Justia Professional Malpractice & Ethics Opinion Summaries

In 2001, the decedent presented to the Wetzel County Hospital Emergency Room in New Martinsville and came under the care of Dr. Murthy, a surgeon; she slipped into shock and died the next day. Her estate filed a medical negligence action, alleging that Murthy failed to perform exploratory surgery to identify, diagnose and correct the decedent’s “intraabdominal condition.” A jury awarded $4,000,000 in compensatory damages. After the trial, the circuit court allowed amendment of the complaint to add Murthy’s insurance carrier, Woodbrook, alleging that Woodbrook made all relevant decisions for Murthy’s defense and acted vexatiously and in bad faith. Following a remand, Murthy paid a reduced judgment, plus interest, in the total amount of $1,162,741.60 and filed motions in limine to preclude certain matters from consideration on the issue of attorney fees and costs, including an unrelated case that resulted in a $5,764,214.75 verdict against Dr. Murthy in March 2007. The court dismissed Woodbrook as a party-defendant and awarded the estate attorney fees and costs. The precise calculation was to be later determined. The Supreme Court of Appeals of West Virginia reversed, concluding that the lower court’s reliance on certain conduct by Murthy did not justify the award. View "Murthy v. Karpacs-Brown" on Justia Law

Richard Watters petitioned the Alabama Supreme Court for a writ of mandamus to direct the Mobile Circuit Court to vacate its order denying his motion for a summary judgment as to count one of an amended complaint filed by Michael Gamble, in Gamble's capacity as administrator of the Estate of Barbara Ruth Findley Long ("Long"), deceased. Count one asserted a legal-malpractice claim against Watters under the Alabama Legal Services Liability Act ("the ALSLA"), alleging breach of a fiduciary duty. This proceeding involved title to real property located in Conecuh County, which was owned by Robert Findley at the time of his death. Long retained Watters & Associates, of which Watters was a partner, to represent her "in obtaining estate assets" of Findley, her deceased father. Watters filed suit seeking a declaration of Long's ownership in family property located in Conecuh County. The Circuit Court declaring that Long owned a one-sixth interest (approximately 30 acres) in the Conecuh County property Shortly thereafter, Long discharged Watters from any further representation in the declaratory-judgment action. Watters filed an attorney's lien against the Conecuh property to secure the payment of his attorney fees. Family members eventually quitclaimed their interests to Long. Taxes for 2006 weren't paid on the property, and Long's cousin Larry Findley purchased the property at a tax sale. According to Watters, Long asked him for a loan to redeem the property from the tax sale. Watters told Long that Langley would not record the quitclaim deed if Long repaid the loan within 30 days of redeeming the property; that, in the event the deed was recorded, any claim Watters might have against Long for services rendered regarding her deceased father's estate would be satisfied; and that Watters and Long agreed to terms concerning the loan arrangement. This arrangement was never reduced to writing. Long executed a quitclaim deed prepared by Watters, conveying title to the Conecuh property to "Langley & Watters, LLP." In 2010, Watters submitted to the Conecuh Probate Court a letter, enclosing "his client's" application for redemption of the Conecuh property. Long died on April 2, 2013, and a few months later, the Conecuh Probate Court appointed Gamble as administrator of Long's estate. Gamble filed a complaint against Watters, asserting claims of legal malpractice among other things. After review of this case, the Alabama Supreme Court concluded that Watters had another adequate remedy (i.e., an appeal) other than a writ of mandamus. Therefore, the Court denied relief. View "Ex parte Richard L. Watters." on Justia Law

In 2003, Dumville met with attorney Thorsen to prepare her will. Thorsen understood that Dumville wanted a will that would, upon her death, convey all of her property to her mother if her mother survived her, and, if her mother predeceased her, to the Richmond Society for the Prevention of Cruelty to Animals (RSPCA). Dumville was 43 and lived with three cats, which she desired to go to the RSPCA upon her death. Thorsen prepared, and Dumville executed, the will. She died in 2008, her mother having predeceased her. Thorsen, as co-executor of the estate, notified the RSPCA that it was the sole beneficiary of Dumville’s estate. Thorsen was informed that, in the opinion of the title insurance company, the will left only the tangible estate, not real estate, to the RSPCA. Thorsen brought suit in a collateral proceeding to correct this “scrivener’s error” based on Dumville’s clear original intent. The court found the language unambiguously limited the RSPCA bequest to tangible personal property, while the intangible estate passed intestate to Dumville’s heirs at law. The RSPCA received $72,015.60, but the bequest, less expenses, would have totaled $675,425.50 absent the error. RSPCA sued Thorsen for negligence, as a third-party beneficiary of his contract with Dumville. The court found for the RSPCA. The Supreme Court of Virginia affirmed: RSPCA was a clearly and definitely identified third-party beneficiary. View "Thorsen v. Richmond Soc'y for Prevention of Cruelty to Animals" on Justia Law

Dr. Lozano treated Andrade during her pregnancy and delivered her daughter at Women’s Hospital at Renaissance in Edinburg. The delivery was complicated by the baby’s shoulder dystocia, and Dr. Lozano allegedly engaged in excessive twisting. Andrade sued Lozano, alleging that his negligence caused the child permanent injury, including nerve damage and permanent paralysis of one arm. Andrade later added Renaissance, a limited partnership that owned and operated the Hospital, and RGV, Renaissance’s general partner. Lozano, an independent contractor with admitting privileges at the Hospital, was a limited partner in Renaissance. The Andrades settled with Lozano and nonsuited their claims against Renaissance. RGV moved for summary judgment, arguing that they were not liable for Lozano’s conduct because he was not acting within the scope of the partnership or with partnership authority when providing obstetrical care to Andrade, Tex. Bus. Org. Code 152.303. The trial court denied the motion. The Supreme Court of Texas reversed. The ordinary course of the partnership’s business does not include a doctor’s medical treatment of a patient and that the doctor was not acting with the authority of the partnership in treating the patient; the partnership cannot be liable for the doctor’s medical negligence. View "Doctor Hosp. at Renaissance, Ltd. v. Andrade" on Justia Law

In 2004, Linegar, an Australian, formed KeyOvation, which eventually merged with Saflink and became IdentiPHI, in which Linegar was a major stockholder. DLA Piper law firm represented Saflink in the merger. Following the merger, DLA Piper represented IdentiPHI as corporate counsel. During the merger, IdentiPHI needed a short-term loan. Linegar then served as Chairman, Director, and majority shareholder of Zaychan, the corporate trustee of the Linegar Fund, an Australian self-managed retirement trust with Linegar and his ex-wife as the sole beneficiaries. Linegar arranged for the Fund to lend IdentiPHI $1.67million. DLA Piper represented IdentiPHI in the transaction and worked directly with Linegar. IdentiPHI executed a promissory note to Zaychan, which was accepted by Linegar as Chairman and Director, and which granted Zaychan a security interest in IdentiPHI’s assets. The note was payable by June 29, 2008. Timely payment was essential for the Fund's compliance with Australian law. When it became apparent that IdentiPHI was going to default, Linegar took several actions, but ultimately the debt was subject to challenge under 11 U.S.C. 547(b) because the security interest had not been perfected. KeyOvation, the holder of the assigned note, settled its claim for $150,000, which it paid to Linegar. Linegar, Zaychan, and KeyOvation sued DLA Piper for legal malpractice, negligent misrepresentation, breach of fiduciary duty, breach of contract, unjust enrichment, and deceptive trade practices. They claimed that the firm gave assurances that the lien would be perfected. Linegar’s individual claims resulted in an award of $1,293,606. The court of appeals reversed. The Supreme Court of Texas reversed, holding that Linegar, as an individual, had standing. View "Linegar v. DLA Piper LLP" on Justia Law

A baby died after being delivered by emergency caesarean section. About six months before actually filing suit, the plaintiffs voluntarily served an expert report concurrently with a pre-suit notice letter. After filing suit, the plaintiffs attempted to serve the same previously served expert report on the defendant but mistakenly served another report— from the same expert but addressing a different patient, doctor, and claim. The defendant made no objection, but waited for passage of the 120-day deadline before moving to dismiss under the Texas Medical Liability Act (Act), Tex. Civ. Prac. & Remedy Code 74.051, which requires claimants pursuing a healthcare liability claim to serve an expert report on each party no later than the 120th day after filing an original petition. The trial court denied that motion. The court of appeals reversed, holding that the plaintiffs failed to timely serve a qualifying expert report. The Supreme Court reversed, reinstating denial of defendants’ motion. Nothing in the Act compels the conclusion that a plaintiff cannot satisfy the expert-report requirement through pre-suit service of an otherwise satisfactory expert report. Moreover, the court of appeals’ conclusion frustrates the Act’s purpose, which is to eliminate frivolous healthcare liability​ claims, not potentially meritorious ones. View "Hebner v. Reddy" on Justia Law

Whiteside represented the County of Camden in a lawsuit brought by Anderson, which resulted in a jury award paid, in part, by the County’s excess insurer, National. According to National, the County did not notify it of the lawsuit until several months after it was filed. Whiteside initially informed National that the case was meritless and valued it at $50,000. During trial, Whiteside changed her valuation and requested the full $10 million policy limit to settle Anderson’s claims. National conducted an independent review and denied that request. The jury awarded Anderson $31 million, which was remitted to $19 million. Days later, National sought a declaratory judgment that it was not obligated to provide coverage because the County had breached the policy contract by failing to timely notify National of the case and by failing to mount an adequate investigation and defense. National also asserted claims against Whiteside for legal malpractice, breach of fiduciary duty, and breach of contract. The court dismissed those claims because National could not demonstrate that Whiteside’s actions proximately caused it to suffer any damages. The Third Circuit dismissed and appeal for lack of jurisdiction, finding National’s notice of appeal untimely under Federal Rule of Appellate Procedure 4(a)(1), View "State Nat'l Ins. Co v. County of Camden" on Justia Law

White, a member of the Bar of Maryland, represented Fleming and Sewell, while under a Conditional Diversion Agreement (CDA) with Bar Counsel for prior misconduct involving mismanagement of her attorney trust account. The CDA was amended, then subsequently revoked due to non-compliance. The Attorney Grievance Commission filed a Petition for Disciplinary or Remedial Action, based upon White’s representation of Fleming and Sewell, non-compliance with the CDA, and the mishandling of her trust account. Bar Counsel alleged that White violated Maryland Lawyers’ Rules of Professional Conduct: Rule 1.1 (Competence), Rule 1.3 (Diligence), Rule 1.4(a) and (b) (Communication), Rule 1.15(a) and (d) (Safekeeping Property); 1.16(d) (Declining or Terminating Representation); 8.1(a) and (b) (Bar Admission and Disciplinary Matters); and Rule 8.4(a), (c), and (d) (Misconduct). Bar Counsel also alleged that she violated Maryland Rules 16-606.1 (Attorney Trust Account Record-Keeping), 16-607 (Commingling of Funds), 16-609 (Prohibited Transactions), and Md. Code 10-306 of the Business Occupations & Professions Article (Misuse of Trust Money). White attributed her actions to illness, recuperation after surgery, and difficulties experienced as caretaker of her mother until her death. A hearing judge found multiple violations. Bar Counsel requested indefinite suspension with the right to apply for readmission after six months. The Maryland Court of Appeals agreed. View "Attorney Grievance Comm'n of Md. v. White" on Justia Law

The Iowa Commission on Judicial Qualifications filed an application for discipline of a judicial officer recommending the Supreme Court publicly reprimand district court judge Mary E. Howes, Seventh Judicial District. Judge Howes petitioned for dissolution of her marriage to her husband, Jack Henderkott, in June 2011. In 2013, Henderkott sent Judge Howes an email indicating the Internal Revenue Service had deducted $3192 from his 2012 income tax return because she did not claim income she received from liquidating an individual retirement account on the couple’s 2010 joint income tax return. Henderkott claimed he was entitled to reimbursement in the full amount of the deduction per the terms of the settlement agreement. Judge Howes retained a "Ms. Pauly" to assist with her dissolution of marriage, but different counsel for the lingering tax dispute with her ex-husband. Ms. Pauly represented a different client before Judge Howes on a family law matter. Ms. Pauly's client became "distraught" upon hearing that the lawyer representing the client's husband was representing the very judge who had signed an order granting a temporary injunction in the client's case. A complaint against Judge Howes was subsequently filed. Because the Supreme Court concluded the judge violated the Iowa Code of Judicial Conduct, it granted the application for judicial discipline. Rather than publicly reprimand the judge, however, the Court publicly admonished the judge. View "In the matter of Honorable Mary E. Howes" on Justia Law

USA Power, LLC developed a power plant project in Mona, Utah called the “Spring Canyon vision.” Meanwhile, PacifiCorp entered into negotiations to purchase USA Power’s Spring Canyon assets, and USA Power provided PacifiCorp with details on the entire project. PacifiCorp terminated the negotiations, however, and began construction on a power plant project in Mona that was very similar to the Spring Canyon project. PacifiCorp also retained Jody Williams, USA Power’s former attorney, to help it obtain water rights for its project, called the Currant Creek project. USA Power brought suit against Williams, asserting malpractice claims for Williams’s alleged breach of her fiduciary duties of confidentiality and loyalty, and against PacifiCorp, alleging misappropriation of USA Power’s trade secrets. The trial court granted summary judgment for Defendants. The Supreme Court reversed. On remand, the jury returned a special verdict against PacifiCorp and Williams. The trial court reduced the unjust enrichment award against PacifiCorp, granted Williams’s judgment notwithstanding the verdict motion for lack of evidence related to causation, and determined that USA was entitled to attorney fees. Both parties appealed. The Supreme Court affirmed the trial court’s rulings as to each issue presented on appeal, holding that the court did not err in its judgment. View "USA Power, LLC v. PacifiCorp" on Justia Law