Glenmede Trust Company Pepper, Hamilton & Scheetz v. B. Ray Thompson, Jr. Juanne J. Thompson Catherine v. Thompson Adella S. Thompson B. Ray Thompson, III Sarah Thompson Tarver Rebekah L. Thompson B. Ray Thompson, Jr., as Trustee of Five Thompson Family Trusts Juanne J. Thompson, as Trustee of Five Thompson Family Trusts Dale A. Keasling, as Trustee of Five Thompson Family Trusts v. The Honorable Herbert J. Hutton, United States District Judge, Nominal

56 F.3d 476, 32 Fed. R. Serv. 3d 889, 23 Media L. Rep. (BNA) 2036, 1995 U.S. App. LEXIS 12930
CourtCourt of Appeals for the Third Circuit
DecidedMay 23, 1995
Docket94-2189
StatusPublished
Cited by249 cases

This text of 56 F.3d 476 (Glenmede Trust Company Pepper, Hamilton & Scheetz v. B. Ray Thompson, Jr. Juanne J. Thompson Catherine v. Thompson Adella S. Thompson B. Ray Thompson, III Sarah Thompson Tarver Rebekah L. Thompson B. Ray Thompson, Jr., as Trustee of Five Thompson Family Trusts Juanne J. Thompson, as Trustee of Five Thompson Family Trusts Dale A. Keasling, as Trustee of Five Thompson Family Trusts v. The Honorable Herbert J. Hutton, United States District Judge, Nominal) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Glenmede Trust Company Pepper, Hamilton & Scheetz v. B. Ray Thompson, Jr. Juanne J. Thompson Catherine v. Thompson Adella S. Thompson B. Ray Thompson, III Sarah Thompson Tarver Rebekah L. Thompson B. Ray Thompson, Jr., as Trustee of Five Thompson Family Trusts Juanne J. Thompson, as Trustee of Five Thompson Family Trusts Dale A. Keasling, as Trustee of Five Thompson Family Trusts v. The Honorable Herbert J. Hutton, United States District Judge, Nominal, 56 F.3d 476, 32 Fed. R. Serv. 3d 889, 23 Media L. Rep. (BNA) 2036, 1995 U.S. App. LEXIS 12930 (3d Cir. 1995).

Opinion

56 F.3d 476

32 Fed.R.Serv.3d 889, 23 Media L. Rep. 2036

GLENMEDE TRUST COMPANY; Pepper, Hamilton & Scheetz, Petitioners,
v.
B. Ray THOMPSON, Jr.; Juanne J. Thompson; Catherine V.
Thompson; Adella S. Thompson; B. Ray Thompson, III; Sarah
Thompson Tarver; Rebekah L. Thompson; B. Ray Thompson,
Jr., as Trustee of Five Thompson Family Trusts; Juanne J.
Thompson, as Trustee of Five Thompson Family Trusts; Dale
A. Keasling, as Trustee of Five Thompson Family Trusts, Respondents,
v.
The Honorable Herbert J. HUTTON, United States District
Judge, Nominal Respondent.

No. 94-2189.

United States Court of Appeals,
Third Circuit.

Argued March 29, 1995.
Decided May 23, 1995.

William A. Slaughter, Alan J. Davis, Esquire (argued), Ballard, Spahr, Andrews & Ingersoll, Philadelphia, PA, for petitioner Glenmede Trust Co.

William T. Hangley, (argued), Sara M. Staman, Hangley, Aronchick, Segal & Pudlin, Philadelphia, PA, for petitioner Pepper, Hamilton & Scheetz.

Michael C. Spencer, (argued), Milberg, Weiss, Bershad, Hynes & Lerach, New York City, James J. Binns, James J. Binns, P.A., Philadelphia, PA, for respondents.

Before: MANSMANN, COWEN and LEWIS, Circuit Judges.

OPINION OF THE COURT

MANSMANN, Circuit Judge.

Before us is a Petition for Writ of Mandamus filed by a law firm and its client, a trust company which is a defendant in the underlying diversity action involving claims for breach of fiduciary duty, fraud, breach of contract and negligence, arising from the trust company's role in a stock repurchase transaction. They jointly seek a writ directing the district court to vacate and reverse its orders compelling the law firm to comply with a subpoena duces tecum requesting its file relating to all work it performed for the client regarding the repurchase transaction.

They also seek a writ directing the district court to vacate and reverse its order denying their request for a protective order to enforce the umbrella of confidentiality established by a confidentiality agreement stipulated to by the parties to the underlying dispute, but which was never embodied in an order of the district court. In that regard, the specific issue we must decide is whether general allegations of embarrassment and injury to professional reputations and client relationships satisfies the "good cause" requirement for the issuance of an umbrella protective order pursuant to our recent decision in Pansy v. Borough of Stroudsburg, 23 F.3d 772 (3d Cir.1994). The law firm and its client assert that they will be unable to rectify the harm to their reputations and client relationships if the law firm's privileged documents are publicly disseminated.

We find that although they have established that there are no alternative avenues of appeal for these discovery orders, the law firm and the client trust company have failed to establish their clear and indisputable right to the writ. They failed to establish "good cause" for the protection of all of the law firm's file documents pursuant to the confidentiality agreement. Nor have they demonstrated that the district court erred in determining that the scope of the client's waiver of the attorney-client privilege, by injecting the client's reliance on advice of counsel as an issue in the underlying action, extended to the entire transaction, including back-up documents.

Accordingly, we decline to issue the requested writs.

I.

Glenmede Trust Company ("Glenmede") is a Pennsylvania trust company that serves as the trustee for several charitable trusts, including the Pew Charitable Trusts.1 Glenmede also serves as a trustee for a number of private trusts and acts as an investment advisor pursuant to a written contract for other clients. B. Ray Thompson, Jr., several members of his family2 and the trustees3 of five trusts established by B. Ray Thompson, Sr. for the benefit of his five grandchildren (collectively "the Thompson Family") were investment advisory clients of Glenmede. Prior to September 11, 1990, both the Pew Charitable Trusts and the Thompson family held substantial shares of Oryx Energy Company stock; the Pew family's Oryx holdings totalled in excess of 25 million shares and the Thompson family's Oryx holdings totalled approximately 2.9 million shares. In mid-1990, Glenmede broached, with Oryx management, the subject of a direct buy-back of Oryx shares held by the Pew Charitable Trusts. Oryx was willing to repurchase a maximum of 18 million shares at a premium price per share but requested that buy-back discussions be kept confidential. Given the limitations on the buy-back, Glenmede consulted its counsel, Pepper, Hamilton & Scheetz, as to whether the Oryx transaction could be extended to include Glenmede's private trust and investment advisory clients.4

Pepper Hamilton issued an Opinion Letter dated September 6, 1990 advising Glenmede that the buy-back transaction could not be structured to include private clients of Glenmede as to do so may violate Internal Revenue Code prohibitions on private foundations.5 Pepper Hamilton further advised Glenmede that it could not notify its private clients of the buy-back negotiations between Oryx and Glenmede acting in its capacity as trustee of the Pew Charitable Trusts. On September 11, 1990, Oryx repurchased through Glenmede 18 million of its common shares held by the Pew Charitable Trusts and converted the remaining 7.3 million common shares held by the Pew Charitable Trusts to convertible preferred shares. Allegedly, based on the Opinion Letter from Pepper Hamilton, Glenmede excluded its private clients with holdings of Oryx stock from the buy-back transaction.

In September of 1992, the Thompson family brought an action against Glenmede, its parent Glenmede Corporation, a number of Glenmede officers and directors and the Chairman and CEO of Oryx, who was dismissed from this action, asserting, inter alia, claims for breach of fiduciary duty, fraud, breach of contract, and negligence, all allegedly arising from Glenmede's role in the September 11, 1990 buy-back transaction, in which Oryx repurchased 18 million of its shares from Glenmede as trustee of the Pew Charitable Trusts. Glenmede raised as its Fourteenth affirmative defense to these charges that it "was advised by counsel that it was legally precluded by Internal Revenue Code prohibitions from including Oryx shares held by other accounts in the repurchase transaction."

Glenmede concedes that the impact of placing at issue its reliance on advice of counsel was a waiver of the attorney-client privilege limited to the subject matter placed at issue.

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56 F.3d 476, 32 Fed. R. Serv. 3d 889, 23 Media L. Rep. (BNA) 2036, 1995 U.S. App. LEXIS 12930, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glenmede-trust-company-pepper-hamilton-scheetz-v-b-ray-thompson-jr-ca3-1995.