National University Paralegal Studies Program

Poor Lawyering is Expensive

Attorneys failed to read the receipt of the Walmart purchase in question before filing lawsuit against Walmart. Attorneys were ordered to pay Walmart $625,000 in sactions to Walmart.

The Case: Eddie Golikov v. Walmart Inc. (Case No. 2:24-cv-08211).

The "Flub": Plaintiffs' attorneys from the firm Dovel & Luner LLP filed a class action alleging false advertising over Walmart's avocado oil. However, six months into litigation, it was discovered that the specific purchase in question happened online rather than in-store. Because online purchases trigger a mandatory arbitration clause, the litigation was a non-starter.

The Sanctions: Due to what the panel described as "incredible sloppiness" for failing to verify the receipt earlier, the district judge reversed class certification and ordered the partners to pay nearly $625,000 in attorney fees to Walmart.

The 9th Circuit Hearing: The lawyers are currently appealing the fine, arguing it causes a "chilling effect" on plaintiffs' counsel, while the appellate panel is determining if the $625,000 punishment is excessive or justified.

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