Worldspan, L.P. v. Sabre Group Holdings, Inc.

5 F. Supp. 2d 1356, 1998 U.S. Dist. LEXIS 10641, 1998 WL 217947
CourtDistrict Court, N.D. Georgia
DecidedJuly 13, 1998
Docket1:98-cr-00098
StatusPublished
Cited by5 cases

This text of 5 F. Supp. 2d 1356 (Worldspan, L.P. v. Sabre Group Holdings, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Worldspan, L.P. v. Sabre Group Holdings, Inc., 5 F. Supp. 2d 1356, 1998 U.S. Dist. LEXIS 10641, 1998 WL 217947 (N.D. Ga. 1998).

Opinion

ORDER

MOYE, District Judge.

This case is before the Court on the plaintiffs’ motion to disqualify the defendants’ local law firm in this active tort litigation. For the reasons set forth below, the motion is GRANTED.

The law firm has served for several years, and currently is still serving, as counsel for plaintiffs in state tax matters in Georgia and Tennessee. This litigation as well as the tax matters all involve in different ways and to different degrees plaintiffs’ computer airline reservations operation. The main computer located physically in Atlanta, Georgia, is the heart of plaintiffs entire business.

Local Rule 83.1(C) of this Court provides that “All lawyers practicing before this court shall be governed by and shall comply with ... the Code of Professional Responsibility and Standards of Conduct contained in the Rules and Regulations of the State Bar of Georgia and with the decisions of this court interpreting those rules and standards.”

The Georgia Code of Professional Responsibility provides (Ga. DR 5-105(A) and (C)):

“(A) lawyer shall decline proffered employment if the exercise of his independent professional judgment in behalf of a client will be or is likely to be adversely affected by the acceptance of the proffered employment, except to the extent permitted under DR 5-105(C).
* :}c * * * *
“(C) In the situation covered by DR5-105(A) and (B), a lawyer may represent multiple clients if it is obvious that he can adequately represent the interests of each and if each consents to the representation after full disclosure of the possible effect of such representation on the exercise of his independent professional Judgment on behalf of each.” Emphasis added.

The above Directory Rules of the State Bar of Georgia are a verbatim adoption, in relevant part (one phrase of 5-105(A) of the ABA Rule is omitted), of identically numbered Directory Rules of the American Bar Association’s Model Code of Professional Responsibility. The ABA/BNA Lawyer’s Manual' on Professional Conduct addresses the issues covered by those sections and here involved (ABA/BNA Lawyers’ Manual on Professional Conduct, Practice Guide, § 51:101):

“A lawyer may not represent one client whose interests are adverse to those of another current client of the lawyer’s, even if the two representations are unrelated, unless the clients consent and the lawyer believes he or she is able to represent each client without adversely affecting the other. Courts and ethics panels generally take a broad view of this restriction, and a specific adverse effect probably will not have to be shown. All that need be present is that one lawyer or firm is representing two clients, even in unrelated matters with potentially conflicting interests. The rules with respect to concurrent representation of conflicting interests are rooted in a lawyer’s duty of loyalty to the client. This is generally considered a somewhat greater obligation than the one the lawyer owes to a former client, which is to protect client confidences and secrets.
“Clients may consent to simultaneous representation following full disclosure. Even where consent is given, however, it may be clear that one lawyer or law firm cannot represent both parties. When consent is not given or when dual representation is not possible under the rules, lawyers engage in concurrent conflicting representations at their own risk, for they may be required to withdraw from both clients’ eases if they haven’t taken care of the conflict before entering into both relationships. Once the dual representation •has begun, courts are usually reluctant to simply let a firm pick and choose which client to keep and which to drop. Generally, screening devices, such as Chinese Walls, are rarely held to be effective in this type of situation for avoiding imputed disqualification of an entire firm”.

By its plain language, the Georgia State Bar Code of Professional Responsibility, and, by' adoption, this Court require both a show *1358 ing that adequate representation of both clients is probable, and also the informed consent of both clients. Glover v. Libman, 578 F.Supp. 748, 760 (N.D.Ga.l983.Forrester, D.J.):

“If it is both ‘obvious’ to the lawyer that he can represent the interests of each client adequately, and agreeable by ‘consent’ to each client that the lawyer represent each client, however, multiple representation is permitted.”

In this case, it is clear that defendants have given their informed consent, and while plaintiffs question the adequacy of their representation in the highly partisan context of this case, the court believes there is little reason to question the law firm’s competent and adequate representation of plaintiffs interests in the pending state tax matters. The plaintiffs have raised the possibility of hostile use of confidential information obtained in he course of the law firm’s tax representation. There is insufficient evidence before the Court for it to make a finding of probable breach of confidentiality or hostile use. And where the issue is the hostile use of confidential information, this Court has placed the burden of proof on the party seeking disqualification. Dodson v. Floyd, 529 F.Supp. 1056, 1061 (N.D.Ga., 1981), a case however involving a former client. That burden may not be applicable, or may shift, where simultaneous, directly adverse, representation is involved. Furthermore, where the basic subject matter of both representations is the same, even though the nature and purposes of the representations are different, as here, substantial consideration is due the non-consenting client’s fears and concern about use of confidential information, thus emphasizing the wisdom of requiring both informed consent and a finding of no adverse effect. In this connection, see Cinema 5, Ltd. v. Cinerama, Inc., 528 F.2d 1384, 1386[5] (2nd. Cir.1976). Thus, pretermitting the question of probable breach of confidentiality or adverse use, the critical issue now before the court is whether plaintiffs have given their informed consent to the simultaneous, dual representation.

It is clear that when informed specifically that the law firm had undertaken to represent the defendants in this instant lawsuit brought by plaintiffs, the plaintiffs strenuously objected. The law firm, however, relies on its “standard” engagement letter sent to plaintiffs when their first representation was undertaken, September 16, 1992, to show that plaintiffs then prospectively gave the required consent to the present simultaneous, dual representation in this lawsuit commenced over five years subsequent to the claimed consent. While the significant lapse of time, and, indeed, an apparent on-again, off-again, series of representations in the interval, would seem to make it most difficult for a consent that may have been thoroughly informed in 1992 to be informed in 1998, in view of the pace of change in the world, and indeed in the airline and computer industries, it is not impossible, but, as one court has said, “such standing consent must by necessity be exceedingly explicit.” Florida Ins. Guaranty Assn., Inc. v. Carey Canada, 749 F.Supp. 255, 260 (S.D.Fla.1990).

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Cite This Page — Counsel Stack

Bluebook (online)
5 F. Supp. 2d 1356, 1998 U.S. Dist. LEXIS 10641, 1998 WL 217947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/worldspan-lp-v-sabre-group-holdings-inc-gand-1998.