de Venezuela v. M/T Trade Resolve

847 F. Supp. 1177, 1994 A.M.C. 2593, 1994 U.S. Dist. LEXIS 4326
CourtDistrict Court, S.D. New York
DecidedApril 5, 1994
DocketNos. 91 Civ. 8161 (RWS), 92 Civ. 5936 (RWS), 92 Civ. 7980 (RWS), 92 Civ. 7979 (RWS), 92 Civ. 8019 (RWS) and 92 Civ. 8020 (RWS)
StatusPublished
Cited by2 cases

This text of 847 F. Supp. 1177 (de Venezuela v. M/T Trade Resolve) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
de Venezuela v. M/T Trade Resolve, 847 F. Supp. 1177, 1994 A.M.C. 2593, 1994 U.S. Dist. LEXIS 4326 (S.D.N.Y. 1994).

Opinion

OPINION

SWEET, District Judge.

Defendants the vessel M/T TRADE RESOLVE (the “TRADE RESOLVE”), Transport Hellenic Inc., Marine Management Services M.C., Brokerage & Management Corp., Trade & Transport Inc. [Greece], Trade & Transport [U.K.] Ltd., and Trade Management Services, Inc. (collectively, the “TRADE RESOLVE Defendants” or “Movants”) have moved for an order, pursuant to Canons 4, 5, and 9 of the New York Code of Professional Responsibility and the ethical jurisprudence of this Court and of the State of New York, disqualifying the law firms of Watson Farley & Williams (‘WFW’) and Hill Rivkins Loesberg O’Brien Mulroy & Hayden (“Hill Rivkins”) from further representing the plaintiffs and claimants in certain actions pending before this court. For the following reasons, this motion is denied.

Parties

The parties, facts, and prior proceedings in this matter were fully, discussed in a prior opinion of this Court, familiarity with which is assumed. See In re Complaint of Maritima Aragua, S.A., 828 F.Supp. 143 (S.D.N.Y.1993). They will be described below only to the extent necessary to decide the present motion.

The law firm of WFW, with offices at 380 Madison Avenue, New York, New York, is part of a Jersey Island partnership (“WFW Jersey”). The partners of the affiliated firm of WFW, with offices at 15 Appold Street, London (“WFW UK”) are also members of WFW Jersey, but the New York partners of WFW Jersey are not members of WFW UK. Hill Rivkins is a law firm with offices at 21 West Street in New York City.

Marítima Aragua S.A. (“Marítima”), a Venezuelan corporation is the owner and operator of the M/V MAR CORAL (the “MAR CORAL,” and together with Marítima, the “MAR CORAL Plaintiffs”), a vessel registered in La Guaira, Venezuela.

Transport Hellenic, Inc., a Panamanian corporation with its principal place of business in Greece, is the registered owner of the TRADE RESOLVE, a vessel registered under the flag of Panama. The TRADE RESOLVE was managed and operated by Trade Management Services, Inc., a Panamanian holding corporation with its principal place of business in Greece, until December 11, 1991, when management of the TRADE RESOLVE was transferred to Marine Manage[1179]*1179ment Services M.C., Brokerage and Management Corp., a New York Corporation.

Allegations have been made that the TRADE RESOLVE Defendants are related through ownership by Gregory Callimanopulos (“Callimanopulos”), a well-known Greek shipowner.

Facts and Prior Proceedings

The underlying action in this matter involves the collision the MAR CORAL and the TRADE RESOLVE in Lake Maracaibo in Venezuela (the “Collision”). In addition to damage to the involved ships, the collision allegedly caused damage to a pipeline owned by Maraven S.A. (“Maraven”).

In December 1991, the MAR CORAL Plaintiffs submitted a complaint for Exoneration from or Limitation of Liability in this Court seeking limitation of liability arising from the collision (the “MAR CORAL Limitation Proceeding”). In January, 1992, the New York office of WFW Jersey, with the law firm of Liddel, Sapp, Zivley, Hill & La-Boon L.L.P. of counsel, filed an Answer and Claim in the MAR CORAL Limitation Proceeding on behalf of Bariven S.A., Maraven, Pequiven S.A., Lagoven S.A., Clover Systems, Inc. d/b/a Clover Systems Intermodal, Baroid Drilling Fluids, Inc., Varisure C.A., Inc., and FMC Wellhead de Venezuela (collectively, the “MAR CORAL Claimants”).

On August 4, 1993, Hill Rivkins filed a complaint (the “TRADE RESOLVE Litigation”) on behalf of Bariven Corp., Bariven S.A., Maraven, Lagoven S.A., and Pequiven S.A. (collectively, the “TRADE RESOLVE Plaintiffs”) against the TRADE RESOLVE Defendants. The complaint submitted by Hill Rivkins in the TRADE RESOLVE Litigation contains four paragraphs drafted by WFW Jersey concerning Maraven’s pipeline damage claim.

Several actions concerning the collision, including the MAR CORAL Limitation Proceeding and the TRADE RESOLVE Litigation ultimately were consolidated before this Court. The Court denied the TRADE RESOLVE Defendants’ motions to dismiss for forum non conveniens and to stay discovery on May 25, 1993. See In re Complaint of Maritima Aragua, S.A., 823 F.Supp. 143 (S.D.N.Y.1993).

Argument was heard on the present motions on February 9, 1994. Additional submissions were received from the parties until February 23, 1994, on which date the motion was considered fully submitted.

Discussion

Standard for Disqualification

The Code of Professional Responsibility (the “Code”), as promulgated by the American Bar Association, has been adopted by the New York State Bar Association as its own code of ethics. N.Y. Judiciary L. Appendix. The Code is recognized in this Circuit as prescribing appropriate guidelines for the professional conduct of the bar. NCR Org. Ltd. v. Bregman, 542 F.2d 128, 129 n. 2 (2d Cir.1976).

Canon 4 states that a “[l]awyer should preserve the confidences and secrets of a client.” Canon 5 states that “[a] lawyer should exercise independent professional judgment on behalf of a client.” Disciplinary Rule 5-108 provides that “[ejxcept with the consent of a former chent after full disclosure a lawyer who has represented the former chent in a matter shah not ... [thereafter represent another person in the same or a substantially related matter in which that person’s interests are materially adverse to the interests of the former chent.” Canon 9 states that “[a] lawyer should avoid even the appearance of professional impropriety.” N.Y. Judiciary L. Appendix.

Motions to disqualify opposing counsel are viewed with disfavor in this Circuit. Clark v. Bank of New York, 801 F.Supp. 1182, 1197 (S.D.N.Y.1992); United States Football League v. National Football League, 605 F.Supp. 1448, 1452 (S.D.N.Y.1985) (collecting cases). The principle reason for this is that disqualification of counsel impinges on parties’ rights to employ the counsel of their choice. Evans v. Artek Sys. Corp., 715 F.2d 788, 791 (2d Cir.1983). “The Court of Appeals [for the Second Circuit] has cautioned that motions to disqualify counsel ... can inflict serious harm on the party whose lawyer is disqualified ... ‘for in disqualification matters we must be sohcitous of [1180]*1180a client’s right freely to choose his counsel____’” Ullrich v. Hearst Corp., 809 F.Supp. 229, 236 (S.D.N.Y.1992) (quoting Evans, 715 F.2d at 791).

Courts require parties seeking disqualification of counsel to meet a high standard of proof before disqualification may be granted. Evans, 715 F.2d at 791; Kubin v. Miller, 801 F.Supp. 1101, 1112 (S.D.N.Y.1992); In re E. & S. Dists. Asbestos Litig., 133 F.R.D. 425, 429 (E.D.N.Y.1990); Football League, 605 F.Supp. at 1453.

All parties to the present action agree that a party seeking disqualification must prove that the moving party is a former client of an adverse party’s counsel; that there is a substantial relationship between the subject matter of the counsel’s prior representation of the moving party and the issues in the present suit; and that the adverse party’s counsel had access to relevant privileged information. Football League, 605 F.Supp.

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Bluebook (online)
847 F. Supp. 1177, 1994 A.M.C. 2593, 1994 U.S. Dist. LEXIS 4326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-venezuela-v-mt-trade-resolve-nysd-1994.