Shade v. Great Lakes Dredge & Dock Co.

72 F. Supp. 2d 518, 2000 A.M.C. 1173, 1999 U.S. Dist. LEXIS 17711, 1999 WL 1072204
CourtDistrict Court, E.D. Pennsylvania
DecidedNovember 16, 1999
DocketCiv.A. 97-739
StatusPublished
Cited by13 cases

This text of 72 F. Supp. 2d 518 (Shade v. Great Lakes Dredge & Dock Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shade v. Great Lakes Dredge & Dock Co., 72 F. Supp. 2d 518, 2000 A.M.C. 1173, 1999 U.S. Dist. LEXIS 17711, 1999 WL 1072204 (E.D. Pa. 1999).

Opinion

MEMORANDUM & ORDER

KATZ, Senior District Judge.

Before the court is defendant’s motion to disqualify attorney Marvin I. Barish from continuing to represent plaintiff John Shade. Because disqualification is an inappropriate sanction under these circumstances, the court will deny the motion.

I. Background

John Shade brought this action under the Jones Act for injuries he suffered during his employment with defendant. After a jury trial in October 1997, plaintiff was awarded $870,000. The Third Circuit reversed this judgment for evidentiary error, and the case is scheduled for retrial beginning on December 13,1999.

Defendant’s present motion argues that Barish must be disqualified for violations of two professional rules. 1 Defendant first argues that the acknowledged provision of an apartment and associated costs for Shade and his family by the Barish firm since November 1997 qualifies as a conflict of interest that warrants disqualification. Defendant also claims that Barish knowingly offered false testimony to the court during the 1997 trial and that this requires his disqualification. 2

II. Standards

A district court has power to disqualify an attorney deriving “from its inherent authority to supervise the professional conduct of attorneys appearing before it.” United States v. Miller, 624 F.2d 1198, 1201 (3d Cir.1980); see also In re Corn Derivatives Antitrust Litig., 748 F.2d 157, 160 (3d Cir.1984) (same). As many decisions have stressed, “courts have vital interests in protecting the integrity of their judgments, maintaining public confidence in the integrity of the bar, eliminating conflicts of interest, and protecting confidential communications between attorneys and their clients.” Commonwealth Ins. Co. v. Graphix Hot Line, Inc., 808 F.Supp. 1200, 1203 (E.D.Pa.1992); see also United States v. *520 Moscony, 927 F.2d 742, 749 (3d Cir.1991) (same).

In this case, the general power of the court to sanction an attorney is not at issue. The only question is whether the extreme sanction of disqualification is appropriate assuming that an ethical rule was violated. While disqualification is obviously a permissible and even necessary step in some cases, disqualification should not be imposed lightly.

[T]he court should disqualify an attorney only when it determines, on the facts of the particular case, that disqualification is an appropriate means of enforcing the applicable disciplinary rule. It should consider the ends that the disciplinary rule is designed to serve and any countervailing policies, such as permitting a litigant to retain the counsel of his choice and enabling attorneys to practice without excessive restriction.

Miller, 624 F.2d at 1201. That is, even if the court finds that an attorney violated an ethical rule, “disqualification is never automatic.” Id.; see also Cohen v. Oasin, 844 F.Supp. 1065, 1067 (E.D.Pa.1994) (stating that district court has latitude to impose sanctions in a manner fair to all parties to the litigation). Although this right is obviously not absolute, a party’s choice of counsel is a significant consideration in determining the propriety of disqualification. See Commonwealth Ins., 808 F.Supp. at 1203. Weighing against this right is the need to protect opposing parties’ ability to try their case in a fair manner. See, e.g., University Patents, Inc. v. Kligman, 737 F.Supp. 325, 329 (E.D.Pa.1990).

Doubts should be resolved in favor of disqualification, see Brennan v. Independence Blue Cross, 949 F.Supp. 305, 307 (E.D.Pa.1996), but it is the burden of the party arguing for disqualification to demonstrate clearly that “continuing representation would be impermissible.” Id. (quoting Cohen, 844 F.Supp. at 1067). As a general rule, motions to disqualify opposing counsel are disfavored. See Cohen, 844 F.Supp. at 1067; Kligman, 737 F.Supp. at 329. While the court does not suggest that the present motion was filed for strategic purposes, it must be acknowledged that “the purpose of the Rules can be subverted when they are invoked by opposing parties as procedural weapons.” Rules of Professional Conduct, Preamble Scope.

II. The Alleged Violations

A. Living Expenses

The basis for defendant’s first allegation of impropriety is the Barish firm’s provision of an apartment and related expenses to the Shade family. See Def. Ex. A (deposition testimony of Shade stating that Barish paid rent and other expenses since 1997); Def. Ex. B (rental papers listing Barish as applicant for occupancy by Shade and his family; billing records of apartment indicating Barish paid rent). Barish does not dispute these facts, although he explains that his firm had acquired the apartment to house out-of-town clients and experts. See PLMem. of Law at 1. According to Barish, the Shades’ occupancy began after Shade lost both his job and his home following the first trial and was extended indefinitely after Shade’s wife was injured and he had an “emotional breakdown.” Id. The family was told from the outset that they had no obligation to repay rent or other expenses. See Pl.Ex. A. Before taking this step, the Barish firm consulted with outside counsel, which opined that the firm would not violate applicable ethical rules if it provided housing and related expenses to the Shades. See Pl.Ex. B.

Defendant, however, argues that this conduct violated Rule 1.8, which generally prohibits lawyers from engaging in representation that constitutes a conflict of interest, and that Barish must be disqualified. As is most relevant in this case, the rule states:

(e) A lawyer shall not provide financial assistance to a client in connection with *521 pending or contemplated litigation, except that:
(1) a lawyer may advance court costs and expenses of litigation, the repayment of which may be contingent on the outcome of the matter; and
(2) a lawyer representing an indigent client may pay court costs and expenses of litigation on behalf of the client.
(j) A lawyer shall not acquire a proprietary interest in a cause of action that the lawyer is conducting for a client, except that the lawyer may:
(1) acquire a lien granted by law to secure the lawyer’s fee or expenses; and
(2) contract with a client for a reasonable contingent fee in a civil case.

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

Related

Alfrey v. Whitley
M.D. Pennsylvania, 2023
O'BRIEN v. THE MIDDLE EAST FORUM
E.D. Pennsylvania, 2020
In re Grasso
586 B.R. 110 (E.D. Pennsylvania, 2018)
Hernandez v. Guglielmo
796 F. Supp. 2d 1285 (D. Nevada, 2011)
Rubio v. BNSF Railway Co.
548 F. Supp. 2d 1220 (D. New Mexico, 2008)
In re Bucks County Investigating Grand Jury
861 A.2d 876 (Supreme Court of Pennsylvania, 2004)
Engineered Products Co. v. Donaldson Co., Inc.
290 F. Supp. 2d 974 (N.D. Iowa, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
72 F. Supp. 2d 518, 2000 A.M.C. 1173, 1999 U.S. Dist. LEXIS 17711, 1999 WL 1072204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shade-v-great-lakes-dredge-dock-co-paed-1999.