Allstate Ins. Co. v. Bowne

817 So. 2d 994, 2002 WL 1059774
CourtDistrict Court of Appeal of Florida
DecidedMay 29, 2002
Docket4D01-4192
StatusPublished
Cited by11 cases

This text of 817 So. 2d 994 (Allstate Ins. Co. v. Bowne) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allstate Ins. Co. v. Bowne, 817 So. 2d 994, 2002 WL 1059774 (Fla. Ct. App. 2002).

Opinion

817 So.2d 994 (2002)

ALLSTATE INSURANCE COMPANY; and Michael Collette, Petitioners,
v.
Susan Myles BOWNE, Respondent.

No. 4D01-4192.

District Court of Appeal of Florida, Fourth District.

May 29, 2002.

*995 Sheila M. Cesarano and Rene J. Gonzalez-Llorens of Shutts & Bowen LLP, Miami, for petitioners.

Jane Kreusler-Walsh and Rebecca J. Mercier of Jane Kreusler-Walsh, P.A., and Gregory W. Coleman of Burman, Critton, Luttier & Coleman, West Palm Beach, and G. Russell Petersen of G. Russell Petersen, P.A., Vero Beach, for respondent.

*996 FARMER, J.

Petitioners seek common law certiorari to disqualify opposing lawyers, relief that was rejected by the trial judge. Because the motion below demonstrated no basis to grant such extraordinary relief, we deny the petition outright.

The underlying lawsuit involves a claim by a former employee of Allstate Insurance Company (Allstate) contending that she was terminated on account of age and other impermissible reasons. Shortly after the lawsuit was filed, plaintiffs attorney communicated with a former managerial level employee (witness) of Allstate who is now employed—at least nominally— by an entity called Allstate Financial Services (Financial). The witness ultimately gave a formal statement (statement) under oath to plaintiffs attorney.

Allstate's basis for disqualifying claimant's lawyer is that the communication violated Disciplinary Rule (DR) 4-4.2.[1] That Rule bars a lawyer from having communications with managerial level employees of an opposing entity represented by counsel. Allstate supported its motion to disqualify counsel with affidavits. As the trial court characterized the content of Allstate's affidavits:

"In summary these affidavits state that [Financial] does not have any employees and, through an agreement, [Allstate] assigns its employees to [Financial]. As a result, [witness's] wages; employee benefits (health, dental, life, and disability insurance); pension plan, and company car are all paid by [Allstate]. This relationship under which Allstate provides employees to [Financial] is contractual. This service agreement provides that [Allstate] will provide facilities, employees and services to its subsidiaries for the purposes of running those subsidiaries."

According to the affidavits, while it is true that witness is now employed by Financial rather than Allstate directly, the hierarchy of the enterprise under the Allstate banner of related entities is such that witness is really controlled by Allstate.

The trial court also explained that the business card of witness states that he is a Field Compliance Principal and Registered Principal for Financial. The court pointed out that the filing with the Secretary of State shows Allstate is a foreign corporation with its principal address in Illinois. The filing for Financial shows that its principal address is in Nebraska.

With regard to the conduct of plaintiffs counsel in undertaking communications with witness, the trial judge found:

"Prior to the meeting [counsel] reviewed the Rules of Professional Conduct, the bar opinions and the case law interpreting these rules including H.B.A. Management, Inc. v. [Estate of] Schwartz, 693 So.2d 541 (Fla.1997). [Counsel] also called the Florida Bar Ethics Hotline and secured an opinion that an ex parte interview of a former employee was not an ethical violation."

The court also found that at the beginning of the statement counsel asked the following:

"Q. Where are you employed?
"A. I am employed for Allstate Financial Services, LOC
"Q. Is that a separate and distinct company from Allstate Insurance Company. *997 The company for which Susan Myles was employed?
"A. It's a wholly owned subsidiary of the Allstate Insurance Corporation."

Summing up its holding, the trial court said:

"At the time that [counsel] took the statement, [witness] was working as a manager for [Financial] and as such [counsel] had no reason to believe that [witness's] statements could constitute admissions on behalf of [Allstate]. As to the allegations of possible confidential information being given by [witness] the defendants do not point to any specific information but simply allege that this might have happened."

The court thereupon denied the motion for disqualification.

As the trial judge pointedly understood, the gist of the problem is not whether the line between the separate entities involved in the employment of the witness is blurred enough that he can be thought technically still an employee of the original employing entity, Allstate. In short, it does not matter that the witness, though nominally employed by Financial, was actually under the control of Allstate. If it were, entities could bury the identity of the actual employer and controlling entity under layers of corporate affiliates, thereby seeking to insulate witnesses from presuit investigation and information gathering. Such a circumstance would be contrary to the civil justice system's preference for access to information that is not privileged.

The issue is whether the lawyer having the communication had a reasonable basis to believe that the witness was now employed by a different entity than the party sued, so as to place the matter under H.B.A. Management Inc. v. Estate of Schwartz, 693 So.2d 541 (Fla.1997). H.B.A. Management held that DR 4-4.2 does not apply when the witness is no longer employed by the opposing entity in the lawsuit. In our case today, the trial judge found from the affidavits and statement taken from the witness that the lawyer in good faith believed that the witness was now employed by a different entity and thus no longer had any power to make admissions on behalf of Allstate. Because the witness was not in a management position with Allstate, he was no longer able to make admissions binding on Allstate in his communications with plaintiff's counsel. Hence under H.B.A. Management, DR 4-4.2 could not be violated by the communications.

In our opinion the good faith of the lawyer taking the statement from the witness is significant as to any possible disqualification under DR 4-4.2—particularly in the absence of a showing of disclosure of confidential information that would not ordinarily be subject to discovery. After all, we recognize a "good faith exception" to the exclusionary rule in criminal cases, thereby allowing the use of evidence gathered in violation of the Fourth Amendment, so long as the police officer in question acted under an objectively reasonable, good faith belief in the authority to seize the evidence. See United States v. Leon, 468 U.S. 897, 104 S.Ct. 3405, 82 L.Ed.2d 677 (1984) (exclusionary rule should be modified in case of objectively reasonable good-faith reliance on search warrant); Illinois v. Krull, 480 U.S. 340, 107 S.Ct. 1160, 94 L.Ed.2d 364 (1987) (evidence need not be excluded that was obtained by police in good faith reliance on state statute later found to be unconstitutional); Arizona v. Evans, 514 U.S. 1, 115 S.Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
817 So. 2d 994, 2002 WL 1059774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allstate-ins-co-v-bowne-fladistctapp-2002.