Justia Professional Malpractice & Ethics Opinion Summaries

The Judiciary Commission of Louisiana recommended that James J. Best, a judge for the Eighteenth Judicial District, Parishes of Iberville, Pointe Coupee, and West Baton Rouge, be disciplined. The Commission alleged Judge Best committed misconduct and should be suspended for thirty days and ordered to reimburse the costs incurred in the Commission’s investigation and prosecution of this case. Judge Best did not contest the recommendation and, along with the Commission, filed a joint motion urging the Supreme Court to accept and implement the recommendation as a consent discipline. The Supreme Court rejected the joint motion and docketed the case for a full evaluation of the record. After a thorough review of the facts and law in this matter, the Supreme Court found that a fifteen-day suspension, without pay, and reimbursement of costs to be an appropriate sanction. View "In re: Judge James Best, Eighteenth Jud. Dist. Court of Iberville, Pointe Coupee & West Baton Rouge Parishes" on Justia Law

The Judiciary Commission of Louisiana recommended that respondent, Justice of the Peace J. Roosevelt Gremillion, District Seven, Parish of Pointe Coupee, be removed from office and ordered to reimburse to the Judiciary Commission and the Office of Special Counsel the costs incurred in the investigation and prosecution of this case. After conducting an investigation, the Commission filed a formal charge against Justice of the Peace Gremillion alleging that he violated Canons 1, 2A, 2B, 3A(1), 3A(4), and 3A(7) of the Code of Judicial Conduct and engaged in willful misconduct relating to his official duty and persistent and public conduct prejudicial to the administration of justice that brings the judicial office into disrepute. Specifically, the charge alleged that Justice of the Peace Gremillion rendered a judgment without giving the defendants a meaningful opportunity to be heard, without requiring the plaintiff to present any evidence or sworn testimony, and without giving the defendants written notice of the judgment against them; displayed bias or prejudice throughout the proceedings in favor of the creditor and/or against the defendants’ efforts to defend the claim against them; notarized power of attorney forms when the purported affiants did not appear before him, swear out an oath, or sign the forms in his presence; and used a notary stamp that gave the incorrect impression he was an attorney. After a thorough review of the facts and law in this matter, including the stipulations of material facts and conclusions of law entered into by the respondent and the Office of Special Counsel, the Louisiana Supreme Court found clear and convincing evidence sufficient to support the charge. The Court agreed with the Judiciary Commission's recommendation of discipline that Justice of the Peace Gremillion be removed from office and ordered to reimburse and pay to the Commission the amount of $1,547.43. View "In re: Justice of the Peace J. Roosevelt Gremillion, Dist. Seven, Parish of Pointe Coupee" on Justia Law

In this appeal, the issue this case presented for the Supreme Court's review centered on whether a law firm practicing as a limited liability partnership (LLP) failed to maintain professional malpractice insurance to cover claims against it, and, if so, whether that failure should cause the revocation of the firm's LLP status, rendering innocent partners personally liable. In July 2009, Mortgage Grader hired Olivo of Ward & Olivo (W&O) to pursue claims of patent infringement against other entities. Mortgage Grader entered into settlement agreements in those matters. In exchange for one-time settlement payments, Mortgage Grader granted those defendant-entities licenses under the patents, including perpetual rights to any patents Mortgage Grader received or obtained through assignment, regardless of their relationship to the patents at issue in the litigation. It is those provisions of the settlement agreement that allegedly gave rise to legal malpractice. In 2011, W&O dissolved and entered into its windup period. W&O continued to exist as a partnership for the sole purpose of collecting outstanding legal fees and paying taxes. The next day, Ward formed a new LLP and began to practice with a new partner. Mortgage Grader filed a complaint against W&O, Olivo, and Ward in October 2012, alleging legal malpractice by Olivo, and claiming that the settlement agreements resulting from Olivo's representation harmed Mortgage Grader's patent rights. The motion court denied Ward's motion to dismiss, first determining that Mortgage Grader had failed to comply with the statutory requirement to serve an affidavit of merit (AOM) on each defendant named in the complaint, and rejected its substantial compliance argument. However, the court also determined that W&O failed to maintain the requisite insurance, which caused its liability shield to lapse and relegated W&O to a GP. Thus, the motion court concluded that Ward could be held vicariously liable for Olivo's alleged legal malpractice. The Appellate Division reversed. The Supreme Court affirmed, finding that law firms organized as LLPs that malpractice insurance did not extend to the firm's windup period, and tail insurance coverage was not required. View "Mortgage Grader, Inc. v. Ward & Olivo, L.L.P." on Justia Law

On August 26, 2015, the Mississippi Commission on Judicial Performance found that former Municipal Court Judge Latisha Nicole Clinkscales had engaged in judicial misconduct constituting willful misconduct in office and conduct prejudicial to the administration of justice which brings the judicial office into disrepute, in violation of Section 177A of the Mississippi Constitution. Clinkscales served as Municipal Court Judge for the City of Columbus from 2010 until her resignation on June 23, 2015. While serving as a Municipal Court Judge, she also served as the Columbus Drug Court Judge until her resignation on February 6, 2014, following a meeting with the Administrative Office of Courts concerning irregularities in her operation of the Drug Court program. The misconduct to which Clinkscales admitted involves four separate areas: her statements on social media, her operation of the Columbus Drug Court program, her statements in a newspaper interview, and her conduct in the courtroom. The Commission entered a recommendation that Clinkscales be publicly reprimanded and assessed costs of the proceeding, and the Commission and Clinkscales filed a joint motion requesting the Supreme Court to approve the Commission’s recommendation. The Supreme Court accepted the recommendation, imposed a public reprimand and assessed Clinkscales the costs of the proceeding. View "Mississippi Comm'n on Jud. Perf. v. Clinkscales" on Justia Law

In 2001, the decedent presented to the Wetzel County Hospital Emergency Room in New Martinsville and came under the care of Dr. Murthy, a surgeon; she slipped into shock and died the next day. Her estate filed a medical negligence action, alleging that Murthy failed to perform exploratory surgery to identify, diagnose and correct the decedent’s “intraabdominal condition.” A jury awarded $4,000,000 in compensatory damages. After the trial, the circuit court allowed amendment of the complaint to add Murthy’s insurance carrier, Woodbrook, alleging that Woodbrook made all relevant decisions for Murthy’s defense and acted vexatiously and in bad faith. Following a remand, Murthy paid a reduced judgment, plus interest, in the total amount of $1,162,741.60 and filed motions in limine to preclude certain matters from consideration on the issue of attorney fees and costs, including an unrelated case that resulted in a $5,764,214.75 verdict against Dr. Murthy in March 2007. The court dismissed Woodbrook as a party-defendant and awarded the estate attorney fees and costs. The precise calculation was to be later determined. The Supreme Court of Appeals of West Virginia reversed, concluding that the lower court’s reliance on certain conduct by Murthy did not justify the award. View "Murthy v. Karpacs-Brown" on Justia Law

Richard Watters petitioned the Alabama Supreme Court for a writ of mandamus to direct the Mobile Circuit Court to vacate its order denying his motion for a summary judgment as to count one of an amended complaint filed by Michael Gamble, in Gamble's capacity as administrator of the Estate of Barbara Ruth Findley Long ("Long"), deceased. Count one asserted a legal-malpractice claim against Watters under the Alabama Legal Services Liability Act ("the ALSLA"), alleging breach of a fiduciary duty. This proceeding involved title to real property located in Conecuh County, which was owned by Robert Findley at the time of his death. Long retained Watters & Associates, of which Watters was a partner, to represent her "in obtaining estate assets" of Findley, her deceased father. Watters filed suit seeking a declaration of Long's ownership in family property located in Conecuh County. The Circuit Court declaring that Long owned a one-sixth interest (approximately 30 acres) in the Conecuh County property Shortly thereafter, Long discharged Watters from any further representation in the declaratory-judgment action. Watters filed an attorney's lien against the Conecuh property to secure the payment of his attorney fees. Family members eventually quitclaimed their interests to Long. Taxes for 2006 weren't paid on the property, and Long's cousin Larry Findley purchased the property at a tax sale. According to Watters, Long asked him for a loan to redeem the property from the tax sale. Watters told Long that Langley would not record the quitclaim deed if Long repaid the loan within 30 days of redeeming the property; that, in the event the deed was recorded, any claim Watters might have against Long for services rendered regarding her deceased father's estate would be satisfied; and that Watters and Long agreed to terms concerning the loan arrangement. This arrangement was never reduced to writing. Long executed a quitclaim deed prepared by Watters, conveying title to the Conecuh property to "Langley & Watters, LLP." In 2010, Watters submitted to the Conecuh Probate Court a letter, enclosing "his client's" application for redemption of the Conecuh property. Long died on April 2, 2013, and a few months later, the Conecuh Probate Court appointed Gamble as administrator of Long's estate. Gamble filed a complaint against Watters, asserting claims of legal malpractice among other things. After review of this case, the Alabama Supreme Court concluded that Watters had another adequate remedy (i.e., an appeal) other than a writ of mandamus. Therefore, the Court denied relief. View "Ex parte Richard L. Watters." on Justia Law

In 2003, Dumville met with attorney Thorsen to prepare her will. Thorsen understood that Dumville wanted a will that would, upon her death, convey all of her property to her mother if her mother survived her, and, if her mother predeceased her, to the Richmond Society for the Prevention of Cruelty to Animals (RSPCA). Dumville was 43 and lived with three cats, which she desired to go to the RSPCA upon her death. Thorsen prepared, and Dumville executed, the will. She died in 2008, her mother having predeceased her. Thorsen, as co-executor of the estate, notified the RSPCA that it was the sole beneficiary of Dumville’s estate. Thorsen was informed that, in the opinion of the title insurance company, the will left only the tangible estate, not real estate, to the RSPCA. Thorsen brought suit in a collateral proceeding to correct this “scrivener’s error” based on Dumville’s clear original intent. The court found the language unambiguously limited the RSPCA bequest to tangible personal property, while the intangible estate passed intestate to Dumville’s heirs at law. The RSPCA received $72,015.60, but the bequest, less expenses, would have totaled $675,425.50 absent the error. RSPCA sued Thorsen for negligence, as a third-party beneficiary of his contract with Dumville. The court found for the RSPCA. The Supreme Court of Virginia affirmed: RSPCA was a clearly and definitely identified third-party beneficiary. View "Thorsen v. Richmond Soc'y for Prevention of Cruelty to Animals" on Justia Law

In 2004, Linegar, an Australian, formed KeyOvation, which eventually merged with Saflink and became IdentiPHI, in which Linegar was a major stockholder. DLA Piper law firm represented Saflink in the merger. Following the merger, DLA Piper represented IdentiPHI as corporate counsel. During the merger, IdentiPHI needed a short-term loan. Linegar then served as Chairman, Director, and majority shareholder of Zaychan, the corporate trustee of the Linegar Fund, an Australian self-managed retirement trust with Linegar and his ex-wife as the sole beneficiaries. Linegar arranged for the Fund to lend IdentiPHI $1.67million. DLA Piper represented IdentiPHI in the transaction and worked directly with Linegar. IdentiPHI executed a promissory note to Zaychan, which was accepted by Linegar as Chairman and Director, and which granted Zaychan a security interest in IdentiPHI’s assets. The note was payable by June 29, 2008. Timely payment was essential for the Fund's compliance with Australian law. When it became apparent that IdentiPHI was going to default, Linegar took several actions, but ultimately the debt was subject to challenge under 11 U.S.C. 547(b) because the security interest had not been perfected. KeyOvation, the holder of the assigned note, settled its claim for $150,000, which it paid to Linegar. Linegar, Zaychan, and KeyOvation sued DLA Piper for legal malpractice, negligent misrepresentation, breach of fiduciary duty, breach of contract, unjust enrichment, and deceptive trade practices. They claimed that the firm gave assurances that the lien would be perfected. Linegar’s individual claims resulted in an award of $1,293,606. The court of appeals reversed. The Supreme Court of Texas reversed, holding that Linegar, as an individual, had standing. View "Linegar v. DLA Piper LLP" 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

White, a member of the Bar of Maryland, represented Fleming and Sewell, while under a Conditional Diversion Agreement (CDA) with Bar Counsel for prior misconduct involving mismanagement of her attorney trust account. The CDA was amended, then subsequently revoked due to non-compliance. The Attorney Grievance Commission filed a Petition for Disciplinary or Remedial Action, based upon White’s representation of Fleming and Sewell, non-compliance with the CDA, and the mishandling of her trust account. Bar Counsel alleged that White violated Maryland Lawyers’ Rules of Professional Conduct: Rule 1.1 (Competence), Rule 1.3 (Diligence), Rule 1.4(a) and (b) (Communication), Rule 1.15(a) and (d) (Safekeeping Property); 1.16(d) (Declining or Terminating Representation); 8.1(a) and (b) (Bar Admission and Disciplinary Matters); and Rule 8.4(a), (c), and (d) (Misconduct). Bar Counsel also alleged that she violated Maryland Rules 16-606.1 (Attorney Trust Account Record-Keeping), 16-607 (Commingling of Funds), 16-609 (Prohibited Transactions), and Md. Code 10-306 of the Business Occupations & Professions Article (Misuse of Trust Money). White attributed her actions to illness, recuperation after surgery, and difficulties experienced as caretaker of her mother until her death. A hearing judge found multiple violations. Bar Counsel requested indefinite suspension with the right to apply for readmission after six months. The Maryland Court of Appeals agreed. View "Attorney Grievance Comm'n of Md. v. White" on Justia Law