El-Ad Residences at Miramar Condominium Ass'n v. Mt. Hawley Insurance

716 F. Supp. 2d 1257, 2010 U.S. Dist. LEXIS 62086, 2010 WL 2232698
CourtDistrict Court, S.D. Florida
DecidedJune 2, 2010
DocketCase 09-60723-CIV
StatusPublished

This text of 716 F. Supp. 2d 1257 (El-Ad Residences at Miramar Condominium Ass'n v. Mt. Hawley Insurance) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
El-Ad Residences at Miramar Condominium Ass'n v. Mt. Hawley Insurance, 716 F. Supp. 2d 1257, 2010 U.S. Dist. LEXIS 62086, 2010 WL 2232698 (S.D. Fla. 2010).

Opinion

OMNIBUS ORDER

CHRIS McALILEY, United States Magistrate Judge.

Pending before the Court are the following related motions: (1) Request for Judicial Inquiry [DE 103]; (2) Motion for Protective Order [DE 122]; (3) Motion to Intervene [DE 125]; (4) Motion to Convene Ancillary Proceedings [DE 130]; and (5) Motion for Hearing on Motion to Convene Ancillary Proceedings [DE 132]. 1 The Honorable Adalberto Jordan has referred the motions to me for resolution, and for the reasons stated below the Motion to Intervene is granted, and the other motions are denied.

I. BACKGROUND

This and a related case arise from an insurance dispute over damage allegedly caused by Hurricane Wilma to two condominium complexes. The Plaintiff in this case, El-Ad Residences at Miramar Condominium Association (“Residences”), retained the law firm of Katzman Garfinkel Rosenbaum LLP (“KGR”) to represent it in its claim against its primary property casualty insurer, Mt. Hawley Insurance Company (“Mt. Hawley”) and its excess insurer, Westchester Surplus Lines Insurance Company (“Westchester”) (collectively, “Defendants”). The other condominium complex, El-Ad Enclave at Miramar Condominium Association (“Enclave”), also retained KGR to bring suit against Mt. Hawley and a different excess insurer, General Star Indemnity Company. 2 In March of this year, while this litigation was on-going, the law firm of KGR broke up, with some of its attorneys, led by Daniel S. Rosenbaum, forming the firm Rosenbaum Mollengarden Janssen & Sircusa (“RMJS”), and others, principally Alan Garfinkel and Leigh Katzman, forming Katzman Garfinkel & Berger (“KGB”). The break-up of KGR has been acrimonious and has led to litigation between the former law partners. The motions now before this Court arise, in large measure, from heated disputes between Rosenbaum on the one hand, and Garfinkel and Katzman on the other.

Immediately following the breakup of KGR, Rosenbaum’s law firm, RMJS, entered appearances on behalf of both Residences and Enclave. Thereafter, on April 8, 2010, RMJS filed a Request for Judicial Inquiry in this, the Residences case, 3 that can be summarized as follows. Before the formation of KGR, Garfinkel had a law firm called the Garfinkel Trial Group (“GTG”), which hired a consulting firm, Hunter R Contracting LLC (“Hunter R”) and TSSA Storm Safe Inc. (“TSSA”), to perform insurance estimates. Kenneth Romain was a member of Hunter R. After several years of this consulting relationship, GTG terminated Hunter R and TSSA, which led to litigation between them over monies owed. These disputes spilled over into a number of ongoing law *1259 suits filed in state and federal courts, between condominium associations represented by GTG and or the consultants, and the various insurers they had sued. Romain was deposed in a number of those lawsuits and testified that Garfinkel, GTG and the consultants had engaged in a scheme to generate falsely high insurance claims, that Garfinkel had received kickbacks from the consultants, and that Garfinkel, through others, had an improper ownership interest in Hunter R. At a March 30, 2010 deposition taken in several cases, including this case and the Enclave case, Romain recanted these claims of wrongdoing. RMJS asserts that Romain’s conflicting sworn testimony demonstrates that Romain has committed perjury, either at his earlier depositions, or at the March 30th deposition, and in its Request RMJS asks this Court to conduct an inquiry into this perjury as well as possible fraud and unethical conduct by Romain, Garfinkel, and possibly others.

Several days after RMJS filed the Request for Judicial Inquiry, Residences again changed counsel: Garfinkel’s and Katzman’s new firm, KGB, filed a notice of appearance on Residence’s behalf, and Rosenbaum’s firm, RMJS, withdrew as counsel. RMJS continues to represent Enclave, in Case No. 09-60726-CIV-JOR-DAN.

The Motion for Judicial Inquiry was filed a few days before a discovery conference I had scheduled for April 16, 2010. I took the opportunity, at the start of that hearing, to ask Rosenbaum to answer some questions I had about his Request for Judicial Inquiry, which he did. 4 Rosenbaum basically restated what is summarized above, and was more clear about his concern that his former partners may have paid Romain to change his testimony. 5 Rosenbaum also disclosed that he had brought his concerns to the U.S. Attorneys Office. As for the inquiry he wants this Court to undertake, Rosenbaum suggested that the Court hold hearings and take testimony from everyone involved: the various attorneys and consultants and possibly the Plaintiffs themselves. He believes that a fraud has been worked upon this and many courts and that this Court should look beyond the issues in this case and inquire into improper conduct in similar cases filed in other divisions of this Court and in various state courts. In the end, Rosenbaum would have this Court determine whether Garfinkel and Katzman and the consultants engaged in improper conduct before this or other courts, although he was not clear what remedies this Court might order. Having heard from Rosenbaum, I asked the other parties to file written responses to the Request, and offer their opinions whether a judicial inquiry is appropriate and necessary.

The Defendants in both the Residences and Enclave case filed a memorandum in support of this Court convening a broad judicial inquiry. [DE 121]. In that document Defendants provide considerable detail about evidence collected, in a number of cases, of an unethical relationship between Garfinkel and Hunter R and Ro *1260 main, which Defendants maintain is directly relevant to their defense that the insurance policies have been voided by Plaintiffs’ fraud. Defendants acknowledge that there are procedural mechanisms in place that allow this Court to address these issues in this case as needed, but nevertheless argue that a broad inquiry that cuts across case lines is warranted, because Garfinkel and others have “created a fraud upon the judicial process” throughout this District. [DE 121, p. 12]. Defendants identify twelve witnesses who should testify, and ask the Court to subpoena years worth of bank and accounting records from Garfinkel and a list of people associated with him.

Residences, by that time represented by Garfinkel’s and Katzman’s new law firm, filed a response in opposition to the Request. [DE 127]. 6 It argues that it would be improper for this Court to take on an investigative role and suggests that a broad judicial inquiry would open “an evidentiary Pandora’s box.” [DE 127, p. 9], Notably, they assert that “[n]othing has transpired before this Court that would implicate any inherent authority the Court might have to punish or order further action taken with respect to misconduct it observes.” [Id., p. 7]. It urges that the issues raised by the Request, and at the April 16 hearing, can be addressed as needed in the normal course of this litigation.

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Bluebook (online)
716 F. Supp. 2d 1257, 2010 U.S. Dist. LEXIS 62086, 2010 WL 2232698, Counsel Stack Legal Research, https://law.counselstack.com/opinion/el-ad-residences-at-miramar-condominium-assn-v-mt-hawley-insurance-flsd-2010.