Lipin v. Bender

193 A.D.2d 424, 597 N.Y.S.2d 340, 1993 N.Y. App. Div. LEXIS 4793
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 11, 1993
StatusPublished
Cited by13 cases

This text of 193 A.D.2d 424 (Lipin v. Bender) 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
Lipin v. Bender, 193 A.D.2d 424, 597 N.Y.S.2d 340, 1993 N.Y. App. Div. LEXIS 4793 (N.Y. Ct. App. 1993).

Opinion

—Orders, Supreme Court, New York County (Karla Moskowitz, J.), entered January 27, 1992, which dismissed the complaint as a sanction for plaintiff’s improperly obtaining and using confidential documents and [425]*425returned such documents to defendants’ counsel, unanimously affirmed, without costs.

This is seemingly a matter of first impression, the issue being whether, under the unique circumstances presented, dismissal of the complaint is an appropriate sanction for plaintiff’s surreptitious removal and use of confidential documents constituting privileged material and defense counsel’s attorney’s work product.

The underlying facts are not in dispute. Plaintiff, a former high ranking employee of defendant American Red Cross in Greater New York (NYRC), brought this action for sexual harassment and discrimination pursuant to New York’s Human Rights Law and 42 USC §§ 1983 and 1985.

On June 28, 1991, the parties appeared before Special Referee Birnbaum in a hearing room on the second floor of the New York County Courthouse at 60 Centre Street to argue certain discovery matters. Plaintiff, who since her termination by NYRC had been working as a paralegal for her attorney in this matter, found immediately in front of her at her "customary” location at the counsel table, a stack of documents of some 200 pages. It is unclear why and by whom the documents were placed in that precise location and not otherwise safeguarded, but counsel for defendants were sitting directly across the 12 by 6 foot counsel table.

Typed on the top page of the stack of documents was the heading:

"Weil, Gotshal & Manges memorandum
Two Files From Lawrence J. Baer
Re: Joan Lipin v American Red Cross”

The documents contained a series of internal memoranda prepared by counsel containing notes of various interviews with defendant Bender and other individuals employed or associated with NYRC concerning this action. The documents also included digests of depositions which had previously been taken in this action.

As counsel were engaged in argument concerning certain discovery matters, plaintiff slipped these documents off the table, placed them on her lap, and began to read them.

As plaintiff read through the documents, she recognized that they were interviews with various witnesses relevant to this action. According to the hearing testimony, "I decided that I was going to obtain possession of these papers for my own protection.” When argument before the Special Referee [426]*426had ended, plaintiff informed her attorney that she had just read various inflammatory statements taken in interviews concerning her, and that she was "horrified”. Counsel stated that he would not read the documents until he had obtained a "second opinion”. During the luncheon recess, plaintiff went to counsel’s office and copied the documents.

Counsel examined the documents on Sunday, June 30, 1991. According to him, the documents contained inflammatory references to plaintiff, as well as evidence of a "conspiracy to ruin her career.” After conferring with the attorney who had originally referred the matter to him, both attorneys formed the opinion that they were entitled to retain the documents under a claim of right, and that any claim of confidentiality had been waived in view of the circumstances of the discovery of the documents—that they had been left unsecured, directly in front of the plaintiff, in a public area, such that plaintiff had been "invited” to read the documents.

Thereupon, plaintiff’s counsel requested that opposing counsel attend a "settlement” conference at his offices at 2:00 p.m. on Tuesday, July 2, 1991. At that time, plaintiff’s counsel made various demands, including (1) that Weil, Gotshal & Manges withdraw as counsel based upon a conflict of interest in representing both defendants Bender and NYRC, (2) a monetary settlement, and (3) "suitable action” to withdraw, with an apology for false information allegedly disseminated concerning plaintiff. In response to these demands, defense counsel demanded return of the documents and an explanation as to the manner in which plaintiff had obtained them. Plaintiff’s counsel refused to reveal how the documents had been obtained, and also refused to return the copies which had been made, asserting that in any event he had no control over his client, who could conceivably give the documents to the mass media.

Defendants immediately sought, by order to show cause, an order pursuant to CPLR 3103 suppressing the privileged documents, disqualifying plaintiff’s attorney, and imposing sanctions. Pending a hearing, the IAS Court directed that no use be made of the documents and that any and all copies made of the documents be secured.

An evidentiary hearing was held, at which plaintiff revealed the manner in which she had removed the documents. Plaintiff admitted that in her employment as a paralegal, she was aware of the nature of the attorney-client privilege. Plaintiff further revealed that counsel had advised her, on the day the [427]*427documents were obtained, that "you can’t lie so you have to say yes, you by mistake picked up his documents”. The plaintiff insisted, however, that the documents were not taken by mistake, but rather, "it was my own recognizance and my own protection”.

Following the hearing, defendants moved to amend their motion to seek dismissal of the complaint, based upon the hearing testimony given by plaintiff.

In a decision read into the record, the court found that the documents were on their face clearly attorney’s work product, and that plaintiff, as an employee of her counsel, had an obligation to return those documents to opposing counsel. Instead, copies of the documents were made, for which there was "no justification”. The court stated, "I have to conclude that the actions of the plaintiff and her attorney were so egregious in taking this material * * * so heinous that the only remedy, as much as I dislike to do this, is to dismiss the lawsuit.”

In Matter of Beiny (129 AD2d 126), counsel for petitioner in a trust accounting proceeding clandestinely obtained, by means of an improperly issued subpoena, discovery of confidential and privileged material from the adverse party’s former law firm without notifying that party. This Court, in modifying the order of the Surrogate so as to disqualify petitioner’s counsel in addition to the previously ordered suppression of the 107 improperly obtained documents, found that the sanction of disqualification, while regrettable, in that it deprived petitioner of his chosen counsel, was necessary

"not only to sanitize the proceeding but to prevent the offending lawyer or firm from deriving any further benefit from information obtained and used in violation of basic ethical precepts and statutory obligations * * *

"[T]o impose a sanction short of disqualification would be to treat the conduct at issue with a degree of lenity practically inviting its recurrence. Our principal concern under the circumstances must be to preserve the integrity of the process by which rights are vindicated.” (Supra, at 143-144.)

Under the circumstances of this case, although there is not the premeditation found in Beiny (supra,

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Cite This Page — Counsel Stack

Bluebook (online)
193 A.D.2d 424, 597 N.Y.S.2d 340, 1993 N.Y. App. Div. LEXIS 4793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lipin-v-bender-nyappdiv-1993.