Kearns v. Chrysler Corp.

771 F. Supp. 190, 1991 U.S. Dist. LEXIS 10998, 1991 WL 152610
CourtDistrict Court, E.D. Michigan
DecidedJuly 31, 1991
Docket82-70748
StatusPublished
Cited by1 cases

This text of 771 F. Supp. 190 (Kearns v. Chrysler Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kearns v. Chrysler Corp., 771 F. Supp. 190, 1991 U.S. Dist. LEXIS 10998, 1991 WL 152610 (E.D. Mich. 1991).

Opinion

MEMORANDUM AND ORDER

COHN, District Judge.

I.

This is a patent case. Now before the Court is the motion of plaintiff Robert W. *191 Kearns (Kearns) styled “Motion to Disqualify Counsel for Defendants,” seeking to disqualify the law firm of Harness, Dickey, and Pierce (HDP) from representing defendants Chrysler Corporation (Chrysler) and American Motors Corporation (AMC). Kearns argues that because he was represented by HDP from 1977 to 1979, attorneys Bernard Cantor (Cantor), Robert Nolan (Nolan), and Gary Newtson (Newtson) who became members of HDP in 1988 and 1990 cannot represent Chrysler in this action. In response, Chrysler and AMC say that Cantor, Nolan, and Newtson should not be disqualified. They do not discuss whether HDP should be disqualified. Specifically, they argue that: 1) Kearns consented to the representation; 2) Kearns’s motion is not timely; 3) HDP has made full disclosure and set up an elaborate Chinese wall preventing Cantor, Nolan, and Newt-son from obtaining any confidential information; and 4) disqualification of Cantor, Nolan, and Newtson at this stage of the case would inflict undue hardship.

II.

The following facts are undisputed. Members of HDP began providing Kearns with legal advice in 1977. Michael Dinnin, a former partner at HDP, conducted an analysis of Ford intermittent windshield wiper (IWW) circuits and, in an opinion letter dated January 3, 1978, concluded that Ford had infringed Kearns’s IWW system patents. Later in 1978, Dinnin and two associates, Richard Carlson and Jeffrey Sadowski, filed lawsuits on behalf of Kearns against Ford Motor Company, Porsche A.G., and Daimler-Benz A.G. for infringement of his IWW patents. HDP’s representation of Kearns ended in May 1979. At that time, a provisional lien in the amount of $34,511 was granted to HDP in the Ford suit for professional services rendered after November 1977. In April 1991, HDP agreed to waive and discharge the lien. At a hearing on July 25, 1991, the Court entered an order discharging the lien.

Cantor, Nolan, and Newtson were not affiliated with HDP at the time that it represented Kearns. Indeed, HDP’s personnel have changed significantly since that time. HDP has doubled in size. Fewer than a dozen present partners were affiliated with the firm during the Kearns representation, and all of the present associates joined HDP after its representation of Kearns ended.

While a member of another firm, Cantor was counsel of record for General Motors Corporation, Honda Motor Co., Ltd., Fuji Heavy Industries, Ltd., Isuzu Motors Limited, and Group Lotus Cars Company, PLC in patent infringement cases brought by Kearns involving his IWW system patents. Cantor entered an appearance in those cases in 1985. Nolan was an associate at Cantor’s firm, working with him on the cases.

Cantor and Nolan joined HDP on November 4, 1988. At that time, a screen was already in place prohibiting communications between them and the rest of the firm involving a number of cases in which Cantor’s and Nolan’s prior representation of clients conflicted with HDP’s representation. See American Sigma, Inc. v. QED Environmental Systems, Inc., 87-CV-70070-DT, Opinion and Order Granting in Part and Denying in Part Plaintiff’s Motion for Disqualification (E.D.Mich. Nov. 7, 1989); American Sigma, Inc. v. QED Environmental Systems, Inc., Disqualification No. 88-1, Memorandum Order and Opinion (U.S.P.T.O. July 31, 1989). Access by Cantor and Nolan to such files was prohibited, and all of the files were clearly marked with prominently colored labels and segregated in accordance with Chinese Wall requirements. This system also was used to screen Cantor and Nolan from any contact with HDP’s files on the Kearns cases.

Subsequently, Cantor informed the Court and Kearns’s counsel of his new affiliation with HDP, although the precise date and form of such notice is unclear. The notice could not have mentioned this case, as it appears that Cantor had no involvement in the matter at the time. Kearns’s counsel, the firm of Arnold, White & Durkee (AWD), acknowledged Cantor’s involve *192 ment in Kearns’s lawsuit against General Motors Corporation, following his move to HDP, as early as January 13,1989. Cantor did not formally enter an appearance on behalf of Chrysler until February 1991; however, on June 12, 1990, in compliance with Michigan Rule of Professional Conduct 1.10, he updated the Court and all counsel of record regarding his anticipated and more active role in the Kearns cases. Although his June 12, 1990 letter did not mention the litigation involving Chrysler and AMC, Cantor’s more active role apparently was occasioned by Newtson’s affiliation with HDP.

Newtson was employed by Chrysler as Chief Patent Counsel and has been an attorney of record in this case since 1982. Before Kearns’s separate action against AMC was consolidated with this case, Newtson filed an appearance on behalf of AMC on February 16, 1989. In 1990, he retired from Chrysler and became a non-equity partner of HDP, bringing the Chrysler and AMC representation with him. He advised Kearns’s counsel in June 1990 of his decision to join HDP and continue his representation of Chrysler. Prior to Newt-son’s joining HDP, another screen was established, which prohibited communications between Newtson and HDP attorneys on the opposite side of the Cantor/Nolan Chinese Wall.

During March and April of 1991, HDP attorneys and AWD attorneys engaged in extensive discussions and exchanged numerous letters in an attempt to come to an agreement that would permit Cantor, Nolan, and Newtson to continue to represent Chrysler and AMC. It is not clear from the record that any agreement was reached. Furthermore, shortly after the point at which Chrysler and AMC claim that the parties agreed to permit Cantor, Nolan, and Newtson to continue their representation, Kearns began a search for new counsel. Kearns’s present counsel substituted for AWD following completion of the joint pretrial order on July 2, 1991. Immediately following the substitution, his new counsel filed the motion to disqualify HDP. 1

III.

A.

First, the defendants argue that Kearns consented to their choice of representation by HDP. In support of this argument, they rely primarily on the record, which is inconclusive at best. HDP may have reached an agreement with AWD permitting their representation, but it certainly is not clear that Kearns ever approved of such an agreement. Indeed, AWD’s decision not to move to disqualify HDP likely was one of the precipitating reasons for Kearns’s search for new counsel. Whatever the circumstances, there simply is not enough in this record to show consent.

Chrysler and AMC rely on Sampeer v. Boschma, 369 Mich. 261, 119 N.W.2d 607 (1963), for the proposition that once Kearns’s counsel agreed not to move to disqualify HDP, Kearns is forever bound by that decision, even if he retains new counsel. Such a reading stretches Sam-peer, a case dealing with the ability of appellate counsel to raise issues not preserved by trial counsel, beyond recognition.

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Bluebook (online)
771 F. Supp. 190, 1991 U.S. Dist. LEXIS 10998, 1991 WL 152610, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kearns-v-chrysler-corp-mied-1991.