Opinion ID: 150080
Heading Depth: 5
Heading Rank: 1

Heading: Malpractice and Breach of Fiduciary Duty Claims

Text: Mindys alleges that Kamran committed malpractice and breached his fiduciary duty by representing Mindys and Sonya Dakar simultaneously. Mindys alleges that Kamran failed to protect Israel and Natan's ownership interests when he registered the trademarks in Sonya's name and that Kamran has refused to turn over the client file to Israel and Natan. Mindys has made a sufficient prima facie showing of facts supporting its claims for malpractice and breach of fiduciary duty to withstand a motion to strike under the anti-SLAPP statute. Kamran contends that he represented only Mindys at all relevant times, but if Mindys' evidence is credited Kamran was at least negligent in determining who had authority to act on behalf of Mindys. Kamran admits that he took instructions to register the trademarks from Yigal, Donna, Mimi, and Sonya. Israel states in his declaration that Sonya was never a shareholder of Mindys and Kamran never inquired whether Yigal, Donna, or Mimi, who were shareholders, had actual authority to act on behalf of the company. Mindys also introduced evidence that in January 2002, Yigal assigned away his shares in Mindys, and thus as of that time he was only an employee of the company. If this is true, Yigal had no authority to give instructions to Kamran on behalf of Mindys. Moreover, according to Israel and Natan, Donna and Mimi were minority shareholders and therefore had no authority to take action on behalf of Mindys without Israel or Natan's approval. Mindys has thus made at least a minimal showing that Kamran did not use such skill, prudence, and diligence as lawyers of ordinary skill and capacity commonly possess and exercise in the performance of the tasks which they undertake. Lucas v. Hamm, 56 Cal.2d 583, 591, 15 Cal.Rptr. 821, 364 P.2d 685 (1961). Crediting the evidence submitted by Mindys, as we are required to do, Mindys has demonstrated a reasonable probability, within the meaning of the anti-SLAPP statute, of prevailing on its malpractice and breach of fiduciary duty claims.