SUMMARY OF CONTENTS. C o m m o n R e p re s e n t a t i o n C o n f l i c t s
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1 SUMMARY OF CONTENTS Contents Preface vii xix Part I Introductory Materials 1 Chapter 1 Introduction 3 Chapter 2 Disqualification Motion Procedure 17 Chapter 3 Grounds for Disqualification 41 P a r t I I 71 C o m m o n R e p re s e n t a t i o n C o n f l i c t s Chapter 4 Concurrent Conflicts of Interest 73 Chapter 5 Common Representation Generally 93 Chapter 6 Common Representation: Special Situations 105 Part III 123 Chapter Chapter Chapter P a r t I V 207 Chapter 10! v Conflicts Involving Former Clients Challenges by Former Clients The Substantial Relationship Test The Presumptions Underlying the Test T h e A d v o c a t e - W i t n e s s R u l e The Advocate-Witness Rule Generally
2 Summary of Contents 209 Chapter 11 Necessity and Prejudice 241 C h a p t e r 1 2 E x c e p t i o n s t o t h e R u l e 261 Part V Other Bases for Disqualification 291 Chapter 13 Unauthorized Contacts with Represented Parties 293 C h a p t e r 1 4 A p p e a r a n c e s o f I m p r o p r i e t y 321 Chapter 15 Access to a Non-Client s Confidences 347 P a r t V I 367 D e f e n s e s t o D i s q u a l i f i c a t i o n Chapter 16 Standing to Seek Disqualification 369 C h a p t e r 1 7 W a i v e r 399 Chapter 18 Defenses to Motions Made by Former Clients 447 Part VII 475 Deciding Disqualification Motions Chapter 19 Deciding Disqualification Motions Generally 477 Chapter 20 Approaches to Deciding Disqualification Motions 515 C h a p t e r 2 1 C h o i c e o f L a w 549 P a r t V I I I P e r f o r m i n g t h e B a l a n c i n g Te s t! vi
3 579 C h a p t e r 2 2 T h e F a c t o r s t o b e B a l a n c e d 581 Chapter 23 The Nature of the Rule Violation 605 C h a p t e r 2 4 P r e j u d i c e t o t h e P a r t i e s 631 C h a p t e r 2 5 T a c t i c a l M o t i o n s 659 P a r t I X 683 V i c a r i o u s D i s q u a l i f i c a t i o n Chapter 26 The Vicarious Disqualification Rule 685 Chapter 27 Rebutting the Presumption of Shared Confidences 721 C h a p t e r 2 8 A s s o c i a t i o n i n a F i r m 751 Part X Disqualification in Special Situations 773 C h a p t e r 2 9 B a n k r u p t c y P r o c e e d i n g s 775 C h a p t e r 3 0 C r i m i n a l P r o c e e d i n g s 791 C h a p t e r 3 1 G o v e r n m e n t A t t o r n e y s 807 Chapter 32 Former Government Attorneys and Judges 839 Part XI After the Motion Has Been Decided 859 Chapter Chapter Chapter 35! vii Consequences of a Disqualification Order Appellate Review in Federal Court Appellate Review in State Court
4 Summary of Contents 903 Chapter 36 The Standard of Review on Appeal 919 Table of Cases 945 Index 1013! viii
5 CONTENTS Preface xix PART I Introductory Materials 1 Chapter 1 Introduction Introduction The Power to Disqualify Counsel The Proliferation of Disqualification Motions A l t e r n a t i v e s t o D i s q u a l i f i c a t i o n M o t i o n s P i t f a l l s o f S e e k i n g D i s q u a l i f i c a t i o n 14 Chapter 2 Disqualification Motion Procedure I n t r o d u c t i o n Support for the Motion T h e N e e d f o r a H e a r i n g T h e N e e d f o r O r a l A r g u m e n t T h e N e e d f o r S p e c i f i c F a c t - F i n d i n g Arbitration Proceedings 38 Chapter 3 Grounds for Disqualification 41! ix
6 Contents 3. 1 I n t r o d u c t i o n C o n f l i c t s o f I n t e r e s t G e n e r a l l y P e r s o n a l I n t e r e s t C o n f l i c t s Other Types of Misconduct Involving Clients Misconduct in Dealing with Non-Clients D e a l i n g s w i t h J u d g e s Disqualification for Other Rule Violations T h e A b s e n c e o f a R u l e V i o l a t i o n 66 PART II 71 Common Representation Conflicts Chapter 4 Concurrent Conflicts Of Interest I n t r o d u c t i o n Applicable Rules of Professional Conduct T h e M e a n i n g o f D i r e c t A d v e r s i t y R e p r e s e n t a t i o n i n a n U n r e l a t e d M a t t e r Issue and Parallel Representation Conflicts 91 Chapter 5 Common Representation Generally 93! x
7 5. 1 I n t r o d u c t i o n T h e C o m m o n R e p r e s e n t a t i o n R u l e T h e N a t u r e o f t h e R e p r e s e n t a t i o n A c t u a l a n d P o t e n t i a l C o n f l i c t s Civil and Criminal Proceedings Distinguished 104 Chapter 6 Common Representation: Special Situations I n t r o d u c t i o n Representation of Employers and Employees R e p r e s e n t a t i o n o f I n s u r e r s a n d I n s u r e d s J o i n t R e p r e s e n t a t i o n i n D e r i v a t i v e S u i t s Class Actions 117 PART III 123 Conflicts Involving Former Clients Chapter 7 Challenges by Former Clients 125! xi
8 7.1 I n t r o d u c t i o n Proving that Counsel has Material Confidences S u b m i s s i o n o f A c t u a l C o n f i d e n c e s A p p l i c a b l e E t h i c a l R u l e s C r o s s - E x a m i n i n g a F o r m e r C l i e n t 148 Chapter 8 The Substantial Relationship Test I n t r o d u c t i o n The Genesis and Acceptance of the Test The Rationale for the Test Burden of Proving Substantial Relationship Problems with the Test R e c e i p t o f P l a y b o o k I n f o r m a t i o n 163 Chapter The Presumptions Underlying The Test 9. 1 I n t r o d u c t i o n The Presumption of Disclosed Confidences The Peripheral Representation Exception The Presumption of Acquired Confidences O t h e r C i r c u i t C o u r t A p p r o a c h e s 196! xii
9 Contents 9.6 State Court Approaches C o n f l a t i o n o f t h e P r e s u m p t i o n s Rebutting the Presumption 205 PART IV The Advocate-Witness Rule 207 Chapter 10 The Advocate-Witness Rule 209 Generally I n t r o d u c t i o n W h i c h R o l e G i v e s W a y? Applicable Ethical Rules R a t i o n a l e f o r t h e R u l e The Significance of Who Calls Counsel T h e U n s w o r n W i t n e s s R u l e D i s q u a l i f i c a t i o n f o r R u l e Vi o l a t i o n s T e s t i m o n y a s a n E x p e r t W i t n e s s O t h e r A d v o c a t e - W i t n e s s S c e n a r i o s 240 Chapter 11 Necessity and Prejudice I n t r o d u c t i o n 241! xiii
10 11.2 The Meaning of Necessary Testimony C u m u l a t i v e T e s t i m o n y Evidence Obtainable from Other Sources Involvement in an Agreement at Issue The Burden of Demonstrating Prejudice 258 C h a p t e r E x c e p t i o n s t o t h e R u l e 12.1 Introduction T h e U n c o n t e s t e d Te s t i m o n y E x c e p t i o n Testimony about Legal Services Rendered The Substantial Hardship Exception T h e S e l f - R e p r e s e n t a t i o n E x c e p t i o n P a r t i c i p a t i o n i n P r e - T r i a l A c t i v i t i e s Participation in Other Types of Proceedings Consent by Challenged Counsel s Client 289 PART V 291 Other Bases for Disqualification Chapter 13 Unauthorized Contacts with Represented Parties Introduction 293! xiv
11 Contents R a t i o n a l e f o r t h e R u l e Applicable Ethical Rules Contacts with Current Corporate Employees C o n t a c t s w i t h F o r m e r E m p l o y e e s E x p o s u r e t o P r i v i l e g e d I n f o r m a t i o n California s Unauthorized Contact Rule R e m e d i e s f o r R u l e V i o l a t i o n s T h e D i s q u a l i f i c a t i o n S t a n d a r d 318 Chapter 14 Appearances of Impropriety I n t r o d u c t i o n The Current Status of the Appearance Doctrine T h e S e c o n d C i r c u i t S t a n d a r d T h e T h i r d C i r c u i t S t a n d a r d The Fifth and Eleventh Circuit Standards Disqualification for Appearances in State Court T h e N a t u r e o f t h e C a s e 346 Chapter 15! xv Access to a Non-Client s Confidences
12 Introduction Intentional Acquisition of Confidences Unintentional Acquisition of Confidences A c c e s s t o C o n f i d e n c e s o f C o - P a r t i e s Access to Confidences in Patent Cases 366 PART VI Defenses to Disqualification 367 Chapter 16 Standing to Seek Disqualification Introduction Standing Generally F e d e r a l L a w o n S t a n d i n g S t a n d i n g i n S t a t e C o u r t Exceptions to the Standing Requirement S t a n d i n g i n C r i m i n a l C a s e s Standing to Appeal a Disqualification Order 396 Chapter 17 Waiver I n t r o d u c t i o n E x p r e s s W a i v e r 400! xvi
13 Contents I m p l i e d W a i v e r T h e L e n g t h o f t h e D e l a y O t h e r F a c t o r s C o u r t s E v a l u a t e P r e j u d i c e C a u s e d b y t h e D e l a y T h e R e a s o n s f o r t h e D e l a y T h e S t a g e o f t h e L i t i g a t i o n Wa i v e r f o r C o n d u c t O t h e r t h a n D e l a y 445 Chapter 18 Defenses to Motions Made by Former Clients Introduction G e n e r a l l y K n o w n I n f o r m a t i o n The Obsolescence Exception R e a d i l y D i s c o v e r a b l e I n f o r m a t i o n I n f o r m a t i o n K n o w n b y B o t h C l i e n t s The Joint Client Exception T h e S e l f - D e f e n s e E x c e p t i o n T h e S e l f - R e p r e s e n t a t i o n E x c e p t i o n 474 PART VII 475! xvii Deciding Disqualification Motions
14 Chapter 19 Deciding Disqualification Motions Generally Introduction W h e n t h e M o t i o n S h o u l d B e D e c i d e d C o n d i t i o n a l D i s q u a l i f i c a t i o n P a r t i a l D i s q u a l i f i c a t i o n P r e m a t u r i t y o r M o o t n e s s B u r d e n o f P r o o f G e n e r a l l y The Nature of the Moving Party s Burden The Extent of the Moving Party s Burden B u r d e n S h i f t i n g 512 Chapter 20 Approaches to Deciding Disqualification Motions I n t r o d u c t i o n T h e P e r S e A p p r o a c h T h e F u n c t i o n a l A p p r o a c h T h e R e s t r a i n e d A p p r o a c h T h e T r i a l T a i n t S t a n d a r d 533! xviii
15 Contents T h e R e s o l u t i o n o f D o u b t s S t a n d a r d 543 C h a p t e r 2 1 C h o i c e o f L a w Introduction M o t i o n s M a d e i n S t a t e C o u r t M o t i o n s M a d e i n F e d e r a l C o u r t The Applicable Rules in the Sixth Circuit The Applicable Rules in the Seventh Circuit The Applicable Rules in the Ninth Circuit The Applicable Rules in the Eleventh Circuit The Applicable Rules in Other Circuit Courts Interpreting the Applicable Ethical Rules 568 PART VIII 579 Chapter Performing the Balancing Test The Factors to be Balanced I n t r o d u c t i o n The Availability of a Less Draconian Remedy T h e I n t e r e s t s o f C h a l l e n g e d C o u n s e l 595! xix
16 22.4 The Interests of the Court and Others 597 Chapter The Nature of the Rule Violation I n t r o d u c t i o n The Nature of the Rule Violation Generally Whether the Moving Party is a Current Client T h e H o t P o t a t o D o c t r i n e The Circumstances of the Termination E x c e p t i o n s t o t h e H o t P o t a t o R u l e 627 Chapter Prejudice to the Parties! 24.1 Introduction P r e j u d i c e t o t h e M o v i n g P a r t y T h e D e n i a l o f C h o s e n C o u n s e l D e l a y a n d E x p e n s e D i s t i n c t i v e V a l u e S t a g e o f t h e P r o c e e d i n g s The Extent of the Prejudice 653 xx
17 Contents F a u l t f o r t h e P r e j u d i c e 654 C h a p t e r 2 5 T a c t i c a l M o t i o n s I n t r o d u c t i o n Tactical Reasons for Moving to Disqualify Significance of the Moving Party s Motivation E s t a b l i s h i n g a Ta c t i c a l M o t i v a t i o n Failure to Establish a Tactical Motivation 682 PART IX 683 Chapter Vicarious Disqualification The Vicarious Disqualification Rule I n t r o d u c t i o n The Presumption of Shared Confidences A p p l i c a b l e E t h i c a l R u l e s V a r i a t i o n s o n t h e R u l e T h e N i n t h C i r c u i t S t a n d a r d S c r e e n i n g i n O t h e r J u r i s d i c t i o n s 706! xxi
18 26.7 Vicarious Disqualification in Non-Conflict Cases 718 Chapter 27 Rebutting the Presumption of Shared Confidences Introduction Proof of Effective Screening Deciding Whether a Screen Is Effective Timing of the Screen Size of the Challenged Firm Side-Switching Lawyers Departed Lawyers Vicarious Disqualification in California 750 C h a p t e r A s s o c i a t i o n i n a F i r m I n t r o d u c t i o n O f C o u n s e l A t t o r n e y s T e m p o r a r y A t t o r n e y s L a w O f f i c e A s s o c i a t i o n s C o - C o u n s e l A t t o r n e y s L o c a l C o u n s e l N o n - L a w y e r P e r s o n n e l 765 PART X 773! xxii Disqualification in Special Situations
19 Contents Chapter 29 Bankruptcy Proceedings Introduction Disclosure of Conflicts Actual or Potential Conflicts Appearances of Impropriety Concurrent Representation Conflicts Prior Representation of the Debtor Payment by a Third Party Vicarious Disqualification 790 Chapter 30 Criminal Proceedings Introduction Limitations on the Right to Select Counsel Waiver of the Right to Conflict-Free Counsel Joint Representation The Client as Witness Allegations of Wrongdoing by Counsel G r a n d J u r y P r o c e e d i n g s 806 C h a p t e r G o v e r n m e n t A t t o r n e y s 31.1 Introduction Public Defenders and Defender Offices Disqualification of Prosecuting Attorneys Grounds for Disqualifying Prosecutors 817! xxiii
20 31.5 The Prosecutor-Witness Rule Appearances of Impropriety Disqualification of Prosecution Offices Part-Time Prosecutors Funding by a Private Party 838 Chapter 32 Former Government Attorneys and Judges Introduction Former Government Attorneys Generally Model Rule V i c a r i o u s D i s q u a l i f i c a t i o n The Applicability of Rule Former Judges and Other Adjudicators Model Rule PART XI 859 After the Motion Has Been Decided Chapter 33 Consequences of a Disqualification Order Introduction The Effect of a Disqualification Order Reconsideration of Disqualification Motions New or Renewed Motions Relitigation in Another Court Consequences in Addition to Disqualification Turnover of Work Product 873! xxiv
21 Contents 33.8 Monetary Sanctions Sanctions for Bringing an Unsuccessful Motion 878 Chapter 34 Appellate Review in Federal Court T h e F i n a l J u d g m e n t R u l e E a r l y C a s e L a w o n P o i n t T h e S u p r e m e C o u r t T r i l o g y Interlocutory Appeals in Special Circumstances Certification of Disqualification Orders W r i t s o f M a n d a m u s Mandamus Review in the Ninth Circuit M o o t n e s s o f D i s q u a l i f i c a t i o n A p p e a l s 902 Chapter 35 Appellate Review in State Court Introduction Permissive Appeal Factors in Deciding if an Order is Appealable Prerogative Writs in State Court Writs of Mandamus Mootness of Disqualification Appeals 918 Chapter 36 The Standard of Review on Appeal Introduction 919! xxv
22 36.2 The Abuse of Discretion Standard De Novo Review T h e C l e a r l y E r r o n e o u s S t a n d a r d Deciding Which Standard Applies The Review Standard in Various Jurisdictions Bankruptcy Judges, Magistrates, and Masters The Prosecutor Disqualification Standard T h e H a r m l e s s E r r o r S t a n d a r d 943 Table of Cases 945 Index 1013! xxvi
23 Contents Preface to the Second Edition At the time I wrote the original version of this treatise I recognized that motions to disqualify and conflicts of interest in the practice of law are both important subjects; yet, despite this fact, neither had received treatise-length examination. I decided to attempt to kill the proverbial two birds by examining both topics! xxvii
24 in a single volume. Over time it became painfully apparent that, while these subjects often intersect, they also have their differences. Perhaps the best way to understand this is to think of disqualification and conflicts as two overlapping concentric circles of roughly equal size. To the left and right are areas in which their contents are wholly distinct; in the middle is a sizable area in which they overlap. Disqualification motions are often made on the basis of perceived conflicts of interest such motions are, in fact, more often made on the basis of putative violations of the applicable conflict of interest rules than for any other reason. However, parties frequently move to disqualify attorneys on other grounds as well. Conversely, while litigators may be most likely to grapple with conflict of interest problems in the course of bringing or defending against a motion for disqualification, it cannot be gainsaid that a violation of the conflict rules can result in disciplinary complaints, disgorgement proceedings, legal malpractice actions, and sundry other consequences. At first blush, the solution to the problem appeared to be obvious (if time consuming) the subjects could both be covered by preparing separate treatises; and, to a large extent, that is what I have attempted to accomplish. This Second Edition of Lawyer Disqualification focuses specifically on cases in which motions to disqualify lawyers, firms and/or government attorney offices were made, without regard to the bases for those motions. I have also begun preparing a separate treatise devoted to the subject of Conflicts of Interest in the Practice of Law, which will examine the case law on conflicts without regard to whether the issue was raised in the context of a disqualification motion, a legal malpractice action, or in a different matter entirely. Since the two treatises have significant differences, and because there will be times when one can profitably be consulted without reference to the other, I have decided to conclude each book with its own separate index and table of cases. It must be recognized, however, that because there are many instances in which conflicts of interest come to the surface in the context of a! xxviii
25 Contents disqualification proceeding, there will be times when the material that is contained in one book is, to some extent, redundant of what is offered in the other. For example, because obtaining the informed consent of a client or former client can be both a prophylactic way of avoiding engaging in conflicted representation, as well as a powerful defense to a disqualification motion, the subject will be examined in both books. January, 2014 Richard E. Flamm! xxix
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