Goldenberg v. Corporate Air, Inc.

457 A.2d 296, 189 Conn. 504, 1983 Conn. LEXIS 466
CourtSupreme Court of Connecticut
DecidedMarch 15, 1983
Docket11256
StatusPublished
Cited by57 cases

This text of 457 A.2d 296 (Goldenberg v. Corporate Air, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldenberg v. Corporate Air, Inc., 457 A.2d 296, 189 Conn. 504, 1983 Conn. LEXIS 466 (Colo. 1983).

Opinions

Parskey, J.

This case presents a variation of the troublesome question whether private counsel in a civil law suit and his firm should be disqualified for his having consulted with an attorney who changed sides during the pendency of the litigation.

The disqualification issue arises incidentally out of a tragic aircraft accident that occurred at Brainard Field in Hartford on November 28, 1978 and that resulted in the death of the pilot and two passengers. Multiple suits followed against various defendants among whom are Corporate Air, Inc. (Corporate Air), lessee and operator of the aircraft involved in the accident, and Avco Corporation (Avco), manufacturer of the two engines which powered the plane. There is an adverse interest between Corporate Air and Avco because Avco contends that the accident resulted from operational or pilot error while Corporate Air contends that defective equipment manufactured by Avco caused the accident.

Avco’s insurer with respect to claims arising out of the accident is United States Aviation Insurance G-roup (USAIG-). At the date of the accident and for two years thereafter one Joseph Flaherty was a staff attorney at USAIG- who represented Avco in regard to its defense of any tort claims arising out of the crash. He was given total access to all Avco records, documents, tests, correspondence and personnel to assist him in formulating that defense. [507]*507He not only was privy to all Aveo’s defense plans in regard to that accident, but he also, in great part, structured the defenses.

In 1981 Flaherty left TJSAIGf and had gone to work for Peter J. McBreen and Company (McBreen), an accident investigation and insurance adjusting firm. McBreen represents the insurance underwriting company which insures Corporate Air in regard to this accident. Attorney William R. Moller represents Corporate Air in the several suits arising out of the accident. As an employee of McBreen, Flaherty has consulted with Attorney Moller in regard to this accident. There is no evidence that Moller knew of Flaherty’s past relationships or that Moller acted improperly in any way. In response to a motion by Avco, the trial court nevertheless disqualified Moller and his office from representing Corporate Air in the several cases and rendered a further order designed to insulate Flaherty and his information from successor counsel.1 This appeal followed.

There are three competing interests at stake in the disqualification of Moller: first, Corporate Air’s interest in freely selecting counsel of its choice; second, Aveo’s interest in protecting its confidential information from disclosure to an adversary in the pending litigation; and third, the public’s interest in the scrupulous administration of justice. In balancing these interests the trial court found that the interests of Avco and the public outweighed the interest of Corporate Air [508]*508and therefore exercised its discretion in favor of disqualification. In reviewing the court’s action we must not only accord every reasonable presumption in favor of the trial court’s decision, but we also should hesitate to reverse unless an abuse of discretion is manifest or injustice appears to have been done. State v. Jones, 180 Conn. 443, 448, 429 A.2d 936 (1980). We conclude that, except for the scope of the order, the trial court’s action falls well within the bounds of its discretionary authority.

Before reaching the question of whether Avco’s interest in protecting its confidential information from disclosure has been jeopardized, it must first be determined that an attorney-client relationship existed between Avco and Flaherty. State v. Jones, supra, 449. “The practice of law consists in no small part of work performed outside of any court and having no immediate relation to proceedings in court. It embraces the giving of legal advice on a large variety of subjects and the preparation of legal instruments covering an extensive field. Although such transactions may have no direct connection with court proceedings, they are always subject to subsequent involvement in litigation. They require in many aspects a high degree of legal skill and great capacity for adaptation to difficult and complex situations. No valid distinction can be drawn between the part of the work of the lawyer which involves appearance in court and the part which involves advice and the drafting of instruments. The work of the office lawyer has profound effect on the whole scheme of the administration of justice. It is performed with the possibility of litigation in mind, and otherwise would hardly be needed.” State Bar Assn. v. Connecticut Bank & Trust Co., 145 Conn. 222, 234-35, 140 A.2d 863 [509]*509(1958). The relationship between an insured and attorneys in the legal department of the insurer in respect to litigation against the insured involving the subject matter of the insurance is that of attorney and client, whether or not the insurer employs outside counsel to represent the insured in the law suit.

We begin our analysis with an examination of the relationship between Joseph Flaherty and Avco. The fact that Flaherty was house counsel for Avco’s insurer did not preclude him from developing an attorney-client relationship with Avco in regard to the airplane crash litigation. Despite Corporate Air’s insistence that Flaherty was acting merely as an adjuster or claims supervisor with respect to Avco rather than as an attorney, it is apparent from even a casual observation that Flaherty’s professional footprints are all over Avco’s product liability landscape. RCA v. Rauland Corporation, 18 F.R.D. 440, 443 (N.D. Ill. 1955). Not only was he given access to all Avco records, documents, tests and correspondence pertinent to the litigation, he was also privy to Avco’s trial strategy. He participated in discussions designed to formulate Avco’s trial plan and played an active role in structuring its defenses. His intimate knowledge of Avco’s affairs received in the course of the attorney-client relationship subjected him to a fiduciary responsibility. Fund of Funds, Ltd. v. Arthur Andersen & Co., 567 F.2d 225, 233 (2d Cir. 1977). Both house counsel and outside counsel are bound by the canons of professional responsibility. House counsel may not avoid the canons by claiming to be acting in some other capacity. NCK Organization, Ltd. v. Bregman Ltd., 542 F.2d 128, 133 (2d Cir. 1976).

[510]*510The disqualification dispute arose as a result of occurrences at a deposition taken in Pennsylvania in January, 1982, of an engineer employed by Avco at the time of the air crash. Flaherty was present at the deposition. Prior to attending the deposition, Flaherty requested and received permission to attend from John Considine, Flaherty’s successor at USAIG-. Considine informed Richard Small, who also had no objection. Small is the director of administration and legal officer at the Avco divisional headquarters at Williamsport, Pennsylvania.

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Bluebook (online)
457 A.2d 296, 189 Conn. 504, 1983 Conn. LEXIS 466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldenberg-v-corporate-air-inc-conn-1983.