Artromick International, Inc. v. Drustar, Inc.

134 F.R.D. 226, 1991 U.S. Dist. LEXIS 6242, 1991 WL 18785
CourtDistrict Court, S.D. Ohio
DecidedJanuary 31, 1991
DocketNo. C2-86-0554
StatusPublished
Cited by6 cases

This text of 134 F.R.D. 226 (Artromick International, Inc. v. Drustar, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Artromick International, Inc. v. Drustar, Inc., 134 F.R.D. 226, 1991 U.S. Dist. LEXIS 6242, 1991 WL 18785 (S.D. Ohio 1991).

Opinion

OPINION AND ORDER

TERENCE P. KEMP, United States Magistrate Judge.

I. INTRODUCTION

This is a patent and service mark case which also includes various state law claims and counterclaims. It was filed more than four years ago and, as evidenced by the size of the court’s file (which contains 106 separate filings to date, not including depositions), has been actively litigated. For most of that time, Drustar, Inc., one of the defendants, was represented by Kevin R. McDermott and other attorneys from the law firm of Murphy, Young and Smith or its subsequent merger partner, Squire, Sanders and Dempsey.

Attorney McDermott left Squire, Sanders in January, 1990 to become a partner in the firm of Schottenstein, Zox and Dunn (Schottenstein). Harvey Dunn, one of the partners in that firm, had previously done legal work for both Artromick International, Inc., the plaintiff in this case, and its president, J. M. Romick. However, Schottenstein accepted the representation of Drustar through Mr. McDermott. Artromick protested that action on July 31, 1990 by moving to disqualify Schottenstein, citing ethical grounds. Drustar responded to the motion on August 20, 1990. Subsequently, depositions were taken from Mr. Romick, Mr. Dunn, and Kathy Nunamaker, a third-party witness. The parties elected to forego an evidentiary hearing on this matter, and submitted it on the depositions, briefs, and oral argument held on December 20, 1990. For the reasons that follow, the motion to disqualify will be denied.

II. THE FACTS

The following facts are taken from the depositions, declarations and affidavits submitted by the parties, and are not substantially in dispute. The present controversy began when Mr. McDermott joined the Schottenstein firm. As is customary, Mr. McDermott told Schottenstein which clients and what litigated matters he would bring with him, and Schottenstein checked to make sure that its involvement in those legal matters would not violate any ethical duties it owed to present or former clients. That check disclosed that Schottenstein had done work for Artromick and Mr. Romick in the past, but the firm concluded that its [228]*228relationship with them had terminated, and that there was no other barrier to its representation of Drustar.

As a general rule, representing a present client in litigation against a former client is ethically acceptable unless the services rendered to the former client are substantially related to the subject of the present litigation. Plaintiffs do not challenge Schottenstein’s conclusion that the work done for them by Mr. Dunn is unrelated to this lawsuit. Their motion is based on the assertion that they were still Schottenstein clients in January, 1990.

Artromick first retained Schottenstein to do legal work in 1986. The bulk of that work related to construction of Artromick’s new corporate headquarters. The construction project, and most qf the associated legal work, were completed in the Fall of 1987, although a minor amount of legal services related to that project carried over into 1988.

While that work was ongoing, Artromick also asked Schottenstein to do some general corporate work concerning the company’s profit sharing plan and its insurance needs. Schottenstein acquired the original Artromick corporate minute book at some point, and also acquired the originals of some of Mr. Romick’s estate planning documents, although no work on such matters was requested in either 1986 or 1987. Schottenstein billed Artromick $21,237.00 in 1986 and $7,128.00 in 1987.

1988 was the last year that Schottenstein did any work for either Artromick or Mr. Romick. In March, Schottenstein billed Artromick for $500.00, which was not for work done by Schottenstein, but apparently by a Florida law firm to whom Schottenstein had referred Mr. Romick. The work related to a condominium in Florida. In a separate March, 1988 invoice, Schottenstein billed Artromick $20.90 for reviewing a letter from the City of Columbus relating to a flood plain map revision. What occurred next is the key to deciding if the relationship between Schottenstein and either or both plaintiffs continued beyond 1988.

In late May, 1988, Mr. Dunn and Mr. Romick had lunch. They also toured Artromick’s new facility. It appears that they did not interpret the nature or purpose of the meeting in the same way. According to a letter that Mr. Romick later wrote, he wanted to meet with Mr. Dunn to see if his estate plan needed to be updated in light of changes in the tax laws. However, Artromick was billed for $785.00 for various tasks relating to acquiring and reviewing profit sharing plans and tax and estate matters. Mr. Romick did not pay the bill. Mr. Dunn did not aggressively pursue collection, apparently concluding that Mr. Romick was simply setting the stage for further disputes about billings for legal work. Mr. Dunn testified that he let the matter drop but resolved not to do any more work for Mr. Romick or Artromick. With the exception of amending Mr. and Mrs. Romick’s trust agreements in August, 1988 at Mrs. Romick’s request, for which Mr. Romick was billed $191.72, Schottenstein was not asked to do, and did not do, any legal work for either plaintiff after Mr. Romick disputed the $785.00 bill.

Each party believes that there are additional facts that bear on this dispute. For example, plaintiffs note that they continued to receive Schottenstein’s “clients and friends” newsletter into 1990. Additionally, Mr. Dunn had lunch with Ronald Quillin and Kathy Nunamaker, both partners of the accounting firm of Groner, Boyle, and Quillin, in November, 1989. That firm does accounting work for Artromick. Mr. Dunn, who had not met Ms. Nunamaker before, remarked to her that they had several mutual clients, including Artromick or Mr. Romick. Neither name came up again during the luncheon meeting. Plaintiffs also point out that Schottenstein still had Artromick’s corporate minute book and the Romicks’ estate planning documents, including their wills, as of January, 1990.

Drustar believes it significant that Artromick placed legal work with other attorneys after the 1988 fee dispute. Mrs. Romick, who is a lawyer, was paid by Artromick for “legal services” after that date, although Mr. Romick testified that the work was more in the nature of business consulting. Artromick hired the Millisor-[229]*229Nobil law firm in 1988 to do some labor relations work. The Schottenstein firm also does that type of work. Mr. Romick took an estate planning matter and a business matter to James Feibel of Benesch, Friedlander, Copian and Aronoff in 1988. The Schottenstein firm had done that type of work for plaintiffs prior to that date. Of course, plaintiffs are represented by different counsel in this litigation as well.

III. DISCUSSION

The law recognizes many different types of business relationships. It has developed the theoretical precepts that define and govern those relationships not as a matter of academic exercise, but in response to the way that people behave within the confines of those relationships, and the way that both they and society reasonably expect such persons to behave. Thus, duties owed to the participants in various relationships have changed over time, and will continue to change as the societal and business reasons for recognizing the relationships change.

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Cite This Page — Counsel Stack

Bluebook (online)
134 F.R.D. 226, 1991 U.S. Dist. LEXIS 6242, 1991 WL 18785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/artromick-international-inc-v-drustar-inc-ohsd-1991.