Justia Civil Procedure Opinion Summaries

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

Plaintiff Sofia Torres alleged that she was seriously injured in a rear-end collision between her car and a garbage truck owned by defendant Suburban Disposal, Inc., and operated by defendant Javier Pabon. Plaintiff alleged that, as a result of defendants negligent maintenance of the truck s taillights, she was unaware that the truck was ahead of her. She contended that Pabon drove negligently, causing the collision. Defendants denied plaintiff's allegations and asserted that plaintiff's own negligence caused the accident. The case was tried before a jury, which found both parties negligent but allocated fifty-five percent of the fault to defendants, and awarded a substantial verdict. The Appellate Division affirmed the trial court's judgment. The New Jersey Supreme Court found too many errors at trial, reversed and remanded for a new trial. First, the trial court improperly directed the jury to consider drawing an adverse inference against defendants from Pabon s failure to testify after plaintiff presented Pabon's deposition testimony to the jury. Second, the trial court permitted plaintiff to read to the jury requests for admissions, served by plaintiff immediately before trial, which improperly sought defendants admissions to medical opinions offered by one of their expert witnesses. Third, the trial court erroneously issued a second "Clawans" charge, again authorizing the jury to draw an adverse inference against defendants because they decided not to call their expert as a witness. Fourth, the trial court made significant errors in its jury instruction regarding the duty of a driver to maintain a safe distance behind another driver. Finally, notwithstanding plaintiff's testimony before the jury that she had significant medical bills and lacked the resources to pay them, the trial court failed to instruct the jury that plaintiff was not entitled to medical expenses as an element of damages, in accordance with N.J.S.A. 39:6A-12. View "Torres v. Pabon" on Justia Law

This appeal centered on challenges to several documents and disbursements that were purportedly executed by Adrian Folcher in the closing days of his life. Petitioner Bernice Tambascia-Folcher, Folcher's wife and a beneficiary, used that relationship to commit a pattern of fraud, forgery, and undue influence near the end of his life. After the conclusion of a lengthy estate contest, the trial court invoked that relationship, coupled with its finding of undue influence, to shift the Estate's counsel fees to Bernice. The issue for the Supreme Court's review was whether it should expand the narrow exception to the American Rule created in "In re Niles Trust," (176 N.J. 282 (2003)). After review of the trial court record, the Supreme Court declined to expand the Niles exception to a person who did not owe a fiduciary responsibility to the Estate and its beneficiaries, no matter how repugnant the conduct. "Because that confidential relationship endowed Bernice with an obligation to only her husband, and not the Estate, a fee award was not the proper vehicle to do equity. The trial court had other, unused means at its disposal for that." The Court remanded this case back to the trial court to vacate the fee award and to allow the court to consider other equitable relief that was foregone because fee-shifting mistakenly became an integral part of the court's equitable remedy. View "In the Matter of the Estate of Adrian J. Folcher" on Justia Law

The issue before the New Jersey Supreme Court was a narrow one of appellate jurisdiction of an agency decision and the appropriate response by an appellate tribunal when it encounters on its calendar an interlocutory order from which leave to appeal was neither sought nor granted. A school principal was returned to teaching due to a reduction-in-force (RIF), which included elimination of all vice-principal positions throughout the school district. The principal filed a petition with the Commissioner of Education to establish her tenure and seniority rights as a vice-principal. Her employer, the Board of Education of the City of Elizabeth, challenged the validity of her principal certification, which challenge, if successful, affected her tenure and seniority rights. An Administrative Law Judge (ALJ) adopted the Elizabeth Board's position, but the Commissioner rejected the Initial Decision and remanded the matter to the Office of Administrative Law (OAL) for calculation of the principal's tenure and seniority rights. The ALJ complied, the Commissioner adopted the Initial Decision, and the Elizabeth Board appealed. The Appellate Division held that the Commissioner's first decision was a final order from which the Elizabeth Board could have filed an appeal as of right. Having failed to do so, the panel concluded that the Elizabeth Board waived its right to appeal the Commissioner's first decision. The appellate panel raised the issue of the timeliness of the appeal sua sponte and determined that the Commissioner's first decision rejecting the ALJ s Initial Decision was a final order from which the employer should have taken an appeal. The Supreme Court disagreed, finding that the Commissioner's order became a final decision from which an appeal could be filed as of right only when the Commissioner adopted the decision of the ALJ following the remand proceedings. The Court therefore reversed the judgment of the Appellate Division. View "Silviera-Francisco v. Bd. of Education of the City of Elizabeth" on Justia Law