David Chase v. Chris Stewart

CourtCourt of Appeals of Tennessee
DecidedFebruary 4, 2021
DocketM2018-01991-COA-R3-CV
StatusPublished

This text of David Chase v. Chris Stewart (David Chase v. Chris Stewart) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David Chase v. Chris Stewart, (Tenn. Ct. App. 2021).

Opinion

02/04/2021 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE January 7, 2020 Session

DAVID CHASE v. CHRIS STEWART ET AL.

Appeal from the Circuit Court for Williamson County No. 2015-200 Michael Binkley, Judge ___________________________________

No. M2018-01991-COA-R3-CV ___________________________________

A trial court held two attorneys in contempt, assessing damages and sanctions against them. Shortly before another hearing in which the court was to consider a supplemental award of attorney’s fees, the judge of the trial court made comments in an unrelated case about one of the attorneys held in contempt. That attorney moved to recuse based, in part, on the judge’s comments. The trial court denied the motion to recuse and later entered a supplemental order of damages against the attorneys. Because the judge’s comments provide a reasonable basis for questioning his impartiality, we reverse the denial of the motion to recuse. And because retroactive recusal is appropriate, we also vacate the contempt and damages orders.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Vacated

W. NEAL MCBRAYER, J., delivered the opinion of the court, in which ANDY D. BENNETT, J., and J. STEVEN STAFFORD, P.J., W.S., joined.

Brian P. Manookian, Nashville, Tennessee, pro se appellant.

Mark Andrew Hammervold, Elmhurst, Illinois, pro se appellant.

Brian P. Manookian, Nashville, Tennessee, for the appellant, Cummings Manookian PLC.

Mark Andrew Hammervold, Elmhurst, Illinois, for the appellant, Hammervold Law, PLC.

Gayle I. Malone, Jr., Charles I. Malone, and Beau C. Creson, Nashville, Tennessee, for the appellees, Dean Chase, Sandra Chase, and D.F. Chase, Inc. Marcus M. Crider and Heath H. Edwards, Nashville, Tennessee, for the appellees, CK Global, LLC and NV Music Row, LLC.

OPINION

I.

A.

In this consolidated appeal, we review the trial court’s denial of a motion to recuse and its orders holding in contempt and sanctioning two attorneys, Brian Manookian and Mark Hammervold, and their respective law firms, Cummings Manookian PLC1 and Hammervold Law, PLC. The orders on appeal arise from, but have little to do with, a case filed by David Chase (“Plaintiff”) against multiple defendants. Mr. Manookian and Mr. Hammervold represented several of the defendants. Purportedly to defeat an element of the malicious prosecution claim brought by Plaintiff and to prove Plaintiff had not suffered reputational harm, Mr. Manookian subpoenaed individuals and entities that were not parties to the case. The non-parties included Plaintiff’s parents, Dean Chase and Sandra Chase; and entities to which Plaintiff had some connection, D.F. Chase, Inc.; CK Global, LLC; and NV Music Row, LLC. Mr. Manookian also sought deposition testimony from Plaintiff’s parents.

Wanting to protect confidential information, Dean Chase; Sandra Chase; D.F. Chase, Inc.; CK Global, LLC; and NV Music Row, LLC (collectively, “Petitioners”) proposed an agreed protective order before responding to the subpoenas or submitting to the depositions. And, after negotiations, counsel reached an agreement on the terms of the protective order. Among other things, the proposed order defined confidential information, provided methods for both designating information as “confidential” and challenging such designations, and restricted the indiscriminate or mass designation of information as “confidential.”

Counsel for Petitioners then proposed that the document production could proceed provided that Mr. Manookian would agree that the production was subject to the protective order despite it not being entered by the court. Mr. Manookian responded: “I agree that the Order is binding on me and my clients at the time it is signed with permission as opposed to entered by the Court.” So counsel for Petitioners filed the proposed agreed protective order with the court. The same day, Petitioners produced

1 After briefing in this appeal, Cummings Manookian PLC filed a voluntary bankruptcy petition for relief under Chapter 7 of Title 11 of the United States Code in the United States Bankruptcy Court for the Middle District of Tennessee. Late last year, the Chapter 7 Trustee reported that “it is unforeseeable that the bankruptcy case will be resolved before April, 2021, at the earliest.” 2 over 78,000 pages of documents in response to the subpoenas. Petitioners designated all of the documents as “confidential” under the proposed agreed protective order. In a cover letter, counsel for Petitioners stated that, while they “realize[d] that the Protective Order cautioned against mass designation of documents as ‘confidential’ . . . it would have been unduly burdensome upon our clients to review each of the . . . documents . . . .” Counsel for Petitioners offered to conduct a page-by-page review if Mr. Manookian’s clients would pay for it. Counsel alternatively suggested that Mr. Manookian’s clients could challenge any “confidential” designation to a specific document or documents.

Mr. Manookian objected to the mass designation and, in a filing with the court, withdrew his consent to the proposed agreed protective order. But, a few days later, he made another filing requesting that the court enter the proposed agreed protective order. Petitioners then filed a motion requesting the entry of a protective order and that the court sustain its confidentiality designations. They set the motion for hearing on October 30, 2015.

Before the hearing took place, Mr. Manookian filed documents and excerpts from the deposition transcripts of Dean and Sandra Chase, all of which had been designated as “confidential,” in response to a motion filed by Plaintiff. Counsel for Petitioners appeared at an October 20, 2015 hearing on Plaintiff’s motion and made an oral motion. Counsel requested that the court treat as confidential all documents already produced by Petitioners, as well as the deposition testimony of Dean and Sandra Chase. Counsel also requested that the response filed by Mr. Manookian, including the exhibits, be kept under seal. The court granted the oral motion.

At the October 30, 2015 hearing, the court again ruled in favor of Petitioners and ordered that “all pleadings or documents containing, attaching, or referencing documents, testimony, or information designated as confidential . . . were to be filed under seal.” And the court “adopted,”2 with modifications, the proposed agreed protective order. The court ordered that documents designated as “confidential” be protected consistent with the terms of the agreed protective order. The court’s oral rulings at the October 20 and October 30 hearings were reflected in written orders entered on November 7, 2015, and November 6, 2015, respectively.

B.

On February 25, 2016, Dean Chase, Sandra Chase, and D.F. Chase, Inc. moved for sanctions. They claimed that, on February 3, 2016, confidential materials, including video recordings of Dean Chase’s and Sandra Chase’s deposition testimony, were

2 It is unclear if the court entered the proposed agreed protective order. 3 featured on two television news broadcasts and were also published online. And other media outlets had published stories using the same materials.

While the motion did not specifically allege that either Mr. Manookian or Mr. Hammervold provided the confidential materials to the media, it blamed the pair for use of confidential documents in separate litigation they had filed on behalf of another client against Dean Chase. The motion asked the court to identify who had violated its previous orders and to hold those parties or counsel in contempt and award costs, attorney’s fees, and other expenses.

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David Chase v. Chris Stewart, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-chase-v-chris-stewart-tennctapp-2021.