In unusually strong language, an appeals panel in south Florida has condemned the conduct of prominent Miami law firm Adorno & Yoss, which filed an intended class-action lawsuit against the city over an unconstitutional fire-rescue fee, and later (to quote the WSJ law blog) is alleged to have “reached a secret $7 million settlement and paid it out to seven individuals, thereby breaching its duty to the entire class”. In its defense, the law firm says that it had no fiduciary duty to the class since a class was never certified, but the appeals panel took a different view, saying that class certification was inevitable and that the case was handled throughout from a class perspective. “It defies any bounds of ethical decency to view class counsel’s actions as anything but a flagrant breach of fiduciary duty,” said Judge Juan Ramirez, writing for the court. In a concurrence, Judge Angel A. Cortiñas was if anything more severe in tone. “Plainly and simply, this was a scheme to defraud. It was a case of unchecked avarice coupled with a total absence of shame on the part of the original lawyers. The attorneys manipulated the legal system for their own pecuniary gain and acted against their clients’ interests by attempting to deprive them of monies to which they might otherwise be entitled. More unethical and reprehensible behavior by attorneys against their own clients is difficult to imagine.” (Billy Shields, “Fla. Court Calls Law Firm’s Role in Fire-Fee Deal ‘Reprehensible'”, Daily Business Review, Aug. 9). More links on the Miami fire-fee scandal here.

Filed under: class actions