Justia Professional Malpractice & Ethics Opinion Summaries

Matthew and Caralynn Fonder purchased a home and obtained a mortgage from Wells Fargo Bank, N.A. Wells Fargo selected Wells Fargo Insurance, Inc. Flood Services (WFFS) to conduct a flood hazard determination on the Fonders’ home. WFFS determined the home was not in a special flood hazard area, and therefore, the Bank did not require the Fonders to obtain flood insurance. A flood later destroyed the Fonders’ home. Wells Fargo later filed a complaint to foreclose on the Fonders’ home. The Fonders cross-claimed against WFFS seeking to recover damages sustained a result of their reliance on WFFS’s erroneous flood determination. The circuit court dismissed the cross-claim for failure to state a claim and dismissed the Fonders’ motion to amend their third-party complaint to assert a claim of negligent misrepresentation on the grounds that WFFS did not owe the Fonders a duty. The Supreme Court affirmed in part and reversed in part, holding (1) the circuit court erred when it dismissed the Fonders’ claims for professional negligence and negligent infliction of emotional distress but did not err in dismissing the Fonders’ breach-of-fiduciary duty claim; and (2) upon remand, the Fonders may amend their cross-claim to include negligent misrepresentation. View "Wells Fargo Bank, N.A. v. Fonder" on Justia Law

Amber Johnson filed suit against her closing attorney, Stanley Alexander, arguing he breached his duty of care by failing to discover the house Johnson purchased had been sold at a tax sale the previous year. The trial court granted partial summary judgment in favor of Johnson as to Alexander's liability. On appeal, the court of appeals held Alexander could not be held liable as a matter of law simply because the attorney he hired to perform the title work may have been negligent. Instead, the court determined the relevant inquiry was "whether Alexander acted with reasonable care in relying on [another attorney's] title search"; accordingly, it reversed and remanded. The Supreme Court reversed the court of appeals: even absent Alexander's admissions, the Court found it was error to equate delegation of a task with delegation of liability. The Court therefore agreed with Johnson that an attorney was liable for negligence in tasks he delegates absent some express limitation of his representation. Applying this standard to the facts, the Court found the grant of summary judgment was proper because there was no genuine issue of material fact as to liability. The case was remanded back to the trial court for a determination of damages. View "Johnson v. Alexander" on Justia Law

Amber Johnson filed suit against her closing attorney, Stanley Alexander, arguing he breached his duty of care by failing to discover the house Johnson purchased had been sold at a tax sale the previous year. The trial court granted partial summary judgment in favor of Johnson as to Alexander's liability. On appeal, the court of appeals held Alexander could not be held liable as a matter of law simply because the attorney he hired to perform the title work may have been negligent. Instead, the court determined the relevant inquiry was "whether Alexander acted with reasonable care in relying on [another attorney's] title search"; accordingly, it reversed and remanded. The Supreme Court reversed the court of appeals: even absent Alexander's admissions, the Court found it was error to equate delegation of a task with delegation of liability. The Court therefore agreed with Johnson that an attorney was liable for negligence in tasks he delegates absent some express limitation of his representation. Applying this standard to the facts, the Court found the grant of summary judgment was proper because there was no genuine issue of material fact as to liability. The case was remanded back to the trial court for a determination of damages. View "Johnson v. Alexander" on Justia Law

Taylor was injured while attempting to secure a vehicle on a Cottrell car-hauling trailer. Dr. Odor operated on Taylor to complete a two-level cervical fusion. More than two years later, Taylor was again injured when he fell approximately 10 feet from a Cottrell trailer. He was taken to the emergency room and was discharged home with pain medication. The same month, Taylor reported to Dr. Odor with neck and back pain. After testing, Dr. Odor observed several disc protrusions and a disc desiccation. These injuries led to another complex spinal surgery with Dr. Odor, the cost of which exceeded $450,000. Two weeks before trial Cottrell claimed it had uncovered copies of agreements between Taylor's counsel and Dr. Odor which evidenced an impermissible contingent-fee agreement. The court found there was a contingency agreement and excluded Odor’s testimony as an expert witness, dismissed claims for Taylor's neck and back injuries, and stayed claims related to shoulder injuries. The Eighth Circuit reversed; the district court failed to articulate the precise interest Odor had in the outcome of the litigation and failed to explain why any such interest overcomes the general rule that Odor's bias and credibility should be resolved by the jury. View "Taylor v. Cottrell, Inc." on Justia Law

Taylor was injured while attempting to secure a vehicle on a Cottrell car-hauling trailer. Dr. Odor operated on Taylor to complete a two-level cervical fusion. More than two years later, Taylor was again injured when he fell approximately 10 feet from a Cottrell trailer. He was taken to the emergency room and was discharged home with pain medication. The same month, Taylor reported to Dr. Odor with neck and back pain. After testing, Dr. Odor observed several disc protrusions and a disc desiccation. These injuries led to another complex spinal surgery with Dr. Odor, the cost of which exceeded $450,000. Two weeks before trial Cottrell claimed it had uncovered copies of agreements between Taylor's counsel and Dr. Odor which evidenced an impermissible contingent-fee agreement. The court found there was a contingency agreement and excluded Odor’s testimony as an expert witness, dismissed claims for Taylor's neck and back injuries, and stayed claims related to shoulder injuries. The Eighth Circuit reversed; the district court failed to articulate the precise interest Odor had in the outcome of the litigation and failed to explain why any such interest overcomes the general rule that Odor's bias and credibility should be resolved by the jury. View "Taylor v. Cottrell, Inc." on Justia Law

Plaintiffs filed suit alleging claims for breach of fiduciary duty, conspiracy, and legal malpractice, and defendants moved to strike the entire complaint as to the individual plaintiffs Klotz and Spitz because defendants had no independent legal duty to plaintiffs nor did they act for their personal financial gain. Plaintiffs alleged that a former business associate of theirs, Stephen Bruce, who was a client of defendants, conspired with defendants to unlawfully withdraw from plaintiff SageMill and to usurp a nascent business opportunity of SageMill. The trial court denied the motion. The court reversed the trial court‘s order on plaintiffs‘ second cause of action for conspiracy as to the individual plaintiffs Klotz and Spitz, finding that any advice defendants gave Bruce arose from an attempt to contest or compromise a claim or dispute, and thus was within the ambit of section 1714.10. The court affirmed as to the remaining claims. View "Klotz v. Milbank,Tweed, Hadley & McCloy" on Justia Law

Plaintiffs filed suit alleging claims for breach of fiduciary duty, conspiracy, and legal malpractice, and defendants moved to strike the entire complaint as to the individual plaintiffs Klotz and Spitz because defendants had no independent legal duty to plaintiffs nor did they act for their personal financial gain. Plaintiffs alleged that a former business associate of theirs, Stephen Bruce, who was a client of defendants, conspired with defendants to unlawfully withdraw from plaintiff SageMill and to usurp a nascent business opportunity of SageMill. The trial court denied the motion. The court reversed the trial court‘s order on plaintiffs‘ second cause of action for conspiracy as to the individual plaintiffs Klotz and Spitz, finding that any advice defendants gave Bruce arose from an attempt to contest or compromise a claim or dispute, and thus was within the ambit of section 1714.10. The court affirmed as to the remaining claims. View "Klotz v. Milbank,Tweed, Hadley & McCloy" on Justia Law

Smith, a California partnership, hired attorney Moncrief to perform due diligence for its purchase of equipment from Texas Hill in Arizona. Texas Hill was represented by Clark, an Arizona attorney. Moncrief performed a UCC search, called Clark, and left a voicemail. Clark called Moncrief in response and represented that Texas Hill was the sole owner of the equipment. Afterwards Clark sent Moncrief an e-mail, stating: “I have been the attorney for Texas Hill . . . and can state unequivocally that the cooling equipment you are buying is free and clear and is owned by Texas Hill.” Based on Clark’s representations, Moncrief advised Smith to go forward with the purchase. Smith later learned that Texas Hill did not own the equipment when they completed the transaction; New York Community Bank had acquired an interest in the equipment. Smith sued Moncrief for legal malpractice. Moncrief cross-complained against Clark. Clark moved to quash service, arguing that California lacked personal jurisdiction over him. The court granted the motion. Clark’s conduct and his intentional misrepresentations were required to close the sale. Clark personally availed himself of the benefits of California when he reached into California to induce Moncrief’s client to complete the purchase. Moncrief’s claims arise out of Clark’s contacts with California. lark has not demonstrated that exercise of jurisdiction would be unreasonable. View "Moncrief v. Clark" on Justia Law

Respondent filed a medical negligence lawsuit alleging that Appellants negligently failed to timely drain Respondent’s prostate abscess, causing the abscess to rupture. After a trial, the jury returned a verdict in Respondent’s favor. The Supreme Court affirmed, holding (1) Appellants did not preserve for review their argument that the trial court erred in admitting into evidence certain videotaped deposition testimony; (2) the trial court did not err in failing to find that the verdict was excessive due to jury passion and prejudice or because it exceeded fair and reasonable compensation for Respondent’s injuries; and (3) the Court will not address Appellants’ constitutional challenge to Mo. Rev. Stat. 538.300, which prohibits defendants in medical negligence cases from seeking remittitur, because the statutory prohibition in section 538.300 was not implicated in this case. View "Stewart v. Partamian" on Justia Law

Appellant William Foondle appeals the superior court’s dismissal of his claims for legal malpractice against the public defenders who represented him in a criminal case. A grand jury indicted William Foondle for felony driving under the influence (DUI) in 2007. The DUI charge was a felony because Foondle had been convicted of DUI twice in the preceding ten years: once earlier in 2007 and once in North Dakota in 1999. Assistant public defenders Angela O’Brien and Daniel Lord were assigned to defend Foondle. In dismissing Foondle’s malpractice claims, the superior court relied on the public policy principle that precluded criminally convicted plaintiffs from civil recovery based on the alleged negligence of their former defense counsel. Upon review, the Supreme Court held that the superior court’s legal analysis was correct, and affirmed the judgment on that basis. Furthermore, the Court rejected, as unsupported, Foondle’s argument that the dismissal violated his rights to due process and access to the courts. View "Foondle v. O'Brien" on Justia Law