Federal Deposit Insurance v. Kerr

111 F.R.D. 476, 1986 U.S. Dist. LEXIS 21487
CourtDistrict Court, W.D. North Carolina
DecidedAugust 15, 1986
DocketNo. C-C-85-74-P
StatusPublished
Cited by1 cases

This text of 111 F.R.D. 476 (Federal Deposit Insurance v. Kerr) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Deposit Insurance v. Kerr, 111 F.R.D. 476, 1986 U.S. Dist. LEXIS 21487 (W.D.N.C. 1986).

Opinion

ORDER

ROBERT D. POTTER, Chief Judge.

THIS MATTER is before the Court upon Motion of Defendant BancAmerica Commercial Corporation (“BACC”) for an Order In Limine that John Gordon be precluded from testifying at trial or, alternatively, for an Order disqualifying John Gordon and the firm of Gordon and Gordon from serving as counsel for the FDIC in this case. BACC also requests that it be permitted to [478]*478take additional discovery from John Gordon.

The FDIC has listed John Gordon as a possible fact witness in this case and Gordon has filed factual affidavits regarding his efforts to obtain information about the transactions of January 30 and 31, 1985, and also regarding Daniel Flanigan.

On May 12, 1986, BACC filed a Notice to take John Gordon’s deposition. On June 17, 1986, John Gordon obtained an Order in Missouri limiting inquiry at that deposition, which reads

[I]nquiry shall be limited to conversations that the deponent had with the defendants or their representatives which occurred on or before January 31, 1985. Deponent Gordon’s Motion is sustained with respect to any conversations and correspondence he might have exchanged with employees of the Federal Deposit Insurance Corporation and with respect to any conversations and events which occurred after January 31, 1985.

At Gordon’s deposition at Kansas City on June 25, 1986, Gordon refused to answer questions about conversations with third parties, which BACC asserts would have shown what notice Gordon had regarding the transactions which took place in Charlotte on January 30 and 31, 1985. He also refused to testify about meetings he had with Richard Smolev in mid-February, 1985 after the transactions inquired about had occurred.

At the hearing before Judge Wright on Gordon’s Motion for a Protective Order, Gordon represented that he would not testify at trial as to any matters which he did not testify to at his deposition, however, he and his attorney declined to stipulate to that at the deposition itself, according to BACC.

On June 25, 1986, this Court informed the attorneys for the Defendants that they should try to gather the information regarding the notice of the transaction to the FDIC through John Gordon from other sources in light of the fact that the Protective Order had been entered over the subject matter of his deposition.

BACC contends that it seems probable that the FDIC intends to offer the testimony of John Gordon at trial regarding his conversations with Richard Smolev. Thus, BACC argues it is entitled to have John Gordon disqualified as a witness and not called by the FDIC and no testimony by him offered at trial under Federal Rule of Evidence 104(a). See Town of Mebane v. Iowa Mutual Insurance Company, 28 N.C.App. 27, 220 S.E.2d 623 (1975).

Alternatively, BACC argues it is entitled to have Gordon and the firm of Gordon and Gordon disqualified under Rule 5.2(B) of the North Carolina Rules of Professional Conduct. That rule provides that

(B) If, after undertaking employment in contemplated or pending litigation, a lawyer learns or it is obvious that he or a lawyer in his firm ought to be called as a witness on behalf of his client, he shall withdraw from the conduct of the trial and his firm, if any, shall not continue representation in the trial, except that he may continue the representation and he or a lawyer in his firm may testify under the circumstances enumerated in (A) above.

In Town of Mebane, the court gave the plaintiff the option of either having its attorney testify or withdraw. Further, BACC contends that the disqualification of Gordon and Gordon would leave lead counsel of Parker, Poe in the case and would result in no substantial hardship to the FDIC.

In any event, BACC contends that it is entitled to depose John Gordon about his knowledge of the transaction prior to January 30, 1985 which is attributable to the FDIC and which he may have obtained from the Kirkland Company or from any other source and that it is also entitled to inquire about conversations he had with Richard Smolev.

In its response, filed August 6, 1986, to BACC’s Motion, the FDIC contends that the Court should not order Mr. Gordon not to testify at trial nor should the Court disqualify Mr. Gordon and the law firm of Gordon and Gordon from further represen[479]*479tation of this matter. The FDIC contends that BACC should bring any Motions seeking further discovery of Mr. Gordon before Judge Wright in Kansas City.

With respect to BACC’s request that Gordon be precluded from testifying at trial or that the law firm of Gordon and Gordon be disqualified from further representation of the FDIC, the FDIC contends that both Rule 5.2 and the cases interpreting that rule require the withdrawal of counsel from representation of his client at trial if that counsel is going to testify on behalf of his client. The FDIC contends that at this time it has not determined who its lay witnesses will be and disqualification of Gordon at this juncture is unnecessary and would be highly prejudicial to the FDIC. The FDIC states that Gordon and his firm have represented the FDIC in this case since its inception, are uniquely familiar with it and are distinctly valuable to the FDIC in its continued prosecution. The FDIC further states that a disqualification at this time would work a substantial hardship on it while BACC would not be prejudiced by Gordon’s continued representation until the time of trial.

Furthermore, the FDIC argues that Town of Mebane cited by BACC in its Motion, is distinguishable from the present situation in that the trial court in that case properly ordered the party’s counsel to withdraw at the pretrial conference because of his intention to testify as a witness on behalf of his client. In Stanwood Corp. v. Barnum, 575 F.Supp. 1250 (W.D. N.C.1983) the Court stated that a party seeking disqualification must make a strong showing before a court will order disqualification. The FDIC argues that under Stanwood Corp. and Rule 5.2 of the North Carolina Rules of Professional Conduct, withdrawal of counsel under these circumstances would be more appropriate than the preclusion of counsel’s testimony at trial. And to that end, the withdrawal of Gordon and Gordon from further representation of the FDIC at this point is inappropriate because the FDIC has not yet determined if Gordon’s testimony would be necessary at trial. If the FDIC makes that determination then the Court can always order Gordon and his firm’s withdrawal from representation.

With respect to BACC’s Motion seeking to compel further deposition of John Gordon, the FDIC argues that the Motion should be brought before Judge Wright. The FDIC contends that BACC seeks an order compelling Gordon to answer, at a second deposition, questions which he refused to answer at his first deposition. Gordon’s refusal to answer the questions at the first deposition, however, was based on his belief that the questions exceeded the scope of the Protective Order entered by Judge Wright. Rule 37(a)(1) of the Federal Rules of Civil Procedure

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Cite This Page — Counsel Stack

Bluebook (online)
111 F.R.D. 476, 1986 U.S. Dist. LEXIS 21487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-deposit-insurance-v-kerr-ncwd-1986.