Kurstin v. Bromberg Rosenthal, LLP

990 A.2d 594, 191 Md. App. 124, 2010 Md. App. LEXIS 32, 2010 WL 682265
CourtCourt of Special Appeals of Maryland
DecidedMarch 1, 2010
Docket2445, Sept. Term, 2008
StatusPublished
Cited by12 cases

This text of 990 A.2d 594 (Kurstin v. Bromberg Rosenthal, LLP) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kurstin v. Bromberg Rosenthal, LLP, 990 A.2d 594, 191 Md. App. 124, 2010 Md. App. LEXIS 32, 2010 WL 682265 (Md. Ct. App. 2010).

Opinion

CHARLES E. MOYLAN, Jr., J., Retired,

Specially Assigned.

Our concern is with the threshold of appealability. The particular aspect thereof that commands our attention is the collateral order doctrine. Does the denial in this case of a motion to quash a discovery order qualify as a privileged collateral order within the contemplation of the doctrine? Or shall its review more properly await a final judgment?

The Procedural Background

The appellee, Bromberg Rosenthal, LLP et al., is a law firm based in Rockville, Maryland. On May 27, 2008, it sued a former client, the appellant Coralie Kurstin, for $25,000 due on an unpaid legal fee. Ms. Kurstin responded with a counterclaim, suing in turn the law firm, along with one of its partners, Barry Rosenthal, Esq., for legal malpractice. Ms. Kurstin prayed a jury trial, thereby transferring the case from the District Court to the Circuit Court for Montgomery County.

Bromberg Rosenthal had earlier represented Ms. Kurstin in a divorce case against her then husband, Ronald Kurstin (now deceased). The case ended with a decree of absolute divorce being granted on December 31, 2002. Incorporated into the divorce decree was a settlement agreement including the following proviso:

Dr. Kurstin is going to continue to maintain his current life insurance policy of 1.5 million dollars for the benefit of the parties’ children, and this beneficiary designation will be irrevocable.

*128 Several years later, but while Ronald Kurstin was still alive, Ms. Kurstin learned that her former husband had breached the settlement agreement by removing his four children by Ms. Kurstin as the beneficiaries of the life insurance policy and substituting his girlfriend, Terry LeSohn, as sole beneficiary. Ms. Kurstin consequently retained her current counsel, Ellis J. Koch, Esq., and filed suit against Ronald Kurstin (as well as against Terry LeSohn and the USAA Life Insurance Company) in an effort to prohibit the switch of beneficiaries. The case was filed in the Circuit Court for Montgomery County on June 2, 2006. A Temporary Restraining Order was issued as to USAA Life on June 5, 2006, enjoining it from disbursing any funds under the policy until further order of the court. At a motions hearing on July 21, 2006, settlement negotiations were entered into. As a result, a consent order was entered in the case, providing that $250,000 would be released to the control of Ronald Kurstin under the accelerated death benefit provisions of the policy, thereby reducing the policy’s value to $1,250,000 for the benefit of the four children, who remained, however, as the designated beneficiaries. On August 22, 2006, Dr. Kurstin died and the policy provisions to the beneficiaries were paid.

Matters remained quiet for almost two years. When Bromberg Rosenthal sued for its unpaid legal fee on May 27, 2008, however, Ms. Kurstin responded with her suit against the firm for legal malpractice. On the malpractice claim, Ms. Kurstin’s position is that the negligence of Bromberg Rosenthal, in failing to notify the life insurance company of the settlement agreement prohibiting a change in beneficiaries, left her with no feasible alternative but to enter into the 2006 consent order by which her children lost a portion of the benefits that was their due.

The position of Bromberg Rosenthal, on the other hand, is that when Ms. Kurstin sued her ex-husband to preclude him from making any changes in the beneficiaries of his life insurance policy, all the legal merit was indisputably on her side and there was, therefore, no sound tactical reason for any *129 compromise on her part. The yielding to him of control over $250,000 was, in its view, ill-advised.

Battle was thus joined between two law firms as to their respective legal appraisals of the insurance policy controversy and as to appropriate responsive strategies. If the children of Ms. Kurstin, as beneficiaries of their father’s life insurance policy, lost $250,000, the critical issue would be which law office, if either, might be found responsible for all, or for some, of that loss?

Discovery: A Scheduled Deposition

Anticipating an impending clash over competing legal assessments and competing responsive strategies, Bromberg Rosenthal filed a Notice of Deposition Duces Tecum on Ellis J. Koch, Esq., the successor attorney for Ms. Kurstin, announcing that it would take his deposition and instructing him “to bring copies of all documents in his possession related to his representation of Coralie Kurstin in the underlying case.” Ms. Kurstin promptly filed a Motion to Quash Notice of Deposition and For Protective Order, along with an accompanying Memorandum of Law. Her core contention was:

There is no justification in law permitting inquiry into the matters covered by the attorney-client privilege, work product privilege or mental impressions of counsel.

Her supporting memorandum predicted the likely use that Bromberg Rosenthal would make of the deposition.

In defending the malpractice action, PlaintiffiCounterDefendant Bromberg Rosenthal seeks the deposition duces tecum of the undersigned counsel with the expressed, intent of possibly suing undersigned counsel for contribution and indemnification intending to allege negligence in advice as to nsk assessment given to Coralie Kurstin and the children upon which they based their determination to settle the Second Case recited above.

(Emphasis supplied).

Bromberg Rosenthal filed its Opposition to Motion to Quash Notice of Deposition along with an accompanying Memoran *130 dum of Law. In that memorandum, it acknowledged its basic position in the legal malpractice case.

Notwithstanding the fact that Mr. Kurstin clearly breached the settlement agreement and the fact that Mr. Kurstin was still alive at that time and therefore could be compelled to re-designate the Defendants/Counter-Plaintiffs adult children as the sole beneficiaries on the life insurance policy, the Defendant/Counter-Plaintiff, through the representation of Ellis Koch, Esquire, agreed to settle the litigation against Mr. Kurstin.

With direct reference to recognized exceptions to the attorney-client privilege, Bromberg Rosenthal stated its need for the inquiry.

[I]t is the contention of Rosenthal, LLP and Barry Rosenthal that Defendant/Counter-Plaintiffs damages were caused by her settlement of the lawsuit filed by Mr. Koch and not by any act or omission on the part of Rosenthal, LLP and Barry Rosenthal. In order to support this defense, Rosenthal, LLP and Barry Rosenthal need to be able to ask questions of both Ms. Kurstin and Mr. Koch related to the settlement of that lawsuit, that seek information that would, but for the filing of this lawsuit, be protected by the attorney-client privilege.

The question posed before Judge Michael D.

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Bluebook (online)
990 A.2d 594, 191 Md. App. 124, 2010 Md. App. LEXIS 32, 2010 WL 682265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kurstin-v-bromberg-rosenthal-llp-mdctspecapp-2010.