Justia Professional Malpractice & Ethics Opinion Summaries

In 2009, the president of the International Congress for Joint Reconstruction, Inc. (ICJR) retained Mark Sacaris, part owner of the Center for Healthcare Education and Research, Inc. (CHE), to assist ICJR in producing medical education conferences on the subject of joint-reconstruction surgery. Their agreement was unwritten, and there was no discussion of the rates ICJR would be charged. Sacaris was given full control over ICJR’s money accounts as part of the arrangement. Sacaris used ICJR’s money accounts to pay CHE’s invoices without notifying ICJR’s board members of the amounts ICJR was being charged. Over time, and also without informing the board of ICJR, he increased the scope of CHE’s services, thereby creating additional sources of profit for CHE, and indirectly for himself, but he did not disclose his interest in these arrangements to ICJR. Eventually the ICJR board was informed by Sacaris that ICJR had amassed a $2 million to CHE. ICJR terminated its relationship with Sacaris and CHE. CHE filed suit to recover amounts it claimed it was owed by ICJR under the agreement. ICJR cross-sued Sacaris and CHE, asserting Sacaris secretly profited from his relationship with ICJR. After a bench trial, the court found ICJR liable to CHE for breach of contract. Although the court also found that CHE and Sacaris breached their fiduciary duties to ICJR in earning all four categories of the profits ICJR sought to disgorge, the court awarded ICJR recovery only as to categories two and four. On appeal, ICJR contended the trial court erred in determining that ICJR could not recover disgorgement of CHE and Sacaris’s profits from their undisclosed charges for management services without proof their breach of fiduciary duties caused ICJR to suffer monetary damages. The Court of Appeal agreed ICJR was not required to show it suffered monetary harm to establish a right to disgorgement of CHE and Sacaris' profits from undisclosed charges for event management services. The Court of Appeal reversed that portion of the judgment affected by the error and remanded for the trial court to determine the appropriate amount of the award of disgorgement. However, the Court rejected ICJR’s claim that the court erred in determining that running symposia for pharmaceutical companies was not a corporate opportunity of ICJR. View "Center Healthcare Ed. & Res. v. Internat. Cong. Joint Reconst." on Justia Law

The Louisiana Supreme Court granted this writ application to determine whether “collectibility” was a relevant consideration in a legal malpractice action. Specifically, the issue presented was whether plaintiff’s damages in this legal malpractice action were limited to the amount she could have actually collected on a judgment against the tortfeasor in the underlying lawsuit. Elaine Ewing was injured in an automobile accident in 2015, when her vehicle was hit by a vehicle driven by Marc Melancon. Her counsel failed to forward the original petition for damages within seven days as required by La. R.S. 13:850. The original petition was filed on April 22, 2016, after the one-year prescriptive period had passed. Ms. Ewing’s suit was dismissed on an exception of prescription. Ms. Ewing subsequently filed a legal malpractice action against her attorney and Westport Insurance Corporation, counsel's malpractice insurer. Defendants filed a motion for partial summary judgment asserting the court should apply the “collectibility rule.” Defendants alleged Ms. Ewing’s recovery could be no greater than her potential recovery in the underlying personal injury lawsuit, and recovery in this case should have been capped at Mr. Melancon’s insurance policy limits. The Supreme Court held that proof of collectibility of an underlying judgment was not an element necessary for a plaintiff to establish a claim for legal malpractice, nor could collectibility be asserted by an attorney as an affirmative defense in a legal malpractice action. View "Ewing v. Westport Ins. Co., et al." on Justia Law

The Judiciary Commission of Louisiana filed a disciplinary proceeding against respondent, Justice of the Peace Cody King on one count that alleged respondent violated Canons 1, 2, 2A, 3A(1), 3A(7), and 3B(1) of the Code of Judicial Conduct (1996) and La. Const. Art. V, section 25(C). In 2018, the Attorney General's Office filed the first of three complaints against Respondent with the Office of Special Counsel of the Commission, asserting that Respondent failed to respond to constituents in his district, and likewise failed to respond to letters or calls from the Attorney General's office. In 2019, Hannah Zaunbrecher filed a complaint, asserting: (1) Respondent was difficult to reach; (2) he overcharged Ms. Zaunbrecher for an eviction she filed; (3) he did not set a court date in the eviction matter despite repeated requests from Ms. Zaunbrecher after the eviction was filed; and (4) Respondent failed to refund the unearned filing fee. The OSC sent letters to Respondent notifying him of each complaint. Respondent did not reply despite later acknowledging that he received them. After a hearing on these charges, the Commission filed a recommendation with the Louisiana Supreme Court concluding that the above violations had been proven. To this, the Supreme Court agreed with the Commission’s recommendation, and ordered the removal of Respondent from office, that he reimburse the Commission the costs incurred in the investigation and prosecution of the case, and further, that he pay restitution for an unearned filing fee he failed to return to Parish Leasing Company, LLC. View "In re: Justice of the Peace Cody King, Ward 6, Morehouse Parish" on Justia Law

Fox Lake patrol officer Zander was charged with misconduct arising from multiple job-related incidents. The chief recommended termination. Zander's union, FOP, assigned Attorney Carlson, an FOP employee. Zander had no input into the choice of an attorney, had no retainer agreement with Carlson, and was not charged for Carlson’s services. Under the Illinois Municipal Code (65 ILCS 5/1-1-1), police officers who face removal or discharge are entitled to a hearing before the local board of fire and police commissioners unless a collective bargaining agreement (CBA) provides for arbitration. The CBA between Fox Lake and FOP gave officers the option of pursuing either avenue. On Carlson’s advice, Zander chose arbitration. The arbitrator upheld the termination. Zander sued, alleging legal malpractice and that FOP has no right to employ attorneys to furnish legal services under its direction to FOP members, and cannot control what attorneys assigned to help FOP members may do and “should be vicariously liable.”The circuit court dismissed, citing the U.S. Supreme Court’s "Atkinson" holding, which immunizes union members and officers against personal liability for actions taken while acting as a union representative in the context of the collective bargaining process. The court noted the parallels between federal labor law and the Illinois Public Labor Relations Act. The Illinois Supreme Court agreed. But for the collective bargaining agreement. FOP would have owed Zander no duty. Zander’s claim against the union fell within the exclusive jurisdiction of the Illinois Labor Relations Board. View "Zander v. Carlson" on Justia Law

While representing a client at a mandatory settlement conference (MSC) before a temporary judge, petitioner Kevin Moore was rude and unprofessional. Among other things, Moore: (1) persistently yelled at and interrupted other participants; (2) accused opposing counsel of lying while providing no evidence to support his accusation; (3) refused to engage in settlement discussions; and (4) effectively prevented the settlement officer from invoking the aid and authority of the supervising judge by asserting this would unlawfully divulge settlement information. To make matters worse, Moore later acknowledged that his contemptuous behavior was the result of a tactical decision he had made to act in such a manner in advance of the MSC. After a hearing, respondent court convicted Moore of four counts of civil contempt, imposed a $900 fine for each count ($3,600 total), and ordered the payment of attorney fees and costs to the opposing party. Moore challenged all four contempt convictions and the associated sanctions. After review, the Court of Appeal concluded the record and applicable law required that three of Moore’s convictions be overturned; the Court affirmed one conviction and the punishment required for that offense. The clerk of the appeallate court was ordered to make the required notification to the State Bar for whatever additional action the Bar may consider appropriate. The award of attorney fees and costs here was precluded by statute. View "Moore v. Superior Court" on Justia Law

The Hearing Panel of the Judicial qualifications Commission ("JQC") recommended that Judge Robert "Mack" Crawford be "removed from office" for violating Rule 1.1 of the Georgia Code of Judicial Conduct ("CJC") which said "Judges shall respect and comply with the law." Judge Crawford resigned as Superior Court judge of the Griffin Judicial Circuit upon investigation by the JQC. The complaint alleged that Crawford violated CJC Rule 1.1 in two ways: (1) by “impermissibly converting money from the registry of the Superior Court of Pike County . . . when he ordered the Pike County Clerk via handwritten note to disburse $15,675.62 in funds from the court registry to him via check” and “then cashed and used a portion of the check for his personal benefit and deposited the remainder of this money in his personal checking account,” although he later returned the funds; and (2) by “failing to follow the proper procedure for the disbursement of funds, even if the money had been his, as required by law,” noting the certification requirement for withdrawal of funds from a court registry contained in Uniform Superior Court Rule 23. In 2002, when Crawford was in private practice, he had deposited the funds into the registry from his client trust account in connection with a lawsuit. The JQC complaint acknowledged that Crawford claimed that at least some of the money was owed to him as attorney fees and expenses.The Hearing Panel did not recommend that Crawford be permanently barred from seeking or holding judicial office. The JQC Director did not file a notice of exceptions, thereby accepting the Hearing Panel’s recommendation. Under rules promulgated by the Georgia Supreme Court, the Court had to file a written decision either dismissing this matter or imposing a sanction. The Court elected to dismiss. View "Inquiry Concerning Judge Robert M. Crawford" on Justia Law

The Eleventh Circuit affirmed the district court's grant of summary judgment for appellees in an action brought by appellant, alleging claims for securities fraud and state common law claims of negligence, breach of fiduciary duty, suppression and fraud. Appellant alleged that appellees wrongfully failed to inform appellant of the risks involved in making a certain investment. The court found that the alleged wrongful conduct of appellees did not cause the economic loss for which appellant sues. In this case, there is no viable claim against appellees; no act or omission asserted against them was the cause of the loss suffered by appellant; and thus the district court properly granted summary judgment in their favor. View "Whitehead v. BBVA Compass Bank" on Justia Law

Petitioner, a broker-dealer, twice misappropriated his employer's funds and then unsuccessfully tried to cover his tracks by falsifying documents. FINRA permanently barred him from membership and from associating with any FINRA member firm.The DC Circuit held that the Supreme Court's recent decision in Kokesh v. SEC, 137 S. Ct. 1635 (2017), which held that SEC disgorgement constitutes a penalty within the meaning of 28 U.S.C. 2462, does not have any bearing in petitioner's case. The court explained that binding circuit precedent establishes that the Commission may approve expulsion not as a penalty but as a means of protecting investors. In this case, the Commission did precisely that. Because this court has already held that the Commission appropriately concluded that petitioner's bar was not excessive or oppressive in any other respect, that ends the court's inquiry. View "Saad v. Securities and Exchange Commission" on Justia Law

The Court of Appeal affirmed the trial court's denial of appellant's petition for writ of administrative mandate under Code of Civil Procedure section 1094.5. The trial court affirmed the Dental Board's decision to revoke appellant's dental license but stay the revocation and place him on probation for five years.The court held that Conservatorship of O.B. (2020) 9 Cal.5th 989, does not overturn the standard to be applied by the trial court in reviewing an administrative proceeding pursuant to a petition for writ of administrative mandate under section 1094.5. The court also held that substantial evidence supported the trial court's finding concerning the failure to use study models, appellant's failure to obtain informed written consent prior to treatment of four young patients, issues with professional fees, issues with patient record requests, issues with the treatment of a certain patient, and the discipline imposed. View "Yazdi v. Dental Board of California" on Justia Law

In this case arising from a phishing/spoofing scheme that caused Plaintiffs to lose $266,069 the Supreme Court affirmed the decision of the circuit court denying Plaintiffs' motion to alter or amend its previous grant of summary judgment in favor of Defendant, holding that Plaintiffs were unable to establish that Defendant breached any duty owed to them.Plaintiffs made an offer on real estate, which was accepted. Plaintiffs intended to pay in cash. To handle the closing, Respondent was retained. Respondent sent wiring instructions for the settlement funds to Lynn Frum, Plaintiffs' real estate agent. Before the closing, an email purportedly from Frum's email address to Plaintiffs started a series of emails between Plaintiffs and the scammer. However, the email address was not the same email address from which the email from Frum was sent that day. Plaintiffs instructed their bank to transfer funds from their account to the scammer's account. When it became apparent that Plaintiffs were victimized by a scammer, they brought suit, alleging legal malpractice. The circuit court granted summary judgment for Respondent. The Supreme Court affirmed, holding that Plaintiffs did not establish that Respondent neglected a reasonable duty. View "Otto v. Catrow Law, PLLC" on Justia Law