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

Missouri Court of Appeals·Decided June 2, 2020·No. ED107947·Published

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

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

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.

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 to execute the October 3, 2018 version of the agreement which parroted the terms set forth in the July 26th memorandum.

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

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) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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