Justia California Court of Appeals Opinion Summaries

Plaintiff, an attorney, appealed from the revised judgment entered by the trial court following this court’s reversal with instructions to enter a new judgment in Chodos v. Borman. Plaintiff contended that the trial court erred when it failed to include postjudgment interest in the final judgment, with interest to run on the $1,717,921 from September 19, 2013, the date of the original judgment. Defendant argued that interest should only run from the date of entry of the judgment following remittitur, November 14, 2014. The court held that interest ran on the $1,717,921 judgment from the date of the original judgment - September 19, 2013 - and that plaintiff is entitled to the costs claimed and interest on those costs from that date. Accordingly, the court modified and affirmed the judgment. View "Chodos v. Borman" on Justia Law

Plaintiffs Robert Coldren and his wife Brook sued defendants Hart, King & Coldren, Inc. (HKC) and William Hart asserting several causes of action arising out of Coldren’s departure from his law practice at HKC. Defendants appealed an order disqualifying HKC’s counsel, Grant, Genovese & Barratta LLP (Grant Genovese), who had been representing both Hart and HKC. The court held there was an unwaivable actual conflict between the two. The court concluded a conflict existed because Coldren was a 50 percent shareholder of HKC, and HKC would have duties to Coldren that were in conflict with Hart’s interests in defeating the litigation. Accordingly, the court ordered Hart to confer with Coldren on the appointment of “neutral” counsel for HKC. The Court of Appeal reversed: Coldren sued both Hart and HKC directly, "not derivatively," on essentially the same claims. The Court surmised Hart’s interest was perfectly aligned with HKC’s interest in seeing Coldren’s claims defeated. Coldren’s contended he could sue his company and then, because he is a 50 percent shareholder, have a say in its defense. "That is not the law." Moreover, the COurt concluded Grant Genovese’s duty of loyalty, as counsel for HKC, ran to HKC, not its shareholders. HKC was free to defend itself and assert relevant counter claims to the detriment of Coldren. View "Coldren v. Hart, King & Coldren" on Justia Law

Individuals requested documents under the California Public Records Act (Gov. Code, 6250) from Newark Unified School District. The District inadvertently included 100 documents that, the District contends, are subject to attorney-client or attorney work product privileges. Within hours of the release, the District sent e-mails asking for return of the documents. The recipients cited section 6254.5, contending that inadvertent release had waived the privileges. Under that statute, the disclosure of a document to the public waives any claim by an agency that the document is exempt from release. The District filed suit, seeking return or destruction of the documents. The trial court granted a temporary restraining order preventing dissemination, but ultimately agreed that section 6254.5 effected a waiver of confidentiality. The court of appeal reversed, finding that the legislative history demonstrates the intent to prevent public agencies from disclosing documents to some members of the public while asserting confidentiality as to others. Waiver as a result of an inadvertent release, while not necessarily inconsistent with that intent, was not within its contemplation. To harmonize section 6254.5 with Evidence Code 912, which has been construed not to effect a waiver of the privileges from an inadvertent disclosure, the court construed section 6254.5 not to apply to inadvertent release. View "Newark Unifed Sch. Dist. v. Super. Ct." 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

Plaintiff Law Firm of Marc Grossman represented a student of defendant Victor Elementary School in a civil action arising from an assault that took place at the school. Plaintiff, in the name of the law firm, filed a petition for writ of mandate in the trial court under the Public Records Act seeking documentation reflecting the amount of money spent defending the litigation. That petition was denied, so relief was sought from the Court of Appeal, which granted the petition. Upon issuance of the remittitur, plaintiff filed a Memorandum of Costs seeking, among other costs, attorneys’ fees for the petition. The trial court granted defendant’s motion to tax costs, denying attorneys’ fees. Plaintiff appealed the denial of attorneys’ fees. On appeal, plaintiff argues the trial court erred in denying fees on the ground plaintiff represented itself in the trial court. Agreeing with plaintiff, the Court of Appeal reversed. View "Law Offices of Marc Grossman v. Victor Elementary School Dist." 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

Aeolus and Debtors owed plaintiffs over five million dollars pursuant to an arbitrator's ruling. Before plaintiffs obtained a judgment confirming the arbitration award, Aeolus entered into a security agreement with Zhejiang and Zhejiang filed a blanket lien attaching to all of Aeolus's assets. After plaintiffs obtained the judgment, Debtors filed for bankruptcy. Plaintiffs hired Keehn as counsel in order to obtain discovery and challenge Zhejiang's lien as a fraudulent transfer. Plaintiffs subsequently substituted Landsberg for Keehn as bankruptcy counsel. Plaintiffs discovered that Keehn missed the deadline to investigate and attack the lien. Plaintiffs ultimately accepted an amount for $1.6 million less than the arbitration award. Plaintiffs then filed suit against Keehn and Landsberg for malpractice. The trial court granted summary judgment for each defendant. The court concluded that the trial court correctly decided that plaintiffs' malpractice claim was not tolled until the completion of the mediation and that the one-year statute of limitations had expired by the time plaintiffs filed their suit. Accordingly, the court affirmed the judgment. View "Shaoxing City v. Keehn & Assoc." on Justia Law

Plaintiff-appellant James McKenzie appealed a trial court’s order awarding him only $28,350 of the nearly $48,000 in attorney fees he sought in this case, following the parties’ settlement of McKenzie’s claim under the automobile “lemon law” provisions of the Song-Beverly Consumer Warranty Act. The trial court refused to award McKenzie any of the attorney fees incurred in the wake of Ford’s initial offer because it viewed the compromise offer ultimately accepted by McKenzie as essentially identical to the offer he had initially rejected – distinguished only by his “demand that [he] be allowed to file [a fee] motion.” The court concluded McKenzie unreasonably delayed settlement for the sole purpose of ginning up his fee award. The Court of Appeal reversed. The Court found the trial court’s comparative assessment of Ford’s two settlement offers was erroneous as a matter of law. "Even Ford concedes its initial settlement offer incorporated numerous extraneous provisions – including broad releases of both Ford and nonparties, an illegal confidentiality clause characterized as 'material' to the settlement, and what amounted to an opt-out provision in Ford’s favor – all of which were excised from the offer McKenzie later accepted. These differences are significant, and thus McKenzie’s rejection of the initial offer was reasonable, requiring his counsel to continue working on the case." The Court held further that the trial court’s erroneous comparison of Ford’s initial compromise offer with the offer McKenzie later accepted fatally undermined its conclusion that the entire amount of hours billed by McKenzie’s counsel in the wake of that initial offer was unjustified. The court’s additional finding, that McKenzie’s two attorneys also engaged in instances of duplicative billing after Ford’s initial offer, did not support a complete denial of fees for that period. Consequently, the case was remanded back to the trial court with directions to reconsider the fee award. View "McKenzie v. Ford Motor Co." on Justia Law

"This is a case of egregious attorney misconduct." Because of the cumulative effect of the attorney's misconduct, the Court of Appeal felt compelled to reverse the judgment she obtained on behalf of her client, Caltrans. "While Judge Di Cesare showed the patience of Job – usually a virtue in a judge – that patience here had the effect of favoring one side over the other. He allowed [the attorney] to emphasize irrelevant and inflammatory points concerning the plaintiff's character so often that he effectively gave CalTrans an unfair advantage." View "Martinez v. Dept. of Transportation" on Justia Law

Plaintiff Finton Construction, Inc. (FCI) sued defendants Bidna & Keys, APLC (B&K), Howard Bidna, and Jon Longerbone (collectively defendants) for conversion, receipt of stolen property, and injunctive relief. These causes of action arose from defendants’ receipt of an allegedly stolen hard drive pertinent to a pending case in Los Angeles. Defendants were the attorneys of record in that case. They moved to dismiss under the anti-SLAPP statute, arguing the litigation privilege applied and the complaint failed to state a cause of action as a matter of law. The trial court granted the motion, finding defendants’ actions privileged and that plaintiff had failed to demonstrate a possibility of prevailing on the merits. After review of the parties' arguments on appeal, the Court of Appeal found FCI’s conduct with respect to this entire case "demonstrative of a particularly nasty type of scorched earth tactics." A purportedly stolen hard drive, which was placed in the hands of defendants solely for litigation purposes, has resulted in an attempt to disqualify counsel and two efforts to depose counsel in the underlying case, a police report, complaints to the State Bar of California, and this entirely derivative and unmeritorious second lawsuit. "FCI’s overreach does not suggest zealousness or righteousness, but a calculated effort to undermine the parties in the underlying case by turning their attorneys into fellow defendants. . . . [W]hile [all attorneys] owe their clients a duty to zealously represent them, that zealousness does not trump the duty they own the courts and the judicial process to prosecute only lawsuits with merit. The type of uncivil behavior and specious tactics demonstrated by filing this case represents conduct that brings disrepute to the entire legal profession and amounts to toying with the courts." Less than 48 hours prior to oral argument, the parties notified the Court they had reached a settlement. The court, however, declined the parties’ request to dismiss the appeal. "The lack of civility demonstrated in this case is a matter of public interest. Moreover, while we cannot be certain, it appears that FCI deliberately decided to keep this action pending until the last possible moment in order to avoid the opinion we write today. We therefore decide in defendants’ favor and publish this case as an example to the legal community of the kind of behavior the bench and the bar together must continually strive to eradicate." View "Finton Construction, Inc. v. Bidna & Keys, APLC" on Justia Law