Papanicolaou v. Chase Manhattan Bank, N.A.

720 F. Supp. 1080, 1989 U.S. Dist. LEXIS 9482, 1989 WL 102260
CourtDistrict Court, S.D. New York
DecidedAugust 15, 1989
Docket88 Civ. 4117
StatusPublished
Cited by56 cases

This text of 720 F. Supp. 1080 (Papanicolaou v. Chase Manhattan Bank, N.A.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Papanicolaou v. Chase Manhattan Bank, N.A., 720 F. Supp. 1080, 1989 U.S. Dist. LEXIS 9482, 1989 WL 102260 (S.D.N.Y. 1989).

Opinion

OPINION AND ORDER

ROBERT P. PATTERSON, Jr., District Judge.

On May 25,1989, the partner at Milbank, Tweed, Hadley and McCloy who was in charge of the defense of this action discussed the merits of this case with the plaintiff for an hour and a half outside the presence of the plaintiff’s counsel. The partner admits that he violated Rule 4.2 of the American Bar Association Model Rules of Professional Conduct, although he states that he did not think it applied. 1 The plaintiff has now moved to disqualify both the responsible partner and his law firm from participating any further in this action. For the following reasons, the Court concludes that the partner’s conduct warrants the granting of the relief requested.

Background

The underlying controversy between the parties involves allegations of fraud with respect to a settlement agreement entered into by the plaintiff after he defaulted on loans extended to him by the defendant. On May 25, 1989, the plaintiff arrived at Milbank’s offices to attend a deposition, which had ended earlier that day. The plaintiff encountered the responsible Mil-bank partner in the firm’s reception area. They exchanged pleasantries and the plaintiff asked the partner how the case was going. The conversation immediately became sensitive, and the plaintiff suggested the two go to a conference room. The *1082 partner agreed. The resulting meeting, which was joined about twenty minutes later by one of the defendant’s employees, lasted an hour and a half.

The Court offered to hold a hearing to ascertain exactly what was said during the meeting but counsel for both parties expressed the opinion that the court should decide the matter without a hearing. The affidavits of the plaintiff and the Milbank partner conflict with respect to the content and import of their conversation; 2 but it is not disputed that the two argued the merits of the case at length, that the plaintiff showed the responsible partner a certain document meant to refute key defense testimony, and that the partner disparaged the competence of the plaintiff’s attorneys, the law firm of Kreindler and Kreindler.

Immediately after the meeting took place, the plaintiff told his lawyers what had happened. The following day, May 26, the partner in charge of the litigation at Kreindler wrote to his counterpart at Mil-bank and accused him of improperly obtaining privileged information regarding the plaintiff’s litigation strategy as well as with irreparably marring Kreindler’s relationship with its client. The Kreindler partner asked that Milbank and its partner both withdraw from the case. Both refused. The Milbank partner argued in a responsive letter that the plaintiff had disclosed no information not already known, and that any litigation strategy the plaintiff might have imparted would have come out anyway in his papers opposing the defendant’s forthcoming motion for summary judgment. The plaintiff, concluded the Mil-bank partner, had suffered no prejudice. This motion to disqualify followed. In response to the motion Milbank has removed the responsible partner and four other attorneys from this case and built a “Chinese wall” around them.

Discussion

In the Preamble to the Model Rules of Professional Conduct the American Bar Association Commission on the Evaluation of Professional Standards described a “Lawyer’s Responsibilities”:

A lawyer is a representative of clients, an officer of the legal system and a public citizen having special responsibility for the quality of justice.
A lawyer’s conduct should conform to the requirements of the law_ A lawyer should use the law’s procedures only for legitimate purposes and not to harass or intimidate others. A lawyer should demonstrate respect for the legal system and for those who serve it_

ABA Commission on Evaluation of Professional Standards, Model Rules of Professional Conduct Preamble, at 9 (1984). A responsible advocate acts zealously to further his client’s interests. Yet “the conflict between a lawyer’s responsibilities to clients, to the legal system and to the lawyer’s own interest in remaining an upright person” often raises ethical problems. Like the New York State Code of Professional Responsibility, the Model Rules of Professional Conduct “prescribe terms for resolving such conflicts.” Id. at 10.

Courts, of course, exist to resolve disputes, and not to discipline lawyers who come before them. See Lefrak v. Arabian Am. Oil Co., 527 F.2d 1136, 1141 (2d Cir.1975) (“To conduct the broad investigation sought here, aside from its irrelevancy to the remedy of disqualification, in effect transforms the trial judge into the Grievance Committee of the bar association which is certainly not his function.”); W.T. Grant Co. v. Haines, 531 F.2d 671, 677 (2d Cir.1976); United States Football League v. National Football League, 605 F.Supp. 1448, 1463 n. 31 (S.D.N.Y.1985); cf. Hull v. Celanese Corp., 513 F.2d 568, 571 (2d Cir. *1083 1975). At the same time, however, a district court has a “duty to supervise members of its bar.” NCK Org. Ltd. v. Bregman, 542 F.2d 128, 131 (2d Cir.1976); Hull, supra, 513 F.2d at 571; see General Rule 4(f) of the United States District Courts for the Southern and Eastern Districts of New York. 3 Although courts should pause before depriving a party of the counsel of its choice, disqualification is appropriate when a lawyer’s conduct might taint the case. In general, then, a district judge should disqualify the offending counsel when the integrity of the adversarial process is at stake. Board of Educ. v. Nyquist, 590 F.2d 1241, 1246 (2d Cir.1979).

It follows that a violation of professional ethics rules does not alone trigger disqualification, see W.T. Grant, supra, 531 F.2d at 677; Meat Price Investigators Ass’n v. Spencer Foods, Inc., 572 F.2d 163, 165 (8th Cir.1978); 4 rather, a trial judge should primarily assess the possibility of prejudice at trial that might result from the attorney’s unethical act. As the Second Circuit wrote in Hull v. Celanese Corp., however, courts must remember that

[t]he preservation of public trust both in the scrupulous administration of justice and in the integrity of the bar is paramount. Recognizably important [is the plaintiff's] right to counsel of her choice.... [That] consideration[] must yield, however, to considerations of ethics which run to the very integrity of our judicial process.

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Bluebook (online)
720 F. Supp. 1080, 1989 U.S. Dist. LEXIS 9482, 1989 WL 102260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/papanicolaou-v-chase-manhattan-bank-na-nysd-1989.