RFF Family Partnership, LP v. Burns & Levinson, LLP

991 N.E.2d 1066, 465 Mass. 702, 2013 WL 3389006, 2013 Mass. LEXIS 571
CourtMassachusetts Supreme Judicial Court
DecidedJuly 10, 2013
StatusPublished
Cited by11 cases

This text of 991 N.E.2d 1066 (RFF Family Partnership, LP v. Burns & Levinson, LLP) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RFF Family Partnership, LP v. Burns & Levinson, LLP, 991 N.E.2d 1066, 465 Mass. 702, 2013 WL 3389006, 2013 Mass. LEXIS 571 (Mass. 2013).

Opinion

Gants, J.

The issue presented on appeal is whether confidential communications between law firm attorneys and a law firm’s in-house counsel concerning a malpractice claim asserted by a current client of the firm are protected from disclosure to the client by the attorney-client privilege. We conclude that they are, provided that (1) the law firm has designated an attorney or attorneys within the firm to represent the firm as in-house counsel, (2) the in-house counsel has not performed any work on the client matter at issue or a substantially related matter, (3) the time spent by the attorneys in these communications with in-house counsel is not billed to a client, and (4) the communications are made in confidence and kept confidential. Because these criteria were met in this case, we affirm the judge’s order allowing the defendant law firm and its attorneys to invoke the attorney-client privilege to preserve the confidentiality of these communications.2

Background. The plaintiff RFF Family Partnership, LP (RFF), made a $1.4 million commercial loan to Link Development, LLC (Link), secured by what RFF understood was a first mortgage on Link’s real property in Saugus (property). RFF retained Bums & Levinson, LLP (B&L or law firm), to investigate the title of the property, to conduct the necessary due diligence and draft the required documents, and, subsequently, to accomplish RFF’s foreclosure on the mortgage when Link defaulted in its payment.

On March 25, 2010, the day before the scheduled foreclosure sale, an assignee of a different mortgage on the property filed an action in the Land Court seeking to enjoin RFF’s foreclosure on the grounds that its mortgage was superior to that of RFF. [704]*704Although a judge of the Land Court denied the assignee’s emergency motion to enjoin the foreclosure and the sale went ahead as scheduled, the assignee continued to press its claim in the Land Court that its lien was superior to RFF’s and that the foreclosure was therefore invalid. Soon after the Land Court action was filed, RFF’s title insurer retained another law firm, Prince Lobel Tye LLP (Prince Lobel), to represent RFF in that action, but B&L continued to represent RFF in connection with the postforeclosure sale of the property.

On March 2, 2011, almost one year after the foreclosure sale, while B&L was representing RFF in active negotiations with a third party for the sale of the foreclosed property, Prince Lobel sent a “notice of claim” to B&L attorney Shepard Davidson, alleging that B&L “breached its obligations to RFF by, among other things, failing to identify and payoff an existing mortgage of record in favor of” another lender, “failing to record a subordination agreement for another existing mortgage of record,” and “failing to inform RFF of these outstanding liens.” Prince Lobel alleged that RFF “has suffered and continues to suffer damages” as a result of “B&L’s legal malpractice and breach of contract,” and demanded that B&L indemnify RFF for the losses incurred. Prince Lobel requested that B&L contact it “no later than Tuesday, March 8, 2011 to discuss this matter.” Attached to the letter was a draft complaint including two counts of liability against B&L and two B&L attorneys, Michael MacClary and Francis Perkins.

The judge found that, on Friday, March 4, MacClary, Perkins, and Davidson sought advice as to how B&L should respond to the notice of claim from David Rosenblatt, who was the partner at B&L designated to respond to ethical questions and risk management issues on behalf of B&L, and who had not worked on any matters for RFF. B&L did not bill RFF for any of the time devoted to these internal communications concerning the notice of claim.

On Monday, March 7, MacClary sent a letter to RFF’s principal, Robert F. Freedman, with a copy sent to Prince Lobel, stating:

“As I am sure you are aware, we have received [the notice [705]*705of claim] from your counsel . . . contemplating a law suit against our firm. Additionally, you have significant unpaid legal fees and have not made a payment to us for several months. Under these circumstances, we cannot continue representing you. Accordingly, we are withdrawing from further representation effective immediately.”

After receiving the letter, Freedman told MacClary that Prince Lobel had not been authorized to file or threaten any litigation against B&L on RFF’s behalf, and that he wanted B&L to continue to represent RFF in connection with its efforts to sell the property. On March 17, MacClary sent a letter to Freedman stating that, before B&L would recommence its representation of RFF, it needed written confirmation that RFF had not engaged Prince Lobel to bring a claim against B&L or its attorneys. Freedman countersigned this letter to provide the requested confirmation, and B&L thereafter resumed its representation and continued to represent RFF in connection with its efforts to sell the property.

On June 13, 2012, after B&L had concluded its representation of RFF, RFF filed an action in the Superior Court against B&L, MacClary, and Perkins (collectively, B&L defendants), which, as amended, alleged, among other claims, legal malpractice, negligent misrepresentation, and intentional misrepresentation.3 RFF noticed the depositions of MacClary and Perkins, and of B&L’s designee pursuant to Mass. R. Civ. P. 30 (b) (6), 365 Mass. 780 (1974). The B&L defendants moved for a protective order to preserve, among other things, the confidentiality of what they contended were privileged communications with Rosenblatt regarding B&L’s reply to the notice of claim. The judge allowed the B&L defendants’ motion for a protective order to the extent that he allowed B&L’s attorney to instruct Davidson, MacClary, Perkins, and Rosenblatt not to answer questions that would reveal the content of the privileged communications among them regarding the notice of claim.4 RFF sought leave to file an interlocutory appeal of the protec[706]*706live order under G. L. c. 231, § 118, and a single justice of the Appeals Court granted the request. We transferred the appeal to this court on our own motion.

Discussion. RFF on appeal claims, in essence, that it is entitled to discovery of the confidential communications between Rosenblatt, B&L’s in-house counsel for ethical and risk management issues, and the B&L attorneys who had performed legal work for RFF that occurred during the time period between B&L’s receipt of the notice of claim threatening a legal malpractice suit (March 2) and B&L’s first withdrawal from the representation (March 7). Specifically, RFF seeks to learn what was said when Rosenblatt met with MacClary, Perkins, and Davidson on March 4 to discuss a response to the notice of claim. RFF does not claim that it is entitled to discovery of any confidential communications between Rosenblatt and the other B&L attorneys that may have occurred before B&L received the notice of claim, or after B&L’s withdrawal from the representation.

RFF argues that when an attorney in a law firm seeks legal advice from in-house counsel regarding how the attorney or the firm should respond to a claim or threatened claim of malpractice brought by a current client, these communications are not protected from disclosure to the client unless the law firm, before

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Cite This Page — Counsel Stack

Bluebook (online)
991 N.E.2d 1066, 465 Mass. 702, 2013 WL 3389006, 2013 Mass. LEXIS 571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rff-family-partnership-lp-v-burns-levinson-llp-mass-2013.