September 2023

LAWYERS' PROFESSIONAL LIABILITY RESULTS

Scott Eberle (Pittsburgh, PA) received dismissal of a disciplinary complaint in a matter involving allegations that the attorney improperly terminated a non-refundable, flat-fee representation and collected an excessive fee. Scott successfully argued that the attorney, our client, complied with Rule 1.16 when he terminated the representation after his client failed to pay the entire amount of the agreed upon flat fee. Scott also argued that the fee our client did collect was clearly not excessive under Rule 1.5 due to the amount of work our client performed on the matter prior to termination.


Jack Slimm and Jeremy Zacharias (Mount Laurel, NJ) obtained an order on the eve of trial in a complex legal malpractice action that rose out of a serious multiparty, multimillion-dollar medical malpractice action which was handled by our clients. Our clients are an extremely well-respected plaintiff’s medical malpractice firm in Philadelphia. The court entered an order on our motion to strike the plaintiff’s expert’s report and opinions as net. The court also entered an order precluding the plaintiff’s expert from testifying at trial in the legal malpractice action.


Jack Slimm (Mount Laurel, NJ) obtained an order on a motion to dismiss for failure to state a claim in a complex legal malpractice action arising out of an underlying ongoing probate action in the Superior Court, Chancery Division, Camden County. Jack’s client is a well-known probate expert who represented the co-executor in contentious probate litigation over several properties and funds which the co-executor plaintiff claimed he did not receive as a result of the conduct of Jack’s client. The court rejected the claim and granted the motion specifically with prejudice.


*Prior Results Do Not Guarantee a Similar Outcome

CASE LAW UPDATE

by Jeremy J. Zacharias, RPLU


New Jersey Appellate Division affirms decision dismissing a complex legal malpractice action arising out of an underlying first-party coverage action in the United States District Court.

Morris Properties, Inc. and Kristen Morris v. Jonathan Wheeler, Mario Barnebei and Law Offices of Jonathan Wheeler, P.C., August 22, 2023, New Jersey Superior Court, Appellate Division. READ MORE


Mere chance that relationship and lease agreement between lessor and lessee may spark future disputes under lease agreement is not the gauge the court measures whether their interests are directly adverse in local property tax appeals under RPC 1.7(a)(1).

Montclair Hospital, LLC v. Glen Ridge Borough, 2023 WL 4783596. READ MORE

THIRD CIRCUIT RULING UPHOLDS NEW PENNSYLVANIA RULE OF PROFESSIONAL CONDUCT 8.4(g)

By Scott R. Eberle


On August 29, 2023, the United States Court of Appeals for the Third Circuit issued a precedential opinion reversing an Eastern District court ruling that permanently enjoined enforcement of Pennsylvania’s new Rule of Professional Conduct 8.4(g). In Greenberg v. Lehocky, et. al., the Third Circuit held that the plaintiff lacked standing to bring his pre-enforcement challenge to Rule 8.4(g), which provides that “[i]t is professional misconduct for a lawyer to … in the practice of law, knowingly engage in conduct constituting harassment or discrimination based upon race, sex, gender identity or expression, religion, national origin, ethnicity, disability, age, sexual orientation, marital status, or socioeconomic status…” The decision clears the way for enforcement of the new Rule.


In Greenberg, the court noted that the plaintiff, Zachary Greenberg, a Pennsylvania-licensed attorney, regularly gave continuing legal education presentations about First Amendment protections for offensive speech. The court stated that Greenberg’s presentations involved quoting offensive language from judicial opinions and discussing arguably controversial topics. Greenberg filed suit, alleging that he feared that his presentations would be interpreted as harassment or discrimination under new Rule 8.4(g). He alleged that the Rule violated the First Amendment and was unconstitutionally vague. The District Court agreed with Greenberg and enjoined enforcement of the new Rule in its entirety.


On appeal, a three-judge panel found that Greenberg “fails to establish an imminent future injury because his planned course of conduct is not arguably proscribed by Rule 8.4(g) and he faces no credible threat of prosecution for engaging in such conduct.” The court stated that the Rule only covers “knowing or intentional harassment or discrimination against a person” and that “[n]othing in Greenberg’s planned speeches comes close to meeting this standard.” The court further noted that a declaration from Pennsylvania’s Chief Disciplinary Counsel, stating that Greenberg’s planned conduct does not violate the Rule and that the Office of Disciplinary Counsel would not pursue discipline, is compelling evidence that no threat of prosecution exists. The court added that any chill to Greenberg’s speech is “not objectively reasonable or cannot be fairly traced to the Rule.”


The court stressed that its decision is based on its assessment of Greenberg’s pre-enforcement challenge to Rule 8.4(g) as presented to it. The court stated that if facts later develop that support Greenberg’s fears of enforcement, then Greenberg may bring a new suit. 

THOUGHT LEADERSHIP

Alesia Sulock and Josh Byrne (Philadelphia, PA) published in The Legal Intelligencer the second part of a series of articles of risk management tips of attorneys titled “You Diligently Protect Your Clients; What About You? Part 2 (The Middle and the End).” The article discusses the importance of client communication, file management, and good disengagement practices. Click here to read their article.

 

Jack Slimm and Jeremy Zacharias (Mount Laurel, NJ) presented on the current New Jersey law on the New Business Rule after the Supreme Court’s decision in Schwartz v. Menas, a case Jack and Jeremy have been handling on behalf of their clients, a well-known law firm in New Jersey handling real estate and land use matters. Jack and Jeremy went through certain jurisdictional approaches to the New Business Rule, as well as New Jersey’s current rule after the Supreme Court decision in Schwartz v. Menas, 246 N.J. 145 (2021). This presentation was attended by various claims professionals and underwriters, and crosses multi-dimensional practices between professional liability and casualty.


Marshall Dennehey

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Legal Update for Lawyers' Professional Liability - September 2023 has been prepared for our readers by Marshall Dennehey. It is solely intended to provide information on recent legal developments and is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We welcome the opportunity to provide such legal assistance as you require on this and other subjects. If you receive the alerts in error, please send a note tamontemuro@mdwcg.com. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2023 Marshall Dennehey. All Rights Reserved.