Justia Professional Malpractice & Ethics Opinion Summaries

An executive at a litigation funding company, Signal, resigned to start a competing business and sought legal advice from Signal’s outside counsel, Sugar Felsenthal Grais & Helsinger LLP. Signal sued the law firm and several of its attorneys, alleging legal malpractice, breach of contract, breach of fiduciary duty, and fraud. The district court dismissed some claims and granted summary judgment in favor of the defendants on the remaining claims. Signal appealed these rulings.The United States District Court for the Northern District of Illinois dismissed Signal’s breach of fiduciary duty claim and part of its fraud claim, allowing the legal malpractice, breach of contract, and fraudulent misrepresentation claims to proceed. The court also struck Signal’s request for punitive damages. During discovery, the court denied Signal’s motion to compel production of a memorandum prepared by one of the defendants. The district court later granted summary judgment in favor of the defendants on all remaining claims.The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the district court’s rulings. The appellate court agreed that Signal failed to establish proximate cause and damages for its legal malpractice and breach of contract claims. The court also found that Signal waived its challenge to the summary judgment ruling on the fraudulent misrepresentation claim by not adequately addressing it on appeal. Additionally, the court upheld the district court’s decision to deny Signal’s motion to compel production of the memorandum, as Signal did not demonstrate that the document influenced the witness’s testimony. The appellate court concluded that the district court’s dismissal of the fraudulent concealment theory was harmless error and denied Signal’s motion to certify a question to the Illinois Supreme Court as moot. View "Signal Funding, LLC v Sugar Felsenthal Grais & Helsinger LLP" on Justia Law

Bankers Standard Insurance Company (Bankers) filed a lawsuit against JTEC, Inc. (JTEC), a professional engineering firm, alleging that JTEC negligently designed a water mechanical system for a housing development in Jackson, Wyoming. The design flaw allegedly caused a water filter housing to fail, resulting in significant water damage to a home insured by Bankers. The design plans, which included the alleged defect, were revised multiple times, with the final set submitted on May 31, 2018.The United States Court of Appeals for the Tenth Circuit reviewed the case and certified a question to the Wyoming Supreme Court regarding the interpretation of Wyo. Stat. Ann. § 1-3-107. The district court had granted summary judgment in favor of JTEC, determining that the statute of limitations barred Bankers' claim. The district court concluded that the relevant date for the statute of limitations was May 31, 2018, the last day JTEC provided professional services.The Wyoming Supreme Court reviewed the certified question to determine when a professional’s act, error, or omission occurred under Wyo. Stat. Ann. § 1-3-107. The Court held that the absence of contractual privity is not relevant in determining when the statute of limitations attaches in a tort action. The statute of limitations attaches to the design that was the legal cause of the alleged injuries, meaning the act, error, or omission that was a substantial factor in bringing about the plaintiffs’ injuries.The Court concluded that the statute of limitations in § 1-3-107 attaches to the design that was used by the plumber to install the water entry detail at the Grossmans’ residence. However, the Court could not determine which set of engineering plans were used based on the facts presented. Therefore, the case was remanded for further proceedings to establish which design was the legal cause of the alleged injuries. View "Bankers Standard Insurance Company v. JTEC, Inc." on Justia Law

AMTAX Holdings 227, LLC ("AMTAX") filed a lawsuit against CohnReznick LLP ("CohnReznick") in federal court, alleging breach of fiduciary duty, professional negligence, unjust enrichment, and fraud. The dispute arose from CohnReznick's calculation of a purchase price for a property under a right of first refusal agreement, which AMTAX claimed excluded exit taxes required by Section 42 of the Internal Revenue Code. AMTAX argued that this exclusion violated the agreement and federal law.The United States District Court for the Southern District of New York dismissed AMTAX's complaint for lack of subject matter jurisdiction. The court applied the Grable-Gunn test to determine whether the state-law claims presented a substantial federal issue that would warrant federal jurisdiction. The district court concluded that AMTAX's claims did not meet the criteria for federal question jurisdiction, as they did not necessarily raise a substantial federal issue and allowing federal jurisdiction would disrupt the federal-state balance.The United States Court of Appeals for the Second Circuit reviewed the district court's decision de novo. The appellate court agreed with the lower court's application of the Grable-Gunn test, finding that AMTAX's claims were primarily based on contract interpretation rather than federal tax law. The court held that the federal issue was not substantial enough to warrant federal jurisdiction and that exercising jurisdiction would disrupt the balance of state and federal judicial responsibilities. Consequently, the Second Circuit affirmed the district court's dismissal of the case for lack of subject matter jurisdiction. View "AMTAX Holdings 227, LLC v. CohnReznick LLP" on Justia Law

Amaury Villa participated in two significant burglaries in 2011, stealing $61 million worth of pharmaceuticals from an Eli Lilly warehouse in Connecticut and $1.5 million worth of cigarettes from a warehouse in Kentucky. He was indicted by federal grand juries in Florida, Connecticut, and Kentucky. Villa pled guilty in the Florida and Connecticut cases, receiving concurrent prison terms of 140 and 98 months, respectively. In January 2016, Kentucky prosecutor Joshua Judd emailed Villa’s attorney, Donald Meier, a proposed plea agreement that did not mention concurrent sentencing. Villa later pled guilty without a plea agreement and was sentenced to 77 months, to be served consecutively.Villa moved to set aside his Kentucky sentence under 28 U.S.C. § 2255 in January 2019, claiming ineffective assistance of counsel. He later sought to amend his motion to add a claim that Meier failed to inform him of a potential cooperation agreement. The district court initially denied the motion as untimely. On appeal, the Sixth Circuit remanded for an evidentiary hearing on the timeliness of the claim. The district court found the claim timely but denied it on the merits.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court’s decision. The court found that Judd’s January 21 email did not constitute a formal plea offer but was an invitation to negotiate. The court also found that Meier had informed Villa of the January 9 plea offer, which was discussed at Villa’s change-of-plea hearing. The court concluded that Meier’s performance was not deficient and that Villa himself impeded further negotiations by refusing to provide additional information about his co-conspirator. The district court’s judgment denying Villa’s motion to vacate, set aside, or correct his sentence was affirmed. View "Villa v. United States" on Justia Law

Travaris T. Guy was convicted of attempted first degree murder and second degree murder for the shooting of David Woods Sr. and Sheena Woods. The jury found that Guy acted with the intent to kill but also believed his actions were lawfully justified, which led to an inconsistent verdict. Guy did not raise this issue on direct appeal or in his initial postconviction petition but later filed a successive postconviction petition claiming inconsistent verdicts and ineffective assistance of counsel.The Will County circuit court denied relief on the inconsistent verdict claim but granted a new trial on a separate claim. The appellate court reversed Guy’s attempted first degree murder conviction, holding that the jury instruction misstated the law, the conviction was inconsistent with the second degree murder conviction, and the jury’s finding of self-defense precluded a guilty verdict for attempted first degree murder.The Illinois Supreme Court reviewed the case and affirmed the appellate court’s judgment in part, reversed in part, and remanded to the circuit court to sentence Guy on the lesser-included offense of aggravated battery with a firearm. The court held that a conviction for attempted first degree murder requires proof of intent to kill without lawful justification. The jury instruction was erroneous as it only required intent to kill. The jury’s finding that Guy believed in the need for self-defense was incompatible with the intent required for attempted first degree murder. The court also found that Guy’s attorneys were ineffective for failing to properly raise these issues. View "People v. Guy" on Justia Law

Ronald Vines and his two adult sons attempted to rob a bank at gunpoint. They gathered weapons and other equipment, set up a tarp outside the bank, and waited for the tellers to arrive. One of Vines's sons, wearing a mask and armed with a revolver, forced a teller inside at gunpoint. However, another employee saw them and raised the alarm, causing Vines to signal his son to flee. They were apprehended by the police shortly after.Vines pleaded guilty to attempted armed bank robbery under 18 U.S.C. §§ 2113(d) & 2 and brandishing a gun while committing a crime of violence under 18 U.S.C. §§ 924(c)(1)(A)(ii) & 2. He did not initially challenge his § 924(c) charge, so he had to do so collaterally under 28 U.S.C. § 2255. The United States District Court for the Eastern District of Pennsylvania denied his motion but granted a certificate of appealability. On appeal, Vines was allowed to argue that his plea lawyer was ineffective for not asserting that attempted armed bank robbery is not a crime of violence.The United States Court of Appeals for the Third Circuit reviewed the case de novo. The court held that attempted armed bank robbery under 18 U.S.C. § 2113(d) is a crime of violence because it requires the use of force, violence, or intimidation. The court also found that adding a dangerous weapon to the attempted bank robbery does not make the crime less violent. Therefore, Vines's conviction under § 924(c) was upheld. The court also concluded that Vines's counsel was not ineffective, as the argument that attempted armed bank robbery is not a crime of violence would have been meritless. The Third Circuit affirmed the District Court's order denying Vines's collateral attack. View "USA v. Vines" on Justia Law

In 1987, Fred Marion Cain III was charged with the kidnapping, sexual assault, and murder of a six-year-old child. The Solano County Public Defender’s Office was appointed to represent him. The People moved to recuse the Public Defender’s Office, citing a conflict of interest due to its previous representation of Shawn Melton, who was tried twice for the same murder, resulting in mistrials and eventual dismissal. DNA evidence later excluded Melton and implicated Cain. The Public Defender’s Office asserted no conflict existed as they had no connection to Melton’s case files or personnel involved in his defense.The trial court granted the People’s motion to recuse the Public Defender’s Office, expressing concerns about potential conflicts and public perception. The court focused on whether the attorney-client privilege survived Melton’s death and whether the Public Defender’s Office could ethically seek testimony from Melton’s former attorney, Peter Foor. Despite the Public Defender’s Office’s assurances and lack of evidence of any conflict, the court disqualified them based on their stance on the attorney-client privilege and duty of confidentiality.The California Court of Appeal, First Appellate District, reviewed the case. The court concluded that no actual or potential conflict of interest existed. It found no substantial evidence that the Public Defender’s Office possessed confidential information from Melton’s case or that Cain’s defense would be compromised. The court held that the Public Defender’s Office’s ethical stance on not seeking Foor’s testimony did not constitute a conflict of interest. Consequently, the court issued a writ of mandate directing the trial court to vacate its order disqualifying the Public Defender’s Office and to deny the motion to recuse. View "Cain v. Superior Ct." on Justia Law

April Sponsel, a prosecutor at the Maricopa County Attorney’s Office (MCAO), was disciplined for her conduct in several cases. She was found to have violated multiple Arizona Rules of Professional Conduct, including competence, diligence, good faith, and conduct prejudicial to the administration of justice. The violations stemmed from her handling of cases related to an October 2020 protest, as well as other cases involving defendants Charles Walker and Richard Villa. Sponsel was accused of filing charges without sufficient evidence, failing to review available evidence, and making unsupported allegations.The disciplinary panel concluded that Sponsel violated ethical rules by not thoroughly investigating the cases before filing charges and by pursuing charges that were not supported by the evidence. The panel found that her actions caused significant harm to the defendants, including wrongful incarceration and damage to their reputations. The panel also noted that her conduct negatively impacted the integrity and morale of the MCAO.The Arizona Supreme Court reviewed the case and affirmed the panel’s findings and the two-year suspension from the practice of law. The Court agreed that Sponsel’s conduct violated the ethical rules and caused harm to the defendants and the justice system. The Court emphasized the importance of a prosecutor’s duty to seek justice rather than merely secure convictions. The Court also noted that the suspension was necessary to protect the public, deter similar misconduct, and maintain confidence in the integrity of the legal system. View "In re Sponsel" on Justia Law

Jason Meredith was charged with two counts of capital murder for the shooting deaths of Eric Ogden and Lance Kelloms. The State agreed to waive the death penalty and reduce the charges to first-degree murder in exchange for Meredith's testimony against his co-defendant. Meredith pleaded guilty and received two concurrent life sentences. In 1998, he filed a pro se Rule 37 petition alleging ineffective assistance of counsel and new evidence. He later filed motions to amend his petition, which were denied by the circuit court.The Saline County Circuit Court denied Meredith's motions to amend his petition and ultimately dismissed his Rule 37 petition. The court found that Meredith failed to act with due diligence in seeking relief and that his petition did not comply with the length and formatting requirements. Additionally, the court concluded that the files and records showed Meredith was not entitled to relief, as he failed to demonstrate that his trial counsel was ineffective.The Supreme Court of Arkansas reviewed the case and affirmed the circuit court's decision. The court held that the circuit court did not abuse its discretion in denying Meredith's motions to amend his petition, as the extreme passage of time and lack of diligence were considered. The court also affirmed the dismissal of the petition based on noncompliance with formatting requirements and the merits of the petition. The court found that Meredith did not sufficiently allege prejudice from his counsel's advice regarding parole eligibility, as he did not claim he would have insisted on going to trial but for the erroneous advice. View "Meredith v. State" on Justia Law

Michael Williams was convicted of malice murder and other offenses for the fatal shooting of Tomas Gooden at a house party on December 8, 2017. Williams and Gooden argued over a gambling game, leading to Gooden pushing Williams to the floor. Williams then shot Gooden in the head and fled the scene. Gooden's body was found in the garage, and the medical examiner determined the bullet traveled in a downward trajectory. Williams was later found walking along the road and eventually admitted to shooting Gooden, claiming self-defense.A Coweta County grand jury indicted Williams on multiple charges, including malice murder and aggravated assault. Williams was found guilty on all counts by a jury and sentenced to life in prison for malice murder, with additional concurrent and consecutive sentences for other charges. Williams filed a motion for a new trial, which was denied. He then appealed to the Supreme Court of Georgia, specifying that he was not appealing his conviction for possession of a firearm by a convicted felon.The Supreme Court of Georgia reviewed Williams's claims of plain error in the jury instructions and ineffective assistance of counsel. Williams argued that the trial court failed to instruct the jury that the State bore the burden to disprove his justification defense and that his counsel failed to investigate and introduce evidence of Gooden's violent reputation. The court concluded that although the trial court erred in its jury instructions, Williams did not demonstrate that this error affected the trial's outcome. Additionally, the court found that Williams was not prejudiced by his counsel's performance, as substantial evidence of Gooden's violent character was already presented at trial. Consequently, the Supreme Court of Georgia affirmed Williams's convictions. View "WILLIAMS v. THE STATE" on Justia Law