Taylor v. Temple & Cutler

192 F.R.D. 552, 1999 WL 1581388
CourtDistrict Court, E.D. Michigan
DecidedOctober 22, 1999
DocketNo. 96-CV-72933-DT
StatusPublished
Cited by8 cases

This text of 192 F.R.D. 552 (Taylor v. Temple & Cutler) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Temple & Cutler, 192 F.R.D. 552, 1999 WL 1581388 (E.D. Mich. 1999).

Opinion

ORDER GRANTING IN PART, DENYING IN PART PLAINTIFF’S MOTION FOR DISCOVERY OF CERTAIN DOCUMENTS

BORMAN, District Judge.

BACKGROUND

This case involves a legal malpractice claim by plaintiffs, Ohio residents Bonnie and Richard Taylor, against defendants, their previous Michigan attorneys Donald Cutler, the law offices of Gordon, Cutler and Hoffman, and Mare Shaberman. Plaintiffs had hired Cutler to represent them in a personal injury matter. Shaberman was employed as an associate by Cutler. This Court has jurisdiction based on the diversity of citizenship of the parties.

This specific Order deals with Plaintiffs request for discovery of documents in the possession of Defendants, their attorneys, and their insurer, the Coregis Insurance Company (Coregis). Defendants have interposed the defenses of attorney-client privilege, work product doctrine, and relevance.

Defendant attorneys had purchased a malpractice insurance policy with Coregis that covered Defendant Cutler, his then law firm Temple & Cutler, and his then-associate Marc Shaberman. Plaintiffs’ counsel wrote to defendant Cutler on February 15, 1996 stating an intention to file a malpractice claim against him, and urging him to notify his malpractice carrier — “Please place your insurance carrier on notice of this claim immediately.” Cutler did proceed to notify Coregis.

Rather than accept responsibility under its policy, Coregis filed a federal declaratory judgment action on July 11, 1996 seeking a ruling that it was not obligated to provide defendants with coverage and representation on the instant claim. Cutler was required to hire his own attorney, to represent defendants in opposition to Coregis. Thus, at that point in time, there was an adversarial situation between Cutler and Coregis. However, in the total scenario, it must be recognized that this situation was created by Plaintiffs’ initial threat of the instant lawsuit.

Coregis asserted in its declaratory judgment action, that prior to January 16, 1996, [555]*555the effective date of the policy, Defendants knew or could have reasonably foreseen that their failure to comply with a state court discovery deadline in August 1992, which resulted in the dismissal of the Taylors’ case in November 1992, might be expected to be the basis of a claim or suit, which should have been identified as such by Defendants in responding to a question on their application for the Coregis policy. Accordingly, Coregis asserted that it was not responsible under the policy because of that clause, excluding claims arising from errors or omissions occurring prior to the effective date of the policy if the insured knew or could reasonably foreseen that such error or omission might be expected to be the basis of a claim or suit.

On November 12,1997, U.S. District Judge John Corbett O’Meara rejected Coregis’ argument and held that Coregis was liable under the policy, granting defendants’ motion for summary judgment, and denying Coregis’ cross motion for summary judgment. Coregis Ins. Co. v. Gordon, Cutler and Hoffman, Donald M. Cutler, and Marc P. Shaberman, Case # 96-CV-73143-DT (E.D.Mich, Nov. 12, 1997).

Judge O’Meara concluded that Coregis failed to present any evidence that Defendants knew or could have foreseen that dismissal of the Taylors’ case might be expected to be the basis of a claim ... Indeed, Defendants have offered the affidavits of Bonnie and Richard Taylor, both of whom state, “Prior to February 12,1996,1 was not aware nor have I been informed that I had a legal malpractice case against Donald Cutler, and/or Gordon, Cutler and Hoffman.”

Coregis v. Gordon et al., supra, Declaratory Judgment Order P.5, (emphasis added).

Thus, Plaintiffs Taylors filed affidavits in support of Defendant attorneys Cutler/Shaberman to keep the “deep pocket” Coregis Insurance Company in Defendants’ case, clearly indicating Plaintiffs’ understanding that Defendants and Coregis should be allied as Defendants against them in the instant case. Now, Plaintiffs contend that this Court should pick apart that relationship between Defendants and Coregis. Coregis is presently providing legal representation to Defendants pursuant to the terms of the malpractice insurance policy.

Plaintiffs seek discovery of documents created by: (1) Defendants, and sent to Coregis, (2) Defendants/Coregis’ counsel, and sent to third parties, and (3) Coregis, and sent to Defendants. All of these documents were created in anticipation of the instant litigation, after Plaintiffs had announced their intention to pursue a malpractice claim against Defendants. Plaintiffs assert that because Coregis, and Defendant attorneys had been adversary parties in the declaratory action, neither can interpose attorney-client privilege or the work product doctrine to prevent discovery of requested documents, created by the parties or their individual attorneys.

Magistrate Judge Morgan heard argument on this matter on June 25, 1998, and thereafter held an in camera inspection of the relevant documents. On June 29, 1998, Magistrate Judge Morgan issued an Order Granting in Part Plaintiffs Motion to Compel Document Production. (Appendix A).

Defendant’s have filed a timely appeal from Magistrate Judge Morgan’s Order; Plaintiffs appeal is not timely, as discussed infra at page 12.

LEGAL DISCUSSION

1. Attorney-Client Privilege

The principal focus of the attorney client privilege “is on encouraging the client to communicate freely with the lawyer.” Epstein, Attorney-Client Privilege and the Work-Product Doctrine. ABA SECTION OF LITIGATION, 3d Ed.1997, 287.

By encouraging open and honest communications between lawyers and their clients, the attorney-client privilege allows an attorney to be fully informed so that the client may receive sound advice. See Upjohn v. United States, 449 U.S. 383, 389, 101 S.Ct. 677, 66 L.Ed.2d 584 (1981). The attorney-client privilege is established:

(1) Where legal advice of any kind is sought (2) from a professional legal adviser in his capacity as such, (3) the communications relating to that purpose, (4) made in confidence (5) by the client, (6) are at his [556]*556instance permanently protected (7) from disclosure by himself or by the legal adviser, (8) unless the protection is waived.

Reed v. Baxter, 134 F.3d 351, 355-56 (6th Cir.1998), cert. denied 525 U.S. 820, 119 S.Ct. 61, 142 L.Ed.2d 48 (1998).

2. Work Product Doctrine

The principal focus of the work-product protection “is on encouraging careful and thorough preparation by the lawyer.” Epstein, supra at 287. Accordingly,'while the attorney-client privilege extends only to client communications, “the work-product protection encompasses much that has its source outside client communications.” Epstein, supra at 287.

Further, unlike the attorney-client privilege which is absolute, “whether the work-product protection will be afforded depends on both the type of matter being sought and the adversary’s need for it.” Epstein, supra at 288.

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Bluebook (online)
192 F.R.D. 552, 1999 WL 1581388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-temple-cutler-mied-1999.