First Miami Securities, Inc. v. Sylvia

780 So. 2d 250, 2001 WL 166984
CourtDistrict Court of Appeal of Florida
DecidedFebruary 21, 2001
Docket3D00-2168
StatusPublished
Cited by5 cases

This text of 780 So. 2d 250 (First Miami Securities, Inc. v. Sylvia) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Miami Securities, Inc. v. Sylvia, 780 So. 2d 250, 2001 WL 166984 (Fla. Ct. App. 2001).

Opinion

780 So.2d 250 (2001)

FIRST MIAMI SECURITIES, INC., a Florida corporation, Petitioner,
v.
Kurt SYLVIA, individually, and First Union Brokerage Services, Inc., a North Carolina corporation, jointly and severally, Respondents.

No. 3D00-2168.

District Court of Appeal of Florida, Third District.

February 21, 2001.
Rehearing Denied April 11, 2001.

*251 Podhurst, Orseck, Josefsberg, Eaton, Meadow, Olin & Perwin and Joel D. Eaton, Miami; Richard and Richard and Dennis Richard, Miami, for petitioner.

Gallwey Gillman Curtis Vento & Horn and Karen H. Curtis and Stephen B. Gillman, Miami; LeClair Ryan and Stephen T. Gannon and Harris L. Kay (Richmond, VA), for Kurt Sylvia and First Union Brokerage Services, Inc. as pro hac vice.

Before LEVY, GODERICH, and SHEVIN, JJ.

LEVY, Judge.

First Miami Securities, Inc. ("Petitioner") files this Petition for Writ of Certiorari seeking to quash an Order granting Kurt Sylvia, et al.'s ("Respondent") Motion to Disqualify Petitioner's counsel. This matter requires this Court to adopt a standard for determining when the hiring of a nonlawyer employee of an opposing firm requires the imputed disqualification of the hiring firm. For the following reasons we grant the Petition for Writ of Certiorari, quash the trial court's Order, and remand this cause for an evidentiary hearing.

From September 24, 1999, until June 12, 2000, Elsie St. Fleur ("the secretary") was employed as a legal secretary for Respondent's law firm, Gallwey Gillman Curtis Vento & Horn, P.A. ("Respondent's firm"). During said time, the current lawsuit was initiated between Respondent and Petitioner. Petitioner was represented by Richard & Richard, P.A. ("Petitioner's firm"). According to Respondent's affidavit, the secretary was exposed to confidential attorney-client information and attorney work product relating to the instant case while she worked for Respondent's firm. On June 12, 2000, the secretary left Respondent's firm to become a legal secretary at Petitioner's firm. The circumstances surrounding her leaving are somewhat suspect. According to Respondent, the secretary gave Respondent's firm four days notice, but never returned to work. Moreover, at the time of her departure the secretary never indicated that she would be working for Petitioner's law firm.

On June 21, 2000, prior to her starting at Petitioner's law firm, Respondent's firm learned that the secretary had accepted a position with Petitioner's firm. According to Respondent's affidavit, Respondent's firm had learned through a rumor that the secretary was going to work for Petitioner's firm and then confirmed it directly with the secretary. Upon learning of the secretary's employment at Petitioner's law firm, Respondent's law firm filed a Motion to Disqualify Petitioner's firm as counsel for Petitioner. Said motion was based on allegations that the secretary was exposed to Respondent firm's confidential privileged information while she was employed by Respondent's firm and that said information was placed in danger of disclosure due to her employment at Petitioner's firm.

In contrast, Petitioner's firm contended that it had screened the secretary from working on the instant case and that, therefore, disqualification was not required. Specifically, the secretary's affidavit stated that: (1) Petitioner's firm had informed the secretary at the time of hire that she would not work on the instant case; (2) the secretary had not worked on *252 this case while at Petitioner's firm; and (3) the secretary had not discussed this case with anyone at Petitioner's firm.

On July 26, 2000, the trial court issued an Order disqualifying Petitioner's firm as counsel in this matter. The trial court's Order listed a number of factors/concerns leading to its decision to disqualify Petitioner's firm as counsel for Petitioner. However, said Order did not rely upon any case law from this, or any other, District. In so holding, the trial court stated:

9. That the undersigned is bothered by a number of factors including the fact that of the 12,000 + attorneys practicing in Miami-Dade County, Florida [the secretary] sought and obtained employment with the one firm that happened to be on the opposite side of a hotly contested lawsuit and the new employer, knowing where [the secretary] had been employed and knowing the potential problems failed to make any contact whatsoever with her former employer before hiring her.
10. That even of greater concern to the undersigned is the appearance of impropriety to the [Respondent] herein upon learning that the secretary to their attorney with whom they had shared confidential litigation information was now working for the other side.
11. That the undersigned doesn't believe that the screening process described by [the secretary's] current employer would satisfy the [Respondent's] concerns that confidential information may be shared with her new employer even if in fact it never has been or never is actually shared.
12. That the undersigned recognizes the importance of [Petitioner's] right to have its chosen counsel represent it but said counsel has himself created a situation where the concerns and appearance to [Respondent] outweighs that right.

On this petition, Petitioner alleges that the trial court erred in disqualifying Petitioner's counsel from the instant case because it had hired the secretary away from Respondent's firm. This matter requires this Court to adopt a standard for determining when the hiring of a nonlawyer employee of an opposing firm requires the imputed disqualification of the hiring firm. In particular, this Court must determine whether screening is an adequate measure to prevent such disqualification.

Over the years, other courts have adopted conflicting standards for resolving this issue based upon the relevant ethical rules and advisory opinions in existence at the time. The Second District and, most recently, the Fifth District have adopted the same disqualification standard that essentially requires: (1) a showing that the nonlawyer employee was exposed to client confidences on the underlying case while employed at the former firm; and (2) a showing that the hiring firm obtained confidential information on the underlying case from the nonlawyer employee, thereby gaining an "unfair advantage" over the former/opposing firm. See City of Apopka v. All Corners, Inc., 701 So.2d 641 (Fla. 5th DCA 1997); see also Esquire Care, Inc. v. Maguire, 532 So.2d 740 (Fla. 2d DCA 1988). In applying this test, the Second and Fifth Districts have accepted the screening of a nonlawyer employee as a viable step to prevent the imputed disqualification of the hiring firm. See City of Apopka, 701 So.2d at 644; see also Esquire Care, Inc., 532 So.2d at 741.

The First District has adopted a slightly different standard which expressly recognizes the screening of a nonlawyer employee as an adequate defense to the imputed disqualification of the hiring firm. See Stewart v. Bee-Dee Neon & Signs, Inc., 751 So.2d 196 (Fla. 1st DCA 2000). The Stewart court adopted a standard wherein, once the movant establishes that the nonlawyer employee was exposed to confidential information in the underlying case while employed at the former firm, two rebuttable presumptions are raised: "that the nonlawyer employee actually obtained confidential information material to the *253

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Cite This Page — Counsel Stack

Bluebook (online)
780 So. 2d 250, 2001 WL 166984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-miami-securities-inc-v-sylvia-fladistctapp-2001.