United States v. White

944 F. Supp. 2d 454, 2013 WL 1943038, 2013 U.S. Dist. LEXIS 68159
CourtDistrict Court, D. South Carolina
DecidedApril 12, 2013
DocketCriminal No. 3:11-2303-CMC
StatusPublished
Cited by8 cases

This text of 944 F. Supp. 2d 454 (United States v. White) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. White, 944 F. Supp. 2d 454, 2013 WL 1943038, 2013 U.S. Dist. LEXIS 68159 (D.S.C. 2013).

Opinion

ORDER AUTHORIZING DISCLOSURE OF CLIENT CONFIDENCES AND COMMUNICATIONS BETWEEN ATTORNEY AND PETITIONER REGARDING BANKRUPTCY PROCEEDINGS

CAMERON McGOWAN CURRIE, District Judge.

Pursuant to South Carolina Rule of Professional Conduct 1.6(b)(5) and/or (b)(6),1 the United States has moved for an order authorizing attorney Paul L. Held to disclose to the government matters which may arguably fall within the scope of the attorney-client privilege. These matters relate to communications between Mr. Held and Robert Pearson (“Pearson”) regarding Pearson’s prior bankruptcy filing in the case of In re Robert J. Pearson, C/A No. 10-04450-jw (Bankr.D.S.C). Although Pearson was served with the government’s motion on February 12, 2013, he has failed to file a response. Counsel for Pearson has indicated he has no objection to the Government’s motion.

For the reasons set forth below, the motion is GRANTED.

The government’s motion arises out of ancillary forfeiture proceedings involving the proposed criminal forfeiture of real property identified as 1945 Hatteras Way, Sumter, South Carolina (the “Subject Property”). The Subject Property was included in a Judgment and Preliminary Order of Forfeiture (“POF”) previously issued by this court, which was incorporated into the sentence and criminal judgment against defendant Robert James Pearson White (“White”). ECF No. 65. The government provided notice of the proposed forfeiture to potentially interested third parties, including Pearson, who is White’s father. ECF No. 71. In response, Pearson filed an ancillary petition contesting forfeiture. ECF No. 88. Pearson asserts that he owns a one-half interest in the Subject Property, along with Michael Porcher (“Porcher”), the uncle of convicted co-conspirator Jermaine Porcher.2 The government contends that White purchased the Subject Property with drug proceeds, and that Pearson is merely a nominee (“straw”) owner.

For purposes of this order, the court accepts as true the following, as set forth in the government’s motion.

• The Subject Property was purchased for $35,000 in April 2006 by White and [456]*456Porcher. Since that time, Porcher built a residence on the property, with cash progress payments which Pearson claims to have provided. Although the residence is largely completed, no one has lived in it up to this point. The property currently has an appraised value with improvements of more than $200,000.
• On October 31, 2007, White was shot. several times during a drug-related home invasion in Columbia. A subsequent search of the residence by officers with the Drug Enforcement Administration and the Columbia Police Department turned up $40,529.73 in cash, as well as approximately 1,002 grams of cocaine and drug-related paraphernalia. As a result, the State of South Carolina brought criminal charges against White. On November 16, 2007, approximately two weeks after the home invasion, White transferred his interest in the Subject Property to Pearson for no consideration.
• In June of 2010, Pearson filed for bankruptcy, and was represented by Sumter attorney Paul Held. Bankruptcy procedures and documents obligated Pearson to list, under penalty of perjury, all property in which he had an interest. In his bankruptcy filings, Pearson did not disclose his alleged interest in the Subject Property in the “real property” schedules.

The government contends that the omission of the Subject Property from Pearson’s bankruptcy filings supports its theory that he is a straw owner. Such ownership status could affect whether Pearson has standing to contest forfeiture. See United States v. Weiss, 467 F.3d 1300 (11th Cir.2006) (a mere nominee lacks the legal interest necessary to establish Article III standing); United States v. Gamory, 2010 WL 3880880, *4 (N.D.Ga.2010) (defendant’s father lacks standing to contest forfeiture of vehicle titled in his name because undisputed evidence was that he exercised no dominion and control); United States v. Hovind, 2009 WL 2369340, *5 (N.D.Fla.2009) (nominee who exercised no dominion or control over the forfeited property lacks a legal interest under State law, and therefore lacks standing, notwithstanding that he was the titled owner); United States v. Gomez, 2000 WL 34029288, *2 (N.D.Iowa 2000) (“possession of mere legal title by one who does not exercise dominion and control over the property is insufficient to establish standing to challenge a forfeiture”).

Pursuant to the court’s order authorizing ancillary discovery, the government took Pearson’s deposition in December 2012. When asked about the omission of the Subject Property from the bankruptcy documents, Pearson acknowledged that the description of property required to be disclosed in the bankruptcy schedules would have required him to list the Subject Property. However, Pearson then faulted his attorney, Mr. Held, for allegedly failing to adequately explain the disclosure process to Pearson. ECF No. 102, Att. 2.

The government now wishes to interview attorney Held regarding his interaction and communications with Pearson in the bankruptcy proceedings, which could involve communications arguably covered by the attorney-client privilege. The government asserts that by blaming his attorney for the omission, Pearson has effectively waived the attorney-client privilege. The government’s motion is founded upon South Carolina Rule of Professional Conduct 1.6(b)(5) and (b)(6), which states:

RULE 1.6. CONFIDENTIALITY OF INFORMATION
(a) A lawyer shall not reveal information relating to the representation of a client unless the client gives informed [457]*457consent, the disclosure is impliedly authorized in order to carry out the representation or the disclosure is permitted by paragraph (b).
(b) A lawyer to the extent the lawyer reasonably believes necessary:
(5) may reveal information relating to the representation of a client to establish a claim or defense on behalf of the lawyer in a controversy between the lawyer and the client, to establish a defense to a criminal charge or civil claim against the lawyer based upon conduct in which the client was involved, or to respond to allegations in any proceeding concerning the lawyer’s representation of the client;
(6) may reveal information relating to the representation of a client to comply with a court order; ....

Emphasis added.

The Fourth Circuit Court of Appeals has summarized the legal precepts governing the attorney-client privilege:

“The attorney-client privilege is the oldest of the privileges for confidential communications known to the common law.” Upjohn v. United States, 449 U.S. 383, 389, 101 S.Ct. 677, 66 L.Ed.2d 584 (1981). “[W]hen the privilege applies, it affords confidential communications between lawyer and client complete protection from disclosure.” Hawkins v. Stables, 148 F.3d 379, 383 (4th Cir.1998). Because its application interferes with “the truth seeking mission of the legal process,” United States v..

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944 F. Supp. 2d 454, 2013 WL 1943038, 2013 U.S. Dist. LEXIS 68159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-white-scd-2013.