Rutgard v. Haynes

185 F.R.D. 596, 1999 U.S. Dist. LEXIS 16378, 1999 WL 288500
CourtDistrict Court, S.D. California
DecidedApril 27, 1999
DocketNo. Civ. 98-0524TW(JFS)
StatusPublished
Cited by12 cases

This text of 185 F.R.D. 596 (Rutgard v. Haynes) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rutgard v. Haynes, 185 F.R.D. 596, 1999 U.S. Dist. LEXIS 16378, 1999 WL 288500 (S.D. Cal. 1999).

Opinion

[597]*597ORDER GRANTING IN PART DEFENDANT’S MOTION TO COMPEL [48-1]

STIVEN, United States Magistrate Judge.

I.

INTRODUCTION

Defendant’s Motion to Compel Production of Files of Attorney Gene Royce in the above-referenced case was heard before Magistrate Judge Stiven in Courtroom E on April 13, 1999. Attorneys Krista Sandler and Mike Leone appeared on behalf of Defendant. Attorney William Cohan appeared on behalf of Plaintiff. Having read the written submissions of the parties, heard argument of counsel, and being fully advised, the Court FINDS and ORDERS as follows:

II.

BACKGROUND

Defendant seeks, by subpoena, to obtain the files and records of Attorney Gene E. Royce and his law firm of Royce, Grimm, Vranjes, McCormick & Graham, LLP, relating to Royce’s representation of Plaintiff during the malicious prosecution suit in which both the plaintiff and defendant in this case were sued for having previously filed an action against Plaintiffs former employees for antitrust violations. Mr. Royce, who does not represent Plaintiff in the present action, contacted Defendant’s counsel and indicated he would produce some of the documents requested, but requested a retainer to redact other documents as he felt appropriate. Defendant’s counsel allegedly replied that such a fee would not be required if this Court ordered all documents produced. Mr. Royce then stated that he would wait for this Court’s ruling before he produced any documents. Plaintiff presents a limited objection to the motion, arguing that only some of the documents relating to the present action should be produced. This Court finds that all of the documents relating only to the defense of the malicious prosecution suit shall be produced and GRANTS Defendant’s motion to compel in part as follows.

III.

DISCUSSION

A. Waiver of Attorney-Client Privilege

1. The October 22,1998 Order.

This Court issued an Order on October 22, 1998, holding that Plaintiff had waived the attorney-client privilege as to both Defendant Haynes and his co-counsel in a prior criminal action from McKenna and Cuneo by filing a suit for malpractice against Haynes. This Court found that when a client sues one [598]*598lawyer for malpractice, the attorney-client privilege is waived as to all attorneys involved in the underlying litigation for which that attorney has been sued. See Pappas v. Holloway, 114 Wash.2d 198, 202, 787 P.2d 30, 34 (1990).

One of the causes of action Plaintiff states against Defendant is malpractice and negligence during Defendant’s representation of Plaintiff during the criminal suit in U.S. v. Rutgard,.1 Ms. Juanita Brooks of McKenna and Cuneo represented Plaintiff during the criminal suit as co-counsel with Defendant Haynes. In its October 22, 1998 Order, this Court held that by suing Defendant Haynes for committing malpractice during the criminal suit, Plaintiff waived the attorney-client privilege as to both Defendant Haynes, and co-counsel for that same matter, Ms. Brooks.

The issue presently before this Court is somewhat different. The focus here is that Plaintiff is suing Defendant Haynes for negligence, fraud and deceit, and breach of fiduciary duty for alleged misconduct in connection with a civil antitrust suit filed against Plaintiffs former employees. Plaintiff was named as a defendant in a malicious prosecution suit brought by the former employees named in the antitrust suit. Attorney Royce was retained to represent Plaintiff during this malicious prosecution suit. Defendant Haynes was a co-defendant in the malicious prosecution action. He was represented by separate counsel. Thus, Defendant and Royce were never co-counsel for Plaintiff, and, as discussed below, Royce represented Plaintiff after the alleged misconduct (in connection with the filing of the antitrust suit) occurred, not during the same matter, as was the case in Pappas and Fischel & Kahn v. Van Straaten Gallery, Inc., 301 Ill.App.3d 336, 234 Ill.Dec. 773, 703 N.E.2d 634 (1998).

Additionally, in all of the cases considering this issue, the waiver of attorney-client privilege has occurred with respect to one underlying case or occurrence, upon which the subsequent malpractice suit is based. In this case, this Court must consider the actions of Plaintiff and his attorneys for two underlying cases, rather than one. Accordingly, this Court must consider whether Plaintiff has waived the attorney-client privilege as to communications between himself and Royce during the malicious prosecution case by virtue of now attempting to recover damages from Defendant Haynes for Royce’s attorney’s fees, and the settlement payment Plaintiff paid to terminate the malicious prosecution case.

2. Communications between Royce and Plaintiff are “at issue” and thus Plaintiff has impliedly waived the Attorney-Client Privilege.

The attorney-client privilege and work product privilege can be waived by placing protected communications in issue. See Handgards, Inc. v. Johnson & Johnson, 413 F.Supp. 926 (N.D.Cal.1976); Pappas v. Holloway, 114 Wash.2d 198, 787 P.2d 30 (1990); Fischel v. Van Straaten, 301 Ill.App.3d 336, 234 Ill.Dec. 773, 703 N.E.2d 634 (1998).

In this case, Plaintiffs claims for damages against Haynes include recovery of fees he paid to Royce to defend the malicious prosecution case, as well as recovery of the amount Plaintiff paid to settle the malicious prosecution case. Defendant argues that since these amounts are in issue, the attorney’s files are open to examination in this case. However, in Jakobleff v. Cerrato, Sweeney and Cohn et al., 468 N.Y.S.2d 895, 97 A.D.2d 834 (1983), the court held that when a plaintiff sued her former attorney for malpractice, she did not waive the attorney-client privilege as to her present attorney when the defendant attorney impleaded the present attorney on the issue of damages. The court stated:

To conclude otherwise would render the privilege illusory in all legal malpractice actions: the former attorney could, merely by virtue of asserting a third-party claim for contribution against the present attorney, effectively invade the privilege in ev[599]*599ery case. Such a result would surely contravene the purpose of the privilege, i.e., “to ensure that one seeking legal advice will be able to confide fully and freely in his attorney, secure in the knowledge that his confidences will not later be exposed to public view to his embarrassment or legal detriment.”

Id. at 898 (citation omitted).

This Court agrees with this reasoning, and the many other courts that have held that a party does not place otherwise privileged attorney-client communications “at issue” merely by seeking an award of attorney fees as damages. See Fischel v. Van Straaten, 234 Ill.Dec. 773, 703

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Chard v. Chard
2019 UT App 209 (Court of Appeals of Utah, 2019)
Dana v. Piper
295 P.3d 305 (Court of Appeals of Washington, 2013)
Christenbury v. Locke Lord Bissell & Liddell, LLP
285 F.R.D. 675 (N.D. Georgia, 2012)
Zabin v. Picciotto
896 N.E.2d 937 (Massachusetts Appeals Court, 2008)
Tardiff v. County of Knox
246 F.R.D. 66 (D. Maine, 2007)
B.H. v. Gold Fields Mining Corp.
239 F.R.D. 652 (N.D. Oklahoma, 2005)
Madanes v. Madanes
199 F.R.D. 135 (S.D. New York, 2001)
Parler & Wobber v. Miles & Stockbridge, P.C.
756 A.2d 526 (Court of Appeals of Maryland, 2000)
Simmons Foods, Inc. v. Willis
191 F.R.D. 625 (D. Kansas, 2000)
Fischel & Kahn, Ltd. v. Van Straaten Gallery, Inc.
727 N.E.2d 240 (Illinois Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
185 F.R.D. 596, 1999 U.S. Dist. LEXIS 16378, 1999 WL 288500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rutgard-v-haynes-casd-1999.