Justia Commercial Law Opinion Summaries

Plaintiffs are minority limited partners in Urban Shopping Centers, L.P., in which defendants acquired a majority interest in 2002. Plaintiffs allege breach of fiduciary and contractual duties, claiming that, pursuant to the operating agreement, defendants were not to compete with them in business opportunities. They alleged that defendants stopped growing plaintiffs’ business, disregarded partnership agreement terms, and stole plaintiffs’ opportunities. During discovery, plaintiffs moved to compel production of documents concerning business negotiations in which each defendant’s attorney discussed with nonclients liability and obligations as Urban’s general partner and use of a “synthetic partnership” to avoid partnership obligations. Defendants claimed privilege, but plaintiffs argued that, having disclosed legal advice on these subjects with each other outside of any confidential relationship, defendants could not later object that those subjects were privileged. The motion was granted; defendants refused to comply and were held in contempt. The appellate court affirmed. The supreme court reversed, holding that attorney-client privilege had not been waived because the sought-after disclosures had occurred in an extrajudicial context and were not thereafter used by the clients to gain a tactical advantage in litigation. The “subject-matter waiver” doctrine was not shown to be applicable.View "Ctr. Partners, Ltd. v. Growth Head GP, LLC, " on Justia Law

The State brought a consumer-protection action against Bennett & DeLoney, a Utah law firm, and the owners and principals thereof to redress and restrain alleged violations of the Arkansas Deceptive Trade Practices Act (ADTPA). The thrust of the complaint alleged that Bennett & DeLoney violated the ADTPA by attempting to collect penalties on dishonored checks greater than those amounts permitted by Ark. Code Ann. 4-60-103. The circuit court (1) granted partial summary judgment for the State, finding that the collection of amounts in excess of those set forth in section 4-60-103 violated the ADTPA; and (2) found that section 4-60-103 provided an exclusive remedy for recovery on dishonored checks and that the use of remedies set forth in Ark. Code Ann. 4-2-701, relating to a seller's incidental damages, was not permitted. The Supreme Court reversed and dismissed, holding that the ADTPA has no application to the practice of law by attorneys, and the circuit court erred in concluding otherwise. View "Bennett & Deloney P.C. v. State" on Justia Law

In this appeal the Supreme Court considered whether the clerk of superior court had the authority to determine the reasonableness of attorney's fees that a trustee-attorney in a foreclosure proceeding paid to himself in addition to his trustee's commission. The superior court affirmed the clerk's order. The court of appeals vacated the clerk's and trial court's orders, holding that the clerk lacked the statutory authority to determine the reasonableness of attorney's fees paid in a foreclosure proceeding. The Supreme Court affirmed the court of appeals, holding (1) the clerk exceeded his statutory authority by reducing the trustee-attorney's attorney's fees, and (2) absent a viable challenge for breach of fiduciary duty from a creditor with standing, the trustee-attorney's payment of attorney's fees to himself in addition to a trustee's commission could not be upset. View "In re Foreclosure of Vogler Realty, Inc." on Justia Law

Plaintiffs, David and Barbara Smith, asserted various claims arising out of the construction of their home against Defendants, Donald L. Mattia, Inc. (DLM), Donald Mattia, and Barbara Joseph (Barbara). The Chancery Court (1) granted Defendants' motion for summary judgment on (i) Plaintiffs' breach of contract claim and (ii) Plaintiffs' civil conspiracy claim; (2) denied Defendant's motion for summary judgment on (i) Plaintiffs' claim for misappropriation of Plaintiffs' backfill and money paid to DLM that was not applied to their project and (ii) Plaintiffs' claim that Defendants fraudulently induced Plaintiffs to purchase excess lumber and misappropriated $8,836 in connection with the purchase of excess lumber; (2) granted Plaintiffs' motion for summary judgment, as Defendants did not articulate a viable cause of action in their counterclaim; and (3) denied Barbara's motion for Chan. Ct. R. 11 sanctions where there was no evidence that Plaintiffs' attorney did not have a good faith belief in the legitimacy of the claims asserted against Barbara.View "Smith v. Donald L. Mattia, Inc." on Justia Law

Thomas & Thomas Court Reporters sued Douglas Switzer, an attorney, and his law firm, Hathaway & Switzer (Hathaway Switzer), for failure to pay for court reporting services. The district court entered judgment for Thomas & Thomas. At issue on appeal was whether Hathaway Switzer was liable to Thomas & Thomas for its fees or whether Hathaway Switzer's clients were. The Supreme Court (1) affirmed the district court's judgment to the extent that it held Hathaway Switzer rather than Hathaway Switzer's clients liable, as Hathaway Switzer had not disclaimed liability for those fees; and (2) reversed the court's judgment to the extent that it held Switzer personally liable. Remanded with directions to dismiss Thomas & Thomas' claim against Switzer as an individual.View "Thomas & Thomas Court Reporters, LLC v. Switzer" on Justia Law