Alling v. American Tool & Grinding Co.

96 F.R.D. 221, 37 Fed. R. Serv. 2d 1150, 1982 U.S. Dist. LEXIS 16487
CourtDistrict Court, D. Colorado
DecidedDecember 21, 1982
DocketNo. 79-K-1535
StatusPublished
Cited by3 cases

This text of 96 F.R.D. 221 (Alling v. American Tool & Grinding Co.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alling v. American Tool & Grinding Co., 96 F.R.D. 221, 37 Fed. R. Serv. 2d 1150, 1982 U.S. Dist. LEXIS 16487 (D. Colo. 1982).

Opinion

RULE 60(b) ORDER

KANE, District Judge.

Defendant Vogler and defendants Fair-cloth and Scognamillo have filed separate motions seeking relief under Rule 60(b). The motion filed by defendants Faircloth and Scognamillo adopts and incorporates defendant Vogler’s motion, exhibits and brief. These motions allege misconduct on the part of the defendants’ trial attorney.

Vogler’s argument is the same one proposed by defendants Faircloth and Scognamillo in their motion for new trial: denial of “fundamental fairness and due process of law by being inadequately and incompetently represented by counsel, Robert E. Olsen, who had such a conflict of interest in representing all of the defendants that the representation amounted to a lack of representation.” Olsen began his representation of Vogler on June 12, 1979. Vogler argues that from the face of the first pleadings, Olsen should have been aware of the conflict of interest problems inherent in representing all three parties, specifically due to the allegations by plaintiffs of (1) a conspiracy of the defendants; (2) the theory that the corporation was the alter-ego of the individual defendants; and (3) the allegations of fraudulent misrepresentations made by the defendants. Vogler says that if Olsen was not aware of the potential conflict from the face of the pleadings, he should have become aware of them upon the taking of the depositions of Vogler, Faircloth and Scognamillo. He argues that through these depositions it became obvious that these individuals, if involved at all, were involved in differing degrees.

When Vogler met Olsen for his deposition in November, 1980, Vogler maintains that he was not advised of any potential conflict of interest, and “Vogler advised Olsen that he did not like or desire to be tied with the other two codefendants. Olsen advised Vogler that personal difficulties would not solve the problem and that ‘they were in this together.’ At one time, Vogler alleges that Olsen advised him the plaintiffs were keeping Vogler as a defendant because they knew that he was the only defendant who had any assets and that in Olsen’s opinion there was no basis for personal liability against Vogler.” [Motion at page 3] In testimony Olsen denies this, but states he advised Vogler that his exposure was less than that of Scognamillo and Faircloth.

Vogler alleges that the conflict became increasingly obvious during settlement negotiations and at the trial. He says that Olsen managed to have him absent when [223]*223Scognamillo and Faircloth testified and to have Scognamillo and Faircloth absent when Vogler testified. Vogler characterizes this as “a curious highlight of the conflict.”

After the trial, Olsen withdrew from representing any of the defendants prior to submitting the written summations which were ordered. Olsen then, according to Vogler, “sought to submit those arguments in writing and charging each of the defendants individually.” Vogler then argues that the argument and proposed findings “submitted on behalf of Mr. Vogler, apparently by Olsen, refers minimally to putting a distance between Vogler, individually, and the actions of Faircloth and Scognamillo. Obviously, someone who represented Vogler, individually, who did not also represent Faircloth and Scognamillo would have argued somewhat more vehemently Vogler’s individual position.” [page 4 of the motion]

I have already determined that Olsen’s actions in withdrawing his appearance, then ghost-writing the separate written summations and then attempting to re-enter his appearance on behalf of Vogler were improper. I indicated at the close of the hearing and now find that there was a clear conflict of interest in Olsen’s representation of the three individual defendants and the corporation. Further, as Olsen admits, at no time did he ever advise any of the defendants of the conflict of interest or advise them to obtain other counsel or obtain their consent to his continued representation in spite of the easily perceptible conflict.

Vogler filed a notice of appeal on July 7,1982. Accordingly, I am divested of jurisdiction to act on his Rule 60(b) motion. Brasier v. U.S., 229 F.2d 176, 177 (10th Cir.1955). In order to rule favorably on such a motion I must await a remand from the Court of Appeals, but I can deny the motion without such a remand. Aune v. Reynders, 344 F.2d 835 (10th Cir.1965). Vogler has filed a motion to remand with the Court of Appeals.

Vogler asserts that “[t]here is no other vehicle other than Rule 60(b)(6) to pass upon issues involving the gross negligence of counsel at the trial level affecting the judgment itself.” [page 5 of brief] In Link v. Wabash Railroad Co., 370 U.S. 626, 82 S.Ct. 1386, 8 L.Ed.2d 734 (1962), the Supreme Court noted that generally a party who freely selects an attorney cannot avoid the consequences of the acts or omissions of that attorney. Mr. Justice Harlan wrote:

There is certainly no merit to the contention that dismissal of petitioner’s claim because of his counsel’s unexcused conduct imposes an unjust penalty on the client. Petitioner voluntarily chose this attorney as his representative in the action, and he cannot now avoid the consequences of the acts or omissions of this freely selected agent. Any other notion would be wholly inconsistent with our system of representative litigation, in which each party is deemed bound by the acts of his lawyer-agent and is considered to have ‘notice of all facts, notice of which can be charged upon the attorney.’

370 U.S. at 634, 82 S.Ct. at 1390.

There is authority for the proposition that relief can be obtained under Rule 60(b) where the conduct of counsel is grossly negligent. L.P. Steuart, Inc. v. Matthews, 329 F.2d 234, cert. denied, 379 U.S. 824, 85 S.Ct. 50, 13 L.Ed.2d 35 (1964), Garrett v. Osborn, 164 Colo. 31, 431 P.2d 1012 (1967). Accordingly, I will make findings touching upon the adequacy of Olsen’s representation of the defendants. I am somewhat reluctant to do so because I think the issues raised should be litigated in a separate action which does not require the plaintiffs at bar to endure endless delay and interminable litigation. If the present defendants seek relief for the conduct of their attorney it should be sought in another forum.

The Third Circuit said in Boughner v. Secretary, H.E.W., 572 F.2d 976 (1978), that

[t]he general purpose of Rule 60, which provides for relief from judgments for various reasons, is to strike a proper balance between the conflicting principles that litigation must be brought to an end and that justice must be done. Generally, a motion brought pursuant to Rule 60 [224]*224is addressed to the sound discretion of the Court and is reviewable on appeal only for abuse of discretion. However, the District Court has no discretion in considering motions predicated on the voidness of the original judgment, fraud, or other extraordinary circumstances such as the unconstitutionality of the statute, upon which the judgment was based. This Court has also cautioned that relief from a judgment under Rule 60 should be granted only in exceptional circumstances.

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Related

Tapia v. City of Albuquerque
10 F. Supp. 3d 1171 (D. New Mexico, 2014)
Alling v. American Tool & Grinding Co.
101 F.R.D. 364 (D. Colorado, 1984)
Dunton v. County of Suffolk
580 F. Supp. 974 (E.D. New York, 1983)

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Bluebook (online)
96 F.R.D. 221, 37 Fed. R. Serv. 2d 1150, 1982 U.S. Dist. LEXIS 16487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alling-v-american-tool-grinding-co-cod-1982.