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Kathryn Honea purported to appeal a judgment in favor of Raymond James Financial Services, Inc. ("Raymond James"), and Bernard Michaud, an employee of Raymond James (collectively, "RJFS"), in the underlying action seeking to vacate an arbitration award. In 1997, Honea opened several investment accounts with Raymond James. In March 2006, Honea sued RJFS alleging that her accounts had been mismanaged. She sought damages for breach of contract, breach of fiduciary duty, negligence, wantonness, fraud, and violations of the Alabama Securities Act. The case went to arbitration. An arbitration panel entered an award in favor of RJFS, and on January 14, 2008, Honea filed in the trial court a motion to vacate that arbitration award. In this case's fourth trip before the Alabama Supreme Court, Honea's 2017 motion to vacate interjected issues and sought relief beyond the scope of the remand action ordered in "Raymond James III," which directed a Rule 59(g) hearing. "The trial court would have no jurisdiction to rule on it, and any ruling, whether express or a denial by operation of law, would be void." Accordingly, the Court dismissed this appeal. View "Honea v. Raymond James Financial Services, Inc." on Justia Law

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The issue this case presented for the Mississippi Supreme Court centered on release language in a settlement agreement. This case began as a legal malpractice action by Delie Shepard and Ashley Stowers (the Plaintiffs) against Robert Germany and his law firm, Pittman, Germany, Roberts & Welsh, LLP. Shepard and Stowers were represented by Michael Crowley and Edward Blackmon; Germany and his firm were represented by Fred Krutz and Daniel Mulholland. After several years of litigation and mediation, the parties reached a settlement. In the settlement, Shepard and Stowers agreed “to execute a Full and Complete Release.” The parties agreed to and memorialized the essential terms of their settlement in an email exchange. Although the essential terms were agreed upon, Crowley’s email to Krutz did not specify the precise language of the “Full and Complete Releases.” Believing that the parties had a meeting of the minds on the essential terms of the settlement in an email exchange, Germany moved to enforce the settlement agreement using the release language proposed by his attorneys. Shepard and Stowers later filed their own motion to enforce the settlement agreement using their proposed releases. Before Shepard and Stowers filed their motion, the circuit court held a hearing on Germany’s motion to enforce the settlement agreement. The circuit court entered an Order Enforcing Settlement Agreement and Judgment of Dismissal. Unsatisfied with the order enforcing the settlement agreement, which required their signature on the releases, Crowley and Blackmon filed an emergency petition for writ of prohibition with the Supreme Court, which was ordered to be treated as a Notice of Appeal. They later filed a notice of appeal in the underlying case on behalf of Shepard and Stowers. The appeal sought essentially the same relief as Crowley and Blackmon’s petition, so the Supreme Court consolidated the cases. The issue for the Supreme Court was whether the circuit court abused its discretion by enforcing a settlement agreement using specific release language that required the Plaintiffs’ attorneys’ signatures. Finding that the circuit court abused its discretion, the Supreme Court reversed the Order Enforcing Settlement Agreement and Judgment of Dismissal and remanded the case for further proceedings. View "Crowley v. Germany" on Justia Law

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Defendant struck Plaintiff, a pedestrian with his vehicle. Plaintiff filed a personal injury suit. Defendant filed an answer with an affirmative defense. Defendant answered an interrogatory about his drivers' license by stating that he had diabetes and required medical approval to drive, but refused to answer follow-up questions about his medical condition, stating that the question violates HIPAA, doctor-patient privilege; the Defendant has not placed his medical condition at issue. The court found that Plaintiff had legitimate cause to believe that Defendant had sight problems that could have been related to the accident and held Defendant’s attorney in contempt. The court found the attorney was not entitled to assert the physician-patient privilege, 735 ILCS 5/8-802. The Illinois Supreme Court affirmed the appellate court’s reversal of the contempt order. A plaintiff may not waive a defendant’s privilege by putting the defendant’s medical condition at issue. Neither the plaintiff nor the defendant asserted anything about defendant’s physical or mental condition. If these allegations put a defendant’s medical condition in issue, then it will be at issue in most traffic accident cases. The court urged the legislature to clarify the meaning of “at issue” and noted that, when a patient obtains a physician’s report to maintain his driving privileges, he is not seeking treatment so the privilege does not apply to the record filed with the Secretary of State. View "Palm v. Holocker" on Justia Law

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In this fraud and professional negligence case the Supreme Court reversed the decision of the Court of Appeals that a $80 million punitive damage award was unreasonable and reinstated the trial court’s award, otherwise affirming the appellate court’s judgment, holding that the $80 million award was not grossly excessive and was constitutionally acceptable. Plaintiffs participated in a tax shelter marketed by Defendant, their accounting firm. After the IRS disallowed the tax shelter, Plaintiffs settled with the IRS, paying a total of $20 million for back taxes, interest and penalties and amounts paid to Defendant for fees. Plaintiffs then commenced this action to recoup the $20 million. The trial court found Defendant liable for fraud and gross professional negligence and awarded $20 million in compensatory damages and $80 million in punitive damages. The Court of Appeals affirmed the judgment on liability and compensatory damages but reduced the punitive damage award to equal the compensatory damage award. The Supreme Court (1) affirmed the Court of Appeals’ decision that Defendant was liable for fraudulent conduct and the compensatory damage award; but (2) reversed the remittitur and reinstated the trial court’s punitive damage award, holding that the facts supported an $80 million punitive damage assessment and that an award of that magnitude was constitutionally acceptable. View "Yung v. Grant Thornton, LLP" on Justia Law

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The Supreme Court adopted the Exoneration Rule, the majority rule across the nation providing that a criminal defense attorney may not be sued for legal malpractice in a case resulting in the conviction of his or her client unless the client has been exonerated by direct appeal or upon post-conviction relief, and affirmed the trial court’s dismissal of Plaintiffs’ legal malpractice claim against Defendants. The trial court dismissed Plaintiffs’ legal malpractice action against Plaintiff’s defense attorneys. The Court of Appeals affirmed, holding that a criminal defendant who has been convicted at trial and whose conviction has not been overturned on appeal or through other post-conviction proceedings may not bring a legal malpractice action against his defense attorneys for alleged negligence occurring during the representation. The Court of Appeals’ opinion was based on the Exoneration Rule, which the court had previously applied. The Supreme Court granted discretionary review to consider the merits of the rule, adopted the rule, and affirmed, holding that because Plaintiff failed to allege that he had been exonerated of his convictions through post-conviction proceedings, the trial court did not err in dismissing his legal malpractice action without prejudice. View "Lawrence v. Bingham, Greenebaum, Doll, LLP" on Justia Law

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The North Dakota State Board of Registration for Professional Engineers and Land Surveyors ("Board") appealed district court judgments affirming in part, reversing in part, and remanding to the Board its disciplinary decisions against Michael Berg, Apex Engineering Group, Inc., Scott Olson, Dain Miller, Thomas Welle, and Timothy Paustian. Respondents Berg, Olson, Miller, Welle and Paustian were former employees of Ulteig Engineers, Inc. Olson was terminated from Ulteig in 2009. In 2010, Berg, Miller, Welle, and Paustian resigned from Ulteig and, along with Olson, started a competing business, Apex. Following the Respondents' departure, Ulteig sued Apex and filed an ethics complaint with the Board, alleging Berg, Olson, Miller, Welle and Paustian violated the Professional Engineers' Code of Ethics by disclosing Ulteig's confidential information and failing to disclose a potential conflict of interest by not informing Ulteig of their decision to form Apex. Ulteig also alleged the Respondents knowingly participated in a plan to seek employment for Apex on projects that Ulteig had been contracted to perform before the Respondents' departure from Ulteig. The Board found that each of the Respondents had violated one or more of the provisions of the code of ethics. Respondents appealed the Board's disciplinary decisions to the district court. The court affirmed the Board's decision that Welle, Berg, and Miller failed to disclose a potential conflict of interest. The court reversed the determination that Miller, Welle, and Paustian had improperly disclosed confidential information. The court also reversed the decision that Berg, Olson, and Welle knowingly participated in a plan to seek employment for Apex on projects Ulteig had been contracted to perform before their departure from Ulteig. The court remanded to the Board for reconsideration the discipline imposed on Berg, Olson, Miller, Welle, and Paustian in light of the court's reversal of the disciplinary decisions. The court also awarded attorney fees to Berg, Welle, Apex, Olson, Miller, and Paustian. On appeal to the North Dakota Supreme Court, the Board argued the district court wrongfully reversed the Board's disciplinary decisions because the decisions were supported by a preponderance of the evidence. The Supreme Court concluded a preponderance of the evidence supported the Board's factual findings regarding the improper solicitation by Welle, Olson, Berg, and Apex. Those findings supported a conclusion that Welle, Olson, Berg, and Apex knowingly sought or accepted employment for professional services for an assignment for which Ulteig was previously employed or contracted to perform in violation of N.D. Admin. Code 28-03.1-01-12(6). The Supreme Court therefore reversed those parts of the district court's judgments relating to the violation of N.D. Admin. Code 28-03.1-01-12(6) by Welle, Olson, Berg, and Apex. View "Berg, et al. v. North Dakota State Board of Registration" on Justia Law

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Neighbors is a skilled nursing facility participating in Medicare and Medicaid. The Centers for Medicare and Medicaid Services (CMS) determined that Neighbors inadequately addressed sexual interactions between three cognitively impaired residents and that Neighbors’ failure to act put the residents in “immediate jeopardy,” and issued Neighbors a citation and an $83,800 penalty under 42 U.S.C. 1395i‐3(h)(2)(B)(ii)(I). An ALJ and the Department of Health and Human Services Departmental Appeals Board upheld the decision. The Seventh Circuit affirmed, concluding that substantial evidence supports the Agency’s determinations and rejecting claims that the sexual interactions were consensual. The court noted findings that staff, aware of the sexual interactions, did not talk to the residents about their feelings about these “relationships”; did not document the residents’ capacity for consent (or lack thereof) or communicate with residents’ physicians for medical assessment of how their cognitive deficits impacted that capacity; did not discuss the developments with the residents’ responsible parties; and did not record any monitoring of the behaviors or make any care plans to account for them. Neighbors’ non‐intervention policy prevented any real inquiry into consent, except in the extreme situation where a resident was yelling or physically acting out. View "Neighbors Rehabilitation Center, LLC v. United States Department of Health and Human Services" on Justia Law

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Pursuant to a former version of Code of Civil Procedure section 128.5, the trial court ordered CPF Vaseo Associates, LLC (CPF) and its counsel, John Byrne, to pay Bruce and Barbara Gray (the Grays) just over $30,000 in fees and costs. Yet a mandatory procedural prerequisite to that award was never fulfilled. The motion requesting sanctions was served and filed on the same day, and no safe harbor period was afforded for CPF and Byrne to correct the challenged conduct. While a panel of the Court of Appeal previously determined that no such safe harbor applied to a sanctions motion like the one here, the Legislature's subsequent clarifying amendment of the section and the contrary opinion of another court convinced the Court to now reach a different conclusion. For that reason, the Court reversed and remanded for further proceedings. View "CPF Vaseo Associates, LLC v. Gray" on Justia Law

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The Supreme Court affirmed the orders of the district court granting summary judgment in favor of Defendants, three professionals, on Plaintiff’s claims of malpractice, breach of fiduciary duty, and conversion arising out of conservatorship and divorce proceedings, holding that the district court did not err. Defendants were Plaintiff’s conservator and counsel during the divorce proceedings. After the divorce concluded, Defendant filed this lawsuit alleging conversion, professional malpractice, and breach of fiduciary duty. The Supreme Court affirmed, holding (1) collateral estopped precluded Plaintiff from prevailing on his conversion claim; and (2) the district court did not err in granting summary judgment in favor of Defendants on the malpractice and breach of fiduciary duty claims. View "Tozzi v. Moffett" on Justia Law

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Shaf, a New Jersey company, sells apparel. Seventh Avenue, a Wisconsin-based catalog merchandiser, sells clothing protected by a trademark. After a dispute over Shaf’s alleged infringement of Seventh Avenue’s trademark, the parties entered into a consent agreement. Months later, Seventh Avenue discovered what it saw as continuing infringement by Shaf and moved to hold Shaf in contempt. Shaf was represented in the district court by Milwaukee counsel. The attorney received an email notification (from the court’s electronic docketing system) of the motion upon its January 17 filing, indicating that response was due January 24. Shaf failed to respond. The court scheduled a hearing for February 14. Nobody for Shaf appeared. The court held Shaf in contempt and required that it pay Seventh Avenue’s fees and costs. The contempt order prompted Shaf's local counsel to move for reconsideration, explaining that counsel was traveling internationally when the motion was filed. Counsel returned to work five days before Shaf’s written response was due and 26 days before the hearing, but took several weeks to catch up on his email. Shaf’s request also explained that local counsel believed national counsel would attend to any ongoing needs in the case. The court denied the motion to reconsider. Seventh Avenue supplemented its fee petition to reflect additional expenses. The Seventh Circuit affirmed an award of $34,905 in fees and costs. While the delayed response was better than no response, the court acted within its discretion to find that Shaf’s initial unresponsiveness warranted a sanction. View "Seventh Avenue, Inc. v. Shaf International, Inc." on Justia Law