In re Caliguiri

50 A.D.3d 90, 851 N.Y.S.2d 148
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 31, 2008
StatusPublished
Cited by8 cases

This text of 50 A.D.3d 90 (In re Caliguiri) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Caliguiri, 50 A.D.3d 90, 851 N.Y.S.2d 148 (N.Y. Ct. App. 2008).

Opinion

OPINION OF THE COURT

Per Curiam.

Respondent Michael Caliguiri was admitted to the practice of law in the State of New York by the Second Judicial Department on April 30, 1980. At all times relevant to this proceeding, respondent maintained an office for the practice of law within the Second Judicial Department.

In October 2006, respondent was served with a notice and statement of six charges alleging he engaged in professional misconduct by reviewing and “using” confidential documents belonging to a client. Respondent’s wife improperly obtained these documents while she was an employee of the client—an insurance defense company—in order to assist respondent in the prosecution of a medical malpractice case his firm was not assigned to defend.

The Referee held a hearing, during which respondent and his wife testified, as did two character witnesses. The Committee recommended respondent be suspended for one year, and respondent asked for a private reprimand.

The parties entered into a prehearing stipulation in which respondent admitted four of the six charges. In particular, he admitted he engaged in conduct that was prejudicial to the administration of justice in violation of Code of Professional Responsibility DR 1-102 (a) (5) (22 NYCRR 1200.3 [charge 1]); engaged in conduct that adversely reflected on his fitness to practice law in violation of DR 1-102 (a) (7) (charge 2); accepted employment when the exercise of professional judgment on behalf of a client might have been affected by his own personal interest in giving advice in violation of DR 5-101 (a) (22 NYCRR 1200.20 [charge 5]); and accepted proffered employment when his exercise of independent professional judgment on behalf of a client would likely be adversely affected by the acceptance of the proffered employment or would likely involve respondent representing differing interests in violation of DR 5-105 (a) (22 NYCRR 1200.24 [charge 6]).

[92]*92Respondent contested charges three and four, both of which prohibited the use of a confidence or a secret of a client, to the disadvantage of the client (DR 4-101 [b] [2] [22 NYCRR 1200.19]), and for the advantage of respondent or a third person (DR 4-101 [b] [3]). Respondent argued that, while he admittedly-read the confidential documents, he did not “use” them within the meaning of the disciplinary rule in that he never gave copies of the documents or information contained therein to a third party. Moreover, since the opinion he gave about the way the case would proceed was the same before he read the documents as it was after he reviewed the material, he did not formulate his advice based on something he learned from the documents. The Committee, however, argued that a reasonable inference could be drawn that respondent “used” the documents since he read and reviewed them at a time when he was providing advice to another attorney in a matter adverse to his own law firm’s client.

The facts adduced at the hearing are largely undisputed. From 1984 until 2003 respondent was employed by Garbarini & Scher, a law firm primarily responsible for representing defendants in medical malpractice actions. In 1999, respondent became the firm’s managing partner. Medical Liability Mutual Insurance Company (MLMIC), an insurer of medical doctors, was one of the firm’s major clients.

Because of respondent’s expertise in the field of medical malpractice, he was requested by an attorney neighbor to answer questions in this area from an inexperienced attorney, the neighbor’s law partner Richard Farley. Respondent agreed to give Farley advice on a malpractice action in which Farley represented the plaintiff, but respondent refused to accept any money. Respondent explained that on a prior occasion, his neighbor had done some initial investigation and legal research at respondent’s request on behalf of someone with whom respondent conducted business and with whom respondent had become friendly. The neighbor never charged respondent’s friend for these services.

The initial advice respondent gave to Farley on this malpractice matter predated the commencement of any malpractice action. In addition, respondent testified that during his discussions with Farley, “it didn’t dawn on [him] that [the carrier] might be [MLMIC].” Moreover, although MLMIC was the carrier, respondent’s firm was not retained to defend that action.

Respondent’s wife testified that she knew her husband was providing advice to Farley and that the defendant-doctor was [93]*93insured by her employer MLMIC. She also testified that, without any suggestion from her husband, she secretly copied the confidential file on this matter and gave it to her husband to be “helpful.” Respondent told her she should not have copied the file, but, nevertheless, he looked at the papers out of curiosity, remarking that he really did not need the MLMIC file because he knew exactly how the case would be defended, based upon his extensive medical malpractice experience. Respondent himself testified that he looked at the documents out of curiosity and to confirm whether his opinion about the action was correct, namely, that the case would not settle because there was a viable defense.

The underlying malpractice action was eventually settled with full disclosure of respondent’s relationship with Farley. At the end of 2005, respondent left the firm over “philosophical differences” involving its management. One month later, MLMIC fired respondent’s wife for copying portions of the confidential file.

Both respondent and his wife testified to the devastating effect the situation had on their marriage and careers. Respondent, now working out of his home, was no longer able to practice insurance defense work, which he had been doing with much success for the majority of his legal career. Moreover, he claimed that the couple’s income had drastically dropped by at least 80%.

In a report dated February 20, 2007, the Referee sustained all six charges and recommended respondent receive a public censure. In particular, the Referee observed:

“There is no assertion by the DDC that Respondent sought or obtained any financial gain from this episode and I find no venal motive on his part. Additionally, I credit the Caliguiris’ testimony that the copying of the file was done entirely by Mrs. Caliguiri without any prior solicitation or suggestion from respondent. However, when the file was presented to him by his wife, it is clear that Respondent should not have perused it or glanced at it; and should have immediately destroyed the papers and informed his client MLMIC of the occurrence and his wife’s error in judgment.”

In addition, the Referee determined that:

“the term ‘use’ is no where defined in the Code and [94]*94counsel has not brought to my attention any case law defining the term in the context of a disciplinary proceeding. Accordingly, employing a broad sense and definition to the term ‘use’ in order to effectuate the purpose of DR 4-101—’Preservation of Confidences and Secrets of a Client’—I find that even if Respondent’s testimony that he merely glanced at the files to see if his advice to Farley was correct he ‘used’ the secret files of his client to the client’s disadvantage [DR 4-101 (B) (2)] and for the advantage of himself or a third person [DR 4-101 (B) (3)]. Tellingly, Respondent testified that T don’t know exactly what I would have done’ if the files contained information inconsistent with the advice he had previously given to Farley.

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Cite This Page — Counsel Stack

Bluebook (online)
50 A.D.3d 90, 851 N.Y.S.2d 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-caliguiri-nyappdiv-2008.