Grieco v. Fresenius Medical Care Holdings, Inc.

23 Mass. L. Rptr. 588
CourtMassachusetts Superior Court
DecidedFebruary 20, 2008
DocketNo. 200600854BLS2
StatusPublished
Cited by2 cases

This text of 23 Mass. L. Rptr. 588 (Grieco v. Fresenius Medical Care Holdings, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grieco v. Fresenius Medical Care Holdings, Inc., 23 Mass. L. Rptr. 588 (Mass. Ct. App. 2008).

Opinion

Neel, Stephen E., J.

Plaintiffs, both former in-house counsel to defendants (collectively, FMC), move to compel production of documents which FMC has withheld and listed on a privilege log as attorney-client privileged or work product. Plaintiffs seek such documents in support of their claims for breach of contract for compensation, including payment of special bonuses which they allege FMC owes for the successful completion of what was called the OIG Investigation, and for stock option rights.

The Court considers below the law of attorney-client privilege as it applies to this case, and then addresses the specific categories of documents, listed in the privilege log, which plaintiffs seek, together with the parties’ contentions as to each category.

I. The Law of Attorney-Client Privilege as Applied to this Case

The general features of the attorney-client privilege are well known: the attorney-client privilege shields from the view of third parties all confidential communications between a client and its attorney undertaken for the purpose of obtaining legal advice. See, e.g., Matter of John Doe Grand Jury Investigation, 408 Mass. 480, 481 (1990), quoting Hunt v. Blackburn, 128 U.S. 464, 470, 9 S.Ct. 125, 32 L.Ed. 488 (1888) (“seal of secrecy” on confidential communications between client and counsel); Foster v. Hall, 29 Mass. 89, 12 Pick. 89, 93 (1831) (“the general rule [is] that [where] matters [are] communicated by a client to his attorney, in professional confidence, the attorney shall not be at any time afterwards called upon or permitted to disclose in testimony”) . . .

Suffolk Const. Co., Inc. v. Division of Capital Asset Management, 449 Mass. 444, 448-49 (2007). The attorney’s confidential advice to the client is also protected. Upjohn Co. v. United States, 449 U.S. 383, 390 (1981).

“The existence of the privilege and the applicability of any exception ... is a question of fact for the judge.” Matter of Reorganization of Elec. Mut. Liability Ins. Co., Ltd. (Bermuda), 425 Mass. 419, 421 (1997). The party asserting the privilege has the burden of proving that the attorney-client privilege applies.

This burden extends not only to a showing of the existence of the attorney-client relationship but to all other elements involved in the determination of the existence of the privilege, including: (1) the communications were received from a client during the course of the client’s search for legal advice from the attorney in his or her capacity as such; (2) the communications were made in confidence; and (3) the privilege as to these communications has not been waived.

Id,

One preliminary issue in this case is whether FMC may withhold, as privileged, documents which plaintiffs themselves either authored or received while in FMC’s employ. That is a different question from whether plaintiffs may use those or other privileged documents at trial, or otherwise disclose them, or the information they contain, in support of their claims against their former employer and client.

The parties have focused primarily on the latter issue, citing GTE Products Corp. v. Stewart, 421 Mass. 22 (1995) (GTE II). In that case, involving former in-house counsel’s claim of wrongful discharge, the court discussed the limited manner and extent to which the claim of an attorney against his former client “can be proved without any violation of the attorney’s obligation to respect client confidences and secrets ...” (emphasis supplied), at least under the Massachusetts Rules of Professional Conduct, S.J.C. Rule 3:07, as in effect at the time. Defendants here assert that GTE II, which held that an attorney’s wrongful discharge claim could go forward only if “the claim can be proved without any violation of’ the privilege, requires denial of plaintiffs’ motion here. Plaintiffs argue that the adoption of Rule 1.6 of the Massachusetts Rules of Professional Conduct “overrules” GTE II, Plaintiffs’ Reply at 8, insofar as Rule 1.6 [590]*590provides that “[a] lawyer may reveal [otherwise privileged] information: ... (2) to the extent the lawyer reasonably believes necessaiy to establish a claim or defense on behalf of the lawyer in a controversy between the lawyer and the client.” Defendants counter that both GTE II and the commentary to Rule 1.6 limit the rule’s application.

Whatever the implications of Rule 1.6 for the scope of discovery of attorney confidences, the Court at this stage of this case will apply more traditional notions of permissible discovery of such confidences, beginning with the preliminary issue, noted above, regarding whether defendants must produce documents which plaintiffs authored or received while in FMC’s employ.1

Interestingly, the Supreme Judicial Court considered the issue of discovery of privileged documents to former counsel at an early stage of the GTE litigation. GTE Products Corp. v. Stewart, 414 Mass. 721 (1993) (GTE I). Stewart, upon leaving his employment, had taken “certain documents containing privileged and confidential information.” GTE I, at 723. GTE sought an injunction requiring Stewart to return the documents, which he had shared with his attorney. The court rejected GTE’s argument:

GTE’s main claim is that allowing Stewart to retain the documents gives Stewart a litigational advantage that a suppression order would not cure. GTE states that, even if the judge refused to admit the documents as evidence, it has been injured because Stewart’s attorneys in the wrongful discharge case may use the privileged communications to identify witnesses to depose and to learn additional facts about the case. GTE does not cite any cases supporting this proposition. The inference drawn from GTE’s claim is that it has a right to a long and expensive discovery procedure and that allowing Stewart to bypass that process gives him a litigatio-nal advantage. “The conduct and scope of discovery is within the sound discretion of the judge.” Solimene v. B. Grauel & Co., KG, 399 Mass. 790, 799 (1987). We reject the claim that there is a right to compel long and expensive discovery and that loss of that litigational advantage is an irreparable injury.

Id., at 725. The court, noting that the motion judge prohibited “any further disclosure of the documents, thereby eliminating any chance of harm to GTE from public disclosure," concluded that “GTE has not shown that allowing Stewart simply to retain the documents until either the hearing on the merits or a pretrial motion challenging the use of any document or requesting that a deposition not take place would create any irreparable harm.” Id., at 724-25.

GTE apparently made no claim that its former counsel’s possession of GTE’s privileged documents was somehow prohibited by the attorney-client privilege. Nevertheless, the court’s discussion highlights the distinction between (1) disclosure to a former attorney (through discovery or otherwise) of privileged documents which that attorney had previously authored or received, enabling the attorney to “identify witnesses to depose and to learn additional facts about the case,” id.

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Bluebook (online)
23 Mass. L. Rptr. 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grieco-v-fresenius-medical-care-holdings-inc-masssuperct-2008.