Justia Civil Procedure Opinion Summaries

The Seventh Circuit held, in 2012, that the plaintiffs, injured by a 2007 flood in Bagley, Wisconsin, had forfeited an argument concerning Wis. Stat. 88.87, which concerns liability for negligent design and maintenance of a railroad grade that causes an obstruction to a waterway. Plaintiffs’ counsel identified new plaintiffs and refiled the same litigation in Arkansas state court to pursue that argument. The new suit was removed to the Western District of Wisconsin, which dismissed. The defendant asked the court to sanction plaintiffs’ counsel under FRCP 11 or 28 U.S.C. 1927 for pursuing frivolous claims and engaging in abusive litigation tactics. The court denied that request, reasoning that although the claims were all but foreclosed by the 2012 decision, they were not frivolous. The Seventh Circuit affirmed the dismissal, but reversed the denial of sanctions. The record indicated that counsel unreasonably and vexatiously multiplied the proceedings by filing suit in Arkansas, which had no connection to the case. On rehearing, the Seventh Circuit noted its inherent authority to sanction willful abuse of the judicial process. Stombaugh long had notice of the conduct on which BNSF sought sanctions, and had multiple opportunities make his case against the award of sanctions. View "Boyer v. BNSF Ry. Co." on Justia Law

JAMS, Inc. provided private alternative dispute resolution services by promoting, arranging and handling the hiring of neutral individuals, such as retired judges, to assist with resolution of disputes. This action arose out of representations made on the JAMS Web site regarding the background of the Honorable Sheila Prell Sonenshine (Retired), and JAMS's operations in offering alternative dispute resolution (ADR) services. Kevin Kinsella alleged he relied upon certain representations made on the Web site when he agreed to stipulate to hire Sonenshine as a privately compensated judge to resolve issues related to his marital dissolution case and later discovered the representations were either untrue or misleading. JAMS and Sonenshine filed an anti-SLAPP motion to strike Kinsella's complaint. The court found the action exempt from the anti-SLAPP procedure under the commercial speech exemption of Code of Civil Procedure section 425.17, subdivision (c). JAMS and Sonenshine filed a petition for writ of mandate or other relief. The Court of Appeal stayed the proceedings and issued an order to show cause why relief should not be granted to allow the Court an opportunity to consider the issues raised in the petition related to the scope of the commercial speech exemption of section 425.17, subdivision (c). After consideration of the matter, the Court of Appeal agreed the commercial speech exemption applied and precluded the use of the anti-SLAPP procedure in this case. The petition was accordingly denied. View "JAMS, Inc. v. Super. Ct." on Justia Law

Attorney Donald Gilbert represented the Utah Down Syndrome Association and several of its founders in litigation between the Association and the Utah Down Syndrome Foundation, Inc. Gilbert filed this petition for extraordinary relief challenging (1) a 2008 district court judgment ordering Gilbert to disgorge $30,000 taken from Foundation bank accounts to pay his attorney fees, (2) an injunction that originally barred Gilbert’s clients from paying him with Foundation funds, (3) an order denying Gilbert’s motion to vacate the 2008 judgment, and (4) an order denying Gilbert’s motion for relief from the 2008 judgment. The Supreme Court denied Gilbert’s petition for extraordinary relief, holding (1) Gilbert unreasonably delayed seeking extraordinary relief from the injunction, the disgorgement order, and the denial of his motion to vacate; and (2) Gilbert failed to pursue the plain, speedy, and adequate remedy of direct appeal from the denial of his motion for relief from judgment. View "Gilbert v. Third Dist. Court Judges" on Justia Law

On behalf of Lightspeed, which operates websites purveying online pornography, attorneys Hansmeier, Steele, and Duffy sued a John Doe defendant in Illinois state court under the Computer Fraud and Abuse Act, 18 U.S.C. 1030, then served ex parte subpoenas, demanding that Internet service providers (ISPs), provide personally identifiable information of more than 6,600 “co‐ conspirators.” They filed similar actions in several states, apparently hoping to extract quick settlements from individuals whose personal information was revealed. The ISPs removed the Illinois case to federal court. Meanwhile, a California court imposed sanctions on the attorneys in a similar case; they began voluntarily dismissing cases. After the Lightspeed case was dismissed, a defendant sought attorney’s fees. The court imposed sanctions of $261,025.11, jointly and severally, against the attorneys. They failed to pay. The court scheduled a show‐cause hearing. The attorneys, who claimed insolvency, did not comply with interrogatories and requests for production. After the attorneys attempted to interfere with their financial institutions’ compliance with subpoenas, the court held them in contempt. The Seventh Circuit affirmed. The attorneys continued their "shenanigans." The Lightspeed defendants discovered efforts to hide assets; the district court again imposed contempt and discovery sanctions. The Seventh Circuit dismissed Hansmeier’s appeal, noted that Duffy is now deceased, and affirmed the discovery sanction, but vacated the contempt sanction for Steele. View "Lightspeed Media Corp. v. Smith" on Justia Law

This case started out of a business dispute between respondent-cross-petitioner Just In Case Business Lighthouse, LLC (JIC) and petitioner-cross-respondent Patrick Murray. To prepare for the litigation, JIC hired Preston Sumner, a businessman with knowledge of business sales and valuation, as an advisor. Sumner agreed to help with the case in exchange for a ten-percent interest in the case's outcome. Murray objected to Sumner's involvement in the case, arguing: (1) Sumner's interest in the case outcome was an improper payment violating Colorado Rule of Professional Conduce (RPC) 3.4(b); (2) Sumner lacked the requisite personal knowledge of the case's underlying events as required by Colorado Rule of Evidence (CRE) 602; and (3) the summary charts Sumner prepared were inadmissible under CRE 1006. The trial court ruled that Sumner could testify as a summary witness, but not as an expert or fact witness. Sumner testified and laid foundation for two of the summary exhibits, which the trial court admitted into evidence. The jury returned a verdict in favor of JIC. Murray renewed his arguments on appeal, and the Court of Appeals rejected them in part, and remanded for the trial court to determine whether Sumner's testimony should have been excluded as a sanction for JIC's violation of RPC 3.4(b). After review, the Colorado Supreme Court held that violation of the ethical rule did not displace the rules of evidence, and that trial courts retained discretion under CRE 403 to exclude testimony of improperly compensated witnesses. The trial court here did not abuse its discretion in declining to exclude Sumner's testimony. Further, the Court held that trial courts could allow summary witness testimony if they determine that the evidence was sufficiently complex and voluminous that the witness would assist the trier of fact. The Court held that the trial court did not abuse its discretion with respect to the summaries. Finding no reversible errors with the trial court's judgment, the Supreme Court reversed the appellate court's judgment remanding the case for consideration of whether Sumner's testimony should have been excluded. View "Murray v. Just In Case Bus. Lighthouse, LLC" on Justia Law

Larry and Elaine, husband and wife, filed suit in Iowa state court in 2008 against multiple parties, including defendant, whom they claimed was negligent in his pre-bankruptcy and bankruptcy-planning advice. The jury found in favor of defendant and warded him a $12,200 judgment. In 2013, the Iowa Court of Appeals affirmed the award of unpaid legal fees. Larry and Elaine then filed this action in 2014, alleging that defendant was negligent in advising them regarding their bankruptcy, and that their sons acted in concert with Putnam to close the bankruptcy through the Settlement Agreement with the bankruptcy trustee. The district court determined that the jury verdict in the prior case disposed of all issues in the instant case but one: the alleged failure of Putnam to protect Larry and Elaine’s interests when the bankruptcy was closed. The court held that Larry and Elaine's claim is barred by res judicata. Larry and Elaine’s claim in the instant action relates to the same cause of action that was adjudicated to a final judgment on the merits in the first malpractice case, and Larry and Elaine have failed to show that their claim could not have been fully and fairly adjudicated in the first action. Accordingly, the court affirmed the judgment. View "Schaefer v. Putnam" on Justia Law

Waters began working as a Petaluma firefighter and paramedic in 2008. She was the first and only woman to hold that position. She claims she was immediately subjected to harassment and discrimination based upon her sex. According to Waters, she was subjected to retaliation when she complained. The city maintains that Waters never complained. In February 2014, Waters went on leave; in May, the city received notice from the Equal Employment Opportunity Commission, that Waters had filed a charge alleging sexual harassment and retaliation. Days later, Waters voluntarily resigned. The city retained outside counsel, Oppenheimer, to investigate. Oppenheimer provided her report to the city only; every page contained an indication that it was confidential and attorney-client privileged. During discovery in Waters’ lawsuit, the court granted a motion to compel production of the report. The court of appeal reversed. The dominant purpose of Oppenheimer’s investigation was not fact-finding, but to provide legal services in anticipation of litigation. She was not required to give legal advice as to what course of action to pursue in order for the attorney-client privilege to apply. The privilege was not waived by the employer’s assertion of an avoidable consequences defense; the city does not seek to rely on the post-employment investigation as a defense, nor could it. View "City of Petaluma v. Superior Court" on Justia Law

Juakeishia Pruitt filed a legal-malpractice claim against Bobby Cockrell, Jr., and Cockrell & Cockrell ("the Cockrell law firm"). Cockrell appealed the grant of summary judgment in favor of Pruitt. The claims in this case arose from Byron House's representation of Pruitt from late 2000 until January 2012. House worked as an associate with the Cockrell law firm from September 1995 until January 2012. This case involved House's handling of Pruitt's claims with regard to four separate causes of action: Pruitt's discrimination and breach-of-contract claims against Stillman College; Pruitt's sexual-discrimination claims against her employer Averitt/i3; Pruitt's claims against Gwendolyn Oyler arising from an automobile accident; and Pruitt's breach-of-contract claims against A+ Photography. After the statute of limitations had run on Pruitt's underlying claims against Stillman College, Averitt/i3, and Oyler, House made intentional misrepresentations to Pruitt regarding the status of those cases. House also made intentional representations regarding the status of Pruitt's case against A+ Photography. Additionally, House continued to make such representations regarding the status of Pruitt's cases against Stillman College and Averitt/i3 until well after the time any legal-malpractice case against him would have been barred by the applicable statute of repose. "A fraud committed by an attorney that defrauds the attorney's client as to the status of the client's underlying claim is actionable under the ALSLA separate and apart from the attorney's failure to timely file a complaint on the underlying claim." Therefore, Alabama Supreme Court concluded the trial court properly denied the Cockrell defendants' motion for a summary judgment as to the malpractice claims alleging that the Cockrell defendants were vicariously liable for fraudulent misrepresentations House made to Pruitt to conceal the existence of an underlying legal-malpractice claim. Accordingly, the Court affirmed the trial court's order. View "Cockrell v. Pruitt" on Justia Law

Kathryn Manning (Plaintiff), individually and as administratrix of the estate of Michael Manning (Manning) and on behalf of her four minor children, brought this negligence and wrongful death action against Dr. Peter Bellafiore after Manning suffered a fatal stroke. After a lengthy discovery period, the case proceeded to trial. The jury returned a verdict in favor of Defendant. The trial justice subsequently granted Plaintiff’s motion for a new trial, and the Supreme Court affirmed. Thereafter, the trial justice granted Plaintiff’s motion to sanction both Defendant and the law firm that represented him at trial, White & Kelly, P.C. (WCK) under Rule 11 of the Superior Court Rules of Civil Procedure for their failure to make pretrial disclosures. The Supreme Court affirmed in part and reversed in part, holding (1) the trial justice did not abuse his discretion in finding that Dr. Bellafiore engaged in sanctionable misconduct; (2) the trial justice abused his discretion when he sanctioned WCK because the justice did not make a finding that the attorneys at WCK acted in “bad faith, vexatiously, wantonly, or for oppressive reasons”; and (3) the amount of sanctions imposed was based on an erroneous assessment of the evidence. View "Manning v. Bellafiore" on Justia Law

In this appeal, the issue this case presented for the Supreme Court's review centered on whether a law firm practicing as a limited liability partnership (LLP) failed to maintain professional malpractice insurance to cover claims against it, and, if so, whether that failure should cause the revocation of the firm's LLP status, rendering innocent partners personally liable. In July 2009, Mortgage Grader hired Olivo of Ward & Olivo (W&O) to pursue claims of patent infringement against other entities. Mortgage Grader entered into settlement agreements in those matters. In exchange for one-time settlement payments, Mortgage Grader granted those defendant-entities licenses under the patents, including perpetual rights to any patents Mortgage Grader received or obtained through assignment, regardless of their relationship to the patents at issue in the litigation. It is those provisions of the settlement agreement that allegedly gave rise to legal malpractice. In 2011, W&O dissolved and entered into its windup period. W&O continued to exist as a partnership for the sole purpose of collecting outstanding legal fees and paying taxes. The next day, Ward formed a new LLP and began to practice with a new partner. Mortgage Grader filed a complaint against W&O, Olivo, and Ward in October 2012, alleging legal malpractice by Olivo, and claiming that the settlement agreements resulting from Olivo's representation harmed Mortgage Grader's patent rights. The motion court denied Ward's motion to dismiss, first determining that Mortgage Grader had failed to comply with the statutory requirement to serve an affidavit of merit (AOM) on each defendant named in the complaint, and rejected its substantial compliance argument. However, the court also determined that W&O failed to maintain the requisite insurance, which caused its liability shield to lapse and relegated W&O to a GP. Thus, the motion court concluded that Ward could be held vicariously liable for Olivo's alleged legal malpractice. The Appellate Division reversed. The Supreme Court affirmed, finding that law firms organized as LLPs that malpractice insurance did not extend to the firm's windup period, and tail insurance coverage was not required. View "Mortgage Grader, Inc. v. Ward & Olivo, L.L.P." on Justia Law