California Court of Appeal Affirms Dismissal of Legal Malpractice Suit arising from conduct of a lawyer occurring at a Mediation
California Court of Appeal Affirms Dismissal of Legal Malpractice Suit arising from conduct of a lawyer occurring at a Mediation
April 3, 2025 — California — In a significant ruling issued on April 3, 2025, the California Court of Appeal, Sixth Appellate District, affirmed the dismissal of a legal malpractice lawsuit in Beach v. Johnson, Rovella, Retterer, Rosenthal & Giles (H051123) __ Cal.App.6th ___ (2025 WL 1000402), holding that the state's strict mediation confidentiality laws preclude the use of key evidence—even where attorney negligence is undisputed.
The plaintiff, William Beach, had filed a malpractice suit against his former law firm, alleging that during mediation in an underlying dispute, his attorney negligently advised him to accept a $2 million settlement based on the erroneous belief that he could invest the funds in an annuity yielding approximately $10,000 per month for life. Beach claimed the advice fell below the standard of care and caused him financial harm.
However, in a unanimous opinion, the appellate court ruled that because the allegedly negligent advice was “materially related to mediation,” it was inadmissible under California’s mediation privilege, as set forth in Cassel v. Superior Court (2011) 51 Cal.4th 113. The court emphasized that the privilege, though potentially harsh in its application, is absolute and not subject to exceptions based on fairness or the quality of legal representation.
The panel acknowledged the "inequity of this result on the undisputed facts," noting that even if the attorney's conduct clearly fell below the applicable standard of care, the plaintiff was barred from introducing the advice as evidence in his malpractice action. Without admissible evidence to establish causation, the court held that the trial court properly dismissed Beach’s case on summary judgment.
This decision underscores the broad and often unforgiving scope of California's mediation confidentiality statutes. The decision reaffirms a strict reading of Cassel and could have far-reaching consequences for clients seeking recourse against attorneys for mediation-related malpractice.
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