Justia Legal Ethics Opinion Summaries

The Strawns’ home and pickup, which were insured by State Farm were “damaged and destroyed” by fire on June 1, 2009. They immediately notified State Farm. Dennis Strawn was prosecuted for arson, but the case was dismissed in February 2013. In August 2015, State Farm informed the Strawns that it was denying their claims on the ground that Dennis Strawn had intentionally set the fire and Diane Strawn had fraudulently concealed evidence of this wrongful conduct. In August 2016, the Strawns sued, alleging breach of contract, breach of the covenant of good faith and fair dealing, intentional infliction of emotional distress, invasion of privacy and elder abuse. The claims for invasion of privacy and elder abuse were also alleged against Wood, the attorney who represented State Farm, and MPP, Wood’s law firm. The trial court dismissed the claims against the attorneys. The court of appeal affirmed as to financial elder abuse but reversed as to the claim of invasion of privacy, which alleged that Wood improperly provided the Strawns’ tax returns to State Farm and its accountants despite their assertion of their privilege to not disclose the returns. View "Strawn v. Morris, Polich & Purdy" on Justia Law

Plaintiffs-appellants were an adult daughter (believed to be incompetent) and her mother. After retaining counsel, the mother brought a tort action as the daughter’s next friend for in utero injuries to the daughter, which the mother alleged were caused almost 20 years previously in a boating accident. The defendants filed a motion for summary judgment, but they also offered to permit plaintiffs to dismiss the case with each side to bear its own costs and fees. The plaintiffs’ attorney believed that accepting this walk-away offer was in the daughter’s best interest, but the mother disagreed. Facing a conflict of interest between his two clients, the attorney moved to withdraw. The superior court permitted the attorney to withdraw and ultimately granted the unopposed motion for summary judgment and awarded costs and fees against both plaintiffs. The mother and daughter appealed. The Alaska Supreme Court held that before granting the attorney’s motion to withdraw the court should have determined the daughter’s competency, and if she was found incompetent the court should have appointed a guardian ad litem or taken further action to protect her interests pursuant to Alaska Civil Rule 17(c). Therefore, the Court reversed the trial court’s orders granting the motion to withdraw and summary judgment, vacated the award of attorney’s fees and costs, and remanded for further proceedings. View "Bravo v. Aker" on Justia Law

After the Court of Appeal affirmed the trial court's holding that plaintiff's motion for $31,365 in statutory attorney fees was timely and supported by substantial evidence, the court stated, "In the interest of justice, the parties are to bear their own costs of appeal." Defendant argued that "costs" included attorney fees on appeal and plaintiff sought $114,840 in appellate attorney fees. The trial court awarded plaintiff the lodestar and denied defendant's motion to reconsider or clarify the ruling. The court affirmed, holding that the trial court had jurisdiction to award fees and the trial court's order granting plaintiff's counsel's motion for attorney fees was adequate. View "Stratton v. Beck" on Justia Law

Law firm Schiff Hardin challenged the denial of its Rule 12(b)(6) motion to dismiss the complaint and rejection of its attorney immunity defense in an action alleging negligent misrepresentation. The Fifth Circuit held that the district court erred in rejecting the firm's attorney immunity defense because the conduct sued on occurred during the representation of the firm's client. Accordingly, the court reversed the district court's denial of the firm's motion and rendered judgment dismissing the complaint pursuant to Rule 12(b)(6). View "Ironshore Europe DAC v. Schiff Hardin, LLP" on Justia Law

The en banc court reversed the district court, vacated the award of attorneys' fees under the Equal Access to Justice Act (EAJA), and remanded with instructions to recalculate the attorney fees for the civil rights law firm that represented plaintiff.The en banc court clarified that when a district court awards complete relief on one claim, rendering it unnecessary to reach alternative claims, the alternative claims cannot be deemed unsuccessful for the purpose of calculating a fee award. The en banc court rejected the post hoc "mutual exclusivity" approach to determining whether "unsuccessful" claims are related to succesful claims and reaffirmed that Hensley v. Eckerhart, 461 U.S. 424 (1983), sets forth the correct standard of "relatedness" for claims under the EAJA. The en banc court reaffirmed that in evaluating whether the government's position is substantially justified, the court looks at whether the government's and the underlying agency's positions were justified as a whole and not at each stage. View "Ibrahim v. DHS" on Justia Law

Plaintiffs-appellants Jamie and Kelly Etcheson brought an action under the Song-Beverly Consumer Warranty Act (commonly known as the "lemon law") against defendant and respondent FCA US LLC (FCA) after experiencing problems with a vehicle they had purchased new for about $40,000. After admitting the vehicle qualified for repurchase under the Act, FCA made two offers to compromise under Code of Civil Procedure section 998: one in March 2015, to which plaintiffs objected and the trial court found was impermissibly vague, and a second in June 2016, offering to pay plaintiffs $65,000 in exchange for the vehicle's return. Following the second offer, the parties negotiated a settlement in which FCA agreed to pay plaintiffs $76,000 and deem them the prevailing parties for purposes of seeking an award of attorney fees. Plaintiffs moved for an award of $89,445 in lodestar attorney fees with a 1.5 enhancement of $44,722.50 for a total of $134,167.50 in fees, plus $5,059.05 in costs. Finding the hourly rates and amount of counsels' time spent on services on plaintiffs' behalf to be reasonable, the trial court tentatively ruled plaintiffs were entitled to recover $81,745 in attorney fees and $5,059.05 in costs. However, in its final order the court substantially reduced its award, concluding plaintiffs should not have continued to litigate the matter at all after FCA's March 2015 section 998 offer. It found their sought-after attorney fees after the March 2015 offer were not "reasonably incurred," and cut off fees from that point, awarding plaintiffs a total of $2,636.90 in attorney fees and costs. Pointing out their ultimate recovery was double the estimated value of FCA's invalid March 2015 section 998 offer, which they had no duty to counter or accept, plaintiffs contended the trial court abused its discretion by cutting off all attorney fees and costs incurred after that offer. The Court of Appeal agreed and reversed the order and remanded back to the trial court with directions to award plaintiffs reasonable attorney fees for their counsels' services, including those performed after FCA's March 2015 offer, as well as reasonable fees for services in pursuing their motion for fees and costs. View "Etcheson v. FCA US LLC" on Justia Law

The Court of Appeal affirmed the trial court's judgment and order denying prevailing party attorney fees in an action filed by plaintiff alleging that GNC used his likeness in its advertising campaign after its right to do so had expired. The court held that the trial court correctly rejected plaintiff's proposed special jury instruction regarding the burden to apportion GNC's profits associated with the unauthorized use of his likeness; the trial court did not misinterpret the burden of proof set forth in section 3344 and the testimony of plaintiff's experts were property excluded; and the trial court properly concluded that there was no prevailing party. View "Olive v. General Nutrition Centers, Inc." on Justia Law

In this school desegregation case, at issue was the reimbursement of expenses for a court-appointed oversight official. After the district court ordered an increase in the official’s compensation, the school board appealed and the official prevailed. The Fifth Circuit affirmed the district court's reimbursement of the official's appellate expenses, as well as the timing and quantity of the reimbursement, holding that the district court did not abuse its discretion. View "Moore v. Tangipahoa Parish School Board" on Justia Law

Maynard, Cooper & Gale, P.C. ("MCG"), petitioned the Alabama Supreme Court for a writ of mandamus to direct the Jefferson Circuit Court to vacate its July 30, 2018 order denying MCG's motion for a change of venue and to enter an order transferring the underlying action to the Madison Circuit Court on the basis of the doctrine of forum non conveniens. In late 2017, AAL USA, Inc. ("AAL"), a Delaware corporation doing business in Alabama, and Oleg Sirbu, a resident of Dubai, United Arab Emirates (collectively, "the plaintiffs"), sued MCG, asserting a claim of legal malpractice pursuant to the Alabama Legal Services Liability Act ("the ALSLA"), and seeking, among other relief, disgorgement of all attorney fees paid by the plaintiffs to MCG. AAL maintained, repaired, and overhauled helicopters through various government contracts or subcontracts on United States military bases. MCG represented the plaintiffs from 2014 through October 28, 2016; two MCG attorneys, Jon Levin and J. Andrew Watson III, were shareholders of MCG whose allegedly wrongful conduct was performed within the line and scope of their employment with MCG. The events giving rise to this litigation began in September 2016, when AAL received a "base-debarment" letter notifying it that it no longer had access to certain military bases outside the continental United States. MCG chief financial officer Keith Woolford forwarded this letter to MCG, and, according to the plaintiffs, MCG "immediately embarked in a central role in [MCG CEO Paul] Daigle's and Woolford's scheme to steal the assets of AAL." The complaint alleged that Levin worked closely with Woolford and Daigle to draft the APA pursuant to which Black Hall Aerospace, Inc., Daigle, and Woolford would purchase all of AAL's assets, as a way to cure the base-debarment problem. The plaintiffs alleged that MCG knew that the APA would "gut" the plaintiffs –- its current clients –- while simultaneously benefiting Daigle, Woolford, and BHA –- other clients of MCG -- and that this "clear and irreconcilable conflict of interest ... was never disclosed to [the plaintiffs]." The Alabama Supreme Court concluded MCG carried its burden of showing that Madison County's connection to the action was strong and that Jefferson County's connection to the action was weak. Thus, the circuit court exceeded its discretion in refusing to transfer the case to the Madison Circuit Court in the interest of justice. MCG's petition for a writ of mandamus was granted. View "Ex parte Maynard, Cooper & Gale, P.C." on Justia Law

The Fifth Circuit held that attorneys appearing pro se can not recover fees under the Freedom of Information Act (FOIA). The court affirmed the district court's judgment in an action brought by an immigration attorney under FOIA to obtain government documents. In this case, plaintiff was unsatisfied with the government's responses to his FOIA requests and thus filed three separate pro se lawsuits where he was ultimately considered the prevailing party. Plaintiff was awarded costs, but denied attorney fees under FOIA. View "Gahagan v. US Citizenship & Immigration Services" on Justia Law