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Petitioners, former shareholders of Kay Company and Kay Co., LLC, appealed orders entered by the circuit court in which summary judgment was granted to Respondent, Petitioners’ former legal counsel, in connection with claims Petitioners filed against Respondent. Petitioners challenged the circuit court’s (1) ruling that a settlement reached by all but one of Petitioners with the IRS prevented them from establishing causation and damages on any of their claims, (2) finding that there were no factual issues in need of resolution, and (3) ruling that the lack of settlement with the IRS precluded Jennie Graham, executrix of the estate of James Graham, prevented her from asserting claims against Respondent. The Supreme Court held that the circuit court (1) erred in reasoning that the settlement with the IRS prohibited Petitioners from going forward on all of their claims; (2) erred in ruling that the lack of a settlement with the IRS precluded Graham from asserting any claims against Respondent; and (3) did not err in its rulings with regard to detrimental reliance and joint venture. The Supreme Court remanded this matter to the circuit court to permit Petitioners to proceed on their claims of legal malpractice, negligent misrepresentation, and fraud. View "Kay v. McGuireWoods, LLP" on Justia Law

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Under the circumstances of this legal malpractice action, a court’s error of law was a concurrent, not a superseding, proximate cause, and therefore, recovery was not barred to the plaintiff client even where the defendant attorney was negligent for failing to prevent or mitigate the legal error. Plaintiff brought suit against Defendant, its former law firm, alleging that Defendant was negligent in failing to provide a French appellate court with evidence that the court deemed necessary for Plaintiff to prevail on a claim, which the court denied. The superior court granted summary judgment to Defendant and denied partial summary judgment to Plaintiff, concluding (1) the French court committed an error of law in requiring this evidence, and (2) even if Defendant were negligent in failing to provide the evidence to the court, Plaintiff could not recover damages for Defendant’s negligence because the court’s legal error was a superseding cause of the adverse action. The Supreme Judicial Court reversed, holding that the trial judge erred in granting summary judgment to Defendant and denying partial summary judgment to Plaintiff. View "Kiribati Seafood Co., LLC v. Dechert LLP" on Justia Law

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The Supreme Court reversed the judgments of the court of appeals and trial court concluding that an expert witness affidavit in this legal malpractice case was conclusory regarding causation. Plaintiff sued Defendant attorneys for legal malpractice and breach of fiduciary duty in connection with the loss of its aircraft. Defendants filed traditional and no-evidence motions for summary judgment, challenging the causation element of the legal malpractice claim and arguing that the breach of fiduciary duty claim was precluded by the anti-fracturing rule. In response to the motions for summary judgment, Plaintiff presented affidavits of two attorneys opining that Defendants’ negligence caused the forfeiture of the aircraft. The trial court ruled that the affidavits would not be considered for summary judgment purposes and granted summary judgment for Defendants. The court of appeals affirmed, holding that the two affidavits were conclusory. The Supreme Court reversed and remanded the case, holding that one of the affidavits was not conclusory. View "Starwood Management, LLC v. Swaim" on Justia Law

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In this appeal, the Pennsylvania Supreme Court was asked to determine whether a trial court erred by denying a motion to recuse the entire bench of the Court of Common Pleas of Montgomery County. Appellant James Kravitz was the sole officer, director, and shareholder of several companies known as the Andorra Group, which included Appellants Cherrydale Construction Company, Andorra Springs Development, Inc., and Kravmar, Inc., which was formally known as Eastern Development Enterprises, Incorporated (“Eastern”). Kravitz also owned a piece of property known as the Reserve at Lafayette Hill (“Reserve”). Andorra Springs was formed to develop residential housing on sections of the Reserve. In 1993, Andorra Springs hired Cherrydale as the general contractor to build the homes on the Reserve. Eastern operated as the management and payroll company for the Andorra Group. Appellee Roy Lomas, Sr., d/b/a Roy Lomas Carpet Contractor was the proprietor of a floor covering company. Cherrydale and Lomas entered into a contract which required Lomas to supply and install floor covering in the homes being built by Cherrydale. Soon thereafter, Cherrydale breached that contract by failing to pay. Lomas demanded that Cherrydale submit Lomas’ claim to binding arbitration as mandated by the parties’ contract. The parties arbitrated the matter, and a panel of arbitrators entered an interim partial award in favor of Lomas, finding that Cherrydale breached the parties’ contract. Following Kravitz’s unsuccessful attempt to have the interim award vacated, the arbitrators issued a final award to Lomas. Judgment was entered against Cherrydale in the Court of Common Pleas of Montgomery County. Important to this appeal, then-Attorney, now-Judge Thomas Branca represented Lomas throughout the arbitration proceedings. Since the entry of judgment, Kravitz actively prevented Lomas from collecting his arbitration award by, inter alia, transferring all of the assets out of Cherrydale to himself and other entities under his control. In March 2000, Lomas commenced the instant action against Appellants. Then-Attorney Branca filed the complaint seeking to pierce the corporate veil and to hold Kravitz personally liable for the debt Cherrydale owed to Lomas. Approximately one year later, then-Attorney Branca was elected to serve as a judge on the Court of Common Pleas of Montgomery County. Prior to taking the bench, then Judge-Elect Branca withdrew his appearance in the matter and referred the case to another law firm. After several years of litigation, the parties agreed to a bifurcated bench trial. Although Appellants acknowledged that they were unaware of any bias or prejudice against them on the part of Judge Rogers or any other judge of the Court of Common Pleas of Montgomery County, Appellants maintained that Judge Branca’s continued involvement and financial interest in the case created an “appearance of impropriety” prohibited by the Code of Judicial Conduct. Specifically at issue before the Supreme Court was whether the moving parties waived their recusal claim and, if not, whether the claim had merit. The Court held that the recusal issue was untimely presented to the trial court and, thus, waived. View "Lomas v. Kravitz" on Justia Law

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Dr. Eyston Hunte and his medical practice petitioned for mandamus relief. A former patient, Lisa Johnson, filed suit against Hunte, alleging Hunte sexually abused her during a health examination. Johnson served discovery requests on Hunte and his practice, which included a request to produce "each and every claim or complaint that has been made against [Hunte] by a patient for assault or inappropriate touching." Hunte objected to this request on the ground that this information was protected from discovery. Johnson filed a motion to compel Hunte to produce the requested documents. Hunte and EAH, in turn, filed a motion for a protective order. The trial court denied Hunte's motion for a protective order and ordered Hunte to respond to the discovery requests within 21 days. It was evident to the Alabama Supreme Court that a the 2001 complaint submitted to the Alabama Board of Medical Examiners by former patient and provided to Hunte as a part of the proceedings before the Board was the type of document declared privileged and confidential under section 34-24-60, Ala Code 1975. Furthermore, the Court noted that Johnson had not filed an answer and had not presented any facts or argument to the Supreme Court indicating that the 2001 complaint was not privileged or that it was otherwise subject to discovery. Thus, the Court concluded that Hunte has shown a clear right to an order protecting the 2001 complaint in Hunte and EAH's possession from discovery. The Court granted Hunte’s petition and issued the writ. View "Ex parte Dr. Eyston Hunte" on Justia Law

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Plaintiffs Mary Hall, as personal representative of the estate of Adolphus Hall, Sr., and Anaya McKinnon, as personal representative of the estate of Wanzy Lee Bowman appealed the dismissal of their class-action claims against Environmental Litigation Group, P.C. ("ELG"). Plaintiffs alleged ELG agreed to represent hundreds of clients who had been exposed to asbestos, including their respective decedents. Plaintiffs alleged ELG charged its clients an excessive fee above and beyond the amount listed in their respective contracts. The trial court dismissed their case with prejudice. The Alabama Supreme Court disagreed with the trial court’s judgment, reversed and remanded. On remand, the trial court appointed a special master, who again recommended dismissal of plaintiffs’ claims. The trial court held that the attorney-employment agreement was ambiguous and that this ambiguity was fatal to the plaintiffs' class-allegation claims. Thus, the trial court dismissed the class claims before the class-certification process began. At this point in the proceedings and under the standard of review, the Supreme Court saw no ambiguity in the attorney-employment agreements, negating the trial court's contrary conclusion as to the individualized inquiry necessary with regard to the plaintiffs' contract claims. The Court therefore reversed the trial court's order dismissing the plaintiffs' claims for class-based relief and remanded the matter for further proceedings. View "Hall v. Environmental Litigation Group, P.C." on Justia Law

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In 1996, James Harper was to appear before Judge John H. Sheffield at the Lee County Justice Court on charges of driving under the influence and having an expired inspection sticker. But Harper failed to appear, and Judge Sheffield issued a warrant for his arrest. The trial went forward, and Judge Sheffield convicted Harper on both charges. Judge Sheffield then imposed a six-month suspended sentence and a $600 fine for the DUI and a $50 fine for the inspection sticker. That same day, Harper entered into a payment plan with the Lee County Justice Court for his $600 fine. Two days later, he paid $50, which was credited to the DUI case number. Harper appealed his DUI conviction. The conviction was upheld; and he satisfied the terms of his sentence. In 2013, Harper again was arrested for DUI in Lee County. At that point he was told he could not post bond until he resolved a matter with Judge Sheffield. The next day, Harper appeared before Judge Sheffield, who accused Harper of failing to pay the fines imposed for the 1996 justice-court convictions. Despite Harper’s protestation that he had appealed to county court, lost, and paid his fines, and despite the fact that Judge Sheffield had with him the justice-court case files for Harper’s earlier convictions, both of which contained Harper’s notice of appeal and the county-court notification, Judge Sheffield sentenced Harper to serve six months at the Lee County Work Center for the DUI conviction. Harper served four months in the work center before being released due to an infection requiring hospitalization. The Mississippi Supreme Court determined Judge Sheffield’s conduct was not due to an innocent mistake, it amounted to judicial misconduct. So the Court imposed a public reprimand, a 120-day suspension without pay, and a $3,000 fine, and assessed all costs of the proceedings to Judge Sheffield. View "Mississippi Comm'n on Judicial Performance v. Sheffield" on Justia Law

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In 1996, James Harper was to appear before Judge John H. Sheffield at the Lee County Justice Court on charges of driving under the influence and having an expired inspection sticker. But Harper failed to appear, and Judge Sheffield issued a warrant for his arrest. The trial went forward, and Judge Sheffield convicted Harper on both charges. Judge Sheffield then imposed a six-month suspended sentence and a $600 fine for the DUI and a $50 fine for the inspection sticker. That same day, Harper entered into a payment plan with the Lee County Justice Court for his $600 fine. Two days later, he paid $50, which was credited to the DUI case number. Harper appealed his DUI conviction. The conviction was upheld; and he satisfied the terms of his sentence. In 2013, Harper again was arrested for DUI in Lee County. At that point he was told he could not post bond until he resolved a matter with Judge Sheffield. The next day, Harper appeared before Judge Sheffield, who accused Harper of failing to pay the fines imposed for the 1996 justice-court convictions. Despite Harper’s protestation that he had appealed to county court, lost, and paid his fines, and despite the fact that Judge Sheffield had with him the justice-court case files for Harper’s earlier convictions, both of which contained Harper’s notice of appeal and the county-court notification, Judge Sheffield sentenced Harper to serve six months at the Lee County Work Center for the DUI conviction. Harper served four months in the work center before being released due to an infection requiring hospitalization. The Mississippi Supreme Court determined Judge Sheffield’s conduct was not due to an innocent mistake, it amounted to judicial misconduct. So the Court imposed a public reprimand, a 120-day suspension without pay, and a $3,000 fine, and assessed all costs of the proceedings to Judge Sheffield. View "Mississippi Comm'n on Judicial Performance v. Sheffield" on Justia Law

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The Alaska professional licensing division brought an accusation of professional misconduct against doctor David Odom, M.D., alleging that he acted incompetently when he prescribed phentermine and thyroid hormone for one of his patients. The division sought disciplinary sanctions against the doctor. Following a hearing, an administrative law judge issued a proposed decision concluding that the division had failed to show that the doctor’s conduct fell below the standard of care in his field of practice and that no disciplinary sanctions were warranted. But the Medical Board instead adopted as its decision the proposal for action submitted by the division and revoked the doctor’s medical license. On appeal to the superior court, the case was remanded to the Board for consideration of the doctor’s own late-filed proposal for action. The Board reaffirmed its decision to revoke the doctor’s medical license, and the superior court affirmed that decision. The doctor appealed to the Alaska Supreme Court. Because the Medical Board’s decision to revoke the doctor’s medical license was not supported by substantial evidence, the Court reversed the superior court’s affirmance of that decision. View "Odom v. Alaska Div. of Corporations, Bus. & Prof. Licensing" on Justia Law

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Patel saved $560,000, enough to purchase a 7-Eleven franchise. He kept the money with Portfolio; the contract gave Wagha discretion over the funds’ deployment. Wagha invested much of the money in options. By the time Patel needed the funds (four months later), the market was down and he had lost a considerable sum. A jury concluded that Wagha and Portfolio had broken their promise to invest the money conservatively and awarded Patel $136,000 for breach of contract plus $64,000 for securities fraud. The district court remitted the $64,000 award, ruling that Patel has not shown loss causation, but entered judgment on the $136,000 award. The Seventh Circuit affirmed, holding that the district court retained jurisdiction after it resolved the federal law claim. In addition, the federal-law claim should not have been dismissed. The premise of that holding—that the securities laws are concerned only with inaccurate pricing—was incorrect. Securities laws forbid fraud in all aspects of securities transactions, whether or not the fraud affects the instruments’ prices. One kind of fraud is procuring securities known to be unsuitable to a client’s investment goals, after promising to further those goals. View "Patel v. Portfolio Diversification Group, Inc." on Justia Law