In re Reeder

515 S.W.3d 344, 2016 Tex. App. LEXIS 1084, 2016 WL 402536
CourtCourt of Appeals of Texas
DecidedFebruary 3, 2016
DocketNO. 12-15-00206-CV
StatusPublished
Cited by5 cases

This text of 515 S.W.3d 344 (In re Reeder) 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 Reeder, 515 S.W.3d 344, 2016 Tex. App. LEXIS 1084, 2016 WL 402536 (Tex. Ct. App. 2016).

Opinion

[348]*348 OPINION

GREG NEELEY, Justice

Wendell Reeder requests a writ of mandamus directing the trial court to vacate its July 14, 2015 order disqualifying J. Keith Mayo and Mayo Mendolia & Vice, L.L.P. from representing him in the underlying proceeding.1 We conditionally grant the writ.

Background

On April 14, 2015, J. Bennett White P.C. (White P.C.), sued Reeder for unpaid attorney’s fees. J. Bennett White (White) represents White P.C. in the suit. The same day, Reeder retained J. Keith Mayo (Mayo) with the law firm of Mayo Mendolia & Vice, L.L.P. (Mayo L.L.P.) to represent him individually and in a number of other business and litigation-related matters. Mayo represents Reeder in White P.C.’s suit.

On the date the suit was filed, Jennifer Smith had been working as a legal assistant for White P.C. for approximately three years. She had previously worked as a legal assistant for Mayo L.L.P. Sometime before Reeder retained Mayo, Smith spoke to Mayo about returning to work there. She was rehired on April 16, 2015-two days after Reeder retained Mayo.

White P.C. filed a motion to disqualify Mayo and Mayo L.L.P. on two grounds: (1) Smith’s possession of confidential information pertaining to White P.C.’s suit against Reeder and (2) the possibility that Smith could be called as a fact witness. Reeder filed a written response, which included Mayo’s affidavit explaining the screening policies and procedures he implemented to protect White P.C.’s confidential information.

Following a hearing, the trial court granted White P.C.’s motion to disqualify. The written order states the trial court’s determination “that a conflict exists sufficient to disqualify J. Keith Mayo and Mayo Mendolia & Vice, L.L.P. as attorneys for Defendant Wendell Reeder.” Reeder filed this original proceeding and a motion for temporary relief. We granted the motion and stayed the proceedings in the trial court until further order of this Court.

Prerequisites to Mandamus

Generally, mandamus is appropriate only when the trial court clearly abused its discretion and the relator has no adequate remedy by appeal. See In re Reece, 341 S.W.3d 360, 364 (Tex.2011) (orig.proceeding). However, there is no adequate remedy on appeal when a trial court erroneously grants an order disqualifying counsel. In re Sanders, 153 S.W.3d 54, 56 (Tex.2004) (orig.proceeding). Therefore, to be entitled to mandamus relief, the relator must show only that the trial court abused its discretion. See id.

A trial court has no discretion in determining what the law is or applying the law to the facts. In re EPIC Holdings, Inc., 985 S.W.2d 41, 57 (Tex.1998) (orig.proceeding). Thus, a trial court abuses its discretion if it reaches a decision so arbitrary and unreasonable that it amounts to a clear and prejudicial error of law or clearly fails to correctly analyze or apply the law. In re Cerberus Capital Mgmt., L.P., 164 S.W.3d 379, 382 (Tex.2005) (orig.proceeding). With respect to resolution of factual issues or matters committed to the trial court’s discretion, the relator must establish that the trial court could reasonably [349]*349have reached only one decision. EPIC Holdings, 985 S.W.2d at 56; Walker v. Packer, 827 S.W.2d 833, 839-40 (Tex.1992) (orig.proceeding).

Disqualification of Counsel Generally

Disqualification of a party’s attorney can cause immediate harm by depriving the party of its chosen counsel and by disrupting court proceedings. In re Nitla S.A. de C.V., 92 S.W.3d 419, 422 (Tex.2002) (orig.proceeding). Thus, “[disqualification of a party’s counsel is a severe remedy[.]” In re Columbia Valley Healthcare Sys., L.P., 320 S.W.3d 819, 825 (Tex.2010) (orig.proceeding). For that reason, the trial court, “[i]n considering a motion to disqualify, ... must strictly adhere to an exacting standard to discourage a party from using the motion as a dilatory trial tactic.” See Nitla, 92 S.W.3d at 422.

The movant bears the burden of proving that a party’s attorney should be disqualified. In re Meador, 968 S.W.2d 346, 350 (Tex.1998) (orig.proceeding). Mere allegations of unethical conduct or evidence showing a remote possibility of a violation of the disciplinary rules will not suffice under the “exacting standard” required to grant a motion to disqualify. Spears v. Fourth Court of Appeals, 797 S.W.2d 654, 656 (Tex.1990) (orig.proceeding).

For “many reasons,” motions to disqualify should not be granted liberally. See Columbia Valley, 320 S.W.3d at 825. This is especially true when a nonlawyer is the reason for the motion because there is a greater concern that the mobility of non-lawyers could be unduly restricted. Id. Other relevant factors include the ability of a client to have the attorney of his choice, concerns about the prejudice and economic harm that could result to a client when the disqualification of its counsel is ordered, and concerns about motions to disqualify being used as a dilatory tactic. Id.

Disqualification—Smith’s Confidential Information

Reeder first argues that White P.C. did not meet its burden to show that disqualification is required to protect White P.C.’s confidential information.

Disciplinary Rule 1.09

Without prior consent, an attorney who has formerly represented a client in a matter may not represent another person in a matter adverse to the former client if the matters are the same or substantially related. Tex. Disciplinary R. Prof’l Conduct 1.09(a)(3), reprinted in Tex. Gov’t Code Ann., tit. 2, subtit. G app. A (West 2013) (Tex. State Bar R. art. X, § 9); Columbia Valley, 320 S.W.3d at 824. If the attorney works on a matter, an irrebuttable presumption arises that the attorney obtained confidential information during the representation. Columbia Valley, 320 S.W.3d at 824. When the attorney moves to another firm and the second firm is representing an opposing party in the same ongoing matter, a second irrebuttable presumption arises—that the attorney has shared the client’s confidences with members of the second firm. In re Guaranty Ins. Servs., Inc., 343 S.W.3d 130, 134 (Tex.2011) (orig.proceeding). The effect of this presumption is the mandatory disqualification of the second firm. id.; see Tex. Disciplinary R. Prof’l Conduct 1.09(b) (providing that no attorney in a firm may knowingly represent a client if any one of them practicing alone would be prohibited from doing so by Rule 1.09(a)).

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Bluebook (online)
515 S.W.3d 344, 2016 Tex. App. LEXIS 1084, 2016 WL 402536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-reeder-texapp-2016.