Justia Professional Malpractice & Ethics Opinion Summaries

Petitioner served two terms as a Public Service Commissioner (PSC). While serving his first term at the PSC, Respondent, campaign manager for Petitioner's opponent in the upcoming election, filed four complaints against Petitioner with the Commissioner of Political Practices (Commissioner), alleging that Petitioner had violated the statutory Code of Ethics by accepting gifts of substantial value from two corporations with which the PSC regularly dealt and by using state resources to aid his reelection campaign and for personal business. Following a three-day hearing on Respondent's complaints, a hearing examiner determined that Petitioner violated Mont. Code Ann. 2-2-104 two times by receiving "gifts of substantial value" and violated Mont. Code Ann. 2-2-121 five times by using state facilities and equipment for election purposes. The Commissioner affirmed, ordering Petitioner to pay $5,750 in fines and $14,945 for the costs of the hearing. The district court affirmed. The Supreme Court affirmed, holding that the district court did not err by concluding (1) Respondent had legal standing to file ethics complaints against Petitioner; (2) Petitioner received unlawful gifts; (3) Petitioner improperly used State facilities for political purposes; and (4) the penalty statute for ethics violations was not unconstitutionally vague. View "Molnar v. Fox" on Justia Law

Tamara Lucas and her husband James brought a legal malpractice claim against attorney Mat Stevenson after they hired Stevenson to defend James against criminal charges and to represent them in a civil suit against the city police department, the city, and individual police officers that arrested James for disturbing the peace and felony assault on a peace officer. However, Stevenson later learned that the Lucases had previously filed for bankruptcy. The civil suit was determined to an asset of the bankruptcy estate, and Stevenson was reassigned to pursue the case on behalf of the bankruptcy estate. After a settlement agreement was reached, the Lucases brought this action against Stevenson. The district court granted summary judgment in favor of Stevenson. The Supreme Court affirmed, holding that the district court correctly determined (1) the Lucases' civil claims were properly determined to be an asset of the bankruptcy estate; and (2) Stevenson did not represent the Lucases at the time the claims were settled, and therefore, the Lucases had no standing to bring a legal malpractice claim against him. View "Lucas v. Stevenson" on Justia Law

Terance Perry filed for dissolution of his marriage to Karen Perry. Terance named Gail Goheen as his counsel of record. Karen filed a motion to disqualify Goheen after speaking with Goheen over the telephone. Before the disqualification hearing, Karen filed a motion to strike office memorandums and affidavits filed by Terance regarding Goheen's conversation with Karen as privileged communications between attorney and client. The district court denied Karen's motion to disqualify, finding no attorney-client relationship existed between Karen and Goheen. The Supreme Court affirmed, holding that the district court did not err by (1) denying Karen's motion to disqualify; (2) permitting Goheen to testify at the disqualification hearing; (3) relying on communications between Goheen and Karen in making its decision; and (4) determining that Karen abused the rules of disqualification. The court also found that Goheen did not violate her duty to Karen under Rule 19 of the Montana Rules of Professional Conduct. View "In re Marriage of Perry" on Justia Law

The Labairs lost their newborn baby after an early delivery by C-section. The Labairs retained Steve Carey and Carey Law Firm (Carey) to pursue their medical malpractice claim against their obstetrician. More than two and a half years later, Carey filed a complaint against the obstetrician. However, Carey failed to file an application with the Montana Medical Legal Panel (MMLP) before filing a complaint with the district court as required by statute and further failed to file an MMLP application within the three-year statute of limitations applicable to medical malpractice claims. The district court later dismissed the Labairs' medical malpractice case with prejudice as time-barred by the statute of limitations. The Labairs subsequently filed a complaint for legal malpractice against Casey. The district court entered summary judgment for Carey, concluding that Carey's conduct of failing to file the application with the MMLP did not cause the Labairs injury or damages because the Labairs failed to show that the underlying medical malpractice claims would have succeeded but for the error. The Supreme Court reversed and remanded, holding (1) the Labairs' loss of their medical malpractice case was an injury; and (2) the damages associated with that injury remained unproven. View "Labair v. Carey " on Justia Law

H&H Development, LLC hired Jim Ramlow for legal services. In 2007, H&H filed a pro se complaint in Lake County against Ramlow and his law firm for professional negligence. Eleven days later, H&H, through counsel, filed a complaint in Flathead County against Eagle Bend, seeking damages based on allegations similar to those in the Lake County complaint. H&H settled with Eagle Bend. In 2010, H&H filed an amended Flathead County complaint that named Ramlow and his firm as defendants and included a lawyer's signature. The district court subsequently declared the Lake County complaint null and void after determining that a non-lawyer could not file a complaint on behalf of a limited liability company. Thereafter, the court granted summary judgment to Defendants on the amended complaint based upon the running of the applicable statute of limitations. The Supreme Court reversed, holding that a district court has discretion to determine whether a corporation should be able to relate back to an amended complaint signed by a lawyer, to its original, pro se complaint. Remanded to assess whether Mont. R. Civ. P. 15(c) permitted H&H's amended complaint in Flathead County to relate back to H&H's pro se Lake County complaint. View "H & H Dev., LLC v. Ramlow" on Justia Law

Petitioner filed a petition for dissolution in district court and the only contested issue between the parties was the valuation and division of the marital home and surrounding acreage, which was purchased for $45,000 in the mid-1990's. Petitioner had obtained a letter from a realtor stating that the marital home could be worth approximately $250,000-275,000 if the home was in good condition. At issue was whether the district court abused its discretion when it denied petitioner's M.R.Civ.P. 60(b)(6) motion, which was filed after the district court found the marital home was valued at $22,423, where petitioner alleged that her attorney grossly neglected her case when she failed to identify the realtor as an expert, or any other qualified real estate expert, and failed to prepare any evidence for trial to reflect petitioner's estimated value of the marital home. The court held that under the unique circumstances, where the district court had a statutory obligation to equitably apportion the marital estate and petitioner's counsel totally failed to present evidence on the issue, the district court abused its discretion in denying her Rule 60(b)(6) motion and should have granted the motion, thereby allowing her to present evidence regarding the value of the marital home so that the district court could make an equitable distribution. Accordingly, the court reversed and remanded for further proceedings.