Douglas M. Butz | Shareholder

Areas of Practice

A founding shareholder of Butz Dunn & DeSantis, Mr. Butz's practice focuses on complex business and professional liability litigation with an emphasis on business and commercial litigation, professional liability, director and officer liability, environmental and toxic tort, unfair competition and other business torts, product liability, inverse condemnation, and public agency liability. His clients include local and national law firms, professional liability insurers, financial institutions, national insurance brokerages, public agencies, manufacturers, and publicly traded and privately-held companies. Mr. Butz is a Fellow of the American College of Trial Lawyers and has tried more than 95 civil cases to jury verdict in courts of unlimited jurisdiction.

Representative Matters

Business and Commercial Litigation

Engaged by municipal agency to defend breach of contract and inverse condemnation action brought by a publicly-traded aerospace manufacturing company. The dispute arose from a commercial lease transaction involving a large parcel of land owned by the agency and leased to the manufacturing company. The claimant corporation sought damages of $32 million from the agency. A defense verdict was rendered in favor of the client-agency on all claims asserted by the claimant corporation after a three-week jury trial. The trial court judgment in favor of the client-agency was subsequently affirmed on appeal.
Engaged by a public agency to pursue a cross-complaint for breach of contract damages against a lessee of the public agency. A jury verdict of $21.3 million was obtained on behalf of the public agency and against the lessee. The judgment was subsequently affirmed on appeal along with approximately $4 million in post-judgment interest.
Engaged to defend multi-national corporation in federal court action brought by foreign corporation arising from build-out of an Argentine telecommunication system. Damages were sought in excess of $50 million for fraud and breach of contract.
Defended bank in lender liability and fraud action brought by real estate developer following loan default and bankruptcy of venture. Defense verdict rendered in favor of client-bank on all claims and causes of action.
Represented domestic corporation in an international arbitration proceeding initiated by a Mexican corporation for breach of contract. Dispute arose from cross-border transactions relating to labor service agreements for manufacture of sound equipment in Mexico.
Engaged to defend law firm in consolidated class action professional liability and securities fraud cases in state and federal court over issuance of tax-exempt municipal bonds. Class members seek damages in excess of $75 million.
Representation of a national privately-held veterinary practice in litigation involving claims of unfair business practices and false advertising under the Lanham Act.
Defended Canadian hydroelectric generator and marketing subsidiary in coordinated class action litigation in state and federal courts. Class plaintiffs sought monetary damages in excess of $100 million for violation of California antitrust and unfair competition laws. Obtained dismissal of generator-client from action on basis of foreign sovereign immunity.

Professional Liability Defense

Defended international accounting firm in coordinated class action securities and professional liability litigation in state and federal courts. Litigation arose from alleged accounting fraud at a publicly traded business software company. The alleged fraud resulted in restatements of financial statements for multiple reporting periods. The class plaintiffs sought damages in excess of $100 million.
Defended international law firm in consolidated professional liability actions brought by FDIC and bankruptcy trustee of failed savings and loan association. Claims arose from law firm’s prior defense of the savings and loan in underlying securities class action and derivative litigation. The consolidated claims brought against law firm client exceeded $140 million.
Defended national law firm in a professional liability action brought by limited partners in a real estate limited partnership that was represented by the law firm. Claimants allege they were forced out of the partnership and lost their ability to acquire the property by way of their right of first refusal, thereby sustaining damages of $18 million. Obtained dismissal of client from action by way of motion for summary judgment.
Representation of a national law firm in a professional liability action brought by a health care staffing company. The company claimed the law firm negligently litigated trade secret cases and billed excessively for its work. The case was settled after an eight-week jury trial.
Representation of a law firm in a professional liability action brought by limited partners of real estate located in Texas. The claimants alleged the law firm jointly represented both general and limited partners without conflicts waiver, and thereafter acted to advance the interests of the general partner over those of the limited partners. Plaintiffs claimed damages of $12 million. A defense verdict was rendered in favor of the law firm after a two week jury trial. The judgment in favor of the law firm was affirmed on appeal.
Representation of an international accounting firm in a professional liability action brought by a sports memorabilia company. The action arose from advice given by the accounting firm concerning tax avoidance strategies which were later disqualified by the IRS and resulted in a significant tax liability and penalties to the plaintiff.
Representation of three former Heller Erhman partners in a judicially-initiated contempt proceeding arising from e-discovery violations in the Qualcomm v. Broadcom litigation. Each client was absolved of responsibility and was dismissed from the proceeding which is still continuing as to others.
Engaged to defend international law firm in a professional liability claim brought by a California resort developer arising from acquisition of real property in Mexico for a proposed resort development. Litigation involved proceedings in California and Mexican courts.
Engaged to defend international law firm in malicious prosecution and false arrest case initiated by California resident following his arrest, conviction and imprisonment in Mexico for receiving stolen property. Obtained dismissal of client from action on basis of forum non conveniens. Dismissal upheld on appeal.
Engaged to represent sitting Superior Court judge in judicial investigation conducted by the California Commission on Judicial Performance.
Represented major Orange County law firm in federal court fee disgorgement action initiated by the SEC and the court-appointed receiver of a bankrupt entity under investigation by the SEC.
Multiple representations of California physicians in medical negligence actions seeking damages for personal injury and wrongful death. Numerous cases were litigated through jury trials. Each trial resulted in a defense verdict in favor of the physician.

Public Entity and Municipality Law

Representation of the City of San Diego in an inverse condemnation and public nuisance action arising from the Mount Soledad landslide. The action was brought on behalf of 115 plaintiffs seeking damages for destruction of their homes, loss of personal property, and diminution of market value of their property. The action was brought on behalf of the owners of 65 homes which were either destroyed or damaged in the landslide. Plaintiffs claimed the landslide was caused by the degradation and failure of the City-owned and maintained water infrastructure system. Plaintiffs globally demanded settlement in the amount of $60 million. Judgment was entered in favor of the City and against all plaintiffs after a five-week trial.
Engaged by municipal agency to defend breach of contract and inverse condemnation action brought by a publicly-traded aerospace manufacturing company. The dispute arose from a commercial lease transaction involving a large parcel of land owned by the agency and leased to the manufacturing company. The claimant corporation sought damages of $32 million from the agency. A defense verdict was rendered in favor of the client-agency on all claims asserted by the claimant corporation after a three-week jury trial. The trial court judgment in favor of the client-agency was subsequently affirmed on appeal.
Engaged by a public agency to pursue a cross-complaint for breach of contract damages against a lessee of the public agency. A jury verdict of $21.3 million was obtained on behalf of the public agency and against the lessee. The judgment was subsequently affirmed on appeal along with approximately $4 million in post-judgment interest.
Defended municipal agency in a breach of contract action arising from a marine dredging contract in San Diego Bay. Obtained defense verdict in favor of agency on all claims brought by contractor after a two-week jury trial.
Defended three law enforcement officers and government agency employer in wrongful death action brought by family of man fatally wounded in law enforcement shooting. Family sought state law wrongful death damages as well as damages for violation of decedent’s federal civil rights. Defense verdict rendered in favor of all clients on all claims after lengthy jury trial.
Defended municipal agency and two law enforcement officers in a wrongful death action arising from arrest and detention of an individual at San Diego International Airport. Claimants sought wrongful death damages and damages for violation of federal civil rights. Obtained defense verdict in favor of all clients on all claims after a three-week jury trial.
Representation of a publicly-owned transportation district in catastrophic personal injury (including brain injuries and traumatic amputation of limbs) and wrongful death actions arising from the operation of a municipal bus system. Several of the actions were tried and resulted in defense verdicts in favor of the agency.

Environmental and Toxic Tort

Defended municipal agency in toxic tort litigation brought by six workers exposed to toxic contaminants on a site owned and maintained by agency. The claims included bodily injury claims and a wrongful death claim. Defense verdict rendered in favor of client-agency on all claims after six-week jury trial. Additionally, obtained full reimbursement of all attorneys’ fees and litigation costs pursuant to cross-complaint for indemnity against third parties.
Engaged by municipal agency to prosecute action in federal district court against former lessee of agency for recovery of environmental investigation and remediation costs under CERCLA and other cost-recovery statutes.

Tort and Product Liability

Defended a life insurance company in breach of contract and bad faith litigation arising from denial of life insurance benefits. Obtained defense verdict after three-week jury trial.
Defended a casualty insurance company in breach of contract and bad faith litigation arising from denial of property claims. Obtained defense verdict in favor of insurer after two-week jury trial.
Representation of a national surplus lines insurance broker in an errors and omissions claim brought by a Southern California condominium developer. The action sought damages for the negligent failure to place correct insurance coverage on the project. Plaintiff claimed the absence of coverage significantly impeded the development and sale of the project.
Representation of a national insurance broker in an errors and omissions action brought by a national real estate developer. The action sought damages for negligent failure to obtain insolvency drop-down coverage.
Defended a manufacturer of stainless steel products used in prison facilities in a products liability action. Dispute arose from failure of products utilized in a state-owned prison facility. Obtained defense verdict in favor of client-manufacturer after a three-week jury trial.
Defended manufacturer of materials handling equipment in a wrongful death and products liability action. Obtained defense verdict in favor of client-manufacturer after a two-week jury trial.

Email

dmbutz@butzdunn.com

Practices

Business and Commercial Litigation
Environmental and Toxic Tort
Professional Liability Defense
Public Entity and Municipality Law
Tort and Product Liability

Education

Mr. Butz received a Bachelor of Science degree in Business Administration from San Diego State University in 1971 and received his law degree in 1974 from the University of Southern California School of Law.

Admissions

Admitted to practice, all courts of the State of California
Admitted to practice, United States Court of Appeals for the Ninth Circuit
Admitted to practice, United States District Court for the Southern District of California
Admitted to practice, United States Supreme Court

Memberships

American College of Trial Lawyers (inducted in 1991)
American Board of Trial Advocates (inducted in 1981) (President of San Diego Chapter 1994-1995)
International Association of Defense Counsel
Association of Business Trial Lawyers
Fellow, American Bar Association
State Bar of California
Listed in Southern California Super Lawyers, 2007 to the present (practice areas of commercial litigation, professional liability and personal injury)
American Inn of Court, Master of the Bench
San Diego County Bar Association (Former Director and Vice President)
San Diego Inn of Court (President 1990)
Litigation Counsel of America
Professional Liability Underwriting Society

Professional Recognition

Listed in "The Best Lawyers in America" continuously since 1991 (practice areas of commercial litigation, professional liability, and personal injury)
Rated "AV" by Martindale Hubbell, 1982 to the present

Publications & Speaking Engagements

Faculty member of the College of Advocacy of the San Diego Inn of Court, 1984-2001. Teaching of various continuing education programs sponsored by the California Continuing Education of the Bar. Frequent speaking on topics related to professional liability litigation and trial practice.