Graham ex rel. Graham v. Wyeth Laboratories Division of American Home Products Corp.

760 F. Supp. 1451, 1991 U.S. Dist. LEXIS 4255
CourtDistrict Court, D. Kansas
DecidedMarch 14, 1991
DocketNos. 85-1481-K, 88-1094-K
StatusPublished
Cited by1 cases

This text of 760 F. Supp. 1451 (Graham ex rel. Graham v. Wyeth Laboratories Division of American Home Products Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graham ex rel. Graham v. Wyeth Laboratories Division of American Home Products Corp., 760 F. Supp. 1451, 1991 U.S. Dist. LEXIS 4255 (D. Kan. 1991).

Opinion

MEMORANDUM AND ORDER

PATRICK F. KELLY, District Judge.

This decision is in response to, and in compliance with, the Tenth Circuit Court of Appeals’ remand for a full evidentiary hearing in connection with defendant Wyeth’s motion to disqualify plaintiff counsel’s law firm, Michaud & Hutton, now Michaud, Hutton & Bradshaw (hereinafter “Hutton”). See Graham v. Wyeth Laboratories, 906 F.2d 1419 (10th Cir.1990). The Tenth Circuit also remanded Geisler v. Wyeth Laboratories, Misc. No. 89-566 (10th Cir. Oct. 11, 1990).

Wyeth complains that attorney Randall Fisher, an associate member of the Hutton firm since February of 1989, was, from May, 1981 through September, 1987, a member of the local law firm representing Wyeth, McDonald, Tinker, Skaer, Quinn & Herrington (hereinafter McDonald, Tinker), and has served as Wyeth’s attorney in substantially related matters.

This court first addressed Wyeth’s complaint in Geisler v. Wyeth Laboratories, 716 F.Supp. 520 (D.Kan.1989). While the factual dispute remaining for decision is more fully described hereinafter, it is sufficient to say that Wyeth’s complaint then was really no different than it is today.

It was then claimed that throughout Mr. Fisher’s employment with McDonald, Tinker he was exposed to the firm’s matters, including that of Wyeth, and once he became a director of the firm in 1985 it is claimed by Wyeth that Fisher was involved in and/or exposed to substantive discussions pertaining to trial and defense strategies, including the Graham case. In addition, Wyeth claims that Mr. Fisher was assigned to represent Wyeth in a case entitled Taylor v. Wyeth, et al., 139 Mich.App. 389, 362 N.W.2d 293 (1984) which involved claims allegedly arising from the use of oral contraceptives. In October, 1984, Fisher and attorney Debra Arnett, of the same office, visited Wyeth’s facility in Rad-nor, Pennsylvania, to meet with several representatives of Wyeth and its legal department and with its medical director, Mahlon Bierly, M.D.

For reasons noted in Geisler, notwithstanding Fisher’s denials, this court involved itself no further than the Radnor visit. Following the mandate of Smith v. Whatcott, 757 F.2d 1098 (10th Cir.1985), the court held that under Model Rule of Professional Conduct 1.9, Fisher’s former [1453]*1453representation of Wyeth in the oral contraceptive case was substantially related to the instant litigation, and therefore this court had no choice but to conclude that Fisher’s meeting with Dr. Bierly in an attorney-client relationship put in place an irrebuttable presumption that the client, Wyeth, through Bierly, had revealed facts which required Fisher’s disqualification.

On reaching the foregoing finding, the Hutton firm was also disqualified.

As this court’s decision further notes, on making the foregoing findings and being impressed with an exception noted in Smith, this court innovated with the engagement of a “Chinese wall” or screening device which was intended to assure resolution of Wyeth’s concerns and reconcile the needs of all parties. Given the novel nature of this procedure, the court also acquiesced in Wyeth’s interlocutory appeal.

During the pendency of that appeal, the Graham appeal came on for hearing before the Tenth Circuit, at which time Wyeth directly moved the circuit for an order of disqualification. Ironically, during the pendency of the Wyeth appeal, the Kansas Supreme Court announced its decision in Parker v. Volkswagenwerk Aktiengesellschaft, 245 Kan. 580, 781 P.2d 1099 (1989), which changed the ground rules. For purposes here, Parker has changed everything!

Today, the circuit’s mandate requires an inquiry as to whether Fisher acquired information protected by Rules 1.6 and 1.9(b) of the Model Rules of Professional Conduct which is material to the matter in his new law firm.

Consistent with the Tenth Circuit’s decision, it is presupposed that the following findings are made: (a) that the moving party (Fisher) and his prior law firm (McDonald, Tinker) had represented the client (Wyeth), whose interest is materially adverse to the client (Graham) or his new law firm (Hutton); (b) that the matter in Fisher’s new firm is the same or substantially related to the previous representations; (c) that the new firm knows of the controversy arising from the conflict.

Consistent with the circuit mandate, the quest here is with the presence or absence of actual knowledge of material fact which pertains to such protected information.

This court has to determine for the litigants the following issue necessary for decision here: has Fisher established with his evidence that at no time, while a former associate or director of McDonald, Tinker, which represented Wyeth in the DTP matters, including the time assigned by his firm to represent Wyeth’s interests in an oral contraceptive case, did he ever acquire actual, material and confidential information from Wyeth’s representatives or through his attorney colleagues in McDonald, Tinker?

Following a full evidentiary hearing on September 17, 1990 and a full review of the transcript, the court’s trial notes, briefs and suggested findings of fact and conclusions of law, together with oral arguments taken on March 1, 1991, and consistent with some findings and comments extended by the court at that time which are incorporated herein, the answer is “yes”. This court holds that at no time herein has Mr. Fisher been privy to, communicated, or been exposed directly or indirectly to any such information. In light of these findings and as a consequence thereof, attorney Randall Fisher and his new firm of Michaud, Hutton & Bradshaw are not to be disqualified, and the defendant’s motions should be dismissed.

The factual dispute arises in two separate settings. First, the case addresses Fisher’s professional activities within the McDonald, Tinker office, and his alleged exposure to Wyeth’s DTP matters; secondly, the case addresses those events which allegedly occurred while Fisher visited the Radnor facility in October, 1984. The court will address the latter first.

The Radnor Visit

In the summer of 1984, Wyeth engaged McDonald, Tinker for the defense of Taylor v. Wyeth, an oral contraceptive matter. The case was assigned by attorney Her-rington to Randall Fisher, then an associate attorney of the firm, principally because of his skills and some success in similar litigation. It was thought by Her-rington that a visit to the Radnor facility [1454]*1454was advisable; in Fisher’s view it was more of a public relations trip than a quest for information. Given the lapse in time, Fisher’s memory is understandably sketchy insofar as precise details are concerned.

On October 3, 1984, Fisher and Debra Arnett met with Mr. Steve Johnson, an in-house attorney for Wyeth assigned to oral contraceptive cases. Fisher recalls this visit in part as follows:

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GRAHAM BY GRAHAM v. Wyeth Laboratories
760 F. Supp. 1451 (D. Kansas, 1991)

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Bluebook (online)
760 F. Supp. 1451, 1991 U.S. Dist. LEXIS 4255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graham-ex-rel-graham-v-wyeth-laboratories-division-of-american-home-ksd-1991.