United States v. William Gibbs Campbell, Jr.

73 F.3d 44, 43 Fed. R. Serv. 719, 10 Tex.Bankr.Ct.Rep. 95, 1996 U.S. App. LEXIS 119, 1996 WL 2009
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 3, 1996
Docket95-20087
StatusPublished
Cited by18 cases

This text of 73 F.3d 44 (United States v. William Gibbs Campbell, Jr.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. William Gibbs Campbell, Jr., 73 F.3d 44, 43 Fed. R. Serv. 719, 10 Tex.Bankr.Ct.Rep. 95, 1996 U.S. App. LEXIS 119, 1996 WL 2009 (5th Cir. 1996).

Opinion

PER CURIAM:

William Gibbs Campbell, Jr. appeals his conviction for bankruptcy fraud on the grounds that evidence was admitted in violation of the attorney-client privilege and the hearsay rule, and that the erroneous admission of this evidence was not harmless error. Finding no reversible error, we affirm Campbell’s conviction and sentence.

I. BACKGROUND

After a jury trial, William Gibbs Campbell, Jr. (“Campbell”) was convicted of one count of bankruptcy fraud in violation of 18 U.S.C. § 152 and sentenced to a one-year term of imprisonment, which was suspended, and five years of supervised release. He was also fined $5,000 and ordered to pay $56,000 in restitution.

Campbell was the general partner of a limited partnership, 3700 WFA Limited, which owned Wakeforest Apartments (“the *46 Partnership”). Michael C. O’Connor (“O’Connor”), Campbell’s personal attorney, was the sole limited partner. Barbara M. Rogers (“Rogers”), was the attorney for the Partnership. The Partnership filed a petition for bankruptcy under Chapter 11 in the United States Bankruptcy Court for the Southern District of Texas on June 30, 1986. Rogers signed the bankruptcy petition, and Campbell, as general partner, signed the verification.

On August 31, 1987, Campbell wrote a cheek for $96,000 to the Partnership from the First City Bank account of Wakeforest Management Company, a separate business entity from the Partnership. At the time Campbell wrote the cheek, the First City Bank account of Wakeforest Management Company had a balance of $301.73. The check was deposited into the Partnership’s account at Allied Bank. Later, the $96,000 check was returned unpaid for insufficient funds.

On the same day, Campbell arranged a wire transfer of $56,000 from the Partnership’s Allied Bank account to the Guadalupe County Abstract Company’s account at the Nolte National Bank of Seguin (“Nolte Bank”). Campbell’s accountant recorded the $56,000 payment to the Nolte Bank account on Campbell’s personal ledger, not on the business records of the Partnership.

Campbell used the $56,000 he had transferred from the Partnership’s Allied Bank account to pay off a $47,000 real estate note on his personal residence at 284 Turtle Lane in Seguin, Texas. O’Connor, the limited partner in the Partnership and Campbell’s personal attorney, learned of the origin of the $56,000 in mid-September 1987. Upon this discovery, O’Connor sent Campbell a letter questioning Campbell’s actions, and explaining that “as an attorney, I hope you understand that I must avoid even the appearance that I participated in transferring funds out of the Wakeforest bankruptcy.”

On September 2, 1987, one of the Partnership’s creditors moved to convert the bankruptcy Chapter 11 reorganization proceeding into a Chapter 7 liquidation. On October 27, 1987, the bankruptcy court entered an order converting the petition to Chapter 7 and appointed Lowell T. Cage (“Cage”) as the Chapter 7 trustee for the Partnership.

Cage wrote a letter to Campbell on December 4,1987, requesting an explanation for the $56,000 transfer and asking what, if any, authority, had the court given for making such a transfer. Campbell never responded to Cage’s letter, nor did Cage discover an order authorizing the transfer. Cage brought this matter to the attention of the office of the United States Trustee and requested that appropriate action be taken. Campbell was then indicted and prosecuted for bankruptcy fraud.

At Campbell’s bankruptcy fraud trial, the government called Rogers, the Partnership’s attorney, as a witness. Campbell objected on the grounds of the attorney-client privilege. After argument, the court ruled that an attorney-client relationship had not been established between Rogers and Campbell personally and that Rogers’s contact with Campbell had been solely as the Partnership’s attorney, and the court allowed Rogers to testify, although it reserved judgment on individual exhibits. The government then questioned Rogers about the attorney-client privilege, seeking to establish that Cage, the trustee for the Partnership, had waived the attorney-client privilege on behalf of the Partnership. The government also sought to introduce a letter from Cage to Rogers waiving the privilege. Campbell’s counsel objected to both the testimony and the letter as hearsay. The court eventually allowed the testimony and admitted the letter under the residual hearsay exception.

II. STANDARD OF REVIEW

“The application of the attorney-client privilege is a question of fact, to be determined in the light of the purpose of the privilege and guided by judicial precedents.” United States v. Neal, 27 F.3d 1035, 1048 (5th Cir.1994) (internal quotations omitted), cert. denied, — U.S.-, 115 S.Ct. 1165, 130 L.Ed.2d 1120 (1995). “The clearly erroneous standard of review applies to the district court’s factual findings. We review the application of the controlling law de novo.” Id.

*47 We review the district court’s rulings on the admissibility of evidence for an abuse of discretion. United States v. McAfee, 8 F.3d 1010, 1017 (5th Cir.1993); United States v. Jardina, 747 F.2d 945, 950 (5th Cir.1984), cert. denied, 470 U.S. 1058, 105 S.Ct. 1773, 84 L.Ed.2d 833 (1985). In determining whether an erroneous admission of evidence is harmless error, the court of appeals must decide whether the inadmissible evidence actually contributed to the jury’s verdict; we will not reverse unless the evidence had a substantial impact on the verdict. United States v. Gadison, 8 F.3d 186, 192 (5th Cir.1993).

III. DISCUSSION

A. Waiver of the Attorney-Client Privilege

Campbell contends that the district court erroneously concluded that Cage, the Chapter 7 bankruptcy trustee for the Partnership, could waive the attorney-client privilege on behalf of the Partnership. He argues that a limited partnership is more like an individual than a corporation; therefore, the Supreme Court’s ruling that a bankruptcy trustee may waive the privilege on behalf of a corporation is inapplicable. See Commodity Futures Trading Commission v. Weintraub, 471 U.S. 343, 358, 105 S.Ct. 1986, 1995-96, 85 L.Ed.2d 372 (1985). In response, the government asserts that Cage, as trustee, had authority to waive the Partnership’s attorney-client privilege. Additionally, the government points out that Rogers at no time established a personal attorney-client relationship with Campbell.

In Commodity Futures Trading Commission v. Weintraub, 471 U.S. 343

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73 F.3d 44, 43 Fed. R. Serv. 719, 10 Tex.Bankr.Ct.Rep. 95, 1996 U.S. App. LEXIS 119, 1996 WL 2009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-william-gibbs-campbell-jr-ca5-1996.