Chamberlin v. Hartog, Baer & Hand, APC

District Court, N.D. California·Decided September 1, 2020·No. 3:19-cv-08243·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 CHRISTOPHER CHAMBERLIN, Case No. 19-cv-08243-JCS

8 Plaintiff, ORDER REGARDING MOTION TO 9 v. DISMISS IN PART FIRST AMENDED COMPLAINT 10 HARTOG, BAER & HAND, APC, et al., Re: Dkt. No. 47 Defendants. 11

12 I. INTRODUCTION 13 Plaintiff Christopher Chamberlin, pro se, brings this action against his former attorneys, 14 Defendants Hartog, Baer & Hand, APC (“HBH”) and its three named partners David Baer, John 15 Hartog, and Margaret Hand, asserting claims for fraudulent inducement, breach of fiduciary duty 16 and the duty of loyalty, malpractice, and declaratory judgment that his retainer agreement with 17 HBH is void. Most of Christopher Chamberlin’s claims are based on his theory that Defendants 18 failed to disclose a purported conflict of interest with respect to Michael Levin, who is Christopher 19 Chamberlin’s uncle, served as the executor of Christopher Chamberlin’s mother Jane 20 Chamberlin’s estate, and was his adversary in the underlying probate litigation for which 21 Christopher Chamberlin engaged HBH. The Court previously granted Defendants’ motion to 22 dismiss those claims, as well as a claim for negligent legal malpractice against Hand, with leave to 23 amend. Christopher Chamberlin filed an amended complaint reasserting the dismissed claims, and 24 Defendants move once again to dismiss. The Court found the matter suitable for resolution 25 without oral argument and vacated the hearing set for August 14, 2020. For the reasons discussed 26 below, Defendants’ motion is GRANTED, and the claims at issue are DISMISSED WITH 27 PREJUDICE. 1 claims against HBH, Baer, and Hartog, which may proceed. Defendants shall file their answer no 2 later than September 15, 2020.1 3 II. BACKGROUND 4 Because a plaintiff’s factual allegations are generally taken as true in resolving a motion to 5 dismiss under Rule 12(b)(6), this order summarizes Christopher Chamberlin’s allegations as if 6 true. Nothing in this order should be construed as resolving any issue of fact that might be 7 disputed at a later stage of the case. 8 A. Allegations of the Original Complaint 9 The Court’s previous order includes a more detailed summary of the alleged facts of this 10 case. See Order re Mot. to Dismiss, Mot. to Strike, & Mot. for Partial Summ. J. (“1st MTD 11 Order,” dkt. 44)2 at 2–5. In brief, after Christopher Chamberlin’s mother Jane Chamberlin died in 12 2015 and his uncle Michael Levin was named in her will as executor, Christopher Chamberlin 13 sought to contest a sale of Jane Chamberlin’s houseboat and remove Michael Levin as executor. 14 Compl. (dkt. 1) ¶¶ 26, 28, 51, 95–97. In July of 2016, Christopher Chamberlin retained Defendant 15 HBH as his counsel, and HBH attorneys Defendant Baer and non-party Julie Woods appeared on 16 his behalf in state court probate proceedings. See id. ¶¶˜118, 126, 136, 138. Christopher 17 Chamberlin alleged that Defendants made a number of errors in representing him that led, among 18 other consequences, to Christopher Chamberlin being held liable for Michael Levin’s costs on 19 appeal. See, e.g., id. ¶¶ 157–66, 195–202. 20 According to Christopher Chamberlin, those errors were not mere negligence, but stemmed 21 from Defendants’ desire to protect Michael Levin’s family because—unbeknownst to Christopher 22 Chamberlin at the time—Michael Levin’s cousin is married to Defendant Hartog’s sister. See id. 23 ¶¶ 62, 220–21, 253. Christopher Chamberlin relied on Defendants to disclose that relationship, 24 which, in his view, created a conflict of interest. E.g., id. ¶¶ 101–02, 295. Christopher 25

26 1 The parties have consented to the jurisdiction of the undersigned magistrate judge for all purposes pursuant to 28 U.S.C. § 636(c). 27 2 Chamberlin v. Hartog, Baer & Hand, APC, No. 19-cv-08243-JCS, 2020 WL 2322884 (N.D. Cal. 1 Chamberlin had mentioned to Baer at the time he retained HBH that Jane Chamberlin and Michael 2 Levin were related to former U.S. Senator Carl Levin and then-U.S. Representative Sander Levin. 3 Id. ¶ 107. 4 Christopher Chamberlin asserted claims for: (1) declaratory judgment that his retainer 5 agreement with HBH “is void against public policy because it created an undisclosed, unwaivable, 6 and irreconcilable conflict of interest,” id. ¶ 292–301; (2) fraudulent inducement, id. ¶¶ 302–39; 7 (3) breach of fiduciary duty, id. ¶¶ 340–53; (4) breach of the duty of loyalty, id. ¶¶ 354–74; 8 (5) “intentional legal malpractice,” id. ¶¶ 375–98; and (6) “negligent legal malpractice,” id. 9 ¶¶ 399–414. 10 B. The Court’s Previous Order 11 The Court previously dismissed with leave to amend Christopher Chamberlin’s claim for 12 fraudulent inducement because Christopher Chamberlin did not allege that any particular 13 defendant actually knew that Michael Levin was Defendant Hartog’s sister’s husband’s cousin, 14 and without such an allegation it was not clear:

15 (1) whether Christopher Chamberlin believes any defendant actually had such knowledge or whether he relies only on a theory of 16 constructive knowledge or what Defendants’ should have known; (2) whether Christopher Chamberlin believes that all Defendants 17 knew of the relationship or that only some of them did; and (3) whether Christopher Chamberlin believes that Defendants knew 18 of the relationship at the time that the parties entered the retainer agreement, or only learned of it at some point thereafter. 19 20 1st MTD Order at 11–12. Lacking clarity on Christopher Chamberlin’s theory of fraud, the Court 21 declined to reach questions of whether any of those possibilities would support a viable claim for 22 fraudulent inducement. Id. at 12. The Court also noted that Christopher Chamberlin did not 23 allege with sufficient particularity the circumstances in which Defendants assured him there was 24 no conflict of interest, and that Christopher Chamberlin had not alleged a breach of any California 25 Rule of Professional Conduct. Id. at 12–13. Because Christopher Chamberlin’s claims for breach 26 of fiduciary duty, breach of the duty of loyalty, intentional legal malpractice,3 and declaratory 27 1 judgment rested on his theory of fraudulent inducement, the Court dismissed those claims as well. 2 Id. at 13–15. The Court dismissed or struck Christopher Chamberlin’s prayer for punitive 3 damages for the same reason. Id. at 15–16. 4 Defendants did not seek dismissal of Christopher Chamberlin’s claim for negligent legal 5 malpractice against Defendants HBH, Baer, and Hartog, and the Court allowed that claim to 6 proceed against those defendants. Id. at 15. The Court granted Defendants’ motion to dismiss the 7 negligent malpractice claim against Defendant Hand with leave to amend, because Christopher 8 Chamberlin had not alleged that Hand represented him. Id. The Court denied Christopher 9 Chamberlin’s motion for summary judgment. Id. at 16–18. 10 C. The First Amended Complaint 11 Christopher Chamberlin’s first amended complaint asserts the same claims as his original 12 complaint: (1) declaratory judgment that the “retainer agreement is void as against public policy 13 because it created an undisclosed, unwaivable, and irreconcilable conflict of interest,” 1st Am. 14 Compl. (“FAC,” dkt. 47) ¶¶ 337–47; (2) fraudulent inducement, based on concealment, id. 15 ¶¶ 348–404; (3) breach of fiduciary duty, id. ¶¶ 405–28; (4) breach of the duty of loyalty, id. 16 ¶¶ 429–48; (5) “intentional legal malpractice,” id. ¶¶ 449–72; and (6) “negligent legal 17 malpractice,” id. ¶¶ 473–87. The factual allegations of Christopher Chamberlin’s first amended 18 complaint are similar to his original complaint, with relevant new allegations addressed in context 19 in the Court’s analysis below. 20 D.

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