In re Beiny

132 A.D.2d 190, 522 N.Y.S.2d 511, 1987 N.Y. App. Div. LEXIS 51548
Appellate Division of the Supreme Court of the State of New York·Decided December 9, 1987·Published·Cited by 78 cases

Opinions

OPINION OF THE COURT

Murphy, P. J.

We refer this proceeding to the Departmental Disciplinary Committee for investigation, including an inquiry by the Committee into the August 3, 1987 report of the Wall Street Journal that Donald Christ, a member of Sullivan & Cromwell, allegedly assaulted an attorney for trustee Beiny in the Surrogate’s Court at a conference in this case.

Trustee Beiny’s motion for the sealing of the record is granted to the extent of directing the sealing of copies of the suppressed documents or any part of their contents, with costs to trustee Beiny.

Petitioner Wynyard’s motion for leave to reargue, renew or appeal is denied, with costs to trustee Beiny.

As to reargument, petitioner points neither to a fact overlooked nor a principle of law misapplied by this court.

As to renewal, the motion fails because the facts underlying it could have been proved before the Surrogate, assuming that a motion for leave to renew may be made after an appellate determination. In any case, the facts offered by petitioner in-support of renewal would not persuade us to a determination of the appeal other than the one that we have ordered.

As for leave to appeal, the issues cited by petitioner are insufficient to warrant review. First, if petitioner’s counsel, Sullivan & Cromwell, believe that an evidentiary hearing should have been held upon the serious charges of unethical conduct made against them before the Surrogate, their demand for that hearing should have been made at that time. No demand was made then or upon the appeal; no hearing will be granted now. Second, petitioner’s claim of a joint attorney-client privilege is as meritless as his raising of it after his counsel had unlawfully obtained the mass of documents to which the privilege relates. Third, petitioner’s claim that this court, without examining the prejudice to both [192] parties, disqualified his counsel who had reviewed only "a finite number of privileged documents” is a minimalist construction of the record. Our opinion shows that Sullivan & Cromwell’s misconduct compelled us to consider the issue of prejudice and, as for the "finite number” of documents obtained by petitioner’s counsel, those documents involve more than 10 years of a law firm’s representation of persons other than petitioner. A "finite number” may mean any number, and in this case the number is indeed many.

In ending this appeal, it might be useful to trace the lines of certain features of the case for they show how this court, faced each morning with matters involving profound issues of liberty and property, can be burdened by an appeal such as that at bar, an appeal that is before us solely because of the misconduct of lawyers in pursuit of a fee. We speak of the matter because it extends beyond the ownership and transfer of porcelains, and well beyond the interest of a law firm in its reputation. Our consideration of the case is enlarged by issues involving the ethical norms required of attorneys as advocates.

Petitioner’s counsel, Sullivan & Cromwell, believing that the liquidator of the law firm of Greenbaum, Wolff & Ernst had factual information concerning the property at issue, served a subpoena duces tecum and notice of deposition directing the liquidator to appear for examination with all the papers concerning certain clients, including trustee Beiny. No notice was given by Sullivan & Cromwell to the other parties. The subpoena was knowingly aimed at privileged materials, and no court would have sustained its broad demand. In order to give the subpoena a sharper edge, Sullivan & Cromwell enclosed it in a letter that deceptively represented to the liquidator that Sullivan & Cromwell’s client, petitioner Wynyard, was the executor of the estate of a former client of the Greenbaum firm. Sullivan & Cromwell, having thereafter received from the liquidator the mass of papers to which no law but only its deceit entitled it, then canceled the day fixed for the liquidator’s examination. Within weeks, the trustee, ignorant of the raid upon Greenbaum’s papers, was examined in London by Sullivan & Cromwell who not only used those papers to surprise her but refused to disclose how the papers had been obtained. When the trustee’s counsel learned how Sullivan & Cromwell had obtained the papers, they asked for their production, but Sullivan & Cromwell refused, unless the trustee made concessions in discovery. Only after the trustee [193] was driven to obtain an order of the Surrogate in December 1985, granting the trustee access to the papers, did the trustee learn the extent of Sullivan & Cromwell’s massive intrusion into the trustee’s privileged papers; and not until July 1986 did the trustee have in hand an order of the Surrogate suppressing all but 7 of 114 documents as to which the trustee claimed privilege.

In consequence of Sullivan & Cromwell’s conduct, this court has had placed before five of its Justices about 1,700 pages of record and briefs, to say nothing of paper footage given to motions that have since slid into the dark of appellate memory. Petitioner Wynyard’s case, which may be one having substantial merit, has been delayed by about 2 Vi years given over to the legal debris that now lies before us. He has been left by Sullivan & Cromwell’s conduct to search for other counsel who will probably bill him for the reading of the lengthy record generated by Sullivan & Cromwell’s misconduct. Trustee Beiny has been driven down a legal gauntlet, arched by fees of expensive counsel and hedged by the anxiety to which Bench and Bar are often insensible. In short, upon facts that should have led Sullivan & Cromwell to a prompt, practical resolution, one that would have avoided delay, fees and the worrying of court and clients, Sullivan & Cromwell chose instead to drive the trustee toward the steps of the Surrogate’s Court and, ultimately,' both petitioner and the trustee to the steps of this court. Having arrived in this court, Sullivan & Cromwell, in protection of its reputation, then set about the making of arguments that, startlingly curious in design, required the time of this much pressed court to identify and answer.1 We will describe only several of these arguments. Cousins to them, equally strange looking, may be found sitting in the briefs.

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In re Beiny, 132 A.D.2d 190, 522 N.Y.S.2d 511, 1987 N.Y. App. Div. LEXIS 51548 (N.Y. Ct. App. 1987).

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