Justia Legal Ethics Opinion Summaries

The Seventh Circuit held, in Irish v. BNSF (2012), that the plaintiffs, injured by a 2007 flood in Bagley, Wisconsin, had forfeited an argument concerning the scope of Wis. Stat. 88.87. The statute concerns liability for negligent design and maintenance of a railroad grade that causes an obstruction to a waterway or drainage course. Plaintiffs’ counsel assembled a new group of plaintiffs and refiled the same litigation in Arkansas state court to pursue that argument. The new suit was removed and transferred to the Western District of Wisconsin, which dismissed it for failure to state a claim. The defendant asked the court to sanction plaintiffs’ counsel under FRCP 11 or 28 U.S.C. 1927 for pursuing frivolous claims and engaging in abusive litigation tactics. The court denied that request, reasoning that although the claims were all but foreclosed by the decision in Irish, they were not frivolous. The Seventh Circuit affirmed the dismissal of the complaint but reversed the denial of sanctions. The record indicated that counsel unreasonably and vexatiously multiplied the proceedings by filing suit in Arkansas, which had no connection to the case. Pursuant to section 1927, the defendant is entitled to its fees and costs for removing the case and successfully seeking its transfer. View "Boyer v. BNSF Ry. Co." on Justia Law

Heinz was the victim of a 2011 home invasion. One burglar entered, punched Heinz and locked him in a closet, then was joined by a second burglar. They stole Heinz’s possessions, including his car. Police arrested Jackson. After he was acquitted, Jackson sued the police under 42 U.S.C. 1983. The court granted the defendants summary judgment. The Seventh Circuit affirmed, stating that there was probable cause for the arrest. Heinz identified Jackson’s picture in a photo spread; Heinz’s neighbor identified Jackson as one of two people he saw loitering outside Heinz’s house near the time of the burglary. Jackson’s son told the police that his father had committed some burglaries recently. Jackson had no evidence for his claim that the photo spreads were conducted improperly. A search of Jackson’s home was authorized by a warrant. Jackson claimed that he was mistreated during this custody by being held incommunicado and without food for several days, but did not sue any of the guards. The court characterized Jackson’s claims as irresponsible and stated that his attorney “should count himself lucky that the appellees have not requested sanctions under Fed. R. App. P. 38.” View "Jackson v. City of Peoria" on Justia Law

As part of a malicious prosecution lawsuit against Chicago, the plaintiffs sought by subpoena to discover documents from the Cook County State’s Attorney’s Office. Lawyers representing the Office, including McClellan, stated that the files no longer existed. A year later, the Presiding Judge ordered the Office to allow the plaintiffs’ lawyers to inspect 181 boxes of documents stored in a warehouse. The documents at issue were quickly found. Plaintiffs moved to sanction McClellan and others for obstructing discovery. After the tort suit ended in the plaintiffs’ acceptance of an offer of judgment, the judge granted the motion and ordered McClellan and the State’s Attorney’s Office to pay fees and costs ($35,522.94) that their misconduct had imposed on the plaintiffs, based on a finding of attorney misconduct under 28 U.S.C. 1927 and the inherent authority of a federal court to punish attorney misconduct in a case before it. The Seventh Circuit affirmed, characterizing the criticisms of McClellan as “apt and accurate” and, because the sanction had been paid, holding that a district court order imposing a sanction on a lawyer for misconduct in a case before the court can be appealed even if the sanction lacks a monetary component. View "Martinez v. City of Chicago" on Justia Law

Attorney Fleisher worked for two affiliated law firms. In 2013 Fleisher filed a written demand with the firms, claiming that when he retired, in 2011, he had accrued more than 90 weeks of unused vacation time and more than 322 days of unused sick leave, and that the firms were required by contract and by the Illinois Wage Payment and Collection Act, to pay him for those accruals. He estimated that he was owed about $950,000. The defendants sent a copy of Fleisher’s complaint to Hartford, seeking coverage under the “Employee Benefits Liability Provision” of their Business Owners Policy. It took five months for Hartford to reply that the matter was under consideration. Two months later Hartford denied coverage and sought a declaration that the insurance policy did not cover Fleisher’s claim, alleging that the failure to pay Fleisher was not the result of any negligent act, error, or omission in the administration of the employee benefits program, which was all that the policy covered. The district judge ruled that Hartford had no duty to defend under Illinois law and granted summary judgment. The Seventh Circuit affirmed, holding that delay was not a valid ground for estopping Hartford to deny coverage or a duty to defend. View "Hartford Cas. Ins. Co v. Karlin, Fleisher & Falkenberg" on Justia Law

Over the past decade, Attorney Novoselsky has filed many lawsuits alleging improprieties by Dorothy Brown, in her capacity as Clerk of the Circuit Court of Cook County, Illinois. Brown later made statements to private parties, the public, and the Illinois Attorney Registration and Disciplinary Committee, accusing Novoselsky of being an unscrupulous attorney. Novoselsky sued Brown under state law for defamation and under 42 U.S.C. 1983 for First Amendment retaliation, and he sought to hold Cook County liable for Brown’s actions. Brown unsuccessfully moved for summary judgment, arguing that her communications are protected from liability by immunity. The Seventh Circuit reversed. On the state‐law defamation claim, Brown’s communications were all statements reasonably related to her official duties. Illinois state law provides immunity to Brown for claims based on these statements. Brown is also entitled to summary judgment on the First Amendment retaliation claim, for all she did to retaliate was criticize Novoselsky, so Cook County is also entitled to summary judgment. View "Novoselsky v. Brown" on Justia Law

In 2004, Bianchi was elected as McHenry County, Illinois State’s Attorney and embarked on reforms. In 2006, a secretary resigned and took sensitive documents with her. Working with an Assistant State’s Attorney, whom Bianchi had demoted, the secretary delivered the documents to the media and to Bianchi’s opponent in the next election. Bianchi learned of the theft and persuaded a judge to appoint a special prosecutor. The secretary was charged with several felonies and eventually pleaded guilty to computer tampering. Bianchi’s opponent and other political enemies obtained the appointment of another special prosecutor, to investigate Bianchi. A grand jury was convened. Bianchi and three colleagues were indicted on multiple counts of official misconduct. All were acquitted. Bianchi and his colleagues sought damages under 42 U.S.C. 1983 against the court-appointed special prosecutor (Tonigan), the court-appointed assistant special prosecutor (McQueen) and Quest, a firm of private investigators hired by the special prosecutors, and its investigators. They claimed that the defendants fabricated evidence and withheld exculpatory evidence in violation of the Due Process Clause and Fourth Amendment and political retaliation in violation of the First Amendment. Tonigan settled. The Seventh Circuit affirmed dismissal as to McQueen and the investigators, holding that absolute prosecutorial immunity and qualified immunity foreclose the federal constitutional claims. View "Bianchi v. McQueen" on Justia Law

In 2004, Bianchi was elected as McHenry County, Illinois State’s Attorney and embarked on reforms. In 2006, a secretary resigned and took sensitive documents with her. Working with an Assistant State’s Attorney, whom Bianchi had demoted, the secretary delivered the documents to the media and to Bianchi’s opponent in the next election. Bianchi learned of the theft and persuaded a judge to appoint a special prosecutor. The secretary was charged with several felonies and eventually pleaded guilty to computer tampering. Bianchi’s opponent and other political enemies obtained the appointment of another special prosecutor, to investigate Bianchi. A grand jury was convened. Bianchi and three colleagues were indicted on multiple counts of official misconduct. All were acquitted. Bianchi and his colleagues sought damages under 42 U.S.C. 1983 against the court-appointed special prosecutor (Tonigan), the court-appointed assistant special prosecutor (McQueen) and Quest, a firm of private investigators hired by the special prosecutors, and its investigators. They claimed that the defendants fabricated evidence and withheld exculpatory evidence in violation of the Due Process Clause and Fourth Amendment and political retaliation in violation of the First Amendment. Tonigan settled. The Seventh Circuit affirmed dismissal as to McQueen and the investigators, holding that absolute prosecutorial immunity and qualified immunity foreclose the federal constitutional claims. View "Bianchi v. McQueen" on Justia Law

The Joyce law firm purchased professional liability insurance from Professionals Direct. In 2007 the firm won a large damages award for a class of securities-fraud plaintiffs and hired another law firm to sue to collect the money from the defendant’s insurers. Some class members thought the Joyce firm should have handled enforcement of the judgment itself under the terms of its contingency-fee agreement. They took the firm to arbitration over the extra fees incurred. Professionals Direct paid for the firm’s defense in the arbitration. After the arbitrator found for the clients and ordered the firm to reimburse some of the fees they had paid, the insurer refused a demand for indemnification. The district judge sided with the insurer, concluding that the award was a “sanction” under the policy’s exclusion for “fines, sanctions, penalties, punitive damages or any damages resulting from the multiplication of compensatory damages.” The Seventh Circuit affirmed. While the arbitration award was not functionally a sanction, another provision in the policy excludes “claim[s] for legal fees, costs or disbursements paid or owed to you.” Because the arbitration award adjusted the attorney’s fees owed to the firm in the underlying securities-fraud class action, the “legal fees” exclusion applies. View "Edward T. Joyce & Assocs. v. Prof'ls Direct Ins. Co." on Justia Law

Illinois attorney Jahrling was contacted and paid by attorney Rywak to prepare documents for the sale of 90-year-old Cora’s home. Rywak’s clients paid $35,000 for Cora’s property, which was worth at least $106,000 and was later resold by the purchasers for $145,000. Cora later alleged he understood that he would keep a life estate to live in the upstairs apartment of the home rent-free. Jahrling’s sale documents did not include that life estate. Jahrling and Cora could not communicate directly and privately because Cora spoke only Polish and Jahrling spoke no Polish. Jahrling relied on counsel for the adverse parties for all communication with Cora. After the buyers tried to evict Cora, Cora sued Jahrling in state court for legal malpractice. After a partial settlement with a third party and offsets, the court awarded Cora’s estate $26,000, plus costs. Jahrling filed for Chapter 7 bankruptcy protection. Cora’s estate filed an adversary proceeding alleging that the judgment was not dischargeable under 11 U.S.C. 523(a)(4) because the debt was the result of defalcation by the debtor acting as a fiduciary. The bankruptcy court found in favor of the estate. The Seventh Circuit affirmed.Jahrling’s egregious breaches of his fiduciary duty were reckless and the resulting malpractice judgment is not dischargeable. View "Jahrling v. Estate of Cora" on Justia Law

Hassebrock hired the Bernhoft Law Firm in 2005 to help with legal problems, including a federal criminal tax investigation, a civil case for investment losses, and a claim against Hassebrock’s previous lawyers for fees withheld from a settlement. Hassebrock was ultimately found guilty, sentenced to 36 months in prison, and ordered to pay a fine and almost $1 million in restitution. In 2008, Hassebrock fired the Bernhoft firm. In a malpractice suit against the Bernhoft attorneys and accountants, Hassebrock waited until after discovery closed to file an expert-witness disclosure, then belatedly moved for an extension. The court denied the motion and disallowed the expert, resulting in summary judgment for the defendants. The Seventh Circuit affirmed, rejecting an argument that the judge should have applied the disclosure deadline specified in FRCP 26(a)(2)(D) rather than the discovery deadline set by court order. The disclosure deadline specified in Rule 26(a)(2)(D) is just a default deadline; the court’s scheduling order controls. It was well within the judge’s discretion to reject the excuses offered by Hassebrock to explain the tardy disclosure. Because expert testimony is necessary to prove professional malpractice, summary judgment was proper as to all defendants. View "Hassebrock v. Bernhoft" on Justia Law