Justia Professional Malpractice & Ethics Opinion Summaries

Gary Everett Martin obtained a home-equity line of credit (HELOC) from BBVA USA Bancshares, Inc. (BBVA) in May 2008, secured by a mortgage on his residential property. In June 2008, Martin hired Joseph T. Scarborough, Jr., and Scarborough & Griggs, LLC (S&G) for legal representation in a divorce action. In June 2012, Martin executed a promissory note in favor of S&G for legal fees, secured by a second mortgage on the property. The attorney-client relationship ended in June 2013, and the promissory note and mortgage were later assigned to Scarborough. In June 2019, BBVA foreclosed on the property, and Scarborough purchased it at the foreclosure sale.The Lee Circuit Court granted summary judgment in favor of Scarborough, S&G, and BBVA, dismissing Martin's counterclaims and awarding possession of the property to Scarborough. The court found Martin's claims against the Scarborough parties time-barred under the Alabama Legal Services Liability Act (ALSLA) and dismissed his claims against BBVA as time-barred or unsupported by substantial evidence.The Supreme Court of Alabama reviewed the case. It found a genuine issue of material fact regarding the validity of the foreclosure sale, as the sale price was significantly lower than the property's fair market value, potentially indicating fraud or unfairness. Consequently, the court reversed the summary judgment in favor of Scarborough on his ejectment claim and remanded the case for further proceedings. However, the court affirmed the summary judgment in favor of the Scarborough parties and BBVA regarding Martin's counterclaims, finding them time-barred or unsupported by substantial evidence. View "Martin v. Scarborough" on Justia Law

Hudgen LeBlanc and Jodi LeBlanc filed a complaint against Residence Doctor Home Inspection, LLC, and its owner-operator, Terry J. Holder, alleging negligence, wantonness, gross negligence, fraudulent/innocent misrepresentation, suppression, and breach of contract. The claims arose from a pre-purchase home inspection performed by Holder, which the LeBlancs claimed failed to report structural issues with the flooring of the home they purchased. Instead, the report only mentioned "microbial growth" on the floor joists and recommended hiring a mold-remediation specialist. After purchasing the home, the LeBlancs hired a mold-remediation specialist who discovered rotten floor joists, costing nearly $40,000 to repair.The St. Clair Circuit Court granted summary judgment in favor of the inspection company and Holder on the negligence and breach-of-contract claims and dismissed the fraud, suppression, and wantonness claims with prejudice. The court found that the LeBlancs failed to provide expert testimony to establish the applicable standard of care or Holder's breach of that standard, which was necessary to prove their claims.The Supreme Court of Alabama reviewed the case de novo. The court held that expert testimony is required to establish a home inspector's breach of the applicable standard of care, similar to other professionals such as real-estate appraisers, engineers, and architects. The LeBlancs did not present expert testimony or establish that the breach was so obvious that it did not require expert testimony. Consequently, the Supreme Court of Alabama affirmed the trial court's summary judgment in favor of the inspection company and Holder. View "LeBlanc v. Residence Doctor Home Inspection, LLC" on Justia Law

John A. Daugherty, an attorney, filed a breach-of-contract claim against his former client, Molly Chew Baker, in the Jefferson Circuit Court. Daugherty and Molly had an agreement where Daugherty would help Molly collect alimony arrears from her ex-husband, Christopher, on a contingency-fee basis. Daugherty later agreed to represent Molly in additional matters related to her divorce, including a petition to modify alimony payments filed by Christopher. Molly eventually terminated Daugherty's services, and Daugherty sought to recover his fees through the court.The Jefferson Circuit Court dismissed Daugherty's complaint, concluding that the contingency-fee arrangement in the contract was against public policy under Rule 1.5(d)(1) of the Alabama Rules of Professional Conduct, which prohibits contingency fees in domestic relations matters involving alimony or support. The court also noted that the contract did not provide for compensation in the event of a settlement, which occurred when Molly and Christopher jointly dismissed their respective petitions.Daugherty appealed to the Supreme Court of Alabama, arguing that the contingency-fee arrangement was permissible under an exception for collecting alimony arrears after a completed divorce. However, the Supreme Court affirmed the lower court's decision, noting that Daugherty's representation extended beyond collecting arrears to include ongoing alimony matters, which did not fall under the exception. Additionally, Daugherty's claim for quantum meruit was not properly pleaded in the lower court and was inconsistent with his breach-of-contract claim. The Supreme Court concluded that the circuit court's judgment was correct and affirmed the dismissal of Daugherty's complaint. View "Daugherty v. Baker" on Justia Law

Erica Rae Fox appealed the grant of summary judgment entered in favor of her former criminal-defense attorneys, Harold V. Hughston III and Sheila Morgan. The trial court determined that the applicable statute of limitations barred Fox's action. Finding no error in that determination, the Alabama Supreme Court affirmed. View "Fox v. Hughston" on Justia Law

Erica Fox appealed a circuit court's grant of summary judgment in favor of her former criminal-defense attorneys, Harold Hughston, III and Sheila Morgan. In 2016, Ronnie Credille murdered Fox's husband, Jason Fox. Credille shot Jason in the head as he entered the doorway of the residence that he shared with Fox and their children. Fox and Credille were alleged to have been involved in an adulterous relationship. A grand jury indicted Fox for capital murder on January 12, 2017. The trial court presiding over the criminal action declared Fox indigent and appointed Hughston and Morgan to represent her. Fox was convicted for capital murder, for which she received a life sentence without the possibility of parole. Fox contended that, at the conclusion of the sentencing hearing, she made it clear to her defense attorneys that she wanted to appeal her conviction and sentence and that they represented to her that a notice of appeal had been perfected. Despite that representation, there was no oral notice of appeal contained in the transcript of the sentencing hearing. The attorneys moved for a new trial on Fox's behalf; that motion was denied by operation of law approximately one month later. The trial court nevertheless held a hearing on the motion, in which the motion was formally denied. This denial ended up being void for the trial court's want of jurisdiction. Because the deadline by which Fox was required to file a written notice of appeal of her conviction and sentence was calculated from the date on which her motion for a new trial was denied by operation of law, her written notice of appeal was due to be filed on or before March 11, 2019. After the trial court denied Fox's motion for a new trial, the attorneys moved to withdraw from representing Fox. Fox received an appointed appellate counsel, Charlie Bottoms, who attempted to get the appeals court to reinstate the appeal or order a new sentencing hearing. Fox ultimately sued her trial attorneys for legal malpractice for not lodging the appeal at trial. The Alabama Supreme Court concluded Fox failed to demonstrate any statutory tolling provision applied in her case, therefore it granted the trial court's grant of summary judgment to the defense attorneys. View "Fox v. Hughston, et al." on Justia Law

The Alabama Judicial Inquiry Commission ("the JIC") filed a complaint against Judge John Randall "Randy" Jinks, the Probate Judge for Talladega County, Alabama, alleging that he had violated the Alabama Canons of Judicial Ethics by frequently exhibiting an inappropriate demeanor, by inappropriately using a work-assigned computer and a work-assigned cellular telephone, and by abusing the prestige of the Office of Probate Judge. The Alabama Court of the Judiciary, ("the COJ") found that the evidence supported some of the charges alleged and removed Judge Jinks from office. Judge Jinks appealed. After reviewing the record in this case, the Mississippi Supreme Court concluded that the judgment of the COJ was supported by clear and convincing evidence. Accordingly, the judgment of the COJ was affirmed. View "Jinks v. Alabama Judicial Inquiry Commission" on Justia Law

The HuffingtonPost.com, Inc. ("HuffPost"), petitioned the Alabama Supreme Court for a writ of mandamus to direct a circuit court to vacate its order denying HuffPost's motion for a summary judgment based on the immunity provided in the Communications Decency Act of 1996, 47 U.S.C. § 230, and to enter a summary judgment in its favor pursuant to the immunity provided in 47 U.S.C. § 230. K.G.S. petitioned to adopt Baby Doe; the birth mother contested the adoption. The birth mother contacted Mirah Ruben, a contributor to HuffPost, and shared her version of events leading to her contesting the adoption. HuffPost published two online articles about Baby Doe’s adoption, including the full name of the birth mother, K.G.S. and included images of Baby Doe. After the articles were published, Claudia D’Arcy, a resident of New York, created a Facebook page dedicated to reuniting the birth mother and Baby Doe, which attached the HuffPost articles. The Facebook page also identified the birth mother and K.G.S. by name, and images of Baby Doe. After the creation of the Facebook page, K.G.S. stated she was “inundated with appallingly malicious and persistent cyber-bullying.” K.G.S.’ attorney compelled Facebook to take down the page because it violated Alabama’s Adoption Code. Then K.G.S. sued HuffPost, Mirah Riben, and a number of other defendants alleging that the defendants had made statements relating to the adoption that subjected them to civil liability and had unlawfully disclosed confidential information about the adoption "to create a sensationalized, salacious, and scandal-driven trial in the court of public opinion to pressure K.G.S. into relinquishing her custody of Baby Doe." After review of the circumstances of this case, the Alabama Supreme Court concluded HuffPost demonstrated a clear legal right to mandamus relief, and its petition was granted. View "Ex parte The HuffingtonPost.com" on Justia Law

David Roberson appealed a circuit court's dismissal of his claims against Balch & Bingham, LLP ("Balch"), on the basis that those claims were barred by the limitations periods contained in the Alabama Legal Services Liability Act ("the ALSLA"). After review of the trial court record, the Alabama Supreme Court affirmed, but on grounds that differed from the trial court's. "[T]he gravamen of Roberson's claims against Balch involved the provision of legal services. However, both Roberson and Balch assert that Roberson was not Balch's client, and those assertions are borne out in the third amended complaint, which indicates that Balch was engaged by Drummond, not personally by Roberson. ... Roberson's claims against the law firm Drummond engaged, Balch, are barred by the ALSLA because Roberson cannot meet an essential element of an ALSLA claim -- namely, he was not Balch's client -- and thus Balch owed no duty to Roberson. ... the circuit court's rationale was based on the applicability of the ALSLA's limitations periods." View "Roberson v. Balch & Bingham, LLP" on Justia Law

The Alabama Department of Revenue ("DOR") petitioned the Alabama Supreme Court for a writ of mandamus to order Judge Eddie Hardaway to recuse himself from an appeal challenging a decision of the Alabama Tax Tribunal in favor of Greenetrack, Inc. In 2009, the DOR determined Greentrack owed $75 million in sales taxes and consumer-use taxes for its electronic-bingo activities for the period from January 1, 2004, through December 31, 2008. In 2013, the Alabama Department of Revenue moved for Judge Hardaway to recuse himself, arguing that recusal was required because Judge Hardaway had recused himself two months earlier from another case on a related matter involving these same parties. In the present dispute, the DOR asked Judge Hardaway to recuse himself. This time the circuit court denied the request without providing any specific rationale or reasoning in its order, finding the "cases and authorities relied upon by the Alabama Department of Revenue do not support recusal under the facts and circumstances of this case." Finding the DOR demonstrated a clear, legal right to the recusal of Judge Hardaway in this matter, the Alabama Supreme Court granted its petition and directed Judge Hardaway to recuse himself. View "Ex parte Alabama Department of Revenue." on Justia Law

QHG of Enterprise, Inc., d/b/a Medical Center Enterprise ("QHG"), appealed a circuit court's judgment awarding Amy Pertuit ("Amy") $5,000 in compensatory damages and $295,000 in punitive damages. Leif Pertuit ("Leif") had been married to Deanna Mortensen; they had one child, Logan. Leif and Mortensen divorced in 2007. At some point, Mortensen was awarded sole physical custody of Logan, and Leif was awarded visitation. Leif later married Amy, a nurse. At the time of their marriage, Leif and Amy resided in Mobile, Alabama, and Mortensen resided in Enterprise. Eventually, tensions arose between Leif and Mortensen regarding the issue of visitation. In March 2014, Mortensen began sending text messages to Leif accusing Amy of being addicted to drugs. Around that time, Mortensen visited the attorney who had represented her in divorce from Leif. Mortensen expressed concern that Logan was in danger as a result of the visitation arrangement and asked her attorney to assist with obtaining a modification of Leif's visitation. In April 2014, Mortensen contacted Dr. Kathlyn Diefenderfer, a physician whom QHG employed as a hospitalist at Medical Center Enterprise. Mortensen had been Dr. Diefenderfer's patient, and Dr. Diefenderfer's son played sports with Logan. Mortensen informed Dr. Diefenderfer that Logan was scheduled to ride in an automobile with Amy from Enterprise to Mobile for Leif's visitation and expressed concern regarding Amy's ability to drive, given her belief that Amy was using drugs and had lost her nursing license. Dr. Diefenderfer used a hospital computer to check on Amy's drug prescriptions. After reviewing that information,Dr. Diefenderfer told Mortensen: "All I can tell you is I would not put my son in the car." Mortensen went back to her attorney, informing him that Dr. Diefenderfer had acquired the necessary proof of Amy's drug use. Amy received a copy of the modification petition, and was convinced her private health information had been obtained in violation of HIPAA, and filed complaints to the Enterprise Police Department, the US Department of Health and Human Services, the Alabama Bar Association, and the Alabama Board of Medical Examiners. A grand jury indicted Mortensen and Dr. Diefenderfer, which were later recalled, but the two entered diversion agreements with the district attorney's office. Amy then filed suit alleging negligence and wantonness, violation of her right to privacy, the tort of outrage and conspiracy. The Alabama Supreme Court determined the trial court erred by denying QHG's motion for a judgment as a matter of law with respect to Amy's asserted theories of respondeat superior; ratification; and negligent and wanton training, supervision, and retention because there was not substantial evidence indicating that QHG was liable to Amy as a consequence of Dr. Diefenderfer's conduct under any of those theories. The trial court's judgment awarding Amy $5,000 in compensatory damages and $295,000 in punitive damages was reversed, and judgment rendered in favor of QHG. View "QHG of Enterprise, Inc., d/b/a Medical Center Enterprise v. Pertuit" on Justia Law