In re Wisehart

281 A.D.2d 23, 721 N.Y.S.2d 356, 2001 N.Y. App. Div. LEXIS 2226
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 8, 2001
StatusPublished
Cited by8 cases

This text of 281 A.D.2d 23 (In re Wisehart) 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 Wisehart, 281 A.D.2d 23, 721 N.Y.S.2d 356, 2001 N.Y. App. Div. LEXIS 2226 (N.Y. Ct. App. 2001).

Opinion

OPINION OF THE COURT

Per Curiam.

Respondent Arthur M. Wisehart was admitted to practice in [24]*24the State of New York in 1955 and has maintained a law office in the First Judicial Department at all times relevant to these charges.

The Departmental Disciplinary Committee seeks an order confirming the Hearing Panel report that sustained, partially or fully, four of eight charges of misconduct brought against respondent and recommended a suspension of no less than three months. Respondent cross-moves to disaffirm the report insofar as it partially sustained Counts One and Two and fully sustained Counts Four and Six and to affirm the report insofar as it struck portions of Counts One and Two and fully dismissed Counts Three, Five, Seven and Eight. We confirm the report as to the sustained charges, disaffirm the report as to the dismissal of Count Three and sustain that charge, deny respondent’s motion in its entirety, and order respondent suspended from the practice of law for two years.

The charges against respondent arise out of his representation of one Joan Lipin in a sexual harassment and sex discrimination case against Robert Bender and the American Red Cross of Greater New York (Red Cross), her former supervisor and former employer, respectively, which Lipin commenced after the Red Cross terminated her employment in February 1988. On June 28, 1991, Lipin, who was by then employed by respondent as a salaried paralegal, accompanied him to a discovery conference before a Special Referee in New York County Supreme Court. She found on the table in front of her a stack of some 200 pages, the top sheet of which was marked with the name of the firm representing the defendants, Weil, Gotshal & Manges, and identified as a memo to file from Lawrence Baer, a Weil, Gotshal associate. On this page there was a summary of counsel’s meeting with a Red Cross employee who related her candid impressions of Lipin and her account of the legal advice that Weil, Gotshal had given regarding the termination of Lipin’s employment. In the next few pages, Lipin recognized summaries of Baer’s interviews of other Red Cross employees, including Bender, and deposition digests. She concealed the documents in a folder, slipped them off the table and onto her lap, and continued to read. During a break in the conference, Lipin took the documents out into the corridor, where she told respondent what she had done.

Respondent said he would not read the documents himself until he had obtained a second opinion, but he instructed Lipin to go to his office, make copies of the documents and bring the [25]*25originals back to court. He further instructed her that if Baer discovered his documents were missing, she was to tell “the truth,” i.e., that she picked them up by mistake. Respondent reviewed the documents himself on June 30th, and on July 1st he hand-delivered a note to counsel asking him to attend a “settlement conference” at respondent’s office the next afternoon. At the ensuing meeting, respondent confronted counsel with the documents and demanded the immediate termination of Bender’s employment, a monetary settlement, and other reparations. Counsel demanded to know how he had obtained the documents. Citing attorney-client privilege, respondent would say only that Lipin had acquired them legitimately. He also advised counsel that Lipin had retained a copy “for her own protection” and that he had no control over what she might do with the information.

On July 3rd, defendants moved for the suppression and return of the documents, disqualification of respondent as Lipin’s counsel, and other relief. On the same day, the parties appeared before Justice Karla Moskowitz, who scheduled hearings on the issues raised, directed Lipin to turn over to respondent “everything in her possession,” and directed respondent to secure all copies and not to make any use of the documents. After Lipin had testified at the hearing, which began on July 8th, defendants amended their request for relief to include dismissal of the complaint, on the ground that Lipin’s, and respondent’s, knowledge of the documents had irreparably harmed the defendants, severely prejudiced their ability to defend, and “poisoned” the case.

On July 29th, in support of a motion to compel disclosure in a separate discovery dispute, respondent submitted a memorandum of law to the Special Referee in which he referred specifically to information that he could only have obtained from the documents Justice Moskowitz had directed him not to use. Defense counsel argued that respondent’s violation of the court’s directive underscored the need for dismissal of the action.

On January 9, 1992, following a further motion to dismiss based on discovery abuse, Justice Moskowitz dismissed the action in a decision read into the record. Having reviewed the documents in camera, the court found that the documents on their face clearly were attorney work product and that, as an employee of her counsel, Lipin had an obligation to return them to opposing counsel, instead of which she copied them and made notes of their contents. “There is no justification for [26]*26the actions that the plaintiff took in this case, and that Mr. Wisehart then took with her.” The court concluded that:

“the actions of the plaintiff and her attorney were so egregious in taking this material that was clearly the attorney’s work product, clearly interviews with the defendant’s employees, clearly not for perusal by any other attorney or litigant in this litigation, so heinous that the only remedy, as much as I dislike to do this, is to dismiss the lawsuit. Otherwise, there is no meaning to privilege, there is no meaning to conduct among attorneys, and there is no rule of law.”

On July 10, 1992, defendants moved by order to show cause to have Lipin and respondent found in contempt of the court’s January 9, 1992 order directing them not to make use of the information in the documents, as they had used the information as a basis for certain allegations in an action Lipin filed in the United States District Court for the Southern District of New York; to further restrain Lipin and respondent from disseminating or using the information; to sanction Lipin and respondent; to disqualify respondent as counsel to Lipin; and to confirm that the January 9, 1992 order dismissing the complaint was “with prejudice.” Lipin had recommenced her action in Federal Court, after the case was dismissed in Supreme Court but before her appeal had been heard in this Court, on the theory that the Supreme Court dismissal was not “with prejudice”; defendants had been granted a stay of the Federal action until they could seek relief in State court for the improper use of the documents.

Lipin cross-moved to recuse and disqualify Justice Moskowitz from further involvement in the litigation on the ground, inter alia, of “personal bias or prejudice,” and for other relief. In support of this motion, Lipin asserted in an affidavit that Baer had deliberately placed the documents in front of her at the conference “with the deliberate intent of either intimidating me or derailing this litigation (or both),” and that “[o]nly naked political power or influence can account for the fact that a matter for which a simple order of preclusion or suppression would suffice, Justice Moskowitz complied with [opposing counsell’s request to dismiss my claim of sexual harassment.” Lipin alleged that Justice Moskowitz’s bias and prejudice was shown “by her evident unpreparedness” and her “obvious state of disarray” when she rendered her decision.

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Bluebook (online)
281 A.D.2d 23, 721 N.Y.S.2d 356, 2001 N.Y. App. Div. LEXIS 2226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-wisehart-nyappdiv-2001.