Justia Legal Ethics Opinion Summaries

In 2014, plaintiffs, African-American voters and the Terrebonne Parish NAACP, filed suit to challenge the electoral method for Louisiana's 32nd Judicial District Court (JDC), alleging that at-large elections for the judges produce discriminatory results, violating Section 2 of the Voting Rights Act, and have been maintained for a discriminatory purpose in violation of that statute and the Fourteenth and Fifteenth Amendments. The district court upheld both claims and ordered a remedial plan breaking the 32nd JDC into five single-member electoral subdistricts.The Fifth Circuit reversed, holding that the district court clearly erred in its finding of minority vote dilution in the election of judges for Terrebonne Parish's 32nd JDC. The court held that the district court erred in holding that weak evidence of vote dilution could overcome the state's substantial interest in linking judicial positions to the judges' parish-wide jurisdiction. Furthermore, the district court erroneously equated failed legislative attempts to create subdistricts for the 32nd JDC with a racially discriminatory intent. View "Fusilier v. Landry" on Justia Law

The Fifth Circuit denied plaintiff's motion for attorneys' fees under the Employee Retirement Income Security Act. The court held that 29 U.S.C. 1132(g)(1) does not provide unfettered discretion to courts to award fees. The court explained that a fees claimant whose only victory was an interlocutory ruling by the Court of Appeals that his complaint should not have been dismissed for failure to state a claim has not received any relief on the merits. In this case, plaintiff persuaded the court to reverse the district court's summary judgment ruling in favor of Humana. If plaintiff achieves some success on the merits on remand, she may then ask for fees. View "Katherine P. v. Humana Health Plan, Inc." on Justia Law

The IRS served a John Doe summons on the Texas Law Firm, which provides tax-planning advice, seeking documents for “U.S. taxpayers," who, during specified years, used the Firm's services "to acquire, establish, maintain, operate, or control" a foreign financial account, asset, or entity or any foreign or domestic financial account or assets in the name of such foreign entity. A John Doe summons, described in 26 U.S.C. 7609(c)(1), does not identify the person with respect to whose liability the summons is issued. The government made the required showings that the summons relates to the investigation of a particular person or ascertainable group or class, there is a reasonable basis for believing that such person or group or class may fail or may have failed to comply with any provision of internal revenue law, and the information sought and the identity of the person or persons is not readily available from other sources. The Firm moved to quash, claiming that, despite the general rule a lawyer’s clients’ identities are not covered by the attorney-client privilege, an exception exists where disclosure would result in the disclosure of confidential communication.The Fifth Circuit affirmed in favor of the government. Blanket assertions of privilege are disfavored. The Firm's clients’ identities are not connected inextricably with privileged communication. If the Firm wishes to assert privilege as to any responsive documents, it may do so, using a privilege log to detail the foundation for each claim. View "Taylor Lohmeyer Law Firm. P.L.L.C. v. United States" on Justia Law

After plaintiff filed suit against Portfolio under the Fair Debt Collection Practices Act and state law, the parties reached a settlement that forgave plaintiff's debt and awarded him $1,000 in damages. The district court then determined that plaintiff's attorneys did not settle his lawsuit quickly enough and consequently sanctioned them.The Fifth Circuit reversed the district court's sanction order, holding that the district court abused its discretion by awarding attorney's fees sua sponte under Federal Rule of Civil Procedure 11. Furthermore, the reasons the district court proffered for sanctions were meritless. Because the district court judge was not biased against plaintiff, the court affirmed the denial of plaintiff's recusal motion. In this case, the judge's ire was clearly directed at the attorneys, not plaintiff. Accordingly, the court affirmed in part, remanding for further proceedings. View "Tejero v. Portfolio Recovery Assoc., LLC" on Justia Law

Plaintiff filed suit against the Board for its refusal to waive the active practice requirement to accommodate his disability. The district court dismissed plaintiff's claim as barred by sovereign immunity.The Fifth Circuit affirmed the district court's dismissal of plaintiff's claims under the first prong of United States v. Georgia, because plaintiff did not allege any conduct that violates Title II of the Americans with Disabilities Act. The court explained that the active practice requirement ensures that applicants have both achieved and maintained the skill and knowledge required to practice law in Texas. By waiving this requirement to admit a lawyer who has neither passed the Texas bar exam nor practiced law for thirteen years would not inform the Board of whether plaintiff currently has the necessary knowledge and skill to practice law. Therefore, the modification plaintiff sought was not reasonable. The court did not reach the issue relied on by the district court. However, plaintiff's claims should have been dismissed without prejudice and thus the court modified the district court's dismissal. View "Block v. Texas Board of Law Examiners" on Justia Law

The Fifth Circuit affirmed the district court's denial of attorney's fees to both parties, because both parties prevailed in this case. The court found two prevailing parties where Genesis obtained the $722,346.35 that materially alters the relationship between the parties and placed Hornbeck in Genesis's debt. Furthermore, Hornbeck obtained a $117,284.54 judgment that forced Genesis to pay an amount of money it otherwise would not pay. View "Genesis Marine, LLC v. Hornbeck Offshore Services, LLC" on Justia Law

After plaintiff successfully challenged in bankruptcy court a tax penalty assessed against him by the IRS that exceeded $40 million, plaintiff filed suit against the IRS and three IRS agents, in their individual capacities, pleading a claim for damages against the individual defendants under Bivens v. Six Unknown Fed. Narcotics Agents, 403 U.S. 388 (1971), for allegedly violating his Fifth Amendment right to procedural due process. Plaintiff also sought attorney's fees he incurred litigating the penalty issue in his Chapter 11 bankruptcy case under 26 U.S.C. 7430 and the Equal Access to Justice Act.The Fifth Circuit affirmed the district court's grant of defendants' Federal Rule of Civil Procedure 12(b)(6) motion and dismissal of the action with prejudice. The court held that the district court properly concluded that this case was a new Bivens context and that special factors existed under Ziglar v. Abbasi, 137 S. Ct. 1843 (2017). The court also held that plaintiff was not entitled to recover attorney's fees because his request was untimely under 28 U.S.C. 2412(d)(1)(B) and he was not a "prevailing party" under 26 U.S.C. 7430(c)(4)(A)(ii). View "Canada, Jr. v. United States (Internal Revenue Service)" on Justia Law

At issue in this appeal of a settlement class action was how the district court allocated the $10 million in fees to plaintiffs' attorneys. The Fifth Circuit vacated the district court's allocation order and remanded for elaboration of the trial court's reasoning under the framework set out in Johnson v. Ga. Highway Express, 488 F.2d 714, 717–19 (5th Cir. 1974), which include: (1) the time and labor involved; (2) the novelty and difficulty of the questions; (3) the skill requisite to perform the legal service properly; (4) the preclusion of other employment by the attorney; (5) the customary fee; (6) whether the fee is fixed or contingent; (7) time limitations; (8) the amount involved and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the political "undesirability" of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases. View "Torres v. SGE Management, LLC" on Justia Law

The Supreme Court of Texas answered two certified questions, holding that the time for determining the existence and amount of unpaid commission due under Tex. Bus. & Com. Code section 54.001(1) is the time the jury or trial court determines the liability of the defendant, whether at trial or through another dispositive trial-court process such as a summary judgment; and that a plaintiff may recover attorney's fees and costs under section 54.004(2) even if the plaintiff does not receive treble damages, if the factfinder determines that the fees and costs were reasonably incurred under the circumstances.The Fifth Circuit held that CPTS was not entitled to treble damages, and the district court was thus correct to grant summary judgment to Horsburgh on the treble damages claim. In this case, there were no unpaid commissions due at the time of judgment, because Horsburgh had already paid all of its outstanding commissions, plus interest. The court also held that CPTS was eligible for attorney's fees simply by virtue of Horsburgh's breach. Therefore, the district court correctly concluded that CPTS was not entitled to treble damages, but erred by granting summary judgment to Horsburgh without awarding CPTS reasonable attorney's fees and costs. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "JCB, Inc. v. The Horsburgh & Scott Co." on Justia Law

The Fifth Circuit affirmed the 28 U.S.C. 1927 sanctions imposed against attorney John Morgan for advancing a meritless, immunity-barred claim against Judge Layne Walker. Morgan represented an attorney in an action alleging that Judge Walker fabricated a perjury accusation against her.The court held that the district court did not abuse its discretion by imposing the sanctions where the district court was best positioned to assess the propriety of Morgan's litigation misconduct. In this case, it could not be seriously disputed that Morgan unreasonably and vexatiously multiplied the proceedings where he pursued a baseless claim with reckless disregard for his duty to the court. Furthermore, the court upheld the district court's award of Judge Walker's legal expenses. View "Morrison v. Walker" on Justia Law