Schwartz v. Jefferson

930 S.W.2d 957, 1996 Tex. App. LEXIS 4540, 1996 WL 593523
CourtCourt of Appeals of Texas
DecidedOctober 17, 1996
Docket14-96-00622-CV
StatusPublished
Cited by18 cases

This text of 930 S.W.2d 957 (Schwartz v. Jefferson) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartz v. Jefferson, 930 S.W.2d 957, 1996 Tex. App. LEXIS 4540, 1996 WL 593523 (Tex. Ct. App. 1996).

Opinion

OPINION

MURPHY, Chief Justice.

In this original proceeding, relator, Florence Schwartz, seeks a writ of mandamus compelling the respondent, Judge Jefferson, to vacate his order disqualifying relator’s lead attorney, Janet Militello. We conditionally grant the writ.

The litigation underlying this proceeding arose from a dispute over the sale of two family-owned businesses. Relator, a major shareholder in the businesses, was sued for breach of an agreement to sell the businesses. Janet Militello, an attorney with Liddell, Sapp, Zivley, Hill & LaBoon (Lid-dell, Sapp) served as relator’s lead attorney in this case. Relator retained John Lamar, general partner of the real party in interest, Contex Capital Partners (“Contex”), to evaluate the adequacy of the purchase price of the two businesses and to assist in settlement negotiations. Following settlement of this suit, relator asserted that Lamar did not perform services as contemplated and relator refused to pay Contex for his services. Con-tex subsequently filed this suit against relator. In October 1994, Contex filed an amended petition alleging quantum meruit. Relator’s counsel, Militello, states in an affidavit that, soon after the filing of this amended pleading, she advised Contex’s lead counsel that Edward Friedman, another of relator’s counsel, was withdrawing as counsel because he might need to testify.

According to Militello’s affidavit, counsel for Contex raised the possibility of disqualifying Liddell, Sapp or calling Militello as an adverse witness at this time in early 1995. Contex did not take Friedman’s deposition and did not, at this time, object to Militello’s continued representation of relator. On February 8, 1996, relator filed a third amended original answer and counterclaim for actual and punitive damages. The counterclaims included claims of fraud in the inducement, breach of contract, DTPA violations, fraud, breach of fiduciary duty, promissory fraud, professional malpractice, and negligent misrepresentation. As part of the facts alleged in support of the counterclaims, relator contended Contex had represented it would acquire the services of an investigator and, in reliance on this representation, relator and her attorneys did not undertake this task.

On the basis of this statement in relator’s third amended answer and counterclaim, Contex filed a motion to disqualify relator’s attorneys. In response to the motion, relator stated that three attorneys were participants in the events which are the subject of the claims and counterclaims. These were Edward Friedman, Stephanie Donaho, and Janet Militello. Determining that two of the three attorneys who participated might be called as witnesses, relator advised the court and Contex that these attorneys would not take an active role in the trial. Relator further asserted that Janet Militello would not be called as a witness. After a hearing, the trial court entered an order granting the motion disqualifying Janet Militello.

Relator argues the trial court’s order has no basis in fact or in law. Mandamus relief is available if the trial court abuses its discretion, either in resolving factual issues or in determining legal principles. Walker v. Packer, 827 S.W.2d 833, 839-40 (Tex.1992). A trial court abuses its discretion if “it reaches a decision so arbitrary and unreasonable as to amount to a clear and prejudicial error of law.” Johnson v. Fourth Court of Appeals, 700 S.W.2d 916, 917 (Tex.1985). When alleging that a trial court abused its discretion in its resolution of factual issues, the party must show the trial court could reasonably have reached only one decision. Id. at 918. As to determination of legal principles, an abuse of discretion occurs *959 if the trial court clearly fails to analyze or apply the law correctly. Walker, 827 S.W.2d at 840.

In determining whether the writ should issue, we must further determine whether the party has an adequate remedy by appeal. Id. Mandamus is intended to be an extraordinary remedy, only available in limited circumstances “involving manifest and urgent necessity and not for grievances that may be addressed by other remedies.” Holloway v. Fifth Court of Appeals, 767 S.W.2d 680, 684 (Tex.1989). An appellate remedy is not inadequate merely because the party may incur more expense and delay than in obtaining the writ. Walker, 827 S.W.2d at 842.

Mandamus has been accepted as an appropriate method to review improper disqualification of counsel. See Phoenix Founders, Inc. v. Marshall, 887 S.W.2d 881 (Tex.1994); Spears v. Fourth Court of Appeals, 797 S.W.2d 654 (Tex.1990). The courts have held mandamus relief available because disqualification is a severe remedy resulting in immediate and palpable harm that disrupts the trial court proceedings and deprives a party of the right to have counsel of choice. Occidental Chem. Corp. v. Brown, 877 S.W.2d 27, 30 (Tex.App.—Corpus Christi 1994, orig. proceeding), vacated by Grant v. Thirteenth Court of Appeals, 888 S.W.2d 466 (Tex.1994). Therefore, disqualification of counsel may render remedy by appeal inadequate. NCNB Texas Nat’l Bank v. Coker, 765 S.W.2d 398, 400 (Tex.1989). We find that, because the trial court’s order requires relator to go to trial without her counsel of choice, appeal is an inadequate remedy in this case.

Relator contends the trial court abused its discretion in disqualifying Militello because Rule 3.08 of the Texas Disciplinary Rules of Professional Conduct permits disqualification in only two circumstances and neither of these circumstances is present in this case. Subsection (a) of Rule 3.08 provides for disqualification of the attorney “if the lawyer knows or believes that the lawyer is or may be a witness necessary to establish an essential fact on behalf of the lawyer’s client” unless the lawyer’s anticipated testimony falls within one of five exceptions. 1 SUPREME COURT OF TEXAS, STATE BAR RULES art. 10, § 9 (Texas Disciplinary Rules of Professional Conduct) Rule 3.08(a) (1994) [hereinafter Tex. Disciplinary Rules of Prof. Conduct] (located in the pocket part for Volume 3 of the Texas Government Code in title 2, subtitle G app. A, following § 83.006 of the Government Code). Relator contends subsection (a) is inapplicable here because relator represented in her affidavit, her pleadings, and in open court that she will not call Militello to testify.

Subsection (b) requires an attorney to decline representation “if the lawyer believes that the lawyer will be compelled to furnish testimony that will be substantially adverse to the lawyer’s client, unless the client consents after full disclosure.” Tex. Disciplinary Rules of Prof. Conduct, Rule 3.08(b) (1994).

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Bluebook (online)
930 S.W.2d 957, 1996 Tex. App. LEXIS 4540, 1996 WL 593523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-v-jefferson-texapp-1996.