Table of Contents | Muskegan Hotels, LLC v. Patel Business Law, Legal Ethics, White Collar Crime US Court of Appeals for the Seventh Circuit | People v. Hill Civil Rights, Constitutional Law, Criminal Law, Legal Ethics California Courts of Appeal |
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Legal Ethics Opinions | Muskegan Hotels, LLC v. Patel | Court: US Court of Appeals for the Seventh Circuit Docket: 20-1475 Opinion Date: January 20, 2021 Judge: Scudder Areas of Law: Business Law, Legal Ethics, White Collar Crime | In 2005-2007, Merchant purchased Michigan hotel properties from NRB and financed the purchases through NRB, using corporate entities as the buyers. Merchant sold interests in those entities to investors. The hotels had been appraised at inflated amounts and sold for about twice their fair values. When the corporate entities defaulted on their loan payments, NRB foreclosed in 2009. Merchant claimed that NRB’s executives colluded with an appraiser to sell overvalued real estate to unsuspecting purchasers, wait for default, foreclose, and then repeat the process. In 2010, an investor sued Merchant, Merchant’s companies, NRB, and 12 others for investor fraud. In 2014 the FDIC took NRB into receivership and substituted for NRB as a defendant. Merchant and his companies brought a cross-complaint, alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) and state laws. A Fifth Amended Cross-Complaint raised 14 counts against 10 defendants, including two law firms that provided NRB’s legal work. The district court dismissed several counts; others remain active. The Seventh Circuit affirmed the dismissal of claims against the law firms. The counts under state law are untimely under Illinois’s statute of repose. The cross-complaint effectively admits that one firm played no role in NRB’s alleged fraud perpetrated against Merchant in 2005-2007. The cross-complaint failed to allege that either law firm conducted or participated in the activities of a RICO enterprise; neither firm could be liable under 18 U.S.C. 1962(c). | | People v. Hill | Court: California Courts of Appeal Docket: A157339(First Appellate District) Opinion Date: January 21, 2021 Judge: Jackson Areas of Law: Civil Rights, Constitutional Law, Criminal Law, Legal Ethics | In 2016, Hill pleaded no contest to felony possession of a firearm by a convicted felon (case CR940896). The court suspended imposition of sentence and placed Hill on three years' felony probation. In 2019, a Clearlake police officer noticed Hill outside of a liquor store, approached, obtained Hill’s name, and conducted a records check, which revealed that Hill was on postrelease community supervision. As the officer returned, Hill “produced” a knife and placed it on a pole. Hill said he needed the knife “for protection” and that he had it shoved down his sleeve. Hill pleaded no contest to concealing a dirk or dagger (case CR953084) and admitted a probation violation in case CR940896. The plea was open with a maximum possible sentence of 32t months. The trial court revoked his probation in case CR940896 and sentenced Hill in both cases to an aggregate term of 32 months. The court of appeal affirmed, rejecting Hill’s argument that his attorney was ineffective for failing to request a hearing on his eligibility for mental health diversion under Penal Code section 1001.36. Because Hill’s appeal did not attack the validity of his plea but challenged the court’s sentencing discretion relating to section 1001.36, no certificate of probable cause was required. Hill's counsel was not deficient in failing to request an eligibility hearing nor was Hill prejudiced by counsel’s failure to do so. | |
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