Garcia v. Martinez

District Court, D. New Mexico·Decided June 15, 2020·No. 1:19-cv-00641·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

VERONICA GARCIA,

Plaintiff,

v. 1:19-cv-00641-JAP-LF

MICHAEL MARTINEZ, STATE OF NEW MEXICO and its subsidiary entities, NEW MEXICO CORRECTIONS DEPT. and WESTERN NEW MEXICO CORRECTIONAL FACILITY, DEFENDANT ROBERT A LUCERO ORTEGA, Warden at the Western New Mexico Correctional Facility, and DEFENDANT PETE PEREZ, Deputy Warden at the Western New Mexico Correctional Facility,

Defendants.

MEMORANDUM OPINION AND ORDER DENYING MOTION TO DISQUALIFY AND MOTION TO STAY

THIS MATTER comes before the Court on plaintiff Veronica Garcia’s Amended Motion to Disqualify Counsel, filed April 24, 2010. Doc. 60.1 Defendants Michael Martinez, the State of New Mexico, Robert A. Lucero Ortega, and Pete Perez (collectively “defendants”) filed their response to the amended motion on May 18, 2020. Doc. 74. Ms. Garcia filed her reply on June 1, 2020. Doc. 82. The Court held an evidentiary hearing on the motion on June 2, 2020. Doc. 84. On June 7, 2020, defendants filed a notice of supplemental authorities. Doc. 88. Also before the Court is Ms. Garcia’s Motion to Stay Proceedings Pending a Final Decision Regarding Disqualification of Conflicted Opposing Counsel, filed April 23, 2020. Doc. 58. Ms. Garcia’s motion to stay was fully briefed on June 4, 2020. Docs. 75, 85, 86. The Court, having

1 Plaintiff also filed a notice of errata that included certain exhibits on April 24, 2020. Doc. 61. read the parties’ submissions, including those exhibits presented in camera, and having heard the evidence and the argument of counsel, finds that the motion to disqualify (Doc. 60) is not well taken and will DENY it. Because the Court has ruled on her motion to disqualify, Ms. Garcia’s motion to stay is now moot. I. Findings of Fact Ms. Garcia is represented by Louren Oliveros from the Gorence & Oliveros, PC, law firm (“G&O”) Ms. Garcia filed her complaint in the First Judicial District Court on May 15, 2019. Doc. 1-1. Defendants removed the case to this Court on July 15, 2019. Doc. 1. Defendants are represented by Luis Robles, Marcus Rael, and Philomena Hausler from the Robles, Rael & Anaya, PC, law firm (““RR&A”). See Docs. 2, 3, 21. Litigation between the parties from July through October of 2019 included Ms. Garcia’s motion to remand (Doc. 9), defendants’ motion for judgment on the pleadings (Doc. 15), and defendants’ motion to dismiss (Doc. 16). The Court ruled on the parties’ motions and granted Ms. Garcia leave to file an amended complaint on October 23, 2019. Docs. 31, 32. The Court issued its initial scheduling order on November 8, 2019. Doc. 34. Three days later, on November 11, 2019, G&O hired Daniel Grunow as an associate attorney. Doc. 61-1 at 1. On December 3, 2019, the parties participated in a meet and confer to formulate the Joint Status Report and Provisional Discovery Plan (“JSR”). Doc. 35. Mr. Grunow did not participate in the meet and confer. /d. at 1. The parties participated in the initial scheduling conference on December 17, 2019. Doc. 38. Although Mr. Grunow had not entered an appearance on behalf of Ms. Garcia, he participated in the initial scheduling conference as a substitute for Ms. Oliveros.

? The docket indicates that Ms. Garcia also is represented by Anna Martinez of Aequitas Law, LLC. The motion to disqualify, however, does not involve Ms. Martinez or Aequitas Law. 2#

Id. Mr. Grunow never entered an appearance on behalf of Ms. Garcia in this case.? On February 19, 2020, immediately after attending a hearing as second chair in another case in which RR&A represented an opposing party, Mr. Grunow informed Ms. Oliveros that he would be resigning his position at G&O and joining RR&A.* Doc. 89 at 10-11, 21, 43. On March 4, 2020, Mr. Grunow resigned from G&O and ceased his employment with G&O. Doc. 61-1 at 2. On March 9, 2020, Mr. Grunow started working for RR&A as an associate attorney. Doc. 61-1 at 2. During his approximately four-month tenure at G&O, Mr. Grunow performed some work on behalf of Ms. Garcia. Mr. Grunow attended meetings with Ms. Garcia by himself and with Ms. Oliveros. Doc. 74-1 at 2; Doc. 89 at 29-32, 46-47, 50, 53; Doc. 90 at 7-9. Mr. Grunow also contacted Ms. Garcia through email and by telephone. Doc. 74-1 at 2—3; Doc. 89 at 47, 51. Mr. Grunow drafted the initial disclosures and the JSR, and performed some legal research and witness investigation on behalf of Ms. Garcia. Doc. 74-1 at 2—3; Doc. 89 at 55-57, 67; Doc. 90 at 6-7. During his various tasks, Mr. Grunow learned confidential information with respect to this case. Doc. 89 at 50-53; Doc. 90 at 12-13. In total, Mr. Grunow performed approximately 12 hours of work on Ms. Garcia’s case.” Doc. 74-1 at 2-3; Doc. 89 at 48, 50; Doc. 90 at 7, 9-10.

3 “Entry of appearance by a law firm allows any member of that firm to participate in the action; however, each attorney in the firm wishing to receive documents from the Clerk must make a written entry of appearance in the action.” D.N.M.LR-Civ. 83.4(b). 4 Mr. Grunow’s appearance at this hearing appears to raise a potential personal conflict of interest as described in the Committee Commentary to Rule 16-107. “[W]hen a lawyer has discussions concerning possible employment with an opponent of the lawyer’s client, or with a law firm representing the opponent, such discussions could materially limit the lawyer’ representation of the client.” NMRA, Rule 16-107 cmt. 10. But because this transgression occurred in a different case, it is not relevant to Ms. Garcia’s motion to disqualify RR&A. > This number is approximated because some of Mr. Grunow’s time had to be reconstructed by Ms. Oliveros. Doc. 74-1 at 2 (some entries labeled “LGO reconstructed time”); Doc. 89 at 27— 28. 3#

On March 9, 2020, the same day that Mr. Grunow began working at RR&A, Ms. Oliveros wrote to Mr. Robles and requested that RR&A “agree to take all steps necessary to screen and prohibit access to certain cases to your new associate, Daniel Grunow.” Doc. 61-1 at 4. On March 10, 2020, Mr. Robles signed the agreement on behalf of RR&A. Id. Ms. Oliveros wrote the same letter to Mr. Grunow. Jd. at 5. Mr. Grunow, however, refused to sign the letter. Id. at 6. Mr. Grunow explained that the New Mexico Rules of Professional Conduct prohibited him from working on cases where there is a conflict of interest, and that he had been screened from those cases. Id. Mr. Grunow’s refusal to sign the letter proposed by Ms. Oliveros prompted the motion to disqualify. See Doc. 60 at 3. II. Discussion A party has a right to be represented by an attorney of his or her own choosing; however, that right is not absolute. Sanders v. Rosenberg, 1997-NMSC-002, 49, 122 N.M. 692, 694, 930 P.2d 1144, 1146. The Court may reject a party’s chosen counsel if a compelling reason exists that supports disqualification. Jd. This Court ascertains whether counsel should be disqualified by looking to the New Mexico Rules of Professional Conduct. See D.N.M.LR-Civ. 83.9; see also Tapia v. City of Albuquerque, 10 F.Supp. 3d 1171, 1202 (D.N.M. 2014) (citing Cole v. Ruidoso Mun. Schs., 43 F.3d 1373, 1383 (10th Cir. 1994)). “[T]he burden of establishing that counsel should be disqualified lies with the party seeking disqualification.” Roy D. Mercer, LLC v. Reynolds, 2013-NMSC-002, §] 23, 292 P.3d 466, 472. The New Mexico Rules of Professional Conduct prohibit an attorney who has formerly represented a client in a matter from representing another person in the same matter in which that person’s interests are materially adverse to the former client unless the former client gives consent, in writing. NMRA, Rule 16-109(A); see also Roy D. Mercer, 2013-NMSC-002, 4 16, 44

292 P.3d at 469 (“When an attorney leaves one law firm and joins another, the attorney continues to owe a duty of confidentiality and undivided loyalty to his or her clients.”).

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