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Civil Procedure

Firm Facing $25K Fine Apologizes, Explains ‘Fraudulent’ Removals

Posted Mar 6, 2009 6:00 AM CST
By Terry Carter

In its response to a federal judge’s threat to bar all 25 of its lawyers from appearing in the Western District of Louisiana, a New Orleans-based defense firm is going to extraordinary lengths to get back in good grace.

Last month, U.S. District Judge Tucker Melançon issued an opinion slamming the firm Ungarino & Eckert for “vexatious” litigation and “fraudulent and improper removals” of cases from state to federal court. The judge noted a long list of cases, more than two dozen, in which he said there were improper removals, including some for which the firm was admonished.

The judge ordered the firm to file a memorandum explaining why he shouldn’t hit the two main partners for $25,000 out of their own pockets, and why, if it isn’t persuasive, he shouldn’t haul all the firm’s lawyers into court to explain why he shouldn’t keep them from practicing in the district.

That clearly got the firm’s attention. Ungarino & Eckert lawyered up, hiring, among others, Frank X. Neuner Jr., who was president of the Louisiana State Bar Association for 2005-2006 and lectures and writes on professionalism and ethics. Neuner’s firm is in Lafayette, where Judge Tucker sits.

The response (PDF) filed this week by Neuner goes on at length explaining how the Ungarino firm made some understandable mistakes, but then makes a sweeping bow to the judge’s concerns:

The firm is bringing in two professors from Loyola University New Orleans College of Law this month to give three-hour lectures to all the firm’s lawyers, one on ethics and one on federal civil procedure and removals. The lectures will be videotaped for any lawyers who cannot attend, and those lawyers must view them within 30 days.

The firm has created a professional responsibility committee made up of partners. The committee will coordinate in-house ethics and removal training and review all notices of removal and opposition to remand.

Judge Melançon’s opinion was detailed and blistering in reviewing the firm’s history of problems with removals. And this equally lengthy response is all the more interesting because it seeks to explain away much of the criticism.

Comments

1.

Jody Nathan
Mar 6, 2009 10:11 AM CST

I think the pleading should go a long way to repairing the firm’s reputation with the court

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2.

mythago
Mar 6, 2009 10:31 AM CST

“We’re sorry we did things that weren’t really wrong and we won’t do them again”? I guess they can’t really just come out and admit they were caught out.

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3.

Ashton O'Dwyer
Mar 6, 2009 12:12 PM CST

Comment removed by moderator.

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4.

B. McLeod
Mar 7, 2009 9:05 PM CST

This is great.  Turns out the problem is, they just didn’t know.  Despite their ethical obligation to be competent.  And, well, yes, there were all those warnings in the past, but they just thought the court was kidding around.  Now they understand, and they’re getting some expensive coaching, so they can rehabilitate themselves.  Do you see the light, Brothers??  DO YOU SEE THE LIGHT??

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5.

Get a Barbri Outline
Mar 9, 2009 7:23 PM CST

Perhaps, every attorney in that firm should take a Bar review course on civil procedure.  The firm could have asked its client: were you doing business in this state?  Instead, the firm choose to do a poor job researching the client’s status (ohh - so the firm can charge its client more hours maybe??)  Then, the firm decide to inproperly remove this case to cost the other side to spend time and money. 

Yes, the firm will hire some coaches to teach them to how to behave from now on…hoping the judge will lift the sanction of $25k and not award attorney fees to the other side.  I am sure these remediation actions are cheaper than $25k and attorneys fees…  This is a calculated move by the firm, and I hope the judge stick the firm with the sanction also impose these remediation actions on the firm.  That ought to get their attention now.

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6.

Read it closely
Mar 12, 2009 8:45 PM CST

I’m often surprised at how LITTLE defense clients actually want to tell their own attorneys, even as relates to such matters as corporate formalities and organization.

That said, this filing is a misdirection, and an attempted confession to absurd, sanctionable incompetence. If the “wrong party” was really sued, then there would be utterly no need for the “right party” to remove the case; and if you knew who the “wrong party” was you could figure out who the “right party” was, they were YOUR FRICKIN CLIENT, and thus you could do the one thing they don’t admit to: make some PHONE CALLS till you found out the information you needed.

I do not buy this defense, though it’s written cleverly (and notice how it consistently blames others- the hurricane came along and we were gone a few days; the plaintiff got the suit wrong; we were focused only on the plaintiff’s accusations against us, and lost sight of the important facts). Perhaps a 25K fine is still appropriate if the judge believes this was only negligence- as it is gross.

And it would be one thing if this were their only flubbed removal. Again and again and again, they engage in patently meritless actions and are heedless of sanctions. Their analysis of how many times they’ve been sanctioned also does not help them- for it supports the conclusion that they have gotten WORSE, not better, as the years have gone by.

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