Justia Professional Malpractice & Ethics Opinion Summaries

The plaintiff, Shalome Kaushansky, retained Stonecroft Attorneys, APC, to represent her in a legal action against her landlord due to various issues during her tenancy, including water leaks, mold, electrical problems, and harassment. Stonecroft filed a complaint but failed to advance the case, conduct discovery, or respond to the landlord's discovery requests. Shortly before the trial, Stonecroft withdrew from the case, leading Kaushansky to settle for $2,500.Kaushansky then sued Stonecroft for professional negligence, breach of fiduciary duty, and unfair competition. The Los Angeles County Superior Court found in favor of Kaushansky, awarding her $91,734.29 for professional negligence and $25,000 for breach of fiduciary duty, totaling $116,734.29. The court found Stonecroft failed to plead all applicable causes of action, conduct discovery, and protect Kaushansky from foreseeable prejudice upon withdrawal. However, the court ruled in favor of Stonecroft on the unfair competition claim and declined to award punitive damages.The California Court of Appeal, Second Appellate District, reviewed the case. The court reversed the $91,734.29 award for professional negligence, finding no substantial evidence that Kaushansky could have collected this amount from her landlord. The court noted that Kaushansky failed to prove the landlord's solvency or the collectibility of a hypothetical judgment. However, the court affirmed the $25,000 award for breach of fiduciary duty, finding substantial evidence that Stonecroft's withdrawal constituted intentional misconduct, justifying emotional distress damages. The judgment was affirmed in part and reversed in part, with each party bearing its own costs on appeal. View "Kaushansky v. Stonecroft Attorneys, APC" on Justia Law