9th Circuit reverses dismissal of Hillbroom’s case vs lawyer

The U.S. Court of Appeals for the Ninth Circuit has reversed the federal court decision that dismissed for lack of personal jurisdiction the lawsuit filed by Junior Larry Hillbroom against his former lawyer, Barry J. Israel, who is reportedly now based in Vietnam. 
In a memorandum on Friday, the Ninth Circuit judges ruled that Hillbroom established that Israel deliberately “engaged in significant activities” within the CNMI.

The Ninth Circuit judges said the amended retainer agreement required Israel to represent Hillbroom in CNMI legal proceedings and to protect Hillbroom’s interests in assets located in the Commonwealth.

The judges remanded the case to the federal court.

In January 2012, U.S. District Court for the NMI Chief Judge Ramona V. Manglona granted Israel’s motion to dismiss the claims against him.

Manglona pointed out that Hillbroom’s lawsuit was filed in 2010, nine years after Israel moved away from the CNMI and ceased meaningful contacts. She ruled that the court lacks general jurisdiction over the lawyer.

Hillbroom appealed, asking the Ninth Circuit to reverse Manglona’s ruling.

In their order, the Circuit judges said that Israel directed his activities at the CNMI because the amended retainer agreement executed in Guam provided Israel with a greater financial stake in property located in the CNMI.

The judges said the significance of those forum ties is not negated simply because Hillbroom was not a resident of the CNMI when he filed suit.

Second, Hillbroom’s claim “arises out of or relates to the defendant’s forum-related activities,” the Circuit judges said.

The judges said that Israel’s promised performance in the CNMI was an essential feature of the amended retainer agreement and is the basis for fees collected under the agreement for which Hillbroom now seeks recoupment.

Finally, the judges said, Israel has not established that asserting jurisdiction would be unreasonable; Israel is a U.S. citizen who injected himself into CNMI affairs; exercising jurisdiction would not conflict with the sovereignty of Israel’s current residence (Vietnam); the district court can resolve this dispute efficiently; and that hearing the case in the CNMI can provide convenient and effective relief.

Hillbroom is the son of the late business tycoon Larry Lee Hillblom. Israel was one of the lawyers who represented Hillbroom in the probate case.

Hillbroom is suing Israel for allegedly conspiring to inflate the attorney’s contingency fee when Hillblom’s fortune was still undergoing probate proceedings.

Israel asked the federal court to dismiss the case against him for lack of personal jurisdiction, for lack of standing, for improper venue, and other grounds.