Justia Professional Malpractice & Ethics Opinion Summaries

CommScope Credit Union (Plaintiff), a state-chartered credit union, hired Butler & Burke, LLP (Defendant), a certified public accounting firm, to conduct annual independent audits of its financial statements. Plaintiff later filed a complaint alleging breach of contract, negligence, breach of fiduciary duty, and professional malpractice. Defendant pleaded seven affirmative defenses, including contributory negligence and in pari delicto. The trial court subsequently granted Defendant’s motion to dismiss and for judgment on the pleadings. The court of appeals reversed, concluding (1) the specific allegations in Plaintiff’s complaint were sufficient to state a claim for breach of fiduciary duty, and (2) Defendant’s affirmative defenses would not entitle Defendant to dismissal at this stage. The Supreme Court affirmed in part and reversed and remanded in part, holding (1) Plaintiff’s allegations did not establish that Defendant owed it a fiduciary duty in fact, and therefore, the trial court correctly dismissed Plaintiff’s breach of fiduciary duty claim; and (2) the members of the Court are equally divided on whether the facts alleged in the complaint established the defenses of contributory negligence and in pari delicto, and therefore, the court of appeals’ decision on this issue is left undisturbed. View "CommScope Credit Union v. Butler & Burke, LLP" on Justia Law

Jon Haddow, an attorney, represented and Frank and Beverly Pawlendzio in personal bankruptcy proceedings. Following the proceedings, the Pawlendzios filed a complaint against Haddow, asserting claims of legal malpractice and seeking damages for economic loss and extreme emotional distress. The Pawlendzios based their claims on the fact that, contrary to Haddow’s advice, loans made to them by friends and relatives lost their protected status as a result of the bankruptcy proceedings. The superior court entered an order granting summary judgment in favor of Haddow. The Supreme Judicial Court affirmed, holding that the Pawlendzios failed to produce expert-based evidence that Haddow breached his duty owed to the Pawlendzios. View "Pawlendzio v. Haddow" on Justia Law

Defendant served as Plaintiff’s defense counsel in a criminal jury trial in which Plaintiff was convicted of fourteen offenses. While awaiting sentencing, Plaintiff filed this action against Defendant, alleging legal malpractice and breach of fiduciary duty. After precluding Plaintiff from presenting expert testimony on the issue of causation due to her failure to disclose an expert witness by a date previously ordered, the trial court granted summary judgment in favor of Defendant. Plaintiff appealed, arguing that the trial court erred in concluding that expert testimony was necessary to prove her allegations. The Supreme Court affirmed, holding that expert testimony was required for Plaintiff to establish the element of causation in her legal malpractice case. View "Bozelko v. Papastavros" on Justia Law

When Plaintiffs were sued, they hired Attorneys to represent them. During trial, the trial judge erred, and the error required a costly appeal to correct. Plaintiffs later sued Attorney for legal malpractice claiming that the court’s error would have been immaterial and a favorable judgment would have been rendered if Attorneys had presented additional evidence and arguments. The trial court granted summary judgment in favor of the Attorneys, concluding that the trial court’s error was the sole cause of Plaintiffs’ injury because the Attorneys pursued a winning strategy and did not contribute to the judicial error. The court of appeals reversed without addressing whether judicial error can constitute a superseding cause that negates proximate cause. The Supreme Court reversed, holding that, as a matter of law, any unrelated negligence by the trial attorneys was too attenuated from the remedial appellate attorney fees to be a proximate cause of those expenses. View "Stanfield v. Neubaum" on Justia Law

Rubin Resources, Inc. filed a legal malpractice action against Garold Morris, alleging that Morris was negligent in performing a title examination and preparing a title opinion for Rubin regarding an oil and gas leasehold, resulting in $278,455 in damages. Morris did not dispute that he was negligent in performing the title examination and title opinion. The circuit court, however, granted summary judgment in favor of Morris, concluding that Morris’s negligence was not the proximate cause of Rubin’s damages. The Supreme Court reversed, holding that the undisputed facts demonstrated that the damage Rubin asserted was the direct and proximate result of Morris’s professional negligence. View "Rubin Resources v. Morris" on Justia Law

Whiteside represented the County of Camden in a lawsuit brought by Anderson, which resulted in a jury award paid, in part, by the County’s excess insurer, National. According to National, the County did not notify it of the lawsuit until several months after it was filed. Whiteside initially informed National that the case was meritless and valued it at $50,000. During trial, Whiteside changed her valuation and requested the full $10 million policy limit to settle Anderson’s claims. National conducted an independent review and denied that request. The jury awarded Anderson $31 million, which was remitted to $19 million. Days later, National sought a declaratory judgment that it was not obligated to provide coverage because the County had breached the policy contract by failing to timely notify National of the case and by failing to mount an adequate investigation and defense. National also asserted claims against Whiteside for legal malpractice, breach of fiduciary duty, and breach of contract. The court dismissed those claims because National could not demonstrate that Whiteside’s actions proximately caused it to suffer any damages. The Third Circuit dismissed and appeal for lack of jurisdiction, finding National’s notice of appeal untimely under Federal Rule of Appellate Procedure 4(a)(1), View "State Nat'l Ins. Co v. County of Camden" on Justia Law

Unlike most other personal injury actions, which generally must be filed within two years of the date on which the challenged act or omission occurred, professional negligence actions against health care providers must be brought within one year after the plaintiff discovers, or should have discovered, the injury, pursuant to Cal. Civ. Proc. Code 340.5. Plaintiff was a hospital patient who was injured when one of the rails on her hospital bed collapsed. Plaintiff sued the hospital, claiming negligence in failing to inspect and maintain the equipment. The trial court dismissed the lawsuit, concluding that Plaintiff’s claim was untimely because it sounded in professional, rather than ordinary negligence, and therefore, the action was governed by the special limitations period in section 340.5. The Court of Appeal reversed, concluding that the hospital’s alleged failure to take reasonable precautions to make a dangerous condition safe sounded in ordinary negligence. The Supreme Court reversed, holding that the trial court correctly determined that section 340.5 was the applicable statute of limitations, and the Court of Appeal erred in holding to the contrary. View "Flores v. Presbyterian Intercommunity Hosp." on Justia Law

Jorgenson & Koka, LLP (J&K) filed this professional negligence action against the Nevada Department of Transportation (NDOT) and real parties in interest PWREO Eastern and St. Rose LLC (collectively, PWREO) and the City of Henderson. J&K, which leased a portion of a shopping center owned by PWREO, alleging that water entered its premises on two separate occasions and that NDOT failed to prevent the flooding. PWREO filed a cross-claim against NDOT and the City. NDOT moved to dismiss the amended complaint and the cross-claim for failure to comply with the mandatory filing requirements of Nev. Rev. Stat. 11.258. The district court denied the motions. This petition for writ relief followed. The Supreme Court denied the writ, holding that NDOT is not a design professional as envisioned by the legislature in Nev. Rev. Stat. 11.2565(1)(a), and therefore, the requirements of section 11.258 are inapplicable to NDOT since the action would not statutorily qualify as “an action involving nonresidential construction.” View "Nev. Dep’t of Transp. v. Eighth Judicial Dist. Court" on Justia Law

Jesse's father, Crow, a retired physician, was aware that Jesse had a history of fights and arrests, including brandishing a gun on the highway. Crow first met Ryann after she married Jesse and saw her fewer than 10 times. Once, Crow went to their house and found the couple intoxicated. Ryann was in pain and stated that her foot had been run over by a stranger. Crow’s wife arranged for Ryann to see Dr. Williams. Ryann’s injuries were consistent with her explanation. Ryann did not mention abuse. Ryann’s mother, Pipitone, later learned that Jesse had run over Ryann’s foot. Jesse, with help from Crow, paid Ryann $5,000. Ryann signed an agreement, stating that the incident was an accident; Pipitone signed as a witness. Pipitone eventually reported the abuse to the police. Ryann’s sister also reported. Ryann was not cooperative. Ryann admitted that Jesse had deliberately run her over, that she felt threatened, and that he had “guns and a lot of illegal things.” Six months after their marriage Jesse murdered Ryann, and with assistance, dismembered and dumped her body into the San Francisco Bay. Jesse committed suicide in jail. Pipitone brought a wrongful death action against Doctors Crow and Williams for failure to report suspected abuse under Penal Code 11160. The trial court granted the defendants summary judgment, on grounds of duty and causation. The court of appeal affirmed. View "Pipitone v. Williams" on Justia Law

Defendant, an attorney, represented Plaintiff in post-final judgment divorce proceedings. Defendant later withdrew as counsel with the family court’s approval. Three years later, Plaintiff filed a complaint against Defendant, alleging legal malpractice, negligence, fraud, and breach of fiduciary duty. The superior court entered summary judgment in favor of Defendant on each of Plaintiff’s claims. The Supreme Court affirmed, holding (1) Plaintiff’s legal malpractice and fraud claims were barred by the statute of limitations, and the trial justice did not err in concluding that the discovery rule did not toll the statute of limitations; (2) Plaintiff’s malpractice claims necessarily failed because she did not retain an expert witness to testify in support of her case; and (3) Plaintiff’s remaining claims on appeal were wholly without merit. View "Behroozi v. Kirshenbaum" on Justia Law