Justia Professional Malpractice & Ethics Opinion Summaries

Attorney Steven C. Kim took a lien against his client’s real property to secure his attorney fee. The trial court ordered Kim’s client to convey that property to fulfill a sales contract. Kim’s lien obstructed the sale, and the trial court expunged Kim’s lien. Kim’s client appealed, the Court of Appeal dismissed the appeal, no one sought review in the Supreme Court, and the judgment became final in 2018. Three days later, Kim brought a new suit against the same buyer of the same property, seeking a declaration that his expunged lien was valid and the result in the earlier suit was wrong. The buyer successfully invoked issue preclusion, and Kim now appeals this new defeat.The Superior Court of Los Angeles County granted the buyer’s motion for judgment on the pleadings without leave to amend, reasoning that the doctrine of collateral estoppel barred Kim’s effort to relitigate the lien question. The court later also ruled for the buyer on its cross-complaint, and Kim alone appealed.The Court of Appeal of the State of California, Second Appellate District, Division Eight, affirmed the judgment. The court held that the earlier litigation precluded relitigation of the lien question. The lien issue was actually litigated and necessarily decided in the first suit, and Kim was in privity with his client Central Korean. The court found that Kim had a financial interest in the lien question and controlled the litigation in cooperation with his client. The court dismissed Kim’s new arguments about section 1908 of the Code of Civil Procedure as they were raised for the first time in his reply brief. The trial court’s analysis of issue preclusion was deemed correct, and the judgment was affirmed, awarding costs to the respondents. View "Kim v. New Life Oasis Church" on Justia Law

Julene and William Dodd sued their attorney, Rory Jones, for legal malpractice after he missed the statute of limitations deadline for filing their medical malpractice lawsuit. The Dodds needed to prove that their original medical malpractice case had merit and that they would have won if Jones had filed on time. However, the district court struck the testimony of the Dodds’ experts, which was key to establishing the viability of their medical malpractice claim. The court found that the disclosures were untimely and that the experts failed to properly establish knowledge of the local standard of care, a foundational requirement of Idaho law. As a result, the Dodds’ legal malpractice claim was dismissed, and the court granted summary judgment in favor of Jones.The Dodds appealed to the Supreme Court of Idaho, arguing that the district court erred by ruling that Jones was not judicially estopped from arguing that no medical malpractice occurred and by excluding their expert testimony. They also raised claims of judicial bias. The Supreme Court of Idaho found that Jones could not be judicially estopped from claiming that no medical malpractice occurred because he was not a party in the original medical malpractice case but was representing the Dodds. The court also upheld the district court’s exclusion of the Dodds’ expert testimony, finding that the experts did not demonstrate familiarity with the local standard of care in Nampa, Idaho, at the time of the alleged malpractice.The Supreme Court of Idaho affirmed the district court’s judgment, concluding that the Dodds failed to establish an essential element of their legal malpractice case. The court also awarded attorney fees to Jones under Idaho Appellate Rule 11.2, finding that the appeal was pursued frivolously and without foundation, and sanctioned the Dodds’ attorney, Angelo Rosa, for his conduct during the appeal. View "Dodd v. Jones" on Justia Law

Rachel Moniz and Paola Correa filed separate lawsuits against Adecco USA, Inc. under the Private Attorney General Act of 2004 (PAGA), alleging violations of the Labor Code. Moniz and Adecco settled their case, but Correa challenged the fairness of the settlement. The trial court approved the revised settlement over Correa's objections and awarded attorney’s fees to Moniz’s counsel. Correa's request for a service award and attorney’s fees for her own work was largely denied. Correa appealed, arguing the trial court's analysis of the revised settlement was flawed and that her request for attorney’s fees and a service award should have been granted.The San Mateo County Superior Court overruled Adecco's demurrer in Moniz's case, while the San Francisco Superior Court sustained Adecco's demurrer in Correa's case. Correa's motion to intervene in Moniz's suit was denied, and her subsequent appeal was also denied. The trial court approved Moniz's settlement with Adecco, awarding Moniz a service award and attorney’s fees, but denied Correa’s requests. Correa's motions for a new trial and to vacate the judgment were denied, leading to her appeal.The California Court of Appeal, First Appellate District, Division Four, reviewed the case. While the appeal was pending, the California Supreme Court decided Turrieta v. Lyft, Inc., which disapproved of the reasoning in Moniz II regarding Correa’s standing. The Court of Appeal concluded that Correa and her counsel lacked standing to challenge the judgment based on the Supreme Court's decision in Turrieta. Consequently, the appeals were dismissed. View "Moniz v. Adecco USA, Inc." on Justia Law

Cathy L. Stroud sued Ozark National Life Insurance Company and its agent, Stephen Guinn, for negligent misrepresentation and breach of fiduciary duty after her husband, Alan Stroud, converted his term life insurance policy to a whole life policy, reducing the death benefit. Cathy claimed that Guinn's advice led to the conversion, which was against their best interests. Alan had a 20-year term life insurance policy with a $60,000 death benefit, which he converted to a whole life policy with a $30,000 death benefit shortly before his death.The Sedgwick District Court granted summary judgment in favor of Ozark and Guinn, concluding that Cathy failed to establish a fiduciary duty and that Guinn did not supply false information. Cathy appealed, and the Kansas Court of Appeals affirmed the district court's judgment, agreeing that Cathy did not present sufficient evidence to establish a fiduciary duty or negligent misrepresentation.The Kansas Supreme Court reviewed the case and affirmed the lower courts' decisions. The court held that Cathy failed to establish a fiduciary relationship because there was no evidence that Guinn consciously assumed fiduciary duties. The court also held that Cathy did not present evidence of an affirmative misrepresentation by Guinn, as required for a negligent misrepresentation claim under Restatement (Second) of Torts § 552. The court noted that Cathy's claim was more akin to fraud by silence, which was not pleaded or argued.The Kansas Supreme Court concluded that summary judgment was appropriate because Cathy did not establish genuine issues of material fact for trial on her claims of breach of fiduciary duty and negligent misrepresentation. Consequently, the court affirmed the district court's denial of Cathy's motion to amend her petition to add a claim for punitive damages. View "Stroud v. Ozark Nat'l Life Ins. Co. " on Justia Law

Virginia drivers whose licenses were suspended for failing to pay court fines challenged the constitutionality of the statute under 42 U.S.C. §1983. The District Court granted a preliminary injunction preventing enforcement of the statute. Before the case reached final judgment, the Virginia General Assembly repealed the statute, requiring reinstatement of the suspended licenses. The parties agreed to dismiss the case as moot.The District Court declined to award attorney’s fees to the drivers under §1988(b), reasoning that obtaining a preliminary injunction did not qualify them as “prevailing parties.” A Fourth Circuit panel affirmed this decision, but the Fourth Circuit en banc reversed, holding that some preliminary injunctions can provide lasting, merits-based relief, qualifying plaintiffs as prevailing parties even if the case becomes moot before final judgment.The Supreme Court of the United States reviewed the case and held that the drivers, who only obtained preliminary injunctive relief before the action became moot, do not qualify as “prevailing parties” eligible for attorney’s fees under §1988(b). The Court reasoned that no court conclusively resolved their claims by granting enduring judicial relief on the merits that materially altered the legal relationship between the parties. The judgment of the Fourth Circuit was reversed, and the case was remanded for further proceedings consistent with this opinion. View "Lackey v. Stinnie" on Justia Law

A Texas attorney, Robert M. Roach, claimed to have an oral agreement with Fred Schrader, the former owner of Schrader Cellars, LLC, regarding the creation of another company, RBS LLC, which Roach asserted had an ownership interest in Schrader Cellars. After Fred Schrader sold Schrader Cellars to Constellation Brands, Roach sued Fred and Constellation in Texas state court, claiming the sale was improper. Schrader Cellars then filed the current action, seeking declaratory relief that Roach had no ownership interest in Schrader Cellars, and Roach counterclaimed.The United States District Court for the Northern District of California granted summary judgment in favor of Schrader Cellars on its claim for declaratory relief and dismissed Roach’s counterclaims. The court concluded that the oral agreement violated California Rule of Professional Responsibility 3-300 and that Roach did not rebut the presumption of undue influence. The case proceeded to trial on Schrader Cellars’s claim for breach of fiduciary duty, where the jury found that Roach’s breach caused harm but did not award damages due to the litigation privilege defense.The United States Court of Appeals for the Ninth Circuit reversed the district court’s summary judgment in favor of Schrader Cellars on its claim for declaratory relief and Roach’s counterclaims, finding triable issues of fact regarding whether Roach rebutted the presumption of undue influence. The appellate court also held that the district court erred in concluding and instructing the jury that Roach breached his fiduciary duties. However, the Ninth Circuit affirmed the district court’s judgment after trial, concluding that the erroneous jury instruction had no effect on the outcome because the jury found that the gravamen of the breach of fiduciary duty claim was based on Roach’s filing of the Texas lawsuit, which was barred by the California litigation privilege. View "SCHRADER CELLARS, LLC V. ROACH" on Justia Law

Frankie Greer filed a lawsuit against the County of San Diego under 42 U.S.C. § 1983, claiming he suffered serious injuries while incarcerated in the San Diego Central Jail. During discovery, Greer requested documents from the County’s Critical Incident Review Board (CIRB) meetings related to in-custody deaths. The CIRB’s purpose is to consult with legal counsel on incidents that may lead to litigation, assess civil exposure, and recommend remedial actions. The district court ruled that the CIRB documents were not protected by attorney-client privilege, as the CIRB served multiple purposes beyond obtaining legal advice. After Greer settled his claims, several media organizations intervened to unseal the CIRB documents.The United States District Court for the Southern District of California denied the County’s motion for reconsideration and ordered the production of the CIRB documents, which were then produced under an attorneys’-eyes-only protective order. The district court also granted the media organizations' motion to intervene and unseal the documents, leading to the County’s appeal.The United States Court of Appeals for the Ninth Circuit reviewed the case and held that the appeal was not moot, as effective relief could still be provided by ordering the return or destruction of the CIRB documents. The court determined that the attorney-client privilege applied to the CIRB documents, as the primary purpose of the CIRB meetings was to obtain legal advice regarding potential litigation and to avoid future liability. The court found that the district court had made significant legal errors in its determination and that the County had not waived the privilege. The Ninth Circuit reversed the district court’s order and remanded with instructions to require the return and/or destruction of the privileged documents. View "GREER V. COUNTY OF SAN DIEGO" on Justia Law

Gregory Cohane filed a lawsuit against The Home Missioners of America, the Roman Catholic Diocese of Charlotte, and Al Behm, alleging child sexual abuse by Behm and negligence by the other defendants. Cohane claimed that Behm, a clergyman employed by Glenmary and supervised by the Diocese, groomed and sexually abused him over several years, starting when he was nine years old. Behm's abuse continued even after he was transferred to different locations due to other allegations of misconduct. Cohane's lawsuit was filed in 2021, invoking the revival provision of the SAFE Child Act, which allows previously time-barred claims of child sexual abuse to be brought within a specific two-year window.The Superior Court of Mecklenburg County dismissed Cohane's claims against Glenmary and the Diocese, ruling that the revival provision only applied to direct abusers, not to institutions that enabled the abuse. Cohane appealed, and the Court of Appeals reversed the trial court's decision, holding that the plain language of the revival provision was broad enough to include claims against both direct abusers and enablers.The Supreme Court of North Carolina reviewed the case and affirmed the Court of Appeals' decision. The court held that the revival provision of the SAFE Child Act, which revives any civil action for child sexual abuse otherwise time-barred under N.C.G.S. § 1-52, applies to claims against both direct abusers and those who enabled the abuse. The court emphasized that the plain language of the statute did not distinguish between different types of defendants and that traditional tort principles allow for recovery from both direct tortfeasors and those who contributed to the harm. Thus, Cohane's claims against Glenmary and the Diocese were revived under the SAFE Child Act. View "Cohane v. The Home Missioners of America" on Justia Law

The Commonwealth sought to civilly commit a prisoner, previously convicted of a sexual offense, as a "sexually dangerous person" (SDP) under Massachusetts law. The process required expert testimony to establish probable cause and qualified examiners to determine if the case should proceed to trial. The plaintiff, George Mackie, was initially adjudicated as an SDP based on expert reports and testimony, but this decision was later vacated on appeal due to prejudicial error.Mackie then filed separate civil actions against Dr. Katrin Rouse-Weir, a probable cause expert, and Dr. Robert Joss, a qualified examiner, alleging they submitted false reports and testimony. Both defendants moved to dismiss the complaints, claiming immunity. Superior Court judges granted the motions, concluding that the defendants were entitled to absolute quasi-judicial immunity. Mackie appealed these decisions.The Appeals Court reversed the dismissals, ruling that the experts were entitled only to qualified immunity, not absolute quasi-judicial immunity. The Supreme Judicial Court of Massachusetts granted further appellate review.The Supreme Judicial Court held that qualified examiners like Joss are entitled to absolute quasi-judicial immunity due to their essential and independent role in the judicial process. The court also concluded that probable cause experts like Rouse-Weir are protected by the litigation privilege, which shields them from liability for their statements made during judicial proceedings. Consequently, the court affirmed the Superior Court judgments dismissing Mackie's complaints against both experts. View "Mackie v. Rouse-Weir" on Justia Law

In 2001, Frances Mack-Marion refinanced her property, taking out a new mortgage. In 2020, U.S. Bank National Association, the successor-in-interest to the mortgage, initiated foreclosure proceedings against her. Mack-Marion counterclaimed, seeking a declaratory judgment that U.S. Bank was barred from foreclosure because the mortgage closed without attorney supervision, referencing the Matrix Financial Services Corporation v. Frazer decision. The Master-in-Equity dismissed her claim, ruling it lacked subject matter jurisdiction and that the mortgage was recorded before the effective date of Matrix.The Master-in-Equity interpreted Hambrick v. GMAC Mortgage Corporation to mean only the South Carolina Supreme Court could determine unauthorized practice of law claims. Additionally, the Master found Mack-Marion's claim insufficient as the mortgage predated Matrix. Mack-Marion appealed, and the South Carolina Supreme Court granted her motion to certify the appeal.The South Carolina Supreme Court overruled Hambrick to the extent it held that circuit courts lacked subject matter jurisdiction over unauthorized practice of law claims. The Court clarified that circuit courts do have jurisdiction over such claims and reaffirmed that Matrix applies prospectively. The Court held that the Master had subject matter jurisdiction but correctly dismissed Mack-Marion's claim under Rule 12(b)(6), SCRCP, because her mortgage was recorded before the effective date of Matrix. The Court affirmed the Master's dismissal as modified, maintaining that U.S. Bank could pursue foreclosure. View "U.S. Bank National Association v. Mack" on Justia Law