Dhaliwal v. Dhaliwal

184 So. 3d 773, 2015 WL 7566289
CourtLouisiana Court of Appeal
DecidedNovember 25, 2015
DocketNos. 49,973-CA, 49,974-CA, 50,355-CA
StatusPublished
Cited by13 cases

This text of 184 So. 3d 773 (Dhaliwal v. Dhaliwal) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dhaliwal v. Dhaliwal, 184 So. 3d 773, 2015 WL 7566289 (La. Ct. App. 2015).

Opinions

WILLIAMS, J.

1 ¶ Plaintiffs and plaintiffs-in-intervention, Robert A. Lee and Sedric E. Banks, appeal the judgments of two trial courts, dismissing their lawsuits against Kailash Dhaliwal, Karminderdal S. Dhaliwal and Dhillon Sookham. They also appeal the judgment which granted a motion to disqualify them as attorneys for Mahinderpal Dhaliwal and Chapter 7 Bankruptcy Trustee, Clifford Conine. For the following reasons, we affirm.

FACTS

These consolidated cases arise from a family dispute that erupted after the patriarch of the family, Manmohan Singh Dhaliwal (“Manmohan”), passed away. On December 28, 2010, Manmohan’s widow, Kailash Dhaliwal (“Kailash”), retained Robert Lee as her attorney and successfully filed a petition to be appointed as ad-ministratrix of Manmohan’s succession. She also retained Sedric Banks to represent her in a claim that she and Manmo-han were equal partners, along with their son, Karminderdal Dhaliwal (“Karl”), in a joint venture which owned multiple convenience stores in Ouachita Parish.

On February 9, 2011, Kailash, represented by both Lee and Banks, filed a lawsuit, individually and in her capacity as administratrix . of Manmohan's estate, against Karl and his wife, Dhillon Sook-ham (“Sookham”). Kailash sought to recover a two-thirds interest in the alleged family joint venture. In response, Karl and Sookham filed a motion for summary judgment and an exception of prescription which the trial court granted.

On appeal, this Court reversed the trial court’s rulings and remanded lathe case to the trial court for further proceedings. Dhaliwal v. Dhaliwal (La.App.2d Cir.9/11/13), 124 So.3d 470, writ denied, 2013-2931 (La.2/21/14), 134 So.3d 1165.

However, while the matter was pending in this Court, Kailash sent a handwritten letter to Banks, dated September 5, 2013. In the letter, she stated:

I no longer wish to pursue the lawsuit filed on my behalf against my son [and] daughter-in-law, Karminderdal Dhaliwal [and] Dhillon Sookham[.] [Y]ou are instructed to contact Mr. Charlie Heck to dismiss the lawsuit on my behalf. I am a letter [sic] to Mr. Bob Lee instructing him to do the same on behalf of my late husbandfs] estate.

Thereafter, Kailash refused to meet with Lee and Banks. On September 11, 2013, the same day the opinion of this Court was rendered, Banks had a letter hand-delivered to Kailash. In that letter, he expressed his confusion regarding Kailash’s instructions to dismiss the lawsuit and advised her that her instructions were contrary to her interests. He also advised her that Charlie Heck, counsel for Karl and Sookham, lacked the authority to dismiss the lawsuit. Banks further stated, “I will not be a party to asking opposing counsel, Mr. Heck, to either take or assist action(s) which I know to be contrary to your personal interest and in violation of legal dutyfies) which you owe as succession representative.”

Additionally, Banks informed Kailash that Lee had not received a letter from her. He also expressed his suspicion that Kailash was a victim of “fraud, undue influence and duress” because Karl and Sookham were her caretakers. He instructed her to contact his office to schedule a time to discuss this Court’s opinion and to explain the inherent conflicts in her I «instructions to dismiss the lawsuit.

[777]*777That same day, Kailash responded by sending another handwritten letter to Banks. She stated:

I reiterate to you my desire to dismiss the lawsuit against my son and my daughter-in-law. It is unnecessary for me to meet with you. Please file whatever is necessary for this to be dismissed. I no longer require your services.

Meanwhile, at some point, the other son of Kailash-and Manmohan, Mahinderpal Dhaliwal (“Paul”), entered Chapter 7 bankruptcy. Lee and Banks petitioned the U.S. bankruptcy court, seeking to be appointed as counsel for Paul and special attorney for the Chapter 7 Bankruptcy Trustee, Clifford Conine. Following a hearing held on November '21, 2018, the petition was granted. This appointment permitted Lee and Banks to serve as special counsel in the investigation, litigation, recovery and liquidation of any interest Paul, and by extension, the bankruptcy trustee, may have in the Dhaliwal lawsuit.1

By January 2014, Lee and Banks still had not withdrawn as counsel for Kailash and the Succession in the Dhaliwal ease. Consequently, Kailash retained the services of another attorney, Margaret Blackwell. On January 16, 2014, Blackwell sent separate letters to Lee and Banks, informing them that she would be representing Kailash in pursuing the Succession’s interest in the Dhaliwal lawsuit. She asked both attorneys to' execute the motion to substitute counsel of record which was attached to the letters.

Lee responded by letter, expressing a desire to meet with Blackwell |4“to discuss legal and professional issues likely to manifest in the [proceedings], including fiduciary duties in respect to the rights of [Man-mohan]’s son and heir, Paul Dhaliwal.” Lee informed Blackwell that Kailash was possibly “confused or under some untoward pressure!.]”

Banks also responded by letter. He informed Blackwell that he had represented Kailash in her individual capacity, rather than in her capacity as administratrix of the Succession, in the Dhaliwal lawsuit. He suggested that a status conference be scheduled to discuss matters, including the substitution of counsel for Kailash, prior to dismissing her claims against Karl and Sookham. He ended by stating, “Bob and I are perfectly willing to withdraw as counsel with proper permission and instructions from the court to protect the client’s interest as provided in Rule 1.14(b).”

On January 31, 2014, Blackwell, on behalf of the Succession, filed an ex parte motion to substitute counsel, alleging that Kailash “believe[d] that it [was] in the best interest of the Succession” to terminate Lee as counsel.. She also stated that Kai-lash did “not wish for substituted counsel to meet” with Lee to discuss the matter. A hearing was held on the motion. Prior to hearing arguments from counsel, the trial judge met with Kailash privately. Thereafter, the trial court granted the motion to substitute counsel, stating:

The Court, having considered the Motion to Substitute Counsel of Record, the arguments of counsel, and after having examined Kailash Dhaliwal, in her capacity as the administratrix of the Succession of Manmohan S. Dhaliwal, in an in camera interview, and after having found that Kailash Dhaliwal has full mental capacity and is not unduly influenced!.]

[778]*778The court also denied Lee’s motion to prohibit Kailash from dismissing the ^Succession’s claims against Karl and Sookham. Thereafter, Kailash filed a motion to dismiss her claims asserted in the Dhaliwal case, which was granted by the court. To date, the claims filed by Kailash as administratrix of the Succession have not been dismissed.2

On May 2, 2014, Banks and Lee filed a “Petition to Intervene and Assert both Direct and Oblique Actions and Alternative Relief for Unjust Enrichment”- in the Dhaliwal lawsuit. They sought to intervene to assert legal demands against their former client, Kailash, both individually and as administratrix of the Succession, “for breach of contract, bad faith performance of contract, conspiracy and legal claims of quantum, merit,

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