Opinion ID: 2615014
Heading Depth: 2
Heading Rank: 2

Heading: History of Litigations

Text: The testimony and evidence in this matter, in the words of the committee, recounted a near decade long saga which arose from the breakup of the law firm of Levine & Harris [, P.C.], and [t]he fourteen-count Complaint relates to [that] one underlying fact situation and the Respondent's reaction to that situation. The commission noted the unusual character of the situation giving rise to the multiple counts of the bar complaint, and recognized that cases like this one do not fit within `cubby holes.' We agree with these characterizations. Because of the complexity of the facts and evidence presented in regard to the individual counts, we first discuss respondent's conduct by recounting a history of the individual litigations in a chronological context, so far as possible.
Respondent and John D. Harris practiced law together for about seventeen months, from April 1980 until August 1981. After they dissolved their practice, disputes arose between respondent and Harris regarding the division of the assets of the firm, including clients' contingency fees in pending cases. Those disputes were ultimately resolved in binding arbitration by an award issued on February 10, 1983. Respondent challenged the arbitration award in a series of legal actions. The arbitration award was ultimately confirmed in superior court and affirmed by the court of appeals. Respondent also filed a bar complaint against Harris and his new partner, Anthony Palumbo. After investigation, bar staff concluded that Harris and Palumbo had not violated any ethical rules, and respondent's complaint was dismissed on April 22, 1983. Based on the same dispute that was a subject of the arbitration, respondent filed suit in superior court on April 25, 1983, on behalf of his corporate entity, Jack Levine, P.C., against Harris and Palumbo, individually and as a law firm. In addition, respondent named himself and his wife as defendants. Respondent alleged tortious interference with contractual relations, misappropriation of the professional corporation's monies, conversion, and breach of contract. In April 1984, respondent settled the suit against himself by agreeing to abide by the arbitration agreement. The remainder of the suit ultimately was resolved in favor of Harris and Palumbo, and the superior court awarded Harris attorney's fees of $150,000 under authority of A.R.S. § 12-341.01(C), A.R.S. § 12-349, and Rule 11, Arizona Rules of Civil Procedure, after finding the suits groundless, without substantial justification, and prosecuted in bad faith. Levine's institution and maintenance of the 1983 consolidated suits against Harris and Palumbo, on behalf of Jack Levine, P.C., [3] formed the basis of amended count 10 of the bar complaint. Levine's refiling of an action for declaratory judgment that Harris not receive any fees from another litigation involving Anthony Abril, discussed below, was also alleged in count 10.
On June 1, 1981, Anthony Abril, Jr., retained the firm of Levine & Harris, P.C., to represent him in a bad faith suit against Globe American Insurance Company (Globe). This suit was based on Globe's refusal to settle a personal injury action against Abril that had resulted in an excess judgment of $95,000 in favor of Gregory Johnson, a pedestrian who had been injured in a hit-and-run accident in which Abril was the driver. In November 1981, after the firm of Levine & Harris dissolved, Abril chose Harris and his new firm, Harris & Palumbo, to continue the litigation. In 1984 Harris succeeded in obtaining a judgment of $1,300,000 in Abril's favor against Globe. In January 1985, Globe appealed from that judgment. On April 9, 1985, Abril fired Harris and his new firm and retained respondent to represent him. Respondent successfully moved to strike an appellate brief that Harris and his associates had filed in the court of appeals, and substituted his own brief on Abril's behalf. After oral argument in the court of appeals, in which respondent participated, the court of appeals reversed the punitive damages portion of Abril's judgment of $1,000,000, but affirmed the compensatory damages portion of $300,000. Abril v. Globe American Cas. Co., 1 CA-CIV 8172, Ariz. App. mem. dec. filed Aug. 15, 1986. Respondent then filed a petition for review in this court, which was denied. Before filing the bad faith suit, Harris had unsuccessfully attempted to assign Abril's bad faith claim to Johnson. After this failed, on July 6, 1981, Harris entered into an agreement, allegedly without Abril's knowledge, with William Piatt, Johnson's counsel in the personal injury case. Under this agreement, Piatt would attempt to increase his contingency fee from Johnson from 33% to 50%, and for any amount up to $95,000 that Abril recovered from Globe, Piatt would split his contingency fee with Harris. This agreement was made on behalf of Levine & Harris, P.C., before the dissolution, and later became one of the subjects of the arbitration award. After Abril had discharged Harris, telephone discussions occurred between Harris and Piatt regarding renewal of the Johnson judgment against Abril. Harris also wrote to Piatt on June 3, 1985, noting the date that the judgment would expire and advising Piatt to renew it immediately. Piatt subsequently renewed the Johnson judgment against Abril. After Abril's compensatory damages against Globe were affirmed on appeal, Piatt served a garnishment on Globe for the amount Abril still owed on the Johnson judgment. Harris eventually credited Abril with $25,482.15 towards Abril's attorney's fees from Piatt's payment to Harris under the fee agreement between Harris and Piatt. When Abril learned of the fee agreement between Harris and Piatt and the renewal of the Johnson judgment against him, he asked respondent to file a suit against Harris, alleging a conflict of interest and breach of fiduciary relationship. Respondent persuaded Abril to file two bar complaints against Harris instead. When the bar complaints ultimately were dismissed, respondent then filed, on Abril's behalf, a suit against Harris & Palumbo, M. Byron Lewis, John R. Cunningham, and Harris & Palumbo, P.C., alleging five causes of action, seeking more than $41,000,000 in damages. After the trial court granted summary judgment in favor of Harris and indicated its intent to award attorney's fees against respondent personally, respondent filed a special action in the court of appeals, which declined jurisdiction. The trial court ultimately assessed attorney's fees against respondent for $7,586.25. Respondent then appealed the granting of summary judgment; that judgment was affirmed, and the court of appeals awarded attorney's fees against respondent for $9,418.25. Abril v. Harris, 157 Ariz. 78, 754 P.2d 1353 (App. 1987). Respondent filed a petition for review in the Arizona Supreme Court, which was denied with a fee award against respondent for $1,950. The Abril suit against Harris, the special action, appeal, and petition for review form the basis of counts 1 through 4 of the bar complaint, respectively.
After judgment was entered against respondent personally for attorney's fees in the Abril litigation, respondent, acting pro se, filed a complaint in federal district court seeking to enjoin execution of that judgment because he was unable to post a supersedeas bond in state court. He contended that the judgment against him was entered without notice and a hearing and therefore violated constitutional due process. After that complaint was dismissed, the federal district court assessed attorney's fees against respondent in the amount of $500, finding that respondent's allegation of a conspiracy between the state court judge and the defendants in the Abril litigation was frivolous and in violation of Rule 11, Federal Rules of Civil Procedure. This litigation was the basis for count 5 of the complaint.
In January 1985, while still employed by Abril, Harris contacted attorney M. Byron Lewis and requested assistance in preparing Abril's answering brief in the Globe appeal. Harris sent Lewis portions of the case file, and also filed a notice of association of counsel, naming Lewis as one of Abril's counsel on appeal. After Lewis discovered a conflict of interest in his firm, he returned the file to Harris with a letter explaining the conflict, and advising that he could not assist Harris in the appeal. Harris then employed John R. Cunningham to assist him in preparing the appellee's brief on Abril's behalf. However, after Abril fired Harris in April 1985 and retained respondent to represent him in the appeal, respondent had that brief stricken by court order on May 31, 1985, and substituted his own brief on Abril's behalf. Based on these facts, the original complaint in the Abril v. Harris litigation alleged a cause of action against attorneys Lewis and Cunningham for strict liability for unauthorized representation, seeking damages of $1,300,000 plus interest for Abril's diminished chances of succeeding on appeal. Lewis subsequently was granted summary judgment on the count naming him as a defendant, and was awarded attorney's fees. Respondent, on behalf of Abril, appealed from the award of fees, and the court of appeals affirmed, also awarding attorney's fees to Lewis and imposing a $1,500 sanction against respondent. Respondent's petition for review on behalf of Abril to this court was denied, with an award of fees to Lewis for $3,907.50. The count against Cunningham was dismissed with prejudice by stipulation of the parties, with each party bearing their own attorney's fees and costs. Counts 6, 7, 8, and 9 of the bar complaint arose out of the inclusion of Lewis and Cunningham in Abril's lawsuit against Harris in superior court, the appeal from an order denying a motion for new trial, and the petition for review from the appellate order affirming the trial court.
The final count of the bar complaint alleged that during the Abril lawsuits alleged in counts 1 through 10, and during the dissolution proceedings of Levine & Harris, P.C., from 1981 to 1989, respondent violated the Code and Rules then in effect by knowingly doing so or doing so through the acts of another.