Justia Professional Malpractice & Ethics Opinion Summaries

Relator John Hendrix and five public-agency exemplar plaintiffs claim that J-M Manufacturing Co. (“J-M”) violated the federal and various state False Claims Acts (“FCAs”) by representing that its polyvinyl chloride (“PVC”) pipes were compliant with industry standards. In Phase One of a bifurcated trial, a jury found that J-M knowingly made false claims that were material to the public agencies’ decisions to purchase J-M pipe. After the jury was unable to reach a verdict in Phase Two, the district court granted J-M judgment as a matter of law (“JMOL”) on actual damages and awarded one statutory penalty for each project involved in plaintiffs’ claims.   The Ninth Circuit affirmed. The panel held that sufficient evidence of falsity, materiality, and scienter supported the Phase One verdict. A reasonable jury could conclude that plaintiffs received some pipe not meeting industry standards. Further, the jury reasonably found that plaintiffs would not have purchased or installed J-M pipe had they been told the truth that J-M knew it had stopped producing pipes through processes materially similar to those used at the time of compliance testing and also knew that a significant amount of the pipe later produced did not meet industry standards. Plaintiffs’ failure to prove that any individual stick of pipe that they received was non-compliant did not mean that they failed to establish scienter. The panel held that the district court properly awarded JM judgment as a matter of law on actual damages under the federal False Claims Act. Plaintiffs did not establish actual damages by showing that they would not have bought the pipe had they known the truth. View "JOHN HENDRIX, ET AL V. J-M MANUFACTURING CO., INC., ET AL" on Justia Law

The North Dakota Department of Health and Human Services1 appealed a district court judgment reversing the Department’s order affirming the denial of Joseph Jahner’s application to enroll as a Medicaid provider. n December 2020, Jahner applied with the Department to be an enrolled provider with North Dakota Medicaid as a peer support specialist. In June 2021, the Department denied Jahner’s application. The Department stated its Medicare Provider Enrollment Screening Policy (“1915(i) Policy”) prohibited Jahner “from enrolling as a provider with ND Medicaid” because of his criminal history. Between 2002 and 2017, Jahner was convicted of 13 crimes, including negligent homicide, reckless endangerment, aggravated assault, assault, and menacing. After the hearing, the ALJ recommended reversing the Department’s decision, concluding the Department should have done a thorough review of Jahner’s criminal history to determine if any offenses had a direct bearing on the position of peer support specialist. The Department did not adopt the ALJ’s recommended decision, and affirmed its decision denying Jahner’s application. The Department concluded peer support specialists serve a vulnerable population, Jahner’s criminal offenses have a direct bearing on the position of peer support specialist, and he was not sufficiently rehabilitated. The Department’s decision prevented Jahner from becoming a Medicaid provider but did not affect his ability to work as a peer support specialist. The district court reversed the Department's decision, holding the Department’s decision was not in accordance with the law. The North Dakota Supreme Court concluded the Department’s findings of fact were supported by a preponderance of the evidence, and its conclusions of law were supported by its findings of fact. It therefore reversed the district court’s judgment and reinstated the Department’s order. View "Jahner v. NDDHS" on Justia Law

The Commission on Teacher Credentialing (Commission) and its Committee of Credentials (Committee) (collectively, defendants) appealed the grant of mandamus relief to petitioner Russell Earnest, setting aside the Committee’s disciplinary recommendation against him and enjoining the Commission from acting on that recommendation. Defendants argued the trial court erred in finding: (1) Earnest was excused from exhausting his administrative remedies; and (2) the Committee lacked jurisdiction to conduct a formal review pursuant to Education Code1 section 44242.5 (d). They further asserted the trial court should have denied the petition under the doctrine of judicial restraint. In the unpublished portion of the opinion, the Court of Appeal concluded all three factors outlined in Coachella Valley Mosquito & Vector Control Dist. v. California Public Employment Relations Bd., 35 Cal.4th 1072 (2005) weighed in favor of excusing Earnest from exhausting his administrative remedies. In the published portion of the opinion, the Court found that although section 44242.5 (b)(3) generally provided a jurisdictional basis for the Committee to commence initial reviews, as discussed post, the provision was also incorporated in section 44242.5 (d)(3) to provide a jurisdictional basis for the Committee to commence formal reviews. It was this jurisdictional provision the Committee relied upon in commencing a formal review of Earnest’s fitness to hold a credential. The Court thus concluded the plain language of section 44242.5(b)(3) imposed the onus on the employer to determine whether to provide a notifying statement to the Committee, and thus only the employer may determine whether an enumerated action was the “result of an allegation of misconduct,” triggering the Committee’s jurisdiction. Applying that interpretation to the facts of this case, the Court concluded the Committee did not have jurisdiction to commence a formal review of Earnest’s fitness to hold a credential. The grant of mandamus relief was thus affirmed. View "Earnest v. Com. on Teacher Credentialing" on Justia Law

An attorney appealed from orders of the Committee on Grievances of the Board of Judges of the United States District Court for the Eastern District of New York (the “Committee”) finding her liable for violating various provisions of the New York Rules of Professional Conduct and imposing sanctions for these violations, including a six-month suspension from practicing law in the Eastern District. On appeal, the attorney argued that the Committee (1) deprived her of due process by failing to afford her with reasonable notice of the charges and an adequate opportunity to defend against the charges, (2) failed to substantiate each element of the charges by clear and convincing evidence, and (3) imposed a punishment that was excessive in light of the putative lack of harm to the public. She has also requested that we maintain her appeal under seal, arguing that public disclosure of her identity would cause her reputational harm.   The Second Circuit affirmed the orders of the Committee and ordered that the docket in this appeal, and all its contents, be unsealed. The court explained that the attorney violated her most basic duty to the vulnerable clients who depended on her: to provide them with diligent, competent representation. Along the way, her neglectful and discourteous conduct harmed the administration of justice itself. The Committee’s evidence establishing as much was unassailable. Further, the court wrote that to the extent that the attorney’s sufficiency-of-the-evidence challenge relies on her contention that it was improper for the Committee to consider filings and transcripts from her non-disciplinary matters in the Eastern District, it fails. View "In re Demetriades" on Justia Law

The Supreme Court affirmed the judgment of the circuit court denying relief in this Administrative Procedure Act (APA) appeal of the Colonel William J. Bryant's denial of Appellant's application to obtain a license for his private security and investigations company, holding that there was no error.Col. Bryant, in his capacity as director of the Arkansas State Police, entered an administrative order finding that Appellant was ineligible to receive a license due to his prior convictions. Appellant filed a petition for judicial review. After a remand, the circuit court denied the petition finding that there was substantial evidence to support the agency's decision. The Supreme Court affirmed, holding (1) Appellant cited no authority for the proposition that it was reversible error for the circuit court to decide an APA appeal on a different ground than that found by the administrative agency; and (2) the director did not err in determining that Ark. Code Ann. 17-40-306 controlled over Ark. Code Ann. 17-1-103. View "Hackie v. Bryant" on Justia Law

The Supreme Judicial Court affirmed the judgment of a single justice of the court affirming the decision and order of the Board of Registration in Medicine suspending Petitioner's license to practice medicine, holding that the Board's decision was supported by the evidence and was not legally erroneous, procedurally defective, or arbitrary or capricious.A magistrate concluded that Petitioner was subject to discipline by the Board because his disruptive behavior on two separate occasions amounted to misconduct and demonstrated that Petitioner engaged in conduct that undermined the public confidence in the integrity of the medical profession. The Board adopted the findings and conclusions of the magistrate and concluded that Petitioner's actions warranted an indefinite suspension of his license to practice medicine. The single justice affirmed. The Supreme Judicial Court affirmed, holding (1) the Board's decision was supported by the evidence, and (2) Petitioner failed to demonstrate that the decision was legally erroneous, procedurally defective, or arbitrary and capricious. View "Schwartz v. Board of Registration in Medicine" on Justia Law

The Supreme Judicial Court affirmed the decision of the Board of Registration suspending Physician's license to practice medicine on the basis that Physician violated 243 Code Mass. Regs. 2.07(11)(a)(1), holding that the Board's findings that Physician violated the Board's regulations were supported by substantial evidence and that the decision was not arbitrary or capricious.The Board initiated a formal adjudicatory proceeding against Physician, after which a magistrate found that Physician had violated 243 Code Mass. Regs. 2.07(11)(a), which prohibits advertising that is false, deceptive, or misleading, and also violated 243 Code Mass. Regs. 1.03(5)(a)(10). The Board adopted the magistrate's findings of fact and conclusions of law and issued an indefinite suspension of Physician's license to practice medicine. The Supreme Judicial Court affirmed, holding (1) the Board's regulations do not offend due process; (2) the Board's findings were supported by substantial evidence; and (3) neither the findings nor the sanction imposed were arbitrary or capricious. View "Welter v. Bd. of Registration in Medicine" 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

The Supreme Court affirmed the judgment of the court of appeals affirming Defendant's conviction of disclosing confidential information in violation of Ohio Rev. Code 102.03(B), holding that a person who is subject to the jurisdiction of the Ohio Ethics Commission (Commission) may be criminally prosecuted for a violation of section 102.03(B) without the Commission first investigating or prosecuting the charge.Defendant, a sheriff, was found guilty of violating section 102.03(B), a provision of Ohio's ethics law, for posting confidential information on the website of the sheriff's office. At issue on appeal was whether a criminal prosecution may be brought alleging a violation of section 102.03(B) without a prior review of the charges by the Commission. The court of appeals held that the trial court properly refused to dismiss the charges against Defendant on these grounds. The Supreme Court affirmed, holding that prosecutions may be brought by a prosecuting authority before the Commission initiates or completes its investigation. View "State v. Towns" on Justia Law

The Supreme Judicial Court affirmed the judgment of the single justice of the court affirming a decision of the Board of Registration in Podiatry that revoked Thomas Franchini's license to practice podiatry in Massachusetts, holding that the Board's decision was not arbitrary or capricious, was supported by substantial evidence, and did not suffer from any other defect enumerated under Mass. Gen. Laws ch. 30A, 14(7).A hearings officer found that Franchini knowingly made certain false and misleading statements in his licensure application and recommended that the Board impose disciplinary sanctions. The Board largely adopted the hearing officer's decision, finding that Franchini engaged in gross misconduct such as to call into question Franchini's ability to practice podiatry, dishonesty, fraud, or deceit, and knowingly making false statements in his application to the Board. The Supreme Judicial Court affirmed, holding that Franchini should be subject to disciplinary sanctions. View "Franchini v. Bd. of Registration in Podiatry" on Justia Law