Debra Woodson v. Bank of America, N.A., and Millsap & Singer P.C. and Millsap & Singer, LLC

CourtMissouri Court of Appeals
DecidedJune 2, 2020
DocketED107947
StatusPublished

This text of Debra Woodson v. Bank of America, N.A., and Millsap & Singer P.C. and Millsap & Singer, LLC (Debra Woodson v. Bank of America, N.A., and Millsap & Singer P.C. and Millsap & Singer, LLC) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Debra Woodson v. Bank of America, N.A., and Millsap & Singer P.C. and Millsap & Singer, LLC, (Mo. Ct. App. 2020).

Opinion

In the Missouri Court of Appeals Eastern District DIVISION FOUR

DEBRA WOODSON, ) No. ED107947 ) Plaintiff, ) Appeal from the Circuit Court of ) St. Charles County vs. ) Cause No. 1011-CV07534 ) BANK OF AMERICA, N.A. and MILLSAP ) Honorable Daniel G. Pelikan & SINGER, LLC, ) ) Defendants, ) ) MILLSAP & SINGER, P.C. and MILLSAP ) & SINGER, LLC, ) ) Respondents. ) Filed: June 2, 2020

James M. Dowd, P.J., Gary M. Gaertner, Jr., J., and Robin Ransom, J.

Introduction

Gregory Leyh, the plaintiff’s expert witness in the above-styled case, appeals the

judgment that granted Millsap & Singer’s motion to enforce settlement and imposed a monetary

sanction against Leyh. The disputed settlement concerns contempt proceedings brought by

Millsap alleging Leyh violated a protective order by disclosing in a separate lawsuit a deposition

marked confidential which Leyh had received in his capacity as an expert witness in this case.

We affirm the judgment to the extent it held that on July 26, 2018, the parties reached a

settlement of the contempt proceedings. We reverse the remainder of the judgment including the $35,000 sanction against Leyh imposed by the trial court because we find Leyh did not engage in

bad faith or unethical conduct.

Background

Leyh and Millsap have been battling in litigation for years. Leyh has represented

hundreds of plaintiffs in lawsuits against Millsap alleging Millsap engaged in improper conduct

in connection with its own legal representation of banks and mortgage holders in foreclosure and

collection matters. In 2017, Leyh was appointed class counsel in the Stagner v. Wells Fargo

Bank et al., class action pending in Ray County, Missouri which includes claims against Millsap

for similar improper conduct. Millsap, for its part, has sought to sanction Leyh, decertify the

Stagner class, and has filed suit against Leyh personally for malicious prosecution and abuse of

process.

The underlying suit here, not brought by Leyh but by a different attorney, was filed on

behalf of Debra Woodson in 2010 against Millsap and its client Bank of America for wrongful

foreclosure after the bank instructed Woodson to stop making mortgage payments in order to

qualify for a loan modification but then the bank began foreclosure on her home. Leyh was hired

by Woodson’s counsel to testify as an expert witness on issues addressing Millsap’s liability. In

August 2014, the parties entered into a protective order which provided that documents marked

confidential were not to be disclosed or used in any current or future litigation. Woodson’s

counsel testified that he failed to notify Leyh of the existence of the protective order or provide

him with a copy of it. Likewise, Leyh testified that he was unaware of the existence or dictates

of the protective order.

Nevertheless, as plaintiff’s expert, Leyh received a copy in 2014 of the deposition taken

in this case of Vernon Singer, of the Millsap & Singer law firm. The deposition was marked

2 confidential. Then, in December 2017, in his role as class counsel in the Stagner litigation, Leyh

disclosed the Singer deposition during discovery in that case. So, on March 9, 2018, Millsap

filed its motion for contempt alleging that Leyh’s disclosure and use of the Singer deposition was

a knowing and intentional violation of the Woodson protective order which warranted holding

him in contempt. The court issued to Leyh its order to show cause why he should not be held in

contempt and set the matter for hearing on July 26, 2018 at 2:00 p.m.

As the time for the hearing approached, the parties discussed settlement. These

negotiations continued on July 26th as Leyh and his counsel made their way together by

automobile across Missouri to the St. Charles County courthouse for that afternoon’s hearing.

Eventually, an outline of the terms under negotiation was transcribed into a 10-paragraph, one-

page document titled “Memo Memorializing Settlement by and between Greg Leyh, et. al and

Millsap & Singer, et al.”

The 3 paragraphs of the memorandum most relevant to this opinion are as follows:

1. $35,000 cash payment by Leyh to Millsap & Singer, PC in 14 days after

execution of the settlement agreement.

2. Leyh agrees to be bound by the Woodson Protective Order.

***

10. Settlement to be completed in final settlement agreement.

As for the remainder of the memorandum, paragraphs 3, 5, 6, and 7 generally require Leyh to

rectify any past disclosures which he may have already made of materials covered by the

protective order and to take specific actions going forward with respect to the protective order.

Paragraph 4 deems the settlement confidential, paragraph 8 calls for the dismissal of the

3 Woodson case upon Leyh’s settlement payment and the exchange of mutual releases, and

paragraph 9 states that each side will be responsible for its own attorney’s fees and costs.

The July 26th negotiations culminated in the 3 o’clock hour. At 3:12 p.m., Leyh’s

counsel received from Millsap the final version of the memorandum. Leyh’s counsel agreed to it

at 3:18 p.m. Then, Millsap’s counsel, with Leyh’s counsel’s consent, advised the court that the

matter had been settled and that the hearing should be cancelled which it was.

However, during the succeeding months, the parties disputed both the terms of the

purported settlement and whether the matter was even settled. The first post-July 26th

communication between the parties occurred on August 13, 2018 when Millsap’s counsel sent

Leyh’s counsel a draft of the final settlement agreement and release of all claims. While that

document tracked most of the terms set forth in the July 26th memorandum, Millsap unilaterally

changed paragraph 2 from “Leyh agrees to be bound by the Woodson Protective Order” to “Leyh

agrees he is bound by the Woodson Protective Order.” (Emphasis added.). Leyh refused to sign

this document and instead, on August 22, 2018, sent Millsap a new version of the July 26th

memorandum which revised paragraph 2 to read “As of the effective date, Leyh agrees to be

bound by the Woodson Protective Order.” Millsap rejected this proposal.

On October 3, 2018, Millsap’s counsel emailed Leyh’s counsel and attached a new

version of the final settlement agreement. The email stated: “The only issue remaining to be

resolved on the settlement agreement was the language of paragraph 2. Since the parties could

not agree on the revisions as proposed, we reverted back to the precise language of the settlement

memo. We assume you/Greg will not have an issue with this approach as you have previously

stated the memo controls.” Numerous communications between counsel followed including

efforts by Leyh’s counsel to obtain Leyh’s signature on the agreement but Leyh never signed.

4 On November 1, 2018, Millsap filed its motion to enforce settlement. Millsap asserted

that the parties reached a settlement on July 26, 2018 at approximately 3:18 p.m. when Leyh’s

counsel “agreed” to the memorandum and Millsap’s counsel, with Leyh’s counsel’s consent,

notified the court that the matter had been settled and that the contempt hearing should be

cancelled. Millsap alleged that after the parties were unable to agree to the form and substance

of a final settlement agreement to be formally signed by both parties, Leyh should be compelled

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Debra Woodson v. Bank of America, N.A., and Millsap & Singer P.C. and Millsap & Singer, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/debra-woodson-v-bank-of-america-na-and-millsap-singer-pc-and-moctapp-2020.