Amlong & Amlong, P.A. v. Edcare Management, Inc.

CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 19, 2019
Docket17-14821
StatusUnpublished

This text of Amlong & Amlong, P.A. v. Edcare Management, Inc. (Amlong & Amlong, P.A. v. Edcare Management, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amlong & Amlong, P.A. v. Edcare Management, Inc., (11th Cir. 2019).

Opinion

Case: 17-14821 Date Filed: 03/19/2019 Page: 1 of 20

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 17-14821 ________________________

D.C. Docket No. 0:13-cv-61373-RNS

DEBORAH ELDREDGE,

Plaintiff - Counter Defendant,

AMLONG & AMLONG, P.A., d.b.a. The Amlong Firm, WILLIAM ROBERT AMLONG, JENNIFER DALY,

Interested Parties - Appellants,

versus

EDCARE MANAGEMENT, INC., a Delaware corporation, HOSPITAL PHYSICIAN PARTNERS, INC., a Delaware corporation,

Defendants - Counter Claimants - Appellees. Case: 17-14821 Date Filed: 03/19/2019 Page: 2 of 20

________________________

Appeal from the United States District Court for the Southern District of Florida ________________________

(March 19, 2019)

Before WILSON, JILL PRYOR and SUTTON,∗ Circuit Judges.

PER CURIAM:

Amlong & Amlong, P.A., a law firm, appeals the district court’s imposition

of sanctions against it totaling $422,433.30 in attorney’s fees and costs in favor of

defendants EDCare Management, Inc. and Hospital Physician Partners, Inc.

(“HPP”). No reversible error has been shown; we affirm the district court’s award

of attorney’s fees and costs.

I. BACKGROUND 1

Plaintiff Deborah Eldredge, represented by the Amlong firm, filed two civil

actions against her former employer, EDCare, and a related entity, HPP. In the

first suit, Eldredge alleged that EDCare and HPP violated the Fair Labor Standards

Act by failing to pay her overtime while she was employed by them and failing to

pay her for accrued leave time when she was terminated (the “FLSA case”). In

∗ Honorable Jeffrey S. Sutton, United States Circuit Judge for the Sixth Circuit, sitting by designation. 1 Because we write for the parties, we set out only the facts necessary to explain our decision. 2 Case: 17-14821 Date Filed: 03/19/2019 Page: 3 of 20

response, the defendants asserted various defenses, including that they were

entitled to a set-off based on the value of property Eldredge converted upon her

termination. In the second suit, Eldredge alleged that EDCare and HPP terminated

her because of her age and sex in violation of the Age Discrimination in

Employment Act, Title VII of the Civil Rights Act of 1964, and the Florida Civil

Rights Act (the “discrimination case”). In the discrimination case, the defendants

asserted counterclaims alleging Eldredge had misappropriated company property.

The FLSA and discrimination cases were eventually consolidated.

Meanwhile, the defendants had filed a motion for sanctions in the FLSA

case, alleging that Eldredge had stolen confidential business records from EDCare.

Although the defendants had sent Eldredge a written request for the return of

company property and the Amlong firm a civil-theft demand letter, Eldredge and

her lawyer failed to disclose the EDCare documents in their possession and then

used some of these confidential records during a deposition.

The magistrate judge denied without prejudice the defendants’ motion for

sanctions. The magistrate judge, however, ordered Eldredge to conduct a diligent

search, to return to the defendants all company property in her possession, and to

provide an affirmative statement that she has turned over all company property in

her possession. In response to the magistrate judge’s order, Eldredge produced

3 Case: 17-14821 Date Filed: 03/19/2019 Page: 4 of 20

three boxes of documents, two thumb drives, and a disk, almost all of which

contained confidential EDCare information.

The defendants then filed a renewed motion for sanctions. Among other

things, the defendants contended that—as part of a plan to blackmail the

defendants and their executives—Eldredge had refused to disclose the EDCare

documents in her possession. The defendants later supplemented their renewed

motion for sanctions, seeking sanctions expressly against the Amlong firm,

pursuant to 28 U.S.C. § 1927 and the district court’s inherent powers. According

to the defendants, the Amlong firm “acted in bad faith to pursue frivolous claims

and covered up evidence in a manner that multiplied the proceedings.” Doc. 138 at

1. 2

Around this time, the Amlong firm withdrew as Eldredge’s counsel, after

which she proceeded pro se. Eldredge then filed a motion to voluntarily dismiss

with prejudice all her claims against EDCare. A few months later, Eldredge and

the defendants reached a settlement agreement in which Eldredge agreed to dismiss

with prejudice her pending claims and the defendants agreed to dismiss with

prejudice their counterclaims. The agreement permitted the defendants to proceed

with their sanctions motion against the Amlong firm. In addition, Eldredge agreed

2 Citations in the form “Doc. #” refer to numbered entries on the district court’s docket in the discrimination case.

4 Case: 17-14821 Date Filed: 03/19/2019 Page: 5 of 20

to waive any attorney-client privilege over communications between her and the

Amlong firm and to cooperate with the defendants’ efforts to obtain documents

concerning such communications. As part of the agreement, Eldredge also agreed

to return all property that originated with the defendants. Based on the parties’

settlement agreement, the district court dismissed Eldredge’s claims against the

defendants with prejudice and the defendants’ counterclaims against Eldredge with

prejudice. In the dismissal order, the district court retained jurisdiction over the

pending motion for sanctions against the Amlong firm.

Following an evidentiary hearing, the magistrate judge concluded that

sanctions were warranted under the circumstances of this case. In a detailed 44-

page order, the magistrate judge summarized the procedural history of the

litigation and made 93 factual findings based on the testimony and documents

presented at the hearing.

In pertinent part, the magistrate judge determined that Eldredge’s lawyers

who testified at the evidentiary hearing (William Amlong and Jennifer Daley)

lacked credibility. The magistrate judge found “Amlong’s testimony to be

contrived and, in some ways, an effort to rewrite history” and found “Daley’s

testimony . . . to be convoluted, evasive and non-responsive.” Doc. 188 at 31-32.

The magistrate judge determined that Eldredge sought legal advice from the

Amlong firm about the termination of her employment with EDCare and the

5 Case: 17-14821 Date Filed: 03/19/2019 Page: 6 of 20

possibility of filing a wrongful termination action. Amlong and Daley then

“transformed this request into the filing of the FLSA case and the [d]iscrimination

case, without informing Eldredge that they had no intention of filing a qui tam

action.” Id. at 37.

The magistrate judge found that Daley and Amlong engaged in “knowing

and reckless conduct throughout the FLSA case and the [d]iscrimination case.” Id.

at 42. After retaining the Amlong firm, Eldredge delivered to the Amlong firm the

following materials: the contents of EDCare’s CEO’s “personal corporate laptop

downloaded to a disk (his ‘My documents’ folder), his own handwritten notes,

financial documents, contact lists, client lists, employee data, and copies of pages

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Bluebook (online)
Amlong & Amlong, P.A. v. Edcare Management, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/amlong-amlong-pa-v-edcare-management-inc-ca11-2019.