Chappell v. Cosgrove

916 P.2d 836, 121 N.M. 636
CourtNew Mexico Supreme Court
DecidedMay 1, 1996
Docket23378
StatusPublished
Cited by16 cases

This text of 916 P.2d 836 (Chappell v. Cosgrove) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chappell v. Cosgrove, 916 P.2d 836, 121 N.M. 636 (N.M. 1996).

Opinion

OPINION

RANSOM, Justice.

1.Bill Chappell, Jr., an attorney with the law firm of Chappell & Barlow, P.A., petitioned this Court for a writ of prohibition or, in the alternative, a writ of superintending control vacating a district court order entered pursuant to SCRA 1986, 16-307 (Repl. Pamp.1995) (lawyer as witness), disqualifying Chappell from acting as counsel for Los Poblanos Development Corporation in a breach of contract suit brought against Los Poblanos by the Thomas Village Neighborhood Assoeiation. Chappell also sought relief from that part of the order entered pursuant to SCRA 1986, 11-615 (Repl.Pamp.1994) (exclusion of witnesses), which prohibits him from speaking with witnesses or potential witnesses about their testimony, appearing at depositions, or reviewing factual testimony in the Neighborhood Association’s suit. Following a hearing on February 14, 1996, we issued our writ vacating Chappell’s disqualification and prohibiting the trial court from ordering a similar disqualification pending this written opinion.

2. Facts and proceedings. In the underlying suit that gave rise to the disqualification order, the Neighborhood Association claimed Los Poblanos breached a promise to build a fully landscaped park as part of a planned residential subdivision within the Thomas Village development. This promise allegedly was made at a meeting between representatives of the Neighborhood Association and attorneys for Los Poblanos on November 5,1992. Chappell, then with the law firm of Montgomery & Andrews, P.A., was among five persons who attended this meeting, and, according to the affidavit testimony of Pat Bryan, a resident of Thomas Village who represented the Neighborhood Association at the meeting, Chappell “took an active role in the discussions [and] negotiations” which gave rise to the alleged promise.

3. On November 6, 1992, counsel for Los Poblanos drafted a letter recounting the discussions that had taken place the previous day. This letter appeared on Montgomery & Andrews letterhead and was signed by Charles Seibert, an attorney representing Los Poblanos at the November 5 meeting. Chappell’s name does not appear anywhere in the letter, but Chappell does acknowledge that he read it. Bryan, referring to the letter in his affidavit, testified that “Chappell and ... Seibert ... led TVNA to believe and specifically told TVNA that their promise to build a park was a promise upon which TVNA and individual members ‘could rely’.”

4. When this suit was filed, the Neighborhood Association indicated to Chappell that if he or any member of his current firm entered an appearance on behalf of Los Poblanos, then the Neighborhood Association would seek a disqualification order. Chappell did enter an appearance and filed a motion to dismiss the Neighborhood Association’s complaint. Thereafter, the Neighborhood Association moved to disqualify Chappell and the law firm of Chappell & Barlow, P.A., arguing that Chappell could not under SCRA 16-307 attack “his own written documents and previous oral representations that form the basis of [Los Poblanos’s] promise.”

5. The district court heard the disqualification motion on October 20, 1995. The evidence before the court consisted of three affidavits — one by Bryan, one by Chappell, and one by Greg Anixter, the president of Los Poblanos. In his affidavit Bryan testified that Chappell and Seibert negotiated with the Neighborhood Association on behalf of Los Poblanos, that Chappell “took an active role in the ... development of the parameters of [Los Poblanos’s] promise to construct a park,” and that Chappell, acting as an agent of Los Poblanos, “conveyed and intended to convey a promise that [Los Poblanos] would build a park.” In his own affidavit, Chappell testified that the November 5 meeting was the only discussion he attended between the Neighborhood Association and Los Poblanos, that he does not recall what was said or agreed to at the meeting regarding a park, but that he had read Seibert’s November 6 letter and “assumed that the mention of the park correctly reflected the discussions which had transpired to that date regarding the park.” Finally, Anixter testified that Los Poblanos was represented by Seibert and Los Poblanos shareholder Ralph Stone at all meetings between the Neighborhood Association and Los Poblanos, that Chappell attended only the November 5 meeting, and that Los Poblanos does “not wish to be represented by anyone other than ... Chappell.” Based on this record, and without specifying its reasons for so ruling, the trial court granted the disqualification motion.

6. Propriety of extraordinary relief The Neighborhood Association has argued that this Court ought not grant the relief requested because Chappell has not demonstrated a sufficient basis upon which we can grant the extraordinary relief of prohibition or superintending control. We agree with the Neighborhood Association that matters entrusted to the trial court’s discretion ordinarily are not matters over which this Court should exercise its jurisdiction to grant extraordinary relief. We acknowledge as well that neither the writ of prohibition nor the writ of superintending control should be used as a substitute for a decision on direct or interlocutory appeal. However, in this particular case we are faced with an issue of first impression. Whether the trial court had discretion to order Chappell’s disqualification and, if so, within what boundaries the court was entitled to exercise its discretion are questions without clear answers under New Mexico law. Further, the relief available on direct appeal appears wholly inadequate because the matter may be resolved without a final judgment or appealable order and, in any event, Los Poblanos would have been forced to go through litigation without the benefit of its counsel of choice. Further, in the event of an appeal, judicial economy likely would weigh against remanding for a new trial. Under these conditions we issued our writ.

7. Materiality, necessity, and potential prejudice is the standard for disqualification under Rule 16-307. Los Poblanos argues that it has a right to representation by an attorney of its own choosing. See In re American Cable Publications, Inc., 768 F.2d 1194, 1196 (10th Cir.1985) (noting that “[a] corollary to [the right to counsel contained in 28 U.S.C. § 1654 (1994) ] is the right of representation by counsel of [one’s own] choosing”). Further, Los Poblanos argues that its choice should be disturbed only for compelling reasons. See, e.g., Ramsay v. Boeing Welfare Benefit Plans Comm., 662 F.Supp. 968, 970 (D.Kan.1987) (“The court is also mindful that a person’s right to select his own counsel, although not an absolute right, may be overridden only where compelling reasons exist.”). Stressing the importance of its protected interest in counsel of choice, Los Poblanos asks us to adopt a standard under which an attorney may be disqualified pursuant to Rule 16-307 only upon an affirmative showing that his or her testimony is material, necessary, and potentially prejudicial to the client’s ease.

8. Disqualification of counsel under the attorney-witness rule formerly was governed by Model Code of Professional Responsibility DR 5-102 (1980), codified in New Mexico as Code of Professional Responsibility Rule 5-102 (Repl.Pamp.1985).

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Bluebook (online)
916 P.2d 836, 121 N.M. 636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chappell-v-cosgrove-nm-1996.