Beach TV Properties, Inc. v. Solomon
254 F. Supp. 3d 118
| D.D.C. | 2017Background
- ACI sued former counsel Henry Solomon for legal malpractice for allegedly omitting material information on an FCC Statement of Eligibility, costing ACI a Class A license and large damages.
- ACI previously assigned the TV license (WTHC-LD) to Beach TV; ACI later alleged Solomon negligently advised that assignment and failed to warn that assigning the license could impair ACI’s malpractice claim.
- Solomon moved firms (to Garvey); ACI seeks to add Garvey and attorney Melodie Virtue as defendants, alleging Virtue continued representation, failed to advise ACI of Solomon’s malpractice/conflicts, and “lulled” ACI into inaction.
- The Court had earlier dismissed some claims and held D.C. law did not govern the assignment; the proposed second amended complaint seeks Counts Two (malpractice re: assignment), Three (malpractice by Virtue), and Four (respondeat superior liability for Garvey).
- Garvey/Solomon opposed amendment as futile: Count Two lacks causation and Count Three fails on duty, ripeness, and would be disruptive; ACI pleaded counts in the alternative and relied on both theories.
- The Court granted amendment in part: it denied leave to add Count Two (futile for lack of pleaded causation) but allowed Counts Three and Four (Virtue and Garvey via respondeat superior) to proceed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether leave to add Count Two (malpractice re: license assignment) should be allowed | Solomon negligently advised/failed to warn that assigning WTHC-LD could reduce ACI’s malpractice recovery | Futile: Count Two rests on ACI’s prior inconsistent choice-of-law position and fails to plead duty/breach and causation | Denied as to Count Two — duty/breach adequately pled but causation not plausibly alleged; amendment would be futile |
| Whether ACI is estopped from asserting that assignment could be invalid given its earlier position that D.C. law applied | ACI may now allege Solomon should have foreseen invalidity under Virginia law | Estoppel applicable because positions inconsistent | Rejected — judicial estoppel not warranted because ACI did not prevail on the earlier position and would not unfairly benefit |
| Whether leave to add Count Three (malpractice against Virtue for failing to advise/notify /conflict) should be allowed | Virtue breached duty by failing to inform ACI of Solomon’s malpractice, statute-of-limitations risk, and conflict; ACI pleads in the alternative | Futile: lulling is not an independent cause, standard of care not pleaded, claim not ripe, and adding Virtue would be disruptive | Granted as to Count Three — duty and breach sufficiently pled; ripeness and disruption objections rejected; “lulling” treated as defense-related allegation, not a standalone claim |
| Whether Garvey may be added under respondeat superior (Count Four) | Garvey liable for Solomon and Virtue’s malpractice | Futile if Counts Two/Three dismissed | Granted in part — Count Four survives to the extent Count Three (Virtue) survives |
Key Cases Cited
- Foman v. Davis, 371 U.S. 178 (motion to amend standard) (factors for denying leave to amend)
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading standard: plausibility requirement)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility and pleading threshold)
- New Hampshire v. Maine, 532 U.S. 742 (factors for judicial estoppel)
- Zedner v. United States, 547 U.S. 489 (judicial estoppel principles)
- Chase v. Gilbert, 499 A.2d 1203 (malpractice elements follow negligence elements)
- O’Neil v. Bergan, 452 A.2d 337 (standard for malpractice/duty)
- Mawalla v. Hoffman, 569 F. Supp. 2d 253 (malpractice elements and pleading)
- Burke v. Scaggs, 867 A.2d 213 (expert testimony often required to establish standard of care)
- W. Bend Mut. Ins. Co. v. Schumacher, 844 F.3d 670 (proximate causation in malpractice requires a ‘case within a case’)
- Wolcott v. Ginsburg, 746 F. Supp. 1113 (malpractice ripeness; decreased settlement value as concrete injury)
- Dimensional Music Publ’g, LLC v. Kersey, 448 F. Supp. 2d 643 (contingent/alternative malpractice claims can be ripe)