Fiduciary Trust Co. v. Bingham, Dana & Gould

6 Mass. L. Rptr. 573
CourtMassachusetts Superior Court
DecidedApril 15, 1997
DocketNo. 965581E
StatusPublished

This text of 6 Mass. L. Rptr. 573 (Fiduciary Trust Co. v. Bingham, Dana & Gould) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fiduciary Trust Co. v. Bingham, Dana & Gould, 6 Mass. L. Rptr. 573 (Mass. Ct. App. 1997).

Opinion

Lauriat, J.

Roger D. Feldman, an attorney and a defendant in this legal malpractice action, has moved to disqualify the plaintiffs’ counsel, William F. Looney, Jr. (“Looney”) and the law firm of Looney & Grossman, LLP (“Looney & Grossman”), from further representation of the plaintiffs on the ground that he once sought legal advice from attorney Stuart F. Grossman (“Grossman”), a partner in Looney & Grossman.

After an initial hearing, the court decided to hold an evidentiary hearing on Feldman’s motion to allow fact-finding on the issues of (1) whether an attorney-client relationship was formed between Feldman and Grossman in 1991; (2) if so, whether any such attorney-client relationship resulted in the communication of confidential information; and (3) if so, whether any such confidential information is so related to the instant action as to create potential prejudice to Feldman or the appearance of impropriety by Looney & Grossman’s continued representation of the plaintiffs.

The court conducted an evidentiary hearing on March 31, 1997. It heard the testimony of Feldman and Joseph Bodoff, Esq. The parties agreed that the court could also consider as evidence the Affidavits of Grossman, Looney and Lorraine Curry. Finally, the court received in evidence five numbered exhibits.

Upon consideration of the credible testimony and affidavits of the witnesses, and the exhibits submitted by the parties, and the reasonable inferences to be drawn therefrom, the court makes the following findings of fact, rulings of law, and order on the Defendant Feldman’s Motion to Disqualify Plaintiffs’ Counsel.

FINDINGS OF FACT

1. Feldman was the managing partner of the Boston law firm of Gaston & Snow (“G & S”) from January, 1986 until May, 1991. In 1988, Feldman hired the Boston law firm of Bingham, Dana & Gould (“BD&G”) to defend G & S and all its then and former (since 1975) partners against a legal malpractice action brought by Margaret C. Williams and others as a result of allegedly negligent tax and estate planning advice given by several G & S partners in 1975 and 1976.

2. By early 1991, Feldman had become personally concerned about the financial problems of G & S, including those raised by the then pending Williams action. He wanted to review his personal financial situation and to protect his assets, if possible, from creditors of G & S if the firm should ever fail. Feldman knew Grossman to be a bankruptcy attorney. Feldman had known Grossman professionally since the late 1970’s. They had worked together from time to time [574]*574thereafter with others from their firms on matters relating to two clients.

3. At some point in late Februaiy, 1991, Feldman and Grossman met for lunch at Montillio’s, a cafeteria-style restaurant in the financial district in Boston. Feldman did not recall whether he initiated the meeting or whether it was specifically for the purpose of talking to Grossman about his personal financial situation. The lunch meeting lasted approximately one hour, during which time Feldman and Grossman exchanged social pleasantries and discussed matters relating to one of their joint clients. Feldman also told Grossman of the general nature of his personal financial concerns. Although Feldman also asserted that he told Grossman details of his personal financial situation and that Grossman gave him advice about protecting his personal assets, Grossman has no record or memory of the meeting or of ever having spoken to Feldman about his personal affairs. The court credits Feldman’s testimony that he met with Grossman in late Februaiy, 1991, but does not find that he shared any specifics with Grossman, about his personal financial situation or received from Grossman any carefully considered legal advice about those matters. Neither Feldman nor Grossman took any notes or exchanged any documents at their luncheon meeting.

4. On May 9, 1991, Feldman attended a dinner organized and sponsored by the Anti-Defamation League (“ADL”) at which Grossman and members of his family were also present. During a reception preceding the dinner, in a large room populated by a substantial number of dinner guests, Feldman spoke to Grossman about his activities regarding his personal financial matters since their luncheon in late February, 1991. This conversation lasted five to ten minutes. No notes were taken and no documents were exchanged. Grossman has no memory of this meeting or of any conversation with Feldman at the ADL dinner.

5. In or about May 1991, Feldman resigned as managing partner at G & S. In June, 1991, after a trial on the issue of liability in the Williams case, a Superior Court judge made findings and rulings and ordered judgment against G & S. In or about September, 1991, Feldman resigned as a partner in the firm. In October, 1991, bankruptcy proceedings concerning G & S were commenced.

6. On September 12, 1994, Looney wrote a letter to Feldman in which he stated that he represented several former partners of G & S, and that his letter was “a written demand for relief under G.L.c. 93A, §9 by [those former partners] against [Feldman] for . . . unfair or deceptive acts or practices, resulting in . . . injuries [to the former partners].” A similar letter was presumably written to BD&G. Although Feldman was apparently outraged at Looney’s letter, and considered Looney to have a conflict of interest because of Feldman’s 1991 meetings with Grossman, he did not respond to Looney’s letter or advise Looney or Looney & Grossman of the asserted conflict of interest at that time.

7. On October 7, 1994, Looney’s clients entered into a written agreement with Feldman and BD&G tolling the statute of limitations on their possible legal claims against Feldman and BD&G pending the final resolution of the Williams case. On August 8, 1996, the Supreme Judicial Court issued its decision in Williams v. Ely, 423 Mass. 467 (1996). On September 9, 1996, Feldman wrote a letter to Looney, in response to Looney’s letter of September 12, 1994. In that letter, Feldman stated, inter alia, that “it is inappropriate for your firm to represent anyone in a case brought against me individually. On more than one occasion your firm rendered legal advise [sic] to me related to the bankruptcy of Gaston & Snow and my personal situation. There is a conflict of interest that exists, and I do not waive it. I will object to your firm acting against me in this matter.”

8. On October 7, 1996, Looney filed the present action against Feldman and BD&G. On January 27, 1997, Feldman filed his motion to disqualify Looney and Looney & Grossman from further representing the plaintiffs in this action.

9. Looney & Grossman has no files in the name of Feldman, and has no record of any such file being opened. Grossman never billed Feldman for any legal matter and there is no record that Feldman was ever a client of Looney & Grossman. Neither Grossman nor anyone else at Looney & Grossman has given Looney any confidential information about Feldman.

RULINGS OF LAW

In considering a motion for disqualification, the court must reconcile the right of a person to the counsel of his choice and the need to maintain high standards of professional conduct. Mailer v. Mailer, 390 Mass. 371, 373 (1980). It must strike an appropriate balance “between a client’s right to counsel of choice and an attorney’s responsibility to preserve client confidences and to avoid even the appearance of impropriety.”

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Related

Mailer v. Mailer
455 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1983)
Bays v. Theran
639 N.E.2d 720 (Massachusetts Supreme Judicial Court, 1994)
Williams v. Ely
423 Mass. 467 (Massachusetts Supreme Judicial Court, 1996)

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Bluebook (online)
6 Mass. L. Rptr. 573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fiduciary-trust-co-v-bingham-dana-gould-masssuperct-1997.