In Re Posadas USA, Inc.

100 S.W.3d 254, 2001 Tex. App. LEXIS 5134, 2001 WL 855429
CourtCourt of Appeals of Texas
DecidedJuly 31, 2001
Docket04-01-00403-CV
StatusPublished
Cited by29 cases

This text of 100 S.W.3d 254 (In Re Posadas USA, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Posadas USA, Inc., 100 S.W.3d 254, 2001 Tex. App. LEXIS 5134, 2001 WL 855429 (Tex. Ct. App. 2001).

Opinion

Opinion by:

KAREN ANGELINI, Justice.

Relators, Posadas USA, Inc., Bia Acquisitions, Ltd., and Jonathan Hege, seek a writ of mandamus ordering respondent, Judge Manuel R. Flores, to vacate his order that denied Posadas’ motion to allow their attorneys to withdraw from this case, and directing Judge Flores to grant the motion. Because we conclude that Posa-das is entitled to the relief sought, we conditionally grant the writ.

Factual and Procedural Background

The underlying suit is a wrongful death and survival action, arising from an automobile accident. Jonathan Hege, a bellman at the Holiday Inn in Laredo, was transporting a guest from the hotel to the airport, when the van he was driving crossed the median and struck Sandra C. Garza’s vehicle. Garza died as a result of the injuries she sustained in the accident.

Garza’s survivors brought suit against Posadas USA, Inc. d/b/a Holiday Inn/Civic Center and Hege (“Posadas”). All three defendants are represented by one law firm. On June 13, 2001, five days before trial, Posadas’ counsel filed a motion for continuance and a motion to withdraw from representation of Posadas, claiming he received a communication from his clients which creates an “irreconcilable conflict.” After a hearing on June 14, 2001, Judge Flores denied the motions.

Mandamus Generally

Posadas claims here that the trial judge abused his discretion “in refusing to permit the withdrawal of counsel for Defendants/Relators and in refusing to continue the trial setting in this case.” A writ of mandamus may be issued to correct a clear abuse of discretion. Walker v. Packer, 827 S.W.2d 833, 839-40 (Tex.1992). Issuance of the writ, however, is limited to only those instances in which an adequate remedy by appeal is not available. Id. If Posadas was required to raise this matter by appeal, it would have to submit to the trial of this case without the benefit of conflict-free representation. Haley v. Boles, 824 S.W.2d 796, 798 (Tex.App.— Tyler 1992, orig. proceeding). Withdrawal of counsel, therefore, is a proper subject of a mandamus proceeding. Id.; see also National Med. Enter., Inc. v. Godbey, 924 S.W.2d 123, 133 (Tex.1996) (declaring dis *257 qualification of an attorney as proper grounds for mandamus).

Motion to Withdraw

Although the Texas Disciplinary Rules are not controlling standards governing motions to withdraw, they articulate considerations relevant to the merits of such motions. See Spears v. Fourth Court of Appeals, 797 S.W.2d 654, 656 (Tex.1990) (applying the Rules to motions to disqualify). The moving party bears the burden to establish with specificity a violation of the disciplinary rules. Id. Evidence showing a remote possibility of a violation of the rules will not suffice under this standard. Id.

The propriety of Judge Flores’s ruling must be reviewed in terms of Texas Disciplinary Rule of Professional Conduct 1.06(b) and (e), as well as a traditional mandamus standard of review. Conoco Inc. v. Baskin, 803 S.W.2d 416, 419 (Tex.App.—El Paso 1991, orig. proceeding). In conducting such a review, we consider: (1) the existence of a reasonable apparent conflict of interest; (2) effective consent by relators to multiple representation; (3) waiver of the complaint by relators; and (4) whether relators would suffer any injury as a result of this conflict. Id.

A. Whether a Conflict Exists

Rule 1.06(b) provides that “a lawyer shall not represent a person if the representation of that person ... beeome[s] adversely limited by the lawyer’s or law firm’s responsibilities to another client_” Tex. DisoiplinaRy R. PRof’l Conduct 1.06(b)(2), reprinted in Tex. Gov’t Code Ann, tit. 2, subtit. G app. A (Vernon 1998) (Tex. State Bah R. art. X, § 9). “[I]f multiple representation properly accepted becomes improper under [Rule 1.06(b)], the lawyer shall promptly withdraw from one or more representations to the extent necessary....” Tex DisoiplinaRY R. Prof’l Conduct 1.06(e); see Tex. Disciplinary R. Prof’l Conduct 1.06(e) cmt. 1.

The Garzas, real parties in interest here, argue that Posadas’ counsel’s motion to withdraw failed to show good cause for such withdrawal, as required by Texas Rule of Civil Procedure 10. However, Po-sadas’ counsel testified at an in camera hearing, 1 detailing the information received and the resulting conflict. After reviewing the record of the hearing, we hold that the communication does, in fact, create a conflict of interest. Posadas’ counsel’s possession of this confidential information puts him in a position adverse to his clients. See Wasserman v. Black, 910 S.W.2d 564, 568 (TexApp.—Waco 1995, orig. proceeding). Counsel, therefore, is required to withdraw under Rule 1.06(b) and (e). Such a conflict amounts to “good cause” for an attorney’s withdrawal. See Tex Disoiplinary R. Prof’l Conduct 1.06(e) (stating “if multiple representation properly accepted becomes improper under this Rule, the lawyer shall promptly withdraw from one or more representations”).

B. Consent to the Conflict

The Garzas also assert that Posa-das “knew when they consented to being represented by one attorney that they could, and probably would, have conflicting interests at some point.” Rule 1.06(c) allows an attorney or law firm to continue multiple representation of adversary clients even though his responsibilities to the clients have been limited by a conflict.

*258 Tex. DisciplinaRY R. Prof’l Conduct 1.06(c). Continued representation in such circumstances is conditioned on whether the attorney “reasonably believes his representation of each client will not be materially affected and consent is obtained from each client after the full disclosure of the existence, nature, implications and possible adverse consequences of such multiple representation.” Id. Here, there is no evidence supporting the notion that Posa-das consented to the continued representation after the conflict arose. In fact, the record indicates that Posadas’ counsel filed the motion very soon after the communication was relayed to him. His actions indicate that Posadas did not consent to continued representation. We cannot find that Posadas consented to continued representations after becoming aware of the conflict.

C. Waiver of the Conflict

The Garzas farther argue that Po-sadas has waived any conflict of interest that might exist because it had knowledge of the information before its counsel filed the motion to withdraw.

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Bluebook (online)
100 S.W.3d 254, 2001 Tex. App. LEXIS 5134, 2001 WL 855429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-posadas-usa-inc-texapp-2001.