Industrial Accident Board of the State of Texas v. Spears

790 S.W.2d 55, 1990 Tex. App. LEXIS 1650
CourtCourt of Appeals of Texas
DecidedApril 25, 1990
DocketNo. 04-90-00007-CV
StatusPublished
Cited by2 cases

This text of 790 S.W.2d 55 (Industrial Accident Board of the State of Texas v. Spears) 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
Industrial Accident Board of the State of Texas v. Spears, 790 S.W.2d 55, 1990 Tex. App. LEXIS 1650 (Tex. Ct. App. 1990).

Opinions

OPINION

PER CURIAM.

Relator, the Industrial Accident Board of the State of Texas (IAB), seeks a writ of mandamus compelling respondent, the Honorable Carolyn H. Spears,1 to enter an order granting relator’s motion to disqualify the attorney and law firm representing the real party in interest, Jesse Casias, plaintiff in the underlying case.

Plaintiff brought suit against the Industrial Accident Board to recover damages for injuries he allegedly sustained while at the IAB San Antonio office September 25, 1985, for the purpose of attending a pre-hearing conference concerning a worker’s compensation claim filed by one of his coworkers. Plaintiff apparently sat on a chair that was broken and he fell over backwards. Bruce Miller and the law firm of Tinsman & Houser represent him in this tort action. Margaret Maisel, a member of the Tinsman & Houser firm since 1971, took a leave of absence from the firm to serve as chairman of the IAB and was serving in that capacity at the time of this occurrence. Her term as chairman expired nine days after the incident involving plaintiff, at which time she returned to work at the law firm. The law firm assigned her to work on plaintiff’s worker’s compensation claim which arose out of this incident, but she did not participate in the case involving his tort action against the IAB.

Plaintiff’s original petition was filed November 12, 1986. Trial apparently was set for January 8, 1990. On January 4, 1990, following a hearing, the trial court overruled relator’s motion to disqualify Mr. Miller and the Tinsman & Houser law firm.

In its answer to the tort action, relator raised the defense of lack of the notice required to bring a suit under the Texas Tort Claims Act. Since relator denied receiving timely written notice, the question of actual notice became a substantive issue in the case. Relator claims that it was not until after plaintiff took the deposition of the IAB’s executive director in August, 1989, that it became aware that a conflict existed between the IAB employees’ testimony regarding actual notice. The Texas Tort Claims Act requires the plaintiff to notify the state agency of the place the [57]*57incident occurred as well as of any resulting injury within six months of the incident. TEX.CIY.PRAC. & REM.CODE ANN. § 101.101 (Vernon 1986).

Relator argues that Tinsman & Houser’s representation of plaintiff violates legal ethical standards because representation of plaintiff entails (1) representing a client whose interests are adverse to a former client (the IAB); (2) representing a client in whose case the attorney is a material fact witness; and (3) representing a client in a case in which the attorney had previously served as relator’s attorney.

The Disciplinary Rules under the prior Code of Professional Responsibility were held to be mandatory in character because they stated “the minimum level of conduct below which no lawyer can fall without being subject to disciplinary action.” United Pac. Ins. Co. v. Zardenetta, 661 S.W.2d 244, 249 (Tex.App.—San Antonio 1983, no writ). The Texas Disciplinary Rules of Professional Conduct, which became effective January 1, 1990,2 “are imperatives, cast in the terms ‘shall’ or ‘shall not.’ ” They “define proper conduct for purposes of professional discipline.” SUPREME COURT OF TEXAS, RULES GOVERNING THE STATE BAR OF TEXAS art. X, § 9 (Rules of Professional Conduct) Preamble § 10.3

MAISEL AS FORMER LEGAL COUNSEL TO THE IAB

Rule 1.09 of the Texas Rules of Professional Conduct prohibits an attorney who has formerly represented a client in a matter from representing another person in a matter that is adverse to the former client if it is the same or a substantially related matter or if it would reasonably violate Rule 1.05. Rule 1.05 prohibits an attorney from revealing the confidences of a client or former client or to use confidential information of a client to the client’s disadvantage.

An attorney or a law firm should be disqualified because of prior legal representation if the party moving for disqualification proves that an attorney-client relationship previously existed and that the factual matters involved in that representation “were so related to the facts in the pending litigation that it creates a genuine threat that” the confidences gained in the former representation will be divulged to the attorney’s present client. Evidence of specific similarities must be presented. Once such proof is made, “the moving party is entitled to a conclusive presumption that confidences and secrets were imparted to the former attorney.”4 NCNB Texas Nat’l Bank v. Coker, 765 S.W.2d 398, 400 (Tex.1989).

As chairman of the IAB, Ms. Maisel was the statutory legal advisor to the IAB. TEX.REV.CIV.STAT.ANN. art. 8307, § 2(a) (Vernon Supp.1990). The existence of the attorney-client relationship has been established.

Relator has produced evidence establishing that the factual matters involved in the prior representation are substantially related to the facts in the pending litigation and that there is a genuine threat that the prior confidences will be divulged to the new client. The issue of whether the IAB [58]*58received actual notice of the accident and injury is vital to the IAB’s defense of lack of notice. As legal advisor, Ms. Maisel obtained knowledge of the notice issue. This clearly establishes “specific similarities” since it shows identity of factual matters.

Once relator established that Ms. Maisel had been the Board’s legal advisor and that the factual matters were, substantially related, the conclusive presumption arose that Ms. Maisel did know the facts. NCNB Texas Nat’l Bank v. Coker, 765 S.W.2d at 400; Enstar Petroleum Co. v. Mandas, 773 S.W.2d 662, 664 (Tex.App.—San Antonio 1989, no writ); Hoggard v. Snodgrass, 770 S.W.2d 577, 583 (Tex.App.—Dallas 1989, no writ). The presumption is conclusive and irrebuttable. NCNB Texas Nat’l Bank v. Coker, 765 S.W.2d at 400; Hoggard v. Snodgrass, 770 S.W.2d at 583; Petroleum Wholesale, Inc. v. Marshall, 751 S.W.2d 295, 299 (Tex.App.—Dallas 1988, no writ). Ms. Maisel admitted that she does have actual knowledge which may be relevant to the IAB’s defense of no notice. She testified that William Treacy (the IAB’s executive director) telephoned her and informed her that there had been an incident but that he did not know the extent of the injuries. Since it has been shown that she has actual knowledge, the imputation of that knowledge to the law firm is presumed. Once Ms. Maisel becomes disqualified, her entire firm is disqualified. J.K. & Susie L. Wadley Research Inst. & Blood Bank v. Morris, 776 S.W.2d 271, 281-82 (Tex.App. —Dallas 1989, no writ); Enstar Petroleum Co. v. Mandas, 773 S.W.2d at 664; Petroleum Wholesale, Inc. v. Marshall, 751 S.W.2d at 300-01; Rule 1.09(b).

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790 S.W.2d 55, 1990 Tex. App. LEXIS 1650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-accident-board-of-the-state-of-texas-v-spears-texapp-1990.