Hodge, Admrx. v. Urfa-Sexton, Lp

758 S.E.2d 314, 295 Ga. 136, 2014 Fulton County D. Rep. 1250, 2014 WL 1775572, 2014 Ga. LEXIS 346
CourtSupreme Court of Georgia
DecidedMay 5, 2014
DocketS13G1626
StatusPublished
Cited by11 cases

This text of 758 S.E.2d 314 (Hodge, Admrx. v. Urfa-Sexton, Lp) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hodge, Admrx. v. Urfa-Sexton, Lp, 758 S.E.2d 314, 295 Ga. 136, 2014 Fulton County D. Rep. 1250, 2014 WL 1775572, 2014 Ga. LEXIS 346 (Ga. 2014).

Opinions

HUNSTEIN, Justice.

We granted certiorari in this case to determine whether the Court of Appeals correctly held that a conflict of interest involving a nonlawyer can be remedied by implementing proper screening measures in order to avoid disqualification of the entire law firm. For the reasons set forth below, we hold that a nonlawyer’s conflict of interest can be remedied by implementing proper screening measures so as to avoid disqualification of an entire law firm. In this particular case, we find that the screening measures implemented by the nonlawyer’s new law firm were effective and appropriate to protect against the nonlawyer’s disclosure of confidential information. However, we remand this case for the trial court to hold a hearing to determine whether the new law firm promptly disclosed the conflict.

[137]*137On January 3, 2010, Monica Renee Williams was shot and killed at an apartment complex managed by Appellees URFA-Sexton, LP and Signature Management Corporation (hereinafter “URFASexton”). Appellant Belinda Ann Hodge is the sister of Williams. Kristi Bussey had known Hodge for approximately ten years prior to Williams’ death.1 Bussey assisted Hodge in obtaining her appointment as administratrix of Williams’ estate and Hodge’s appointment as the legal guardian for Williams’ son.

Hodge retained attorney Craig Brookes of the law firm Hanks Brookes, LLC to pursue claims associated with the death of Williams. Bussey was a paralegal at Hanks Brookes and had worked there in that capacity since January 2007. Bussey was Hodge’s primary contact with Hanks Brookes while she was employed at the firm. Bussey assisted with, and personally conducted, much of the investigation regarding Williams’ death and the apartment complex where the death occurred. Bussey communicated regularly with Hodge about Hanks Brookes’ investigation of the case, counsel’s thoughts about the case, legal work being performed, and strategy for moving forward. Bussey participated in every face-to-face meeting Hodge had with Brookes while Bussey was employed with Hanks Brookes. Brookes spoke directly to Bussey about the status of her investigation, the results of his own investigation, his thoughts about the case, the strategies to be employed, and pertinent legal and factual considerations in the case.

Meanwhile, on March 29, 2010, URFA-Sexton’s insurer, Scottsdale Insurance Company, retained the firm of Insley & Race, LLC to represent URFA-Sexton in the Williams matter. For the next six months, Insley & Race conducted a pre-suit investigation and evaluation of the incident, including numerous interviews, review of documents, and a detailed assessment.

In October 2010, Bussey left her position as a paralegal with Hanks Brookes and began working as a legal assistant at another law firm. In early 2011, Bussey applied for a paralegal position at Insley & Race. Brynda Rodriguez Insley personally called, and obtained a reference from, J.R. Hanks at Hanks Brookes. Hanks never disclosed any possible conflict with regard to Bussey or Hanks Brookes’ work on the Williams case. Hanks was unaware that URFA-Sexton was represented by Insley & Race in the Williams case.

Bussey began work as a paralegal at Insley & Race on March 15, 2011. At this time, neither Bussey nor Insley & Race was aware of [138]*138any potential conflict regarding Bussey’s work at Hanks Brookes, and Bussey did not know that Insley & Race was involved in a pre-suit investigation of Williams’ death. Accordingly, Insley & Race did not employ any screening measures at that time.

On October 5, 2011, Bussey became aware of Insley & Race’s involvement in the Williams case. Bussey immediately informed Insley & Race of her work with Hanks Brookes on the Williams case. Insley & Race immediately implemented screening measures, discussed more fully below, to protect against Bussey’s disclosure of confidential information she had gained from working on the Williams case at Hanks Brookes.

Later that same evening, Insley sent an e-mail to Brookes and other counsel for Hodge advising of the firm’s representation of URFA-Sexton and acknowledging the receipt of Hodge’s demand letter. Insley did not mention any potential conflict involving Bussey.

On November 7, 2011, Hodge filed a complaint against URFASexton, and Insley & Race subsequently filed an answer on behalf of URFA-Sexton. On December 6, 2011, counsel at Insley & Race disclosed Bussey’s employment to Hodge’s counsel. Hodge filed a motion to disqualify Insley & Race, requesting that Insley & Race voluntarily withdraw, and in the alternative, that the trial court issue an order disqualifying the firm from representing URFA-Sexton in the Williams matter. URFA-Sexton responded to Hodge’s motion stating that Insley & Race was its counsel of choice and that it would not voluntarily withdraw.

The trial court denied Hodge’s motion, finding that Insley & Race was URFA-Sexton’s counsel of choice, had developed specialized knowledge by working on the case for 18 months before learning of any potential conflict of interest, and had implemented appropriate and effective screening measures to protect against any disclosure of confidential information between Bussey and Insley & Race. Pursuant to Hodge’s request, the trial court certified its order denying the motion to disqualify for immediate review. The Court of Appeals affirmed, finding that the trial court did not abuse its discretion in denying the motion to disqualify. Hodge v. URFA-Sexton, LP, 322 Ga. App. 534 (746 SE2d 142) (2013). We subsequently granted certiorari.

1. We review the trial court’s ruling on a motion to disqualify for an abuse of discretion. Cardinal Robotics, Inc. v. Moody, 287 Ga. 18, 22 (694 SE2d 346) (2010). We approach motions to disqualify with caution due to the consequences that could result if the motion is granted, such as the inevitable delay of the proceedings and the unique hardship on the client including the loss of time, money, choice of counsel, and specialized knowledge of the disqualified attorney. See Bernocchi v. Forcucci, 279 Ga. 460 (2) (614 SE2d 775) (2005). [139]*139Additionally, we are mindful of counsel using motions to disqualify as a dilatory tactic. See Lewis v. State, 312 Ga. App. 275, 282 (718 SE2d 112) (2011). Accordingly, we view disqualification as an extraordinary remedy that should be granted sparingly. Bernocchi, 279 Ga. at 462.

It is well established that an attorney has a professional obligation to maintain client confidences and secrets. Ga. Rules of Professional Conduct, Rule 1.6 (a).2 To protect this attorney-client relationship, the Georgia Rules of Professional Conduct provide that a

lawyer who has formerly represented a client in a matter shall not thereafter represent another person in the same or a substantially related matter in which that person’s interests are materially adverse to the interests of the former client unless the former client gives informed consent, confirmed in writing.

Rule 1.9 (a). “When a lawyer has been directly involved in a specific transaction, subsequent representation of other clients with materially adverse interests in that transaction clearly is prohibited.” Id., Comment [2]. This Rule aims to protect former clients, avoid the appearance of any impropriety, and maintain public confidence in the integrity of our adversarial system. Registe v. State,

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Hodge, Admrx. v. Urfa-Sexton, Lp
758 S.E.2d 314 (Supreme Court of Georgia, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
758 S.E.2d 314, 295 Ga. 136, 2014 Fulton County D. Rep. 1250, 2014 WL 1775572, 2014 Ga. LEXIS 346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hodge-admrx-v-urfa-sexton-lp-ga-2014.