Justia Professional Malpractice & Ethics Opinion Summaries

Hannon, an attorney, represented Barber in litigation against the victim, Barber’s former domestic partner, Dr. Magno. In December 2006, the parties agreed that Barber would fund a college trust for their children. Barber paid $27,500.32 to Hannon as the trustee of the children’s funds and authorized Hannon to open a bank account. In February 2011, the victim became aware that the children’s funds had been misappropriated. Hannon may have used the money to cover legal fees owed by Barber. Charged with grand theft by embezzlement by a fiduciary (Pen. Code 487(a), 506), Hannon ultimately pled no contest to misdemeanor theft by embezzlement. The trial court placed him on probation for two years, ordered him to perform 240 hours of community service, and ordered him to pay $40,800 in restitution to the victim: $25,000 in attorney’s fees, $15,000 in lost wages, and $800 in mileage. The court of appeal rejected challenges to the restitution award and held that the victim was entitled to file a victim impact statement on appeal, pursuant to the Victims’ Bill of Rights Act of 2008 (Marsy’s Law, Proposition 9 (2008)), but may not raise present legal issues not raised by Hannon or facts not in the record below View "People v. Hannon" on Justia Law

Counsel for appellant Martin Frantz hired attorney Merlyn Clark as an expert witness in an unrelated matter in 2009. Clark was a partner with respondent law firm Hawley Troxell Ennis & Hawley LLP (“Hawley Troxell”). In 2010, Frantz’ creditor, Idaho Independent Bank, hired Hawley Troxell to represent it in a contract action against Frantz. In 2011, while that matter was pending, Frantz filed for bankruptcy. Hawley Troxell continued to represent the Bank as a creditor in the bankruptcy, including in an adversary proceeding the Bank filed against Frantz in 2013. Frantz alleged in the adversary proceeding that Clark’s interactions with Frantz in the 2009 matter created an attorney-client relationship and that it was therefore a conflict of interest for Clark’s firm to represent the Bank against Frantz. Frantz also alleged that Hawley Troxell improperly used confidential information Clark acquired in the 2009 matter. The bankruptcy court concluded that there was no attorney-client relationship between Clark (or Hawley Troxell) and Frantz. The adversary proceeding was later dismissed as moot. Frantz subsequently sued Hawley Troxell in Idaho district court, alleging legal malpractice and breach of fiduciary duty. The district court denied pro hac vice admission to attorney Jeffrey Katz, Frantz’ chosen counsel. The district court also dismissed the complaint on the grounds of judicial estoppel, lack of standing, and abatement. Finally, it awarded Hawley Troxell attorney fees under Idaho Code sections 12-120(3) and 12-121. Frantz appealed the denial of pro hac vice admission, the dismissal of his complaint, and the award of attorney fees. Finding no reversible error after review of the trial court record, the Supreme Court affirmed. View "Frantz v. Troxell" on Justia Law

Holly and Robert Labair filed a legal malpractice claim for Steve Carey and Carey Law Firm (collectively, Carey) related to Carey’s representation of them in a medical malpractice action. The district court granted summary judgment to Carey. The Supreme Court reversed and remanded to the district court for a trial to establish two required components of the damages element of the Labairs’ claim: (1) that it was more probable than not that they would have recovered a settlement or judgment but for Carey’s negligence, and (2) the value of the lost settlement and/or judgment. After a trial, the jury indicated that the Labairs would not have settled the underlying medical malpractice claim. The district court formally entered judgment in favor of Carey. The Supreme Court vacated the judgment, holding that the district court erred in instructing the jury to decide whether Plaintiffs would have settled the underlying medical malpractice suit. Remanded for a new trial on the question of the value of the lost opportunity to settle. View "Labair v. Carey" on Justia Law

Heartland Title Services, Inc. filed a petition in the circuit court of Jackson County alleging professional malpractice claims against Paul Hasty and Hasty and Associates, LLC (collectively, Hasty). Hasty filed a motion to dismiss Heartland’s professional malpractice claim for lack of venue, arguing that the tort injury alleged occurred outside Missouri. The circuit court dismissed the count for lack of venue. Heartland sought relief in the Supreme Court with this original proceeding in mandamus. The Supreme Court issued a preliminary writ and then made permanent the preliminary writ, holding that venue was proper in any county in Missouri, including Jackson County. View "State ex rel. Heartland Title Services, Inc. v. Honorable Kevin D. Harrell" on Justia Law

The Mississippi Commission on Judicial Performance recommended to the Mississippi Supreme Court that former Madison County Justice Court Judge William “Bill” Weisenberger Sr. be removed from office after finding by clear and convincing evidence that Weisenberger physically and verbally assaulted a mentally disabled individual at the 2014 Canton Flea Market. Because of the egregious nature of Weisenberger’s actions, the Supreme Court agreed with the Commission’s recommendation and removed Weisenberger from office. Weisenberger was directed to pay a fine in the amount of $1,000 and costs of these proceedings in the amount of $5,918.46. View "Mississippi Comm'n on Judicial Perf. v. Weisenberger" on Justia Law

Tina McColl filed a complaint against Michael Lang, N.D., a licensed naturopathic physician, after Lang used black salve to remove a blemish on Lang’s nose, which resulted in an infected third degree burn on McColl’s nose. The jury found Lang departed from the standard of care in his treatment of McColl, which resulted in damages. The jury, however, unanimously denied punitive damages. McColl appealed, seeking a new trial on the issue of punitive damages. The Supreme Court affirmed, holding that the district court did not abuse its discretion when it (1) granted Lang’s motion to exclude evidence of the Food, Drug, and Cosmetic Act prohibition against selling, marketing, or manufacturing drugs not FDA approved and the FDA warning letters regarding the use of black salve as a cure for cancer; and (2) denied McColl’s motion to exclude the testimony of Lang’s expert on the standard of care for a naturopathic physician. View "McColl v. Lang" on Justia Law

After the BP Stock Fund lost significant value, the affected investors filed suit alleging that the plan fiduciaries breached their duties of prudence and loyalty by allowing the Plans to acquire and hold overvalued BP stock; breached their duty to provide adequate investment information to plan participants; and breached their duty to monitor those responsible for managing the BP Stock Fund. The district court held that the stockholders had failed to overcome the Moench v. Robertson presumption and dismissed their claims. The stockholders appealed, and while their appeal was pending in this court, the Supreme Court issued Fifth Third Bancorp v. Dudenhoeffer, holding that there was no such “presumption of prudence” under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1001 et seq. On remand, the district court held that the stockholders had plausibly alleged that defendants had inside information; and the stockholders had plausibly alleged two alternative actions that defendants could have taken that met the Fifth Third standard: freezing, limiting, or restricting company stock purchases; and disclosing unfavorable information to the public. The district court granted the motion to amend with respect to pleading these alternative actions. It then certified defendants’ motion for interlocutory appeal. The court concluded, however, that the district court here erred when it altered the language of Fifth Third to reach its holding. Under the Supreme Court’s formulation, the plaintiff bears the significant burden of proposing an alternative course of action so clearly beneficial that a prudent fiduciary could not conclude that it would be more likely to harm the fund than to help it. In this case, the stockholders have failed to do so. Because the stockholders' amended complaint is insufficient and the district court erred in granting their motion to amend, the court reversed and remanded. View "Whitley v. BP, P.L.C." on Justia Law

CommScope Credit Union (Plaintiff), a state-chartered credit union, hired Butler & Burke, LLP (Defendant), a certified public accounting firm, to conduct annual independent audits of its financial statements. Plaintiff later filed a complaint alleging breach of contract, negligence, breach of fiduciary duty, and professional malpractice. Defendant pleaded seven affirmative defenses, including contributory negligence and in pari delicto. The trial court subsequently granted Defendant’s motion to dismiss and for judgment on the pleadings. The court of appeals reversed, concluding (1) the specific allegations in Plaintiff’s complaint were sufficient to state a claim for breach of fiduciary duty, and (2) Defendant’s affirmative defenses would not entitle Defendant to dismissal at this stage. The Supreme Court affirmed in part and reversed and remanded in part, holding (1) Plaintiff’s allegations did not establish that Defendant owed it a fiduciary duty in fact, and therefore, the trial court correctly dismissed Plaintiff’s breach of fiduciary duty claim; and (2) the members of the Court are equally divided on whether the facts alleged in the complaint established the defenses of contributory negligence and in pari delicto, and therefore, the court of appeals’ decision on this issue is left undisturbed. View "CommScope Credit Union v. Butler & Burke, LLP" on Justia Law

A client personally financed the sale of his business corporation. His attorney drafted documents that secured the buyer’s debt with corporate stock and an interest in the buyer’s home. Over seven years later the government imposed tax liens on the corporation’s assets; according to the client, it was only then he learned for the first time that his attorney had not provided for a recorded security interest in the physical assets. The client sued the attorney for malpractice and violation of the Alaska Unfair Trade Practice and Consumer Protection Act (UTPA). The superior court held that the statute of limitations barred the client’s claims and granted summary judgment to the attorney. But after review, the Alaska Supreme Court concluded that it was not until the tax liens were filed that the client suffered the actual damage necessary for his cause of action to be complete. Therefore, the Court reversed the superior court's judgment and remanded the case for further proceedings. View "Jones v. Westbrook" on Justia Law

Jon Haddow, an attorney, represented and Frank and Beverly Pawlendzio in personal bankruptcy proceedings. Following the proceedings, the Pawlendzios filed a complaint against Haddow, asserting claims of legal malpractice and seeking damages for economic loss and extreme emotional distress. The Pawlendzios based their claims on the fact that, contrary to Haddow’s advice, loans made to them by friends and relatives lost their protected status as a result of the bankruptcy proceedings. The superior court entered an order granting summary judgment in favor of Haddow. The Supreme Judicial Court affirmed, holding that the Pawlendzios failed to produce expert-based evidence that Haddow breached his duty owed to the Pawlendzios. View "Pawlendzio v. Haddow" on Justia Law