Grand Jury Proceedings, In Re:

142 F.3d 1416
CourtCourt of Appeals for the Eleventh Circuit
DecidedJune 12, 1998
Docket95-2322
StatusPublished

This text of 142 F.3d 1416 (Grand Jury Proceedings, In Re:) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grand Jury Proceedings, In Re:, 142 F.3d 1416 (11th Cir. 1998).

Opinion

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

No. 95-2322

IN RE GRAND JURY PROCEEDINGS (No. 93-2)

JOHN ROE, INC., JOHN ROE,

Movants-Appellants,

versus

UNITED STATES OF AMERICA,

Appellee.

Appeal from the United States District Court for the Middle District of Florida

(June 12, 1998)

Before HATCHETT, Chief Judge, TJOFLAT, Circuit Judge, and GODBOLD, Senior Circuit Judge. TJOFLAT, Circuit Judge:

In this appeal, targets of a federal grand jury

investigation, John Roe, Inc. and John Roe,1 the principal

officer and shareholder of John Roe, Inc., challenge the district

court’s denial of their motion to quash a grand jury subpoena

served on Attorney Doe, their former attorney (the “attorney”).

After the district court denied appellants' motion to quash, the

attorney appeared before the grand jury and testified, answering

all of the questions put to him. Because the attorney has now

testified, and because our jurisdiction “depends upon the

existence of a case or controversy,” North Carolina v. Rice, 404 U.S. 244, 246, 92 S.Ct. 402, 404, 30 L.Ed.2d 413 (1971), we must

consider whether this appeal is moot.

Appellants assert that their appeal is not moot. They argue

that the in camera procedure the district court employed in

disposing of their motion to quash denied them due process of

law, and that, should we agree, we have the power to grant

effective relief. Given the availability of effective relief,

their argument continues, this appeal is not moot. We find no

merit in appellants' argument, and therefore declare this appeal

moot. Accordingly, we dismiss the appeal and instruct the

district court, on receipt of our mandate, to dismiss the case.

I.

1 Because this appeal involves proceedings before a grand jury, and the briefs and record on appeal are under seal, we use pseudonyms to preserve anonymity.

2 The attorney appeared before the grand jury, pursuant to

subpoena,2 on several occasions in connection with a criminal

investigation of appellants.3 During these appearances, the

attorney was permitted to write down any question he thought

might call for the disclosure of communications protected by the

attorney-client privilege, and, before answering the question, to

consult with appellants who were stationed outside the grand jury

room. In most, if not all instances, he thereafter refused to

answer the question.

After the attorney’s third appearance, the United States

Attorney (the ”Government”) moved the district court, in camera, for an order compelling the attorney to answer the questions he

had refused to answer on the ground of attorney-client privilege.

According to the Government, those questions and any reasonable

follow-up questions would not call for the disclosure of

communications protected by the attorney-client privilege because

those communications fell within the crime-fraud exception to the

2 The attorney’s representation of appellants had ceased by the time the first subpoena issued. 3 Following the issuance of the first subpoena and prior to the attorney's appearance before the grand jury, appellants moved the district court to quash the subpoena on the ground that the grand jury’s inquiry would require the attorney to disclose communications protected by the attorney-client privilege. The district court denied their motion, concluding that it was premature; to grant the motion, the court would have had to speculate as to the questions that might be put to the attorney and whether they would elicit communications protected by the privilege.

3 privilege.4 To demonstrate the applicability of the exception,

the Government submitted to the court in camera supplemental

material providing factual support for the motion to compel.

This material included the grand jury testimony of the attorney

(including the questions he had refused to answer) and of some

witnesses; documents in the grand jury’s possession; and relevant

affadavits.5

Finding that the Government's submission established a prima

facie case that appellants had been executing a fraudulent scheme

and that they had used the attorney to assist them in doing so,

the district court granted the Government's motion to compel and

ordered the attorney to answer the grand jury’s questions. The

court entered the order in camera, with the proviso that the Government disclose the existence of the order to appellants and

permit the attorney to read the order.

Following the issuance of the compel order, the grand jury

subpoenaed the attorney to appear again. When appellants learned

of the subpoena, they moved the court in camera for leave to

intervene and to quash the subpoena.6 Citing the attorney-client

4 Under this exception, the attorney-client privilege does not extend to communications made for the purpose of furthering a crime or fraud. See United States v. Zolin, 491 U.S. 554, 562- 63, 109 S.Ct. 2619, 2626, 105 L.Ed.2d 469 (1989); see also Clark v. United States, 289 U.S. 11, 15, 53 S.Ct. 465, 469, 77 L.Ed. 993 (1933). 5 The record does not indicate whether these affidavits had been presented to the grand jury. 6 Appellants' motion also asked the court to stay its order compelling the attorney to answer the grand jury’s questions until it ruled on their motion to quash.

4 privilege, they argued that the subpoena should be quashed in

full on the ground that anything the attorney might say to the

grand jury would reveal privileged communications. Appellants

also requested that before ruling on their motion to quash, the

court provide them copies of the Government's in camera motion to

compel and supplemental supporting materials, as well as the

court's order granting that motion (the “in camera documents”).

According to appellants, without these in camera documents, they

could not respond to the Government's representation that the

crime-fraud exception foreclosed the assertion of the attorney-

client privilege.

The district court granted appellants' motion to intervene

and subsequently entertained, in camera, their memorandum in support of the motion to quash. The court denied appellants’

request for copies of the in camera documents, however. After

considering the parties' submissions on the application of the

crime-fraud exception, the court adhered to its earlier ruling --

that the crime-fraud exception rendered the communications

between the attorney and appellants discoverable -- and therefore

denied appellants’ motion to quash. Addressing appellants'

argument that by denying them access to the in camera documents, the court had deprived them of their day in court on the crime-

fraud issue, the court stated that appellants would have a full

opportunity to litigate that issue in a contempt hearing, should

the attorney refuse to answer the grand jury’s questions.

5 After the district court denied their motion to quash,

appellants brought this appeal. They also moved the district

court to stay its order pending appeal. The court denied their

motion; we likewise denied a stay. Thereafter, the attorney

appeared before the grand jury and fully responded to its

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