, Westminster filed suit alleging contract claims against Obarr. Obarr died unexpectedly in August. The trial court appointed Cheadle as a special administrator for Obarr’s estate and in that capacity substituted Cheadle for Obarr as a party to this action. Cheadle then filed a cross-complaint alleging an interpleader claim against both Westminster and Pham concerning the Property. Based on Pham’s loans to Obarr, Cheadle also alleged claims against Pham for usury, intentional misrepresentation, negligent misrepresentation, money had and received, unjust enrichment, reformation, and violation of the unfair competition law. Cheadle contended disqualification was required because Pham’s counsel improperly obtained copies of privileged communications between Obarr and his attorney, and used those communications to oppose another party’s summary judgment motion in this case. The trial court denied the disqualification motion because it concluded the communications were not privileged. The Court of Appeal reversed. After reviewing copies of the communications, the trial court concluded they were not privileged based on their content. "A court, however, may not review the contents of a communication to determine whether the attorney-client privilege protects that communication. The attorney-client privilege is an absolute privilege that prevents disclosure, no matter how necessary or relevant to the lawsuit. The privilege attaches to all confidential communications between an attorney and a client regardless of whether the information communicated is in fact privileged. Accordingly, it is neither necessary nor appropriate to review a communication to determine whether the attorney-client privilege protects it." View "DP Pham v. Cheadle" on Justia Law