Sears, Roebuck & Co. v. American Plumbing & Supply Co. of Green Bay

19 F.R.D. 329, 1954 U.S. Dist. LEXIS 4236
CourtDistrict Court, E.D. Wisconsin
DecidedJune 2, 1954
DocketCiv. A. No. 5959
StatusPublished
Cited by7 cases

This text of 19 F.R.D. 329 (Sears, Roebuck & Co. v. American Plumbing & Supply Co. of Green Bay) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sears, Roebuck & Co. v. American Plumbing & Supply Co. of Green Bay, 19 F.R.D. 329, 1954 U.S. Dist. LEXIS 4236 (E.D. Wis. 1954).

Opinion

TEHAN, Chief Judge.

Plaintiff corporation, Sears Roebuck & Co., alleges in its complaint that defendant corporation, American Plumbing & Supply Company of Green Bay, paid plaintiff’s agent, Stoekwell, secret commissions on defendant’s sales to plaintiff, and seeks to recover the amount of such secret payments, and in addition, the amount of defendant’s profits on such sales. In its answer, signed by defendant's attorney, Meyer Cohen, defendant admitted that it had paid plaintiff’s agent a commission on certain sales, but denied that such payments were improper for any reason.

Following joinder of issue, plaintiff moved for summary judgment in its favor, and filed in support of its motion a deposition taken of Marcus Kohlenberg, president and manager of the defendant corporation, in connection with an earlier case, Sears Roebuck & Co. v. Stockwell, growing out of substantially the same facts and now pending in the United States District Court, District of Minnesota, Fourth Division. Upon the filing of the motion for summary judgment, and in opposition thereto, defendant moved to withdraw its original answer and substitute a proposed amended answer.

Defendant alleged in the proposed amended answer, signed by both Kohlen-berg and Cohen, that Melvin H. Siegel, the attorney for Sears who signed the complaint in the instant action, had induced Kohlenberg to testify in the prior action by representing, promising, agreeing and assuring the defendant and Kohlenberg “that if the defendant permitted the plaintiff to examine and to obtain evidence and testimony from the defendant’s books, papers and documents for the benefit of the plaintiff in the aforesaid Stoekwell case and if said Marcus Kohlenberg did give evidence and testimony by his deposition for the benefit of the plaintiff Sears in the said Stock-well action, that the plaintiff would not make any claim of any kind or commence any action or suit of any kind against the defendant or Marcus Kohlenberg for any' payments plaintiff claimed said Stoekwell received from the defendant.” Defendant further alleged in the proposed amended answer that Kohlenberg had given testimony by his deposition in reliance upon such promises and representations, that without such promises and assurances Kohlenberg would not have waived his constitutional right to decline, upon the ground of privilege against self-incrimination, to testify in the Stoekwell case, that the present action was commenced in violation of such promises and agreements, and that such agreement constitutes an estoppel against the plaintiff in maintaining this action.

In support of its motion to withdraw its original answer and to substitute a proposed amended answer and in further opposition to plaintiff’s motion for summary judgment, defendant filed an affidavit dated February 9, 1954, signed by Kohlenberg, in which he described a course of dealing with plaintiff’s agent, Stoekwell, and stated that “At no time did I or the defendant add any commission or anything else to the selling price of goods sold by the defendant to the plaintiff.” With respect to the alleged promises made by plaintiff’s attorney, Siegel, Kohlenberg stated in his affidavit: “Said Siegel stated repeatedly and repeatedly assured me that if American Plumbing (the defendant) and I permitted him to examine and to obtain evidence and testimony from the defend[331]*331ant’s books, records and papers for the benefit of Sears in the said Stockwell case and if I gave evidence and testimony by deposition for the benefit of Sears in said Stockwell case, that Sears (the plaintiff) would not make any claim of any kind or commence any action or suit of any kind against American Plumbing (the defendant) or against me for any commissions plaintiff thought Stockwell received from American Plumbing.”

In a second affidavit filed only recently in answer to a request for admissions made by plaintiff pursuant to Rule 36 of the Federal Rules of Civil Procedure, 28 U.S.C.A., Kohlenberg states that “Siegel talked extensively to affiant and to Meyer Cohen, and said Siegel made statements,' representations, promises, agreements and assurances to affiant and to Meyer Cohen as more particularly set forth in the affidavit of affiant dated February 9, 1954, and the Amended Answer dated February 9, 1954, both in the above case, before the taking of affiant’s deposition by said Siegel.”

Upon the filing of the defendant’s motion to withdraw answer, the proposed amended answer, and the February 9, 1954 Kohlenberg affidavit, plaintiff sought to take the depositions of Kohlen-berg and Meyer Cohen concerning the matters contained in those documents. Both Kohlenberg and Cohen refused to answer questions asked of them, and plaintiff has now brought two separate motions asking the court to direct Cohen and Kohlenberg to answer the questions asked of them.

Plaintiff’s counsel sought in his questioning of Cohen to elicit information concerning the alleged promise made by Siegel that Sears would not make any claim nor commence any action against Kohlenberg or American Plumbing. The conversation in which such promises are supposed to have been made, took place just prior to the taking of the deposition of Kohlenberg in the Stockwell ease, in the office of a Green Bay attorney, with Kohlenberg, Cohen and Siegel being parties to the conversation. Upon advice of counsel, Cohen refused to answer any questions concerning this conversation, upon the ground that as attorney of record for the defendant, anything he knows about the defendant’s case has come to him in his capacity as his attorney, and is a privileged communication.

It seems very clear to this court that the information sought to be elicited from Cohen by the plaintiff is in no wise privileged. Any statements made at the conference referred to above are plainly not confidential since the conference was composed of representatives of Sears in addition to Kohlenberg and his attorney, Cohen. In order for a communication from a client to his attorney to be privileged it must be of a confidential nature. In order to be a confidential communication it must necessarily be a secret one. 70 C.J. 413, 414.

“There is no privilege as to a communication between attorney and client in the presence of a third person, not the agent of either party, or in the presence of the adverse party or his attorney, and either the attorney or the third person may testify in respect thereof if he was present. A fortiori, there is no privilege as to a conversation or transaction in which attorney, client, and a third person participate, or a conversation or transaction between the client and a third person in the presence of the attorney, or a conversation or transaction occurring in the presence of an attorney between two persons, both of whom are clients of the attorney, but not concerning the same subject matter.” 70 C.J. 433-435.

In the refusal to testify concerning the conference in question, confusion apparently exists as to the distinction between privileged communications and the undesirability of having an attorney testify in a case where he represents; one of the parties. It is not uncommon, however, for attorneys to testify in cases [332]*332such as this concerning matters of which they have knowledge, and which are not privileged, ordinary practice being that the attorney withdraws from the suit before becoming a witness.

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19 F.R.D. 329, 1954 U.S. Dist. LEXIS 4236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sears-roebuck-co-v-american-plumbing-supply-co-of-green-bay-wied-1954.