Update on Trump’s Coup: Do Not Think That This Is Guaranteed to End Well

NEIL H. BUCHANAN

UF Levin College of Law professor Neil H. Buchanan explains why “being patient with Trump” is a recipe for disaster, why there are still reasons to be guardedly optimistic, and why this all could still end very badly. Buchanan argues that the present situation is not guaranteed end badly, but he cautions that a Trump coup is eminently possible.

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In re Glenview Health Care Facility, Inc.

Court: US Court of Appeals for the Sixth Circuit

Docket: 19-8028

Opinion Date: November 6, 2020

Judge: Dales

Areas of Law: Bankruptcy, Legal Ethics

Glenview, a Glasgow, Kentucky nursing home, jointly owned by Bush and Howlett for over 30 years, filed a voluntary chapter 11 bankruptcy petition. The Official Creditors Committee was formed and filed an application to retain DBG, with a declaration from DGB's managing partner, disclosing that DBG had previously represented Howlett in estate planning matters, unrelated to the Chapter 11 case, that the representation concluded in 2017, and that the professionals who represented Howlett would not represent the Committee. Glenview filed an objection, although Howlett did not, asserting that DBG assisted Glenview and Howlett with the preparation of a buy-sell agreement for Glenview and all its assets, attaching an invoice from DBG for a period in 2016. DBG asserted that no buy-sell agreement was consummated, and that the representation related only to estate planning. The bankruptcy court heard arguments but did not conduct an evidentiary hearing, then denied the Committee’s application to employ DBG. The Sixth Circuit Bankruptcy Appellate Panel vacated, finding that the court abused its discretion under 11 U.S.C. 1103. State and federal courts jealously guard the attorney-client relationship and that solicitude extends to a committee’s choice of counsel in bankruptcy.

Matlin v. Spin Master Corp.

Court: US Court of Appeals for the Seventh Circuit

Dockets: 20-1049, 20-1039

Opinion Date: November 10, 2020

Judge: KANNE

Areas of Law: Arbitration & Mediation, Legal Ethics

In 1997, Plaintiffs co-founded Gray Matter Holdings. A 1999 Withdrawal Agreement with Gray Matter entitled Plaintiffs to royalties on the sales of “Key Products.” In 2003, Gray Matter sold some assets to Swimways. After that sale, Plaintiffs took Gray Matter to arbitration four times over their royalty rights. The third arbitration determined that Gray Matter did not transfer its royalty obligations under the Withdrawal Agreement to Swimways but only transferred its intellectual property rights; Gray Matter, not Swimways, remained responsible for any royalty compensation owed to Plaintiffs. The fourth arbitration found no evidence to support Plaintiffs’ claim that Swimways tendered fraudulent filings to the Patent and Trademark Office regarding the intellectual property rights in the Key Products and that all intellectual property rights in the Key Products at issue had been transferred to Swimways. Plaintiffs filed suit, alleging that they were entitled to royalties for the Key Products and that Swimways tendered the alleged fraudulent filings. The Seventh Circuit affirmed the dismissal of the complaint and the imposition of $271,926.92 in sanctions. The claims were barred by principles of res judicata and the arbitrations were “binding and final” under the Withdrawal Agreement. An accounting showed that attorneys and staff spent 273.1 hours, charging an average rate of about $1,000 per hour, preparing the motions to dismiss and for sanctions.

Chambers v. Whirlpool Corp.

Court: US Court of Appeals for the Ninth Circuit

Dockets: 16-56666, 16-56684, 16-56688, 16-56694

Opinion Date: November 10, 2020

Judge: Kenneth K. Lee

Areas of Law: Class Action, Legal Ethics

In a class action lawsuit regarding faulty Whirlpool dishwashers, the Ninth Circuit affirmed the district court's approval of a class settlement, but vacated and remanded the $14.8 million attorney's fees award. The panel held that the Class Action Fairness Act's (CAFA) attorney's fee provisions apply to all federal class actions; the district court improperly used a lodestar-only method to calculate attorney's fees for the coupon portion of the settlement where that methodology potentially inflates the amount of attorney's fees in proportion to the results achieved for the class because the coupons may end up providing minimal benefit to the class; the district court erred in awarding a 1.68 lodestar multiplier; and the district court did not abuse its discretion in approving the settlement. On remand, the panel instructed the district court to apply a percentage-of-redemption value methodology for the coupon portion of a settlement, and use a lodestar method for the non-coupon part of the relief. In the alternative, the panel stated that the district court may use a lodestar-only methodology, but only if it does not consider the coupon relief or takes into account its redemption value.

Ex parte W. Perry Hall.

Court: Supreme Court of Alabama

Docket: 1180976

Opinion Date: November 6, 2020

Judge: Mitchell

Areas of Law: Civil Procedure, Legal Ethics

Attorney W. Perry Hall petitioned the Alabama Supreme Court for a writ of mandamus to direct the circuit court to vacate its order entered on August 15, 2019 requiring Hall, among other things, to issue a letter of apology to his clients. Hall represented a homeowners association and multiple individual homeowners in a Mobile subdivision in a lawsuit against the developer of that subdivision. After Hall moved to dismiss certain counterclaims asserted against those homeowners, the circuit court entered an order demanding that Hall "provide a copy of this order and a copy of Ala. R. Civ. P. Rule 19, as well as a copy of [the motion to dismiss] to [his homeowner clients], along with a letter explaining how Rule 19 works, apologizing for the invectives and sheer puffery used in this frankly scandalous pleading." The circuit court entered the order because it "dislike[d]" Hall's use of the phrase "forced Plaintiff's [sic]" to describe the plaintiffs, as well as other terms used in the motion to dismiss. The circuit court provided no other basis for the directives in its order. Hall filed this petition for a writ of mandamus contending he circuit court had exceeded its discretion by entering the order. The Alabama Supreme Court did not address that issue because, six days later, the circuit court vacated the order after the individual homeowners were dismissed from the action by joint stipulation.

People v. O'Hearn

Court: California Courts of Appeal

Docket: A158676(First Appellate District)

Opinion Date: November 9, 2020

Judge: Kline

Areas of Law: Constitutional Law, Criminal Law, Legal Ethics

Police responding to a report of O’Hearn acting erratically had previously dealt with him. They suspected O’Hearn had “mental health issues” but, after he threatened to kill his neighbors, they arrested O’Hearn for making criminal threats and violating conditions of probation. O’Hearn had four prior felony convictions. During the ensuing months, O’Hearn was represented by three attorneys and pled guilty. Then-counsel Selby failed to sign O’Hearn's Cruz/Vargas Waiver. The PSR noted that O’Hearn had bi-polar disorder and was not taking his medication at the time of the offense. Another attorney filed a motion to vacate the plea, arguing that it was the consequence of ineffective assistance. Counsel “barely met" with O'Hearn, failed to attend the sentencing hearing, lost the case file, never explained potential defenses, did not inquire about O'Hearn's extensive mental health history, and did not advise him of the consequences or alternatives. O’Hearn’s 800-page medical record showed hospitalizations for mental health problems and a history of schizophrenia. Selby had been repeatedly found to have failed to provide competent legal services. The victims, one of whom had a criminal history, had interacted with O’Hearn for many years. Conviction of making criminal threats requires specific intent, which can be negated by a mental disorder. The court of appeal reversed the denial of O’Hearn’s motion to vacate his plea. Selby never asserted any strategic reason for failing to learn whether his client’s mental state provided the basis for a possible mental defense and the deficient representation was prejudicial.

Gronquist v. Dep't of Corrections

Court: Washington Supreme Court

Docket: 97277-0

Opinion Date: November 12, 2020

Judge: Debra Stephens

Areas of Law: Civil Procedure, Legal Ethics

At issue before the Washington Supreme Court in this matter was whether trial courts had discretion to impose remedial sanctions under RCW 7.21.030(3) in the absence of ongoing, continuing contempt. Derek Gronquist was convicted of violent sexual offenses in 1988. While confined, he participated in a sex offender treatment program until 1991. That same year, former participants of the program brought a class action against the Department of Corrections (Department) to enjoin the release of their treatment files, which contained extensive medical and personal information. Gronquist was not a named class member. The case resulted in a permanent injunction in 1993 that prohibited the Department from releasing certain documents from any class member’s file. Though not a named party, Gronquist fell within the class of persons protected by the injunction. As Gronquist approached his earned early release date, the Department referred him to the King County prosecutor for possible commitment as a sexually violent predator. Under then-current statutory law, the prosecutor sought all records relating to Gronquist’s treatment. Gronquist filed a civil contempt motion against the Department and the King County prosecutor for releasing his treatment records. He also sought an accounting for all breaches of the injunction, an order transferring him to community custody, destruction of all improperly disclosed confidential information, at least $500 a day per contemnor, disqualification of a potential expert witness, and attorney fees and costs under RCW 7.21.030(3). The Department and the prosecutor may have shared some of Gronquist’s files in direct contravention of a valid injunction. On the Department's motion, but before considering Gronquist's contempt motion, the trial court prospectively invalidated the injunction as to Gronquist. The Department them moved to dismiss the contempt motion as moot. The Washington Supreme Court determined courts had discretion to impose remedial sanctions in the absence of contempt, but in this case, Gronquist failed to establish he suffered any compensable losses. With no ongoing contempt, any claim for sanctions here was moot.

Hermanson v. Multicare Health Sys., Inc.

Court: Washington Supreme Court

Docket: 97783-6

Opinion Date: November 12, 2020

Judge: Susan Owens

Areas of Law: Civil Procedure, Health Law, Legal Ethics, Personal Injury

The issue this case presented for the Washington Supreme Court's review related to the boundaries of the corporate attorney-client privilege and how it operated when in conflict with a plaintiff’s physician-patient privilege. In 2015, Doug Hermanson sideswiped an unoccupied vehicle and crashed into a utility pole. Hermanson was transported to Tacoma General Hospital, which was owned by MultiCare Health System Inc. Hermanson was treated by several MultiCare employees, including two nurses and a crisis intervention social worker. However, the physician who treated Hermanson, Dr. Patterson, was an independent contractor of MultiCare pursuant to a signed agreement between MultiCare and Trauma Trust, his employer. Trauma Trust was created by MultiCare; Dr. Patterson had his own office at Tacoma General Hospital and was expected to abide by MultiCare’s policies and procedures. During Hermanson’s treatment, an unidentified person at Tacoma General Hospital conducted a blood test on Hermanson that showed a high blood alcohol level. As a result, someone reported this information to the police, and the police charged Hermanson with first degree negligent driving and hit and run of an unattended vehicle. Based on this disclosure of his blood alcohol results, Hermanson sued MultiCare and multiple unidentified parties for negligence, defamation/false light, false imprisonment, violation of Hermanson’s physician-patient privilege, and unauthorized disclosure of Hermanson's confidential health information. MultiCare retained counsel to jointly represent MultiCare, Dr. Patterson, and Trauma Trust, reasoning that while Dr. Patterson and Trauma Trust were not identified parties, Hermanson’s initial demand letter implicated both parties. Hermanson objected to this joint representation and argued that MultiCare’s ex parte communications with Dr. Patterson violated Hermanson’s physician-patient privilege. The Supreme Court determined that Dr. Patterson still maintained a principal-agent relationship with MultiCare, and served as the "functional equivalent" of a MultiCare employee; therefore MultiCare could have ex parte communications with the doctor. The nurse and social worker privilege were "essentially identical in purpose" to the physician-patient privilege, making ex parte communications permissible between MultiCare and the nurse and social worker.