Justia Professional Malpractice & Ethics Opinion Summaries

Peraica represented Dordevic in her Chapter 7 bankruptcy proceeding and submitted a Statement of Financial Affairs (Rule 2016 disclosure) in which he reported that Dordevic had paid him $5,000. As the Trustee learned during discovery, Dordevic had actually paid Peraica $21,500. The Trustee informed Peraica that he needed to file an updated Rule 2016 fee disclosure. Peraica instead sent the Trustee an informal accounting document listing $21,500 in fees. The Trustee responded: “The Rule 2016 disclosures actually need to be filed with the Court” by submitting “an official form.” Peraica repeatedly ignored the Trustee’s reminders. The Trustee filed a motion, 11 U.S.C. 329, to examine the fees. Peraica failed to respond; the Trustee then requested that all fees be forfeited. The bankruptcy court granted the motion.The district court and Seventh Circuit affirmed. Beyond Peraica’s brazen disregard of the Trustee’s advice, Peraica’s proffered explanation for not updating his fee disclosure lacking, if not false. Peraica had been involved in more than 350 bankruptcy cases in the Northern District of Illinois alone. The bankruptcy court ordered Peraica to disgorge all past fees as a penalty for his blatant lack of compliance with his obligations. There is no leeway for partial or incomplete disclosure. View "Peraica v. Layng" on Justia Law

BrunoBuilt, Inc., was constructing a custom home on a vacant lot in 2016 when a landslide occurred beneath the Terra Nativa subdivision in the Boise foothills. Following damage to the lot, BrunoBuilt filed a professional negligence suit against numerous engineers and engineering firms involved in the construction of the subdivision, arguing that they failed to identify preexisting landslide conditions and other geological circumstances that made residential development unsafe at this site. In the fall of 2018, BrunoBuilt discovered additional damage to the finished custom home itself. It then brought suit against additional defendants, including Briggs Engineering, Inc., and Erstad Architects. Briggs Engineering moved for summary judgment, which the district court granted. The court concluded that BrunoBuilt’s action was time barred by the two-year statute of limitations under Idaho Code section 5-219(4). BrunoBuilt appealed this decision, arguing that the malpractice claim did not begin to accrue until there was damage to the custom home, rather than just the land. To this the Idaho Supreme Court disagreed with BrunoBuilt’s analysis and affirmed the district court that BrunoBuilt’s claim was time barred. View "Brunobuilt, Inc. v. Briggs Engineering, Inc." on Justia Law

This case concerns attorney misconduct in the Court-Supervised Settlement Program established in the wake of the 2010 Deepwater Horizon oil rig disaster. Appellant, a Louisiana attorney representing oil spill claimants in the settlement program, was accused of funneling money to a settlement program staff attorney through improper referral payments. In a disciplinary proceeding, the en banc Eastern District of Louisiana found that Appellant’s actions violated the Louisiana Rules of Professional Conduct and suspended him from practicing law before the Eastern District of Louisiana for one year. Appellant appealed, arguing that the en banc court misapplied the Louisiana Rules of Professional Conduct and abused its discretion by imposing an excessive sanction.   The Fifth Circuit reversed the en banc court’s order suspending Appellant from the practice of law for one year each for violations of Rule 1.5(e) and 8.4(a). The court affirmed the en banc court’s holding that Appellant violated Rule 8.4(d). Finally, the court remanded to the en banc court for further proceedings, noting on remand, the court is free to impose on Appellant whatever sanction it sees fit for the 8.4(d) violation, including but not limited to its previous one-year suspension. The court explained that the en banc court misapplied Louisiana Rules of Professional Conduct Rule 1.5(e) and 8.4(a) but not Rule 8.4(d). Additionally, the en banc court did not abuse its discretion by imposing a one-year suspension on Appellant for his violation of 8.4(d). View "In re Jonathan Andry" on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing this complaint brought by Plaintiffs, Central States Development, LLC and Saint James Apartment Partners, against Defendants, Elizabeth Friedgut and the law firm of DLA Piper, LLP, holding that dismissal was proper.Friedgut, as DLA's employee, represented Plaintiffs in a dispute with the United States Department of Housing and Urban Development. Plaintiffs later brought a negligence case against Defendants in connection with that representation. The district court dismissed the complaint, concluding that Defendants did not have the requisite minimum contacts with Nebraska to establish personal jurisdiction. The Supreme Court affirmed, holding that the district court did not err in dismissing the complaint for lack of personal jurisdiction. View "Central States Development v. Friedgut" on Justia Law

Pro se plaintiff Gary Wisner, M.D. filed a complaint alleging that defendants Dignity Health and the Dignity Health St. Joseph’s Medical Center (collectively, SJMC) falsely reported to the National Practitioner Data Bank (NPDB) that Wisner surrendered his clinical privileges while under criminal investigation for insurance fraud. The trial court granted a special motion to strike the complaint after concluding that Wisner’s claims arose from a protected activity and that Wisner failed to establish a probability of prevailing on the merits. Wisner contested both aspects of the trial court’s order, and he also argued the court erred by denying his motion to conduct limited discovery prior to the hearing on the anti-SLAPP motion. Finding no error, the Court of Appeal affirmed. View "Wisner v. Dignity Health" on Justia Law

Kimberlyn Seals and her counsels of record, Felecia Perkins, Jessica Ayers, and Derek D. Hopson, Sr., appealed a chancery court's: (1) Contempt Order entered on April 8, 2020; (2) the Temporary Order entered on April 28, 2020; (3) the Jurisdictional Final Judgment entered on June 16, 2020; (4) the Final Judgment on Motion for Findings of Fact and Conclusions of Law entered on June 18, 2020; and (5) the Amended Final Judgment entered on June 18, 2020. Seals argued the chancellor lacked jurisdiction and erroneously found them to be in contempt of court. These orders arose out of a paternity suit filed by the father of Seals' child, born 2017. A hearing was set for April 7, 2020, but Seals sought a continuance. The motion was deemed untimely, and that the court expected Seals and her counsel to appear at the April 7 hearing. When Seals and her counsel failed to appear, the court entered the contempt orders at issue before the Mississippi Supreme Court. The Supreme Court: (1) affirmed the chancellor’s finding that Perkins and Ayers were in direct criminal contempt for their failure to appear at a scheduled April 7 hearing; (2) vacated the $3,000 sanction because it exceeded the penalties prescribed by statute; (3) affirmed the award of attorneys’ fees to opposing counsel; (4) found the chancellor erred in finding Hopson to be in direct criminal contempt for failing to appear - "Constructive criminal contempt charges require procedural safeguards of notice and a hearing;" and (5) found the chancellor erroneously found the attorneys to be in direct criminal contempt for violation of the September 2019 Temporary Order. "If proved, such acts are civil contempt." The matter was remanded for a determination of whether an indirect civil contempt proceeding should be commenced. View "Seals, et al. v. Stanton" on Justia Law

The California Commission on Teacher Credentialing (Commission) and the Committee of Credentials of the Commission on Teacher Credentialing (Committee) appealed a judgment and peremptory writ of prohibition directing them to discontinue certain investigative proceedings against present and former public school administrators Kathy Little, Simone Kovats, and Debra Sather (together, the administrators). The Committee commenced an initial review of the administrators’ fitness to continue as credential holders in 2019. Nonparty John Villani was a special education teacher employed by the District between 2011 and 2014. Villani sued the District in 2016 alleging the District unlawfully retaliated against him after he reported that a teacher-aide, David Yoder, was “grooming” and paying inappropriate attention to some of the minor students in his care. Yoder was subsequently charged and convicted of several felony sex offenses against minors, including an offense against one of the aforementioned students. As relevant here, Villani’s lawsuit also alleged the administrators ignored his concerns about Yoder. The Commission learned about Villani’s lawsuit from a news article; the Commission thereafter launched its investigation. The administrators objected to the manner in which the Commission had obtained documents and information from Villani and argued the Committee had not established jurisdiction to review their credentials. The administrators demanded the Commission cease the investigation and the Committee drop the scheduled meetings. The Commission and Committee argued the trial court erred in ruling the administrators were excused from exhausting administrative remedies and misinterpreted Education Code section 44242.5, which defined the scope of the Committee’s jurisdiction. Finding no error, the Court of Appeal affirmed the judgment and writ. View "Little v. Com. on Teacher Credentialing" on Justia Law

Crane filed a complaint for retaliatory discharge, alleging that his employment with Midwest was terminated after he reported numerous health and safety violations to the Illinois Environmental Protection Agency. Crane was awarded $160,000 in compensatory damages and $625,000 in punitive damages. The appellate court affirmed. After losing the underlying action and paying damages to its former employee, Midwest filed a legal malpractice complaint against its attorneys and the Sandberg law firm, alleging that the attorneys failed to list all witnesses intended to be called at trial in compliance with Illinois Supreme Court Rule 213(f), resulting in six defense witnesses being barred from testifying, and several other errors.The circuit court denied the defendants’ motion to dismiss but certified a question for immediate appeal: Does Illinois’ public policy on punitive damages and/or the statutory prohibition on punitive damages [in legal malpractice actions, 735 ILCS 5/2-1115] bar recovery of incurred punitive damages in a legal malpractice case where the client alleges that, but for the attorney's negligence in the underlying case, the jury in the underlying case would have returned a verdict awarding either no punitive damages or punitive damages in a lesser sum?” The appellate court and Illinois Supreme Court answered the question in the negative and affirmed the judgment. View "Midwest Sanitary Service, Inc. v. Sandberg, Phoenix & Von Gontard, P.C." on Justia Law

On November 4, 2016, Kernan had an External Cephalic Version (ECV) procedure to rotate her healthy 39-week fetus from a breech position. The hospital recorded the ECV as successful. Post-procedure fetal monitoring was “reassuring.” The next day, Kernan could not detect fetal movement and returned to the hospital. After an ultrasound, doctors informed Kernan that she had suffered an intrauterine fetal demise and that they could not determine the cause of death. They noted that nothing in the literature linked ECV with fetal demise. Kernan delivered a stillborn baby on November 7. The delivery doctor, Vargas, told Kernan that he could not see any indicators as to why Kernan’s baby died. Kernan eventually ordered an autopsy. After months of delay due to Dr. Vargas not responding to Kernan’s requests to review the autopsy report with her, Kernan met with Dr. Kerns on July 10, 2017, and learned that doctors had discussed her case during a morbidity and mortality conference. Kernan claims she first became subjectively suspicious of medical negligence during that meeting. On November 6, 2017, Kernan served notice of her intention to file suit. Within 90 days, she filed her negligence complaint.The court rejected the suit as time-barred under Code of Civil Procedure 340.5’s one-year limitations period. The court of appeal reversed. The hospital’s records demonstrate that reasonable minds could differ as to whether Kernan should have suspected negligent performance of the ECV on November 5, 2016. View "Kernan v. Regents of the University of California" on Justia Law

In 2002, Douglas Coe, Jacqueline Coe, and GFLIRB, LLC (collectively the “Coes”) were involved in the sale of a company in which they held a substantial interest. Their accountants, BDO Seidman, LLP (“BDO”), advised them of a proposed tax strategy in which the Coes could invest in distressed debt from a foreign company in order to offset their tax obligations. In connection with the proposed tax strategy, BDO advised the Coes to obtain a legal opinion from an independent law firm, Proskauer Rose LLP (“Proskauer”). The Coes followed BDO’s advice, obtained a legal opinion from Proskauer, and claimed losses on their tax returns as a result. But in 2005, the Internal Revenue Service (“IRS”) initiated an audit, which ultimately led to a settlement in 2012. After settling with the IRS, the Coes filed suit against Proskauer in December 2015, asserting legal malpractice, breach of fiduciary duty, fraud, negligent misrepresentation, and other claims. After limited discovery on whether the statute of limitation barred the Coes’ claims, the trial court concluded that it did and granted summary judgment in favor of Proskauer, and the Court of Appeals affirmed. The Georgia Supreme Court concluded the Court of Appeals erred in determining that the Coes failed, as a matter of law, to exercise reasonable diligence to discover Proskauer’s allegedly fraudulent acts. Judgment was reversed and the matter remanded to the trial court for further proceedings. View "Coe, et al. v. Proskauer Rose, LLP" on Justia Law