Brame v. Ray Bills Finance Corp.

76 F.R.D. 25, 23 Fed. R. Serv. 2d 486, 1977 U.S. Dist. LEXIS 16461
CourtDistrict Court, N.D. New York
DecidedApril 8, 1977
DocketNo. 75-CV-577
StatusPublished
Cited by4 cases

This text of 76 F.R.D. 25 (Brame v. Ray Bills Finance Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brame v. Ray Bills Finance Corp., 76 F.R.D. 25, 23 Fed. R. Serv. 2d 486, 1977 U.S. Dist. LEXIS 16461 (N.D.N.Y. 1977).

Opinion

[27]*27MEMORANDUM-DECISION AND ORDER

MUNSON, District Judge.

This action is brought under the Federal Truth In Lending Act and the New York State Banking Law. The plaintiffs, who are represented by Onondaga Neighborhood Legal Services, Inc. (ONLS), seek to maintain this suit as a class action.

Presently before the Court is a motion made by the defendant pursuant to Rule 37(a), Fed.R.Civ.P., to compel the answer to certain interrogatories. The interrogatories which are the subject of this motion are designed to obtain information on two matters: (1) whether there are any limitations on the types of legal services which ONLS can provide, and (2) whether the named plaintiffs are financially eligible for free legal services. It appears that the interrogatories in the former group are primarily designed to ascertain the criteria used by ONLS in deciding whether to represent particular clients.

Defendant argues that it needs this information to oppose plaintiffs’ motion for class certification and contends that this information is relevant to a determination as to whether the representative parties will fairly and adequately protect the interests of the class as is required by Rule 23(a)(4), Fed.R.Civ.P. Plaintiffs argue that the information sought is irrelevant to a proper determination of their motion for class certification and further claim that the questions concerning the financial eligibility of the named plaintiffs for free legal services seek information protected from disclosure by the attorney-client privilege.

Plaintiffs and their attorneys should be compelled to answer the interrogatories only if the information sought comes within the proper scope of discovery as set forth in Rule 26(b)(1), Fed.R.Civ.P. This rule provides in part: “Parties may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action . . .”

A number of courts have indicated that the decision of a legal services organization to represent a particular individual is not a proper matter to be reviewed by the courts. Jacobs v. Board of School Commissioners, 349 F.Supp. 605 (S.D.Ind.1972), aff’d, 490 F.2d 601 (7th Cir. 1973), vacated as moot, 420 U.S. 128, 95 S.Ct. 848, 43 L.Ed.2d 74 (1975); Ingram v. Justice Court, 69 Cal.2d 832, 73 Cal.Rptr. 410, 447 P.2d 650 (1968); Chao v. Chin, 47 A.D.2d 941, 369 N.Y.S.2d 1017 (2d Dep’t 1975); Legal Aid Society of Nassau County v. Samenga, 39 A.D.2d 912, 333 N.Y.S.2d 51 (2d Dep’t 1972); Strongwell, Inc. v. Mungin, 67 Misc.2d 731, 325 N.Y.S.2d 252 (S.Ct.N.Y.Co.1971).

Since the cases cited above (with the exception of Jacobs v. Board of School Commissioners) did not involve class actions brought or intended, the question arises as to whether, in the case before this Court, a different result should be reached.

One of the findings that must be made by the Court before a class action can be certified is that the representative parties will fairly and adequately protect the interest of the class. Rule 23(a)(4), Fed.R.Civ.P. The necessary adequacy of representation depends upon the existence of two factors: (1) the representative parties must not have conflicting interests with the unnamed class members, and (2) the attorney representing the class must be qualified, experienced, and generally able to conduct the litigation. Sosna v. Iowa, 419 U.S. 393, 417, 95 S.Ct. 553, 42 L.Ed.2d 532 (1975); Wetzel v. Liberty Mutual Insurance Co., 508 F.2d 239, 247 (3d Cir.), cert, denied, 421 U.S. 1011, 95 S.Ct. 2415, 44 L.Ed.2d 679 (1975); Eisen v. Carlisle & Jacquelin, 391 F.2d 555, 562 (2d Cir. 1968); Watson v. Branch County Bank, 380 F.Supp. 945, 955 (W.D.Mich.1974); Wallace v. McDonald, 369 F.Supp. 180, 188 (E.D.N.Y.1973). The information being sought by defendant is clearly not relevant to the first factor. If the interrogatories were to reveal that the named plaintiffs are not eligible for free legal services, this would not indicate the existence of any conflicting interests between the named plaintiffs and the unnamed class members.

[28]*28It requires more detailed consideration to determine whether the information being sought is relevant to the second factor. Some courts have held that it is appropriate to consider whether the class attorney is ethically as well as intellectually competent to represent the class. Sayre v. Abraham Lincoln Federal Savings & Loan Association, 65 F.R.D. 379 (E.D.Pa.1974); P. D. Q. Inc. of Miami v. Nissan Motor Corporation, 61 F.R.D. 372 (S.D.Fla.1973); Stavrides v. Mellon National Bank & Trust Co., 60 F.R.D. 634 (W.D.Pa.1973); Carlisle v. LTV Electrosystems, Inc., 54 F.R.D. 237 (N.D.Tex.l972); Korn v. Franchard Corporation, CCH Fed.Sec.L.Rep. ¶92, 845 (S.D.N.Y.1970), rev’d on other grounds, 456 F.2d 1206 (2d Cir. 1972). In particular, these courts have indicated that an attorney who was guilty of maintenance or solicitation in violation of the Code of Professional Responsibility should be disqualified from representing a class. Other courts have said that such matters were not relevant or that only gross misconduct should disqualify an attorney. Sanderson v. Winner, 507 F.2d 477 (10th Cir. 1974), cert, denied, 421 U.S. 914, 95 S.Ct. 1573, 43 L.Ed.2d 780 (1975); Halverson v. Convenient Food Mart, Inc., 458 F.2d 927 (7th Cir. 1972); Giordani v. Hoffmann, 278 F.Supp. 886 (E.D.Pa.1968).

It will be assumed for purposes of deciding this motion that it is appropriate to consider whether the attorneys who have expressed a desire to represent the class are ethically competent. The type of irregularities which defendant seeks to discover by the interrogatories in question would not disqualify plaintiffs’ counsel if such irregularities were found to exist. It is not a violation of the Code of Professional Responsibility for an attorney to provide legal services free of charge to one who is able to pay for such services, provided that in so doing he is not prompted by improper motives. ABA Committee on Ethics and Professional Responsibility, Formal Opinion 259 (1943); Informal Opinion 1339 (1975). Likewise, if ONLS violated its guidelines in some other way in deciding whether to represent the plaintiffs in this case, this is not the type of irregularity that is covered by the Code of Professional Responsibility. Therefore, the information being sought by defendant is not pertinent to the class certification motion.

In addition, the information received by ONLS concerning their clients’ financial eligibility is protected from disclosure by the attorney-client privilege. ABA Committee on Ethics and Professional Responsibility, Informal Opinion 1137 (1970).

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76 F.R.D. 25, 23 Fed. R. Serv. 2d 486, 1977 U.S. Dist. LEXIS 16461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brame-v-ray-bills-finance-corp-nynd-1977.