Justia U.S. 11th Circuit Court of Appeals Opinion Summaries

Articles Posted in Legal Ethics
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Hardwick helped found a law firm, MHS. MHS later sold part of its foreclosure operation. Hardwick received $14-$15 million in compensation. Hardwick lost the money and owed millions in loans, many for gambling debts. When a bank and a casino sued him, Hardwick lied to a different bank in a line-of-credit application. In addition, in 2011-2014, Hardwick siphoned off about $26.5 million from MHS; $19 million came from trust accounts. Hardwick relied heavily on Maurya, who initially worked as an MHS controller. Hardwick promoted Maurya to CFO, giving her broad authority over the trust accounts. At Hardwick’s request, she repeatedly sent money from MHS to Hardwick or his creditors and significantly underreported the distributions. After a 2014 internal audit, Hardwick was convicted of wire fraud, conspiracy to commit wire fraud, and making false statements to a federally insured financial institution and was sentenced to 180 months’ imprisonment—an upward variance from the Guidelines range of 108-135 months. Maurya received a sentence of 84 months. A restitution order required Maurya and Hardwick to pay, jointly and severally, $40,307,431.00.The Eleventh Circuit vacated the restitution order as not supported by the reasoning required by law; affirmed Hardwick’s convictions and sentence; and vacated Maurya’s sentence. The district court violated the Ex Post Facto Clause by applying the 2018 Guidelines, which included a two-level substantial financial hardship enhancement added in 2015, after Maurya’s offense. View "United States v. Maurya" on Justia Law

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Booker is on Florida’s death row for first-degree murder. In 2012, the Eleventh Circuit affirmed the denial of federal habeas relief. In 2020, the Capital Habeas Unit of the Office of the Federal Public Defender (CHU) sought permission to represent Booker in state court to exhaust a “Brady” claim so that Booker could pursue the claim in a successive federal habeas petition. The Brady claim focused on the prosecution’s failure to disclose notes that allegedly could have been used to impeach an FBI hair expert. Booker said that he had learned through a FOIA request and a review by a qualified microscopist that there were inconsistencies between the expert’s trial testimony and his notes. The state objected to the appointment of CHU, noting that Booker had a state-law right to counsel through Florida’s Capital Collateral Regional Counsel North (CCRC-N); CCRC-N counsel was appointed to represent Booker in state court. Nonetheless, the district court appointed CHU under 18 U.S.C. 3599 to represent Booker in state courtThe Eleventh Circuit dismissed an appeal. Florida cannot establish standing based on a hypothetical conflict of interest that is not actual or imminent. State courts are empowered to reject appearances by CHU counsel, so the appointment cannot have inflicted an injury on Florida’s sovereignty. View "Booker v. Secretary, Florida Department of Corrections" on Justia Law

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Davis, a former Congressman, mayoral candidate, candidate for governor of Alabama, and federal prosecutor, is Black. In 2016, he became Executive Director of LSA, a non-profit law firm serving low-income Alabamians. Davis experienced problems with some of his subordinates and colleagues; some complained to LSA’s Executive Committee. On August 18, 2017, as Davis left work, he was informed that the Executive Committee had voted to suspend him with pay pending an investigation of those complaints. A “Suspension Letter” cited spending decisions outside the approved budget, failure to follow LSA's hiring policies and procedures, creating new initiatives without Board approval, and creating a hostile work environment for some LSA employees. LSA posted a security guard in front of its building and hired Mowery, an Alabama political consultant, to handle public relations related to Davis’s suspension. Mowery had handled one of Davis’s failed political campaigns until their relationship soured; Mowery had worked for the campaign of Davis’s opponent in another race.Days later, Davis notified the Board of his resignation. He filed suit, alleging race discrimination under 42 U.S.C. 1981 and under Title VII, and defamation. The Eleventh Circuit affirmed summary judgment for the defendants. Being placed on paid leave was not an adverse employment action and Davis did not raise a fact issue on his constructive discharge claim. LSA’s disclosures to Mowery did not constitute “publication”—an essential element of defamation. View "Davis v. Legal Services Alabama, Inc." on Justia Law

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Georgia's November 6, 2018, general election was a bellwether of the national political mood. On November 5, Common Cause sued, alleging violations of the Fourteenth Amendment, the Help America Vote Act, 52 U.S.C. 21082; the Georgia Constitution; and Georgia Code 21-2-211, claiming Georgia’s voter registration systems were vulnerable to security breaches, increasing the risk eligible voters would be wrongly removed from election rolls, or that information would be unlawfully manipulated to prevent eligible voters from casting a regular ballot.Common Cause sought an order preventing the final rejection of provisional ballots for voters who had registration problems until there was confidence in the voter registration database. The district court granted a temporary restraining order on November 12 but determined the relief requested was “not practically feasible” and enjoined the Secretary from certifying the election results before 5:00 p.m. on November 16. The Secretary complied. In 2019, new Georgia voting laws changed procedures surrounding handling provisional ballots. The parties agreed that these provisions made further litigation unnecessary and stipulated to dismissal.Common Cause sought attorneys’ fees and litigation expenses incurred through the issuance of the TRO and in preparing the fee motion. The Eleventh Circuit affirmed the $166,210.09 award. Common Cause was a 42 U.S.C. 1988 prevailing party because, in obtaining the TRO, it succeeded on a significant issue in litigation which achieved some of the benefits the parties sought in bringing suit. The litigation was necessary to alter the legal relationship between the parties. View "Common Cause Georgia v. Secretary, State of Georgia" on Justia Law

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Beach Blitz sued the City and individuals, asserting that the City’s enactment and enforcement of ordinances regulating the sale of liquor and requiring businesses selling liquor to obtain licenses violated its substantive and procedural due process rights and that the City’s closure of its store one day after it met with a City attorney constituted retaliation for Beach Blitz’s protected First Amendment conduct. The district court dismissed the due process claims on the merits, without prejudice, and without leave to amend, and the First Amendment retaliatory claim on the merits, without prejudice but with leave to amend. Beach Blitz did not amend its that claim by the stated deadline. The district court found the City to be the prevailing party on all five claims, determined that each of them was “frivolous, unreasonable, or without foundation,” and awarded attorney fees for each.The Eleventh Circuit upheld the prevailing party determination because the City rebuffed Beach Blitz’s efforts to effect a material alteration in the legal relationship between the parties and affirmed frivolity determination concerning the procedural and substantive due process claims. The court vacated in part. There was sufficient support in precedent for Beach Blitz’s position that its retaliation claim was not so groundless on causation as to be frivolous. View "Beach Blitz Co. v. City of Miami Beach" on Justia Law

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Johnson, who is hearing-impaired, filed two lawsuits against gas station owners, asserting failure to provide closed captioning or a similar capability that would allow him to comprehend the television media features on gasoline pumps, in violation of the Americans with Disabilities Act, 42 U.S.C. 12101, (ADA) and the Florida Civil Rights Act. Johnson had filed 26 other identical cases against gas station owners located throughout Miami-Dade and Broward counties. Dinin represented Johnson in each case.The district court found that Johnson and Dinin were running an illicit joint enterprise, consisting of filing frivolous claims, knowingly misrepresenting the time they counted as billable, making misrepresentations to the court, and improperly sharing attorney’s fees. The court imposed sanctions, including monetary penalties, community service, and an injunction prohibiting them from filing future ADA claims without approval. The Eleventh Circuit dismissed an appeal by Dinin, who lacked standing because he has not shown how he has suffered an injury in fact. The court affirmed as to Johnson, In the majority of his cases, Johnson did not seek injunctive relief fixing the accessibility problem, but only sought payment of legal fees which he split with his lawyer. Johnson never stopped filing claims for damages under Florida law, although he knew them to be objectively frivolous since he had not exhausted his administrative remedies. View "Johnson v. 27th Avenue Caraf, Inc." on Justia Law

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The government moved to compel the testimony of an attorney who worked for the corporate body running the campaign for a former candidate for public office. The attorney sought to invoke the attorney-client privilege over his communications with the candidate and the campaign regarding the subject of the subpoena—certain financial disclosure forms filled out by the campaign and a number of purchases paid for by the campaign's bank accounts. The district court granted in part the government's motion to compel and denied the campaign's motion to quash.The Eleventh Circuit affirmed, concluding that the communications at issue fall within the crime-fraud exception to the attorney-client privilege. In this case, the court concluded that the government has presented a prima facie case of wire fraud and that the district court therefore did not abuse its discretion in finding that the government satisfied its burden under the first prong of the crime-fraud exception. Furthermore, after making the personal expenditures at issue, but before filing his financial disclosure forms, the candidate sought or obtained legal advice from the attorney regarding his obligations under Georgia law. Therefore, the communications at issue are sufficiently in furtherance of the crime of wire fraud to justify the piercing of the privilege. View "In re: Grand Jury Subpoena" on Justia Law

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Appellants Lee, Bennett, and the law firm challenge the district court's orders requiring the firm to pay $15,000 into the court's registry and directing that $7,000 of those funds be paid to the Criminal Justice Act (CJA) fund to cover the fees and expenses of defendants' court-appointed counsel. In this case, shortly after defendants were arraigned, the district court disqualified the attorneys and the law firm from representing any of the defendants based upon an actual or potential conflict of interest. The law firm had already collected a total of $21,000 from defendants.The Eleventh Circuit dismissed for lack of jurisdiction appellants' challenge to the district court's determination that funds were available to defendants. The court explained that this argument does not fit within the narrow exception that permits the court to review a district court's compliance with 18 U.S.C. 3006A's procedures. The court affirmed in all other respects. The court concluded that there was no error in the district court sua sponte raising the question of whether a portion of the fees paid to appellants were available for payment from or on behalf of defendants; the district court performed a thoroughly appropriate inquiry before entering its order directing the payment of $15,000 into the court's registry; and appellants were able to seek further review in the district court when they filed objections to the magistrate judge's order. Even if the court assumed that the district court failed to afford appellants adequate notice and opportunity to be heard before directing them to pay money into the court's registry, the error was harmless. Finally, the district court committed no procedural error based on the timing of its order directing appellants to pay funds into the court's registry. View "United States v. Pacheo-Romero" on Justia Law

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The Tampa Bay Buccaneers were sued in at least five class action complaints, each one alleging that the Buccaneers sent telefax advertisements in violation of the Telephone Consumer Protection Act (TCPA). In one class action, lawyers from the AW Firm, who had previously filed suit on behalf of a different plaintiff, added another class action representative, M&C. Shortly after an unsuccessful mediation was conducted, defendant, an attorney at the AW Firm who was principally involved in the mediation, left the firm to join the Bock Firm. The Bock Firm then filed a separate class action against the Buccaneers, which resulted in a proposed settlement.M&C then filed suit against the Bock Firm in state court, alleging that they had breached fiduciary duties owed to it as a named class representative. M&C and its counsel claimed that defendant gave attorneys at the Bock Firm confidential information about settlement negotiations in the AW Firm's class action, which assisted the Bock Firm in settling their class action quickly and to the detriment of the class. The district court granted summary judgment for defendant and the Bock Firm.The Eleventh Circuit held that the duties owed to a class representative do not differ from the duties owed to a class. The court also clarified the duties owed by class counsel in class actions generally and in the context of this case specifically. In this case, the court determined that in filing this action M&C and a principal at the AW Firm launched an impermissible collateral attack on the Bock Firm's attempt to certify and settle a class action. The court explained that their assertions should have been made only before the court that was exercising jurisdiction over the Rule 23 putative class action — the court in which the request to certify a settlement class and approve the settlement was made. The court found no error in the district court's determination that M&C failed to establish that it was damaged by any alleged breach of a fiduciary duty owed to it by defendant. Accordingly, the court affirmed the district court's grant of summary judgment in favor of defendant and the Bock Firm. View "Medical & Chiropractic Clinic, Inc. v. Oppenheim" on Justia Law

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This case arose out of a dispute between two sets of lawyers who provided legal work for a mutual client. Thomas Tufts and the Tufts Law Firm, PLLC appealed the district court's order granting a motion to dismiss on grounds of subject matter jurisdiction. Edward Hay and Pitts, Hay & Hugenschmidt, P.A. also filed a second motion to dismiss Tufts's action against them on the additional ground that the district court lacked personal jurisdiction over them. After the district court found personal jurisdiction, Hay and his firm cross appealed.The Eleventh Circuit held that the district court erred by dismissing the action for lack of subject matter jurisdiction under the Barton Doctrine. In this case, Tufts counsel initiated their action against Hay—court-approved counsel—and Tufts did not obtain leave of the bankruptcy court before doing so. The court held that the Barton doctrine has no application when jurisdiction over a matter no longer exists in the bankruptcy court. Thus, the bankruptcy court was properly vested with jurisdiction to consider this action if it could conceivably have an effect on the client's bankruptcy estate. Here, the action could not conceivably have an effect on the client's bankruptcy estate and thus the Barton doctrine does not apply. The court also held that the district court properly exercised personal jurisdiction over Hay. The court reversed the district court's ruling on subject matter jurisdiction and remanded. View "Tufts v. Hay" on Justia Law