Justia Professional Malpractice & Ethics Opinion Summaries

Bobby Gibson filed a legal-malpractice action against Joe Montgomery and his law firm, Williams, Williams and Montgomery, P.A. (“WWM”), alleging wrongful conduct in connection with the administration of his late wife Debbie's estate. The trial court granted summary judgment to Montgomery and WWM. The Supreme Court reversed and remanded. Bobby timely filed his Notice of Appeal and raised four issues: 1) whether the doctrines of res judicata or collateral estoppel barred his claims, 2) whether judicial estoppel precluded his malpractice action, 3) whether the thirty-day period provided in Section 11-1-39 required dismissal, and 4) whether there remains a genuine issue of material fact as to the elements of his legal-malpractice and fiduciary-duty claims. After review, the Supreme Court concluded: Bobby's claims were not precluded by the doctrines of res judicata and collateral estoppel; judicial estoppel did not preclude Bobby's legal-malpractice action; there was no merit to Montgomery's Section 11-1-39 argument; and there remained a genuine issue of material fact as to whether an attorney-client relationship existed. View "Gibson v. Williams, Williams & Montgomery, P.A." on Justia Law

Hassebrock hired the Bernhoft Law Firm in 2005 to help with legal problems, including a federal criminal tax investigation, a civil case for investment losses, and a claim against Hassebrock’s previous lawyers for fees withheld from a settlement. Hassebrock was ultimately found guilty, sentenced to 36 months in prison, and ordered to pay a fine and almost $1 million in restitution. In 2008, Hassebrock fired the Bernhoft firm. In a malpractice suit against the Bernhoft attorneys and accountants, Hassebrock waited until after discovery closed to file an expert-witness disclosure, then belatedly moved for an extension. The court denied the motion and disallowed the expert, resulting in summary judgment for the defendants. The Seventh Circuit affirmed, rejecting an argument that the judge should have applied the disclosure deadline specified in FRCP 26(a)(2)(D) rather than the discovery deadline set by court order. The disclosure deadline specified in Rule 26(a)(2)(D) is just a default deadline; the court’s scheduling order controls. It was well within the judge’s discretion to reject the excuses offered by Hassebrock to explain the tardy disclosure. Because expert testimony is necessary to prove professional malpractice, summary judgment was proper as to all defendants. View "Hassebrock v. Bernhoft" on Justia Law

The Commission on Judicial Fitness and Disability filed a formal complaint alleging that respondent Walter Miller, then a circuit court judge, had violated the Oregon Code of Judicial Conduct (Code) in connection with a 2014 voters’ pamphlet statement supporting his judicial candidacy. The commission specifically alleged violations of Rule 2.1(D) (judge shall not engage in “conduct involving dishonesty, fraud, deceit, or misrepresentation”) and Rule 5.1(D) (judicial candidate shall not knowingly or with reckless disregard for truth make any “false statement” concerning qualifications, education, experience, or other material fact relating to judicial campaign). The commission conducted a hearing and recommended that the Supreme Court dismiss the formal complaint. The Supreme Court accepted the commission’s recommendation. View "In re Miller" on Justia Law

Gerald Rowlett and his two companies, Westlake Development Company, Inc., and Westlake Development Group, LLC (plaintiffs), filed an action for malpractice against the law firm Schwabe, Williamson, and Wyatt, PC, (Schwabe) and lawyers David Fagan and James Finn (collectively, defendants), alleging claims for negligence, negligent misrepresentation, breach of fiduciary duty, and claims related to attorney fees. Defendants had represented plaintiffs in an action against plaintiffs’ business partners in Sunrise Partners, LLC (Sunrise). Plaintiffs settled the Sunrise litigation in 2007, and, soon thereafter, initiated the malpractice action, alleging that they would have had a better outcome in the Sunrise litigation but for the mishandling of their case by defendants. A jury ultimately found that defendants were negligent in their representation of plaintiffs, but that defendants’ negligence did not cause plaintiffs any damage. The jury also reached a defense verdict on the breach of fiduciary duty, negligent misrepresentation, and attorney fee claims. Plaintiffs appealed, asserting seven assignments of error. The Court of Appeals reversed as to two of those assignments of error and remanded the case for a new trial. The Supreme Court did not agree with the Court of Appeals' judgment with regard to the two alleged errors, reversed in part, affirmed in part and remanded for further proceedings. The Court of Appeals concluded that defendants’ closing argument to the jury improperly invoked the erroneous date on the verdict form to argue that the jury should use the settlement date as the date to “value” Rowlett’s interest in Sunrise and thus conclude that plaintiffs suffered no damages. In so ruling, the court may have misunderstood defendants’ theory of defense and their causation argument. On this ground, the Supreme Court reversed. View "Rowlett v. Fagan" on Justia Law

Sheppard Mullin, J-M's former attorneys, sought recovery of attorney fees relating to litigation in which Sheppard Mullin represented J-M. Sheppard Mullin was disqualified from that litigation because, without obtaining informed consent from either client, Sheppard Mullin represented J-M, the defendant in the litigation, while simultaneously representing a plaintiff in that case, South Tahoe. The trial court ordered the case to arbitration based on the parties’ written engagement agreement, and a panel of arbitrators found that the agreement was not illegal, denied J-M’s request for disgorgement of fees paid, and ordered J-M to pay Sheppard Mullin’s outstanding fees. The trial court confirmed the award. The court concluded that, under California law, because J-M challenged the legality of the entire agreement, the issue of illegality was for the trial court, rather than the arbitrators, to decide. The court further concluded that the undisputed facts establish that Sheppard Mullin violated the requirements of California Rules of Professional Conduct Rule 3-310 by simultaneously representing J-M and South Tahoe. Sheppard Mullin failed to disclose the conflict to either J-M or South Tahoe, and it failed to obtain the informed written consent of either client to the conflict. The representation of both parties without informed written consent is contrary to California law and contravenes the public policy embodied in Rule 3-310. Therefore, the trial court erred by enforcing the contract between the parties and entering judgment on the arbitration award based on that contract. Accordingly, the court reversed the judgment. The court remanded for factual findings on the issue of disgorgement of all fees paid to Sheppard Mullin. View "Sheppard, Mullin, Richter & Hampton v. J-M Manufacturing Co." on Justia Law

James Kelly, as trustee of the Beverly Snodgrass Clark Inter Vivos 1999 Separate Property Trust, sued Barbara J. Orr, Joseph Holland, Gretchen Shaffer, and DLA Piper LLP (US) (Defendants) for professional negligence in relation to legal advice they provided to his predecessor trustee of the Trust. Defendants demurred on statute of limitations grounds, arguing his action was barred by the one-year statute of limitations under Code of Civil Procedure section 340.6. The trial court sustained Defendants' demurrer without leave to amend, and Kelly filed a timely notice of appeal. On review of the matter, the Court of Appeal concluded the statute of limitations was tolled under section 340.6, subdivision (a)(2), until March 22, 2013, the date Kelly alleged Defendants ceased representation of Kelly's predecessor trustee. Because Kelly filed suit on February 27, 2014, less than one year after Defendants ceased representation of the predecessor trustee, the Court of Appeal concluded Kelly's action was not time-barred. The Court reversed the judgment and remanded for further proceedings. View "Kelly v. Orr" on Justia Law

The issue presented in this case was one of first impression: to what extent do the confidentiality provisions of Oregon’s mediation statutes (ORS 36.100 to 36.238) prevent a client from offering evidence of communications made by his attorney and others in a subsequent malpractice action against that attorney? Plaintiff retained defendant, an attorney specializing in employment law, to pursue discrimination and retaliation claims against plaintiff’s former employer. In the course of that representation, defendant filed administrative complaints with the Oregon Bureau of Labor and Industries and thereafter a civil action against the former employer for damages on plaintiff’s behalf. After limited discovery, plaintiff, represented by defendant, and plaintiff’s former employer entered into mediation under the terms and conditions set forth in the mediation statutes. Before meeting with the mediator and plaintiff’s former employer, defendant advised plaintiff about the potential value of his claims and the amount for which he might settle the lawsuit. Plaintiff and his former employer, along with their respective lawyers and the mediator, attended a joint mediation session and attempted to resolve the dispute. However, no resolution was reached. After the session ended, the mediator proposed a settlement package to the parties. In the weeks that followed, defendant provided advice to plaintiff about the proposed settlement. At defendant’s urging, plaintiff accepted the proposed terms and signed a settlement agreement with his former employer. One of the terms to which plaintiff agreed was that the settlement agreement would be confidential. After the parties signed the agreement, defendant continued to counsel plaintiff and provide legal advice regarding the settlement. Some months after the mediation ended, plaintiff concluded that defendant’s legal representation had been deficient and negatively affected the outcome of his case. The trial court granted defendant’s motion to strike certain allegations in plaintiff’s complaint and then dismissed the complaint with prejudice under ORCP 21 A(8) for failure to state a claim. The Court of Appeals affirmed in part and reversed in part, holding that ORS 36.220 and 36.222 barred some, but not all, of plaintiff’s allegations, and that the trial court erred in dismissing the complaint with prejudice before a responsive pleading had been filed. The Supreme Court agreed that ORS 36.220 and 36.222 limited the subsequent disclosure of mediation settlement terms and certain communications that occur in the course of or in connection with mediation. The Court disagreed, however, as to the scope of communications that are confidential under those statutes. Furthermore, the Court disagreed with the Court of Appeals as to whether the trial court erred in dismissing plaintiff’s complaint with prejudice because no responsive pleading had been filed. The Court therefore affirmed in part, reversed in part and remanded for further proceedings. View "Alfieri v. Solomon" on Justia Law

The last will and testament of Donald Amundson provided for his entire estate to be distributed to the Donald G. Amundson Trust. The Trust owned farmland jointly with the Kenneth Amundson Trust, which was set up by Donald Amundson's brother. Donald Amundson's Trust declaration directed the Trust assets were to be distributed upon his death to four charities, with the remainder distributed to ten nieces and nephews. Debra Magers and Gladys Gleason were initially appointed as co-personal representatives of the Estate. Magers, Gleason, and Todd Graveline were appointed as co-trustees of the Trust. John Widdel, Jr. represented all parties in relation to the administration of the estate. Magers eventually became sole personal representative and trustee of the Trust and Estate. In August 2013, the beneficiaries of the Estate petitioned for court determination of reasonableness of fees and for settlement and distribution of estate. The petition objected to the fees charged by Magers and Widdel for their services to the Estate and Trust. In September 2014, the district court found Magers had breached her fiduciary duty in several ways, which included paying Widdel large fees without question. The court also found administration of the Estate and Trust was not complicated and Widdel's fees were unreasonable in light of the nature of the work performed. The court ordered Widdel to return attorney's fees in the amount of $95,000. Widdel appealed the district court judgment ordering him to repay $95,000 of the attorney's fees he charged in the administration of the Estate. He argued the district court abused its discretion in finding the attorney's fees were unreasonable, and that the district court abused its discretion by not holding an evidentiary hearing on the issue of substituting his professional corporation as the named party on the judgment. The Supreme Court affirmed the judgment of the district court, concluding the district court did not abuse its discretion in finding the fees charged by Widdel were unreasonable and in finding Widdel could properly be held personally liable on the judgment. View "Estate of Amundson" on Justia Law

W. Steve Smith, trustee of a complex Chapter 7 estate, appealed the bankruptcy court's removal of him as trustee. Smith also appealed his removal from all of his other pending cases. Smith had traveled with his wife and children to New Orleans for an oral argument related to his work as trustee, billing the the firm for work that included estate funds for trip expenses. The district court affirmed. The court concluded that the bankruptcy court applied a proper legal standard, and its determination that Smith’s conduct violated that standard was not clearly erroneous. Therefore, the bankruptcy court did not abuse its discretion in finding cause sufficient to remove Smith as trustee. The court rejected Smith's notice argument as well as his as-applied constitutional argument to section 324(b) of the Bankruptcy Code. Finally, the court's ruling moots the issue of whether the bankruptcy and district courts wrongly refused to stay his removal pending appeal. Accordingly, the court affirmed the judgment. View "Smith v. Robbins" on Justia Law

The Mississippi Commission on Judicial Performance (the Commission) filed a “Formal Complaint” against Chancery Court Judge Joe Dale Walker alleging conduct prejudicial to the administration of justice which brings the judicial office into disrepute in violation of Section 177A of the Mississippi Constitution. The Commission recommended that Judge Walker be removed from office following various allegations regarding Judge Walker's mismanagement of a conservatorship. Due to various irregularities occurring in his handling of the conservatorship, the matter was investigated by the Federal Bureau of Investigation as well as the Commission. As a result of that investigation, a grand jury was convened and witnesses called to testify regarding the administration of the conservatorship. In association therewith, Judge Walker entered a guilty plea related to a charge of attempting to corruptly influence a witness subpoenaed to appear before a Federal Grand Jury proceeding and attempting to impede the provision of documents by the witness to the Federal Grand Jury with the intent to influence the outcome of the proceeding. "Due to the seriousness of his admitted criminal acts and judicial misconduct," the Mississippi Supreme Court removed Judge Joe Dale Walker from the office of Chancery Court Judge, Post Two, of the Thirteenth Chancery Court District of Mississippi. View "Mississippi Comm'n on Jud. Perf. v. Walker" on Justia Law