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WEST BEND MUTUAL INSURANCE COMPANY v. RODDY, LEAHY, GUILL & ZIMA, LTD., Dist. Court, ND Illinois 2013 – Google Scholar.

This is an unpublished decision concerning an allegation of legal malpractice in a workers’ compensation case. The plaintiff is the insurance company. The defendants are the lawyers it hired to defend a workers’ compensation case. The court dismissed the complaint, with leave to file an amended complaint. The district court reasoned that the complaint did not state a plausible claim for relief, in that the complaint did not allege specific facts showing a negligent act by the lawyers. Instead, according to the Court, the complaint was couched in broad, general terms.

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IN RE KARAVIDAS, Ill: Supreme Court 2013 – Google Scholar.

This is an important decision by the Illinois Supreme Court. The Court considered whether to impose discipline on an attorney who acted as the executor of his father’s estate. As the executor the attorney took substantial loans from the Estate, although he later repaid the loans. Further, the attorney was a beneficiary of the estate.  Karavidas did not act as the lawyer for the estate. Karavidas was found out when a relative began examining trust records. The probate court removed Karavidas as the executor.

The Supreme Court held that Karavidas breached his fiduciary duty to the estate by making loans to himself. The Court declined to rule on whether he had converted estate property. In a decision that is counter-intuitive, the Court held that there was no proof that Karavidas violated any specific rule of professional conduct and that the charges should be dismissed. The court explains:

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Goyal v. GAS TECHNOLOGY INSTITUTE, 718 F. 3d 713 – Court of Appeals, 7th Circuit 2013 – Google Scholar.

The Seventh Circuit sanctioned an attorney for asserting an attorney lien long after the lawyer was terminated.

The Facts:

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We receive many calls and other inquiries from former clients of other firms who believe that their lawyer made an error or committed legal malpractice. Here are few suggestions for those who wish to call us.

First, make sure that you have proof that the lawyer agreed to represent you. Proof can be an engagement letter or a cancelled check. A cancelled check is often the best proof because it prevents the lawyer from arguing that there was no attorney-client relationship.

Second, make sure you have a record of what the lawyer sent to you in writing. All too often written communications have been lost or thrown away by clients, preventing us from understanding how the relationship deteriorated.  Those written communications are critical. We often must spend lots of time tracking them down. Lawyers who have made an error often are reluctant to turn over their files.

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Kadlec v. Sumner, Ill: Appellate Court, 1st Dist., 2nd Div. 2013 – Google Scholar.

This is an opinion affirming the dismissal of a contribution claim against an accounting firm.

The executor of an estate sued the lawyer for the estate, alleging that the lawyer failed to timely file estate tax returns and that the estate suffered a financial loss as a result. The lawyer then filed a contribution claim against the accounting firm. The trial court dismissed the contribution claim on the ground that the statute of limitations for accounting malpractice had expired.

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Kramer v. AMERICAN BANK AND TRUST COMPANY, NA, Dist. Court, ND Illinois 2013 – Google Scholar.

Magistrate Cole has written an opinion denying a motion to disqualify an attorney for a plaintiff class in a class action.

The plaintiffs are represented by Ari Karen. The defendant is the American National Bank. The Bank claimed that Karen formed an attorney-client relationship with the Bank by exchanging confidential information with one of the bank’s management consultants at a seminar. Magistrate Cole rejected the claim and concluded that the Bank’s consultant did not provide credible testimony.

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The case is captioned In the Matter of Thomas M. Dixon, 71S00-1104-D1-196.

The Indiana Supreme Court dismissed all charges against Thomas Dixon, an attorney who represented 85 pro-life protestors in proceedings before Judge Jenny Pitts Manier.  Judge Manier is married “to Professor Edward Manier, who was a tenured professor at Notre Dame and taught there for 48 years.”

Dixon filed a motion for a change of judge. He sought Judge Manier’s recusal “based on her husband’s alleged advocacy in favor of pro-choice causes and academic freedom for Notre Dame, along with Judge Manier’s failure to disclose this alleged advocacy. [Dixon] argued that his clients were arrested because they acted on beliefs about abortion and academic freedom for Notre Dame that were directly contrary to the beliefs allegedly advocated by Professor Manier during her career….In addition [Dixon] cited Judge Manier’s allegedly erroneous rulings in [a prior case involving abortion-rights protestors.].”

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The case is captioned In the Matter of Joseph Stork Smith, 29S00-1201-D1-8.

The Indiana Supreme Court disbarred an attorney for “revealing confidential information relating to his representation of a former client by publishing the information in a book for personal gain.”  The lawyer also allegedly had a sexual relationship with the client. In the book, the lawyer revealed “such details as his negotiations regarding bail and plea agreements, conversations with a police detective, conversations with [client] pertaining to the charges and her incarceration, [client’s] mental and physical state, the source of funds for restitution, discussions about his fees, and personal thoughts about [client] and about the matters.”

The Indiana Supreme Court rejected the claim that the lawyer obtained the client’s consent before disclosing the confidences.  The Indiana Supreme Court was especially concerned that the confidential information was revealed for personal financial gain.  The main violation alleged was Rule 1.9(c)(1) and (2) which prohibit disclosures of information concerning former clients.

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Fink v. SHELDON BANK, Ill: Appellate Court, 1st Dist., 3rd Div. 2013 – Google Scholar.

Illinois has long followed the actual innocence rule, which holds that a criminal defendant may not sue his former attorney for legal malpractice unless he can prove that he was actually innocent of the crime.

A plaintiff in a legal malpractice case must prove a case-within-a-case, that is he must prove that, but for the lawyer’s negligence he would have won the underlying case. In the criminal context, the word “won” means “actual innocence.”

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AXA CORPORATE SOLUTIONS ASSURANCE v. HOFF & HERRAN, Dist. Court, ND Illinois 2013 – Google Scholar.

The Illinois Attorney Lien Act of 1909 (yes, that is not a typo) provides that an attorney can place al lien on a claim that his client places with him for collection. Liens are typically asserted in contingent fee cases. A lawyer who is paid by the hour usually does not have a lien because he has already been fully compensated.

The typical lien situation is one where a claimant hires a lawyer to sue someone. Filing suit is not enough for an attorney lien. Instead, the lawyer must serve the party “against whom” the client has a claim. That means that the lawyer must serve the adverse party with a copy of the lien. There is no requirement that the lawyer serve his own client with the lien.

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