Oasis West Realty, Llc V. Goldman

Court's decision

In an action brought against attorney K. Goldman and his firm, Reed Smith, LLP, for breach of fiduciary duty, professional negligence and breach of contract; trial court denied defendants' motion to strike complaint as strategic lawsuit against public participation (SLAPP); upon appeal, Court of Appeals reversed and then Supreme Court granted review, superseding the opinion of the Court of Appeals.

I tend to agree with Supreme Court's decision in that it…

Summary of Facts

In January 2004, plaintiff Oasis hired attorney Goldman to obtain the necessary approval from city council on a plan to redevelop a nine-acre parcel it owned in Beverly Hills into a five-star hotel and luxury condominiums. Since a Hilton hotel was already on the property, the project is often referred to as the Hilton project. In April 2006, Goldman advised Oasis that he and Reed Smith would no longer represent Oasis in connection with the Hilton project. Oasis's development proposal was presented to the city council in June 2006, after the representation had ended and in April 2008, the council approved the plan with conditions, which paved the way for final approval of the Hilton project. Shortly thereafter, Goldman became involved in a public campaign to oppose this redevelopment project by soliciting signatures for a petition to overturn the local government's approval of the project.

Analysis

Defendants moved to strike the complaint under a special procedure for early dismissal of SLAPP lawsuits (strategic lawsuit against public participation), which are suits based on the defendant's exercise of the right of petition or speech in connection with a public issue. Defendants will fail if Oasis demonstrates a probability of prevailing on its claims.

Claim #1: Breach of Fiduciary Duty

To show a breach of fiduciary duty, plaintiff must show: (1) the existence of fiduciary duty, (2) breach of that duty, and (3) damages.

Claim #2: Professional Negligence

To show professional negligence, plaintiff must show: (1) the existence of the professional to use such skill, prudence, and diligence as other members of the profession commonly possess and exercise, (2) breach of that duty, (3) causal connection between the negligent conduct and the resulting injury, and (4) actual loss or damage resulting from the professional negligence.

Claim #3: Breach of Contract

To show a breach of contract, here the plaintiff must show: (1) existence of a contract, (2) plaintiffs' performance or excuse for nonperformance, (3) defendant's breach, and (4) damages to the plaintiff.

The fiduciary duty an attorney owes to his/her client