Clark v. Superior Court

196 Cal. App. 4th 37, 125 Cal. Rptr. 3d 361
CourtCalifornia Court of Appeal
DecidedJune 2, 2011
DocketNo. D058568
StatusPublished
Cited by67 cases

This text of 196 Cal. App. 4th 37 (Clark v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Superior Court, 196 Cal. App. 4th 37, 125 Cal. Rptr. 3d 361 (Cal. Ct. App. 2011).

Opinion

Opinion

McDONALD, J.

Grant L. Clark seeks a writ of mandate directing the Superior Court of San Diego County to vacate its November 8, 2010, order disqualifying Clark’s chosen law firm of Higgs, Fletcher & Mack LLP (Higgs) from continuing to represent Clark in his action against real parties in interest VeriSign, Inc., et al. (VeriSign). VeriSign sought the disqualification order because Higgs allegedly received from Clark numerous documents protected by the attorney-client privilege held by VeriSign, and Higgs thereafter (1) excessively reviewed the documents, (2) did not immediately return the documents and (3) affirmatively employed the documents to pursue Clark’s lawsuit against VeriSign. VeriSign asserted these actions violated Higgs’s obligations under Rico v. Mitsubishi Motors Corp. (2007) 42 Cal.4th 807 [68 Cal.Rptr.3d 758, 171 P.3d 1092] (Rico) and State Comp. Ins. Fund v. WPS, Inc. (1999) 70 Cal.App.4th 644 [82 Cal.Rptr.2d 799] (State Fund) and warranted disqualification of Higgs as Clark’s counsel in this action. The trial court found, on disputed facts, Higgs had received and excessively reviewed privileged documents, disqualification was warranted because there was a genuine likelihood Higgs’s conduct could affect the outcome of the litigation, and the paramount concern of protecting the public trust in the administration of justice and integrity of the bar outweighed any infringement of Clark’s right to the counsel of his choice.

In this writ proceeding, Clark asserts the disqualification order was an abuse of discretion. Clark’s principal argument is that VeriSign’s claim of privilege as to the contested documents is “highly suspect,” and he asserts there was no substantial evidence on which the court could conclude Higgs violated its obligations under Rico and State Fund until it had first conducted an in camera review of the contested documents to determine whether the documents were in fact privileged. Second, Clark asserts that, even assuming some or all of the documents were privileged, there is no evidence to support the conclusion that Higgs did not properly discharge its obligations under Rico and State Fund. Finally, Clark asserts that disqualification was an overly draconian remedy because there was no evidence to support the conclusion that Higgs’s review of the privileged documents provided Clark with any [42]*42unfair advantage that would undermine the integrity of the judicial proceedings, and any taint could have been cured by a protective order, thereby preserving Clark’s right to counsel of his choice.

I

FACTUAL AND PROCEDURAL BACKGROUND

A. The Parties

VeriSign provides Internet infrastructure services. Clark is an active member of the California State Bar with experience in litigation, and has also acted as in-house and general counsel for corporations.

B. The Parties’ Relationship

In late September 2007 VeriSign hired Clark as its chief administrative officer. In conjunction with his employment, Clark signed VeriSign’s nondisclosure agreement, which included a provision that he would not remove VeriSign’s confidential or privileged information and would return all confidential or privileged information to VeriSign on termination of his employment.

In late 2008, Clark was informed by VeriSign that Clark’s position was being eliminated. Clark’s employment was terminated effective December 31, 2008. In January 2009, Clark filed his lawsuit against VeriSign. Clark was represented by Higgs.

C. The March and April 2009 Correspondence

On March 25, 2009, Mr. Cologne (an attorney with Higgs representing Clark in the lawsuit against VeriSign) sent a letter to VeriSign’s counsel stating Clark intended to assert an additional claim based on allegations that “deception and delay [surround] the termination of [William] Roper,” VeriSign’s former chief executive officer. Cologne’s letter stated the deception “played out against the backdrop of a June 4, 2008[,] internal memorandum from Ken Bond, Senior Vice President in charge of investor relations.”

Counsel for VeriSign suspected Cologne was referring to an e-mail sent by Bond (senior vice-president in charge of investor relations) to Richard [43]*43Goshom (VeriSign’s general counsel) and Susan Insley (VeriSign’s director of internal audit acting under the direction of VeriSign’s law department) concerning a confidential internal investigation. VeriSign, believing the so-called “Bond memo” was a privileged communication Clark had improperly taken from VeriSign in violation of the nondisclosure agreement,1 demanded in a letter to Cologne dated March 31, 2009, that Clark immediately return all of VeriSign’s documents, including any attorney-client privileged information, and to cease and desist using that information or documents. When Cologne was silent in response to VeriSign’s demand,2 VeriSign’s attorney again wrote to Cologne reiterating its demand that Clark return confidential or privileged documents and cease using the documents, and specifically referred to Rico and the obligations imposed by that case. Clark and Higgs responded by denying any improper conduct, and apparently did not return any materials to VeriSign.

D. The Discovery of Clark’s Possession of Privileged Documents

In mid-February 2010, Clark produced documents pursuant to VeriSign’s discovery demand. VeriSign thereafter determined Clark’s production included numerous privileged documents, many of which were prominently marked “Attorney-Client Privileged,” “Prepared at Request of Counsel,” and/or “Highly Confidential.” VeriSign also determined Clark was in possession of other confidential documents taken in violation of the nondisclosure agreement.

In mid-March 2010, VeriSign’s counsel wrote to Higgs demanding Clark return the privileged materials (which it identified by Bates numbers), return the other documents VeriSign contended were confidential or proprietary, and cease using any privileged or confidential information to pursue Clark’s lawsuit. Clark’s response did not include an agreement to return the privileged documents. Although Clark subsequently agreed to return the documents he characterized as “irrelevant,” and later agreed to destroy most of the documents VeriSign identified as protected by the attorney-client privilege, Higgs thereafter indicated it would be unable to destroy the documents because VeriSign’s motion to compel Clark to answer certain deposition [44]*44questions required that he retain those documents for use in opposing the motion to compel answers. By the fall of 2010, Higgs had neither returned nor destroyed the allegedly privileged documents.

E. The Use of the Privileged Documents

In the fall of 2010, the court granted VeriSign’s motion to compel Clark to answer certain deposition questions. At his October 1, 2010, deposition, Clark conceded certain documents contained privileged information but stated that his counsel would decide whether to seek their admission at trial.

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Bluebook (online)
196 Cal. App. 4th 37, 125 Cal. Rptr. 3d 361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-superior-court-calctapp-2011.