Proc. Consider the optics of the situation and confer with outside litigation counsel before extending an offer of joint representation to any current or former employee. Zarrella, however, did not then object or suggest that such representation was in any way improper to either Pacific Life's counsel or this Court; rather, it proceeded to depose Bishop. . 569 (W.D. The lawyers here were on solid ground according to the court, but you should always make sure to stay on the right side of the rules wherever you are. For example, a current or former employee could be: A participant in the adverse action taken against your cli- ent (e.g., termination, demotion, decrease in pay, or hos-tile work environment) A witness to the adverse action or the emotional distress caused by the adverse action -or- Instead, courts may apply the Peralta standard even if the company's lawyer also represents the former employee. Give the deposition. Provide dates and as much concrete guidance on the litigation as possible. [2]. Corporate defense lawyers want the attorney-client privilege to (1) protect from disclosure their communications with company employees and (2) prevent adversary counsel from questioning these employees outside of a deposition. Contact with former managerial employees was addressed at length in Camden v. Maryland [910 F. Supp. They urged the court to disqualify the lawyers or revoke their PHV admission as a sanction. I am concerned that by giving a deposition, it could only hurt me personally, since I am not represented by my former firm's council. Your access of/to and use Glover was employed by SLED as a police captain. v. LaSalle Bank Nat'l Ass'n, No. It is a common practice for outside litigation counsel to represent current, and even former, employees of corporate clients during depositions. skelly151 : He can represent the witness only if an employee former or current of the defendant party or the witness has requested that he be his legal counsel during the deposition. Fla. Sept. 22, 2011): During the course of this litigation, Plaintiff Zarrella's counsel advised Defendant Pacific Life's counsel of record, Enrique D. Arana, that Zarrella wished to take the depositions of certain of Pacific Life's former high-level executives***. Some are essential to make our site work properly; others help us improve the user experience. If you do get sued, then the former firm's counsel will probably represent you. By reducing the employee's travel, it should help ease the disruption and time lost from work for depositions. former employee were privileged. In that capacity, Redmond had prepared and signed BSUs response to the plaintiffs EEOC complaint, and had been extensively exposed to communications between the university and its outside counsel. Prior results do not guarantee a similar outcome and Martindale-Hubbell accepts no responsibility for the content or accuracy of any review. Copyright 2023 MH Sub I, LLC dba Internet Brands. But, relying heavily on a preliminary draft of the Restatement of the Law Governing Lawyers, the court decided to expand the no-contact rule to cover a person whom the lawyer knows to have been extensively exposed to relevant trade secrets, confidential client information, or similar confidential information of another party interested in the matter. The court explained its reasoning as follows: Where the risk of breaching protected areas is great, prophylactic provision must be made for monitoring. Roberts, the attorney for Mater Dei and the diocese, however, in the January 27 motion asked the court to quash the deposition because of "defects in the deposition notice and subpoena" and . Only after consulting with his company's in-house counsel did O'Sullivan choose to have attorney Arana represent him at his deposition. Thank you for your consideration. Zarrella argues that by offering to represent (and by so representing) Pacific Life's former (high-level) employees at their depositions, Pacific Life's counsel has violated Florida Rule of Professional Conduct Rule 4-7.4(a), which provides in pertinent part: (a) Solicitation. advice, does not constitute a lawyer referral service, and no attorney-client or How can the lawyer prove compliance with RPC 4.3? Prior to this case, Lawyer spent about one hour advising City Employee . But there are limits to the Stewart . Martindale-Hubbell Peer Review Ratings are the gold standard in attorney ratings, and have been for more than a century. Roy Simon is a Professor of Law at Hofstra University School of Law and the author of Simons New York Code of Professional Responsibility Annotated, published annually by West. A sizeable majority of other state and federal courts around the country agree with Niesig and the ABA that the no-contact rule does not apply to former employees. You can be subpoenaed and paid the applicable subpoena fee and required to attend a deposition without compensation. 91-359 (1991) said that neither the text nor the comment in ABA Model Rule 4.2 [which is almost identical to DR 7-104(A)(1)] prohibited communications with an opponents former employees. There are numerous traps for the unwary in dealing with such witnesses. Opposing counsel wants to depose the company's "person most knowledgeable" regarding the negotiation of the contract. A litigation consulting agreement with a former employee is a valuable mechanism to protect strategic communications with the former employees. The subject matter test applies attorney-client privilege to communications between a corporate counsel and employee if managers direct the employee to communicate on matters involving performance of duties. Only attorneys practicing at least three years and receiving a sufficient number of reviews from non-affiliated attorneys are eligible to receive a Rating. A Rule 30 (b) (6) notice must (1) provide the date, time, and place for taking the deposition; (2) specify the name and address of the entity being deposed; (3) set forth with reasonable particularity the matters for examination; (4) indicate the method by which the testimony will be recorded and whether documents are sought; and (5) be Every state has adopted its own unique set of mandatory ethics rules, and you should check those when seeking ethics guidance. The court phrased the issue before it as whether these former employees of Medshares should be considered represented parties, whom the Plaintiffs attorneys should not contact ex parte. The court described this as an issue of first impression in Virginia, and noted that state and federal courts in other jurisdictions had split three ways on whether ex parte communication with the former employees of represented corporate parties is permissible: Some courts have held that, since a former employee can no longer speak for the corporation and, therefore, cannot make statements that could become vicarious admissions of the corporation, ex parte communication with former employees of a represented corporate party is permissible. From Zarrella v. Pacific Life Ins. . Verffentlicht am 23. U.S. Complex Commercial Litigation and Disputes Alert. Property management companies should work with the attorneys representing the HOA to prepare one or more witnesses to speak on the designated topics. New York Legal Ethics Reporter provides this article with the understanding that neither New York Legal Ethics Reporter LLC, nor Frankfurt Kurnit Klein & Selz, nor Hofstra University, nor their representatives, nor any of the authors are engaged herein in rendering legal advice. This practice, however, is governed by ethical rules (and opinions and case law) that must be considered in advance. They neglected to provide retainer agreement which tell me that former employee did not retain them. If you fail to honor a lawful subpoena, you could go to jail for contempt of court. They may harbor ill will toward the Company or its current employees. I left the firm approximately 6 months later (and almost 21 months ago) to pursue another opportunity with another firm. This can be accomplished if either organizational counsel is present to object or if the court has set appropriate ground rules in advance. Direct departing employees specifically to review their files in light of the Company's standard document retention policy and any litigation "holds" or other applicable exceptions. .the deponent shall designate and produce at the deposition those of its officers, directors, managing agents, employees, or agents who are most qualified to testify . It therefore may be worth deposing the former employee as the deposition can be used as trial testimony if the witness is unavailable. Toretto Dec. at 4 (DE 139-1). Seems that the risks outweigh the rewards. If counsel reaches out first, but does not receive a (positive) response, a former colleague still at the Company may have more success. In fact, Plaintiffs counsel in this case has informed the court that it seeks to speak to each of these former employees because Plaintiffs believe that they can impute liability upon Medshares through the statements, actions or omissions of these former employees. Plummer responded that Yanez was a company employee and Plummer was his attorney for the deposition, and as long as Yanez told the truth in the deposition, Yanez's . Consistent with ethical obligations, consider whether outside litigation counsel should place reasonable limitations on the scope of representation of corporate employees. Keep in mind that relevant individuals go beyond just the one or two "key players," and that a business person may have a different perspective as to who is "key" than counsel. Even in the face of Pacific Life's untimeliness argument, Zarrella has failed to proffer any explanation as to why it waited approximately two months from first learning that Pacific Life's counsel intended to represent its former employees, until after Bishop and Miller's depositions were completed and after the discovery deadline had passed, before filing the instant Motion contending that such representation is unethical. If the Company's counsel cannot represent the former employee, the Company may be able to offer to pay for outside representation; outside counsel would need to obtain the former employee's informed consent, ensure no interference with the lawyer's independence and keep the client's confidentiality. Since this incident happened over 27 months ago, my recollection of the details is not very good, though I do remember the essentials. Improper selection and preparation of a corporate 30 (b) (6) witness can result in adverse reactions and a severe negative impact on your case. The contractor argued that all of the employees were off limits under New Yorks no-contact rule, DR 7-104(A)(1), and could be interviewed only with the consent of the contractor s counsel (or in a deposition) because the contractor was represented by counsel. Fla. 1992); Porter v. Arco Metals Co., 642 F.Supp. Explain the case and why you or your adversary may want to speak with the former employee. The Ohio lawyers eventually represented eight former employees at depositions. A lawyer shall not permit employees or agents of the lawyer to solicit on the lawyer's behalf. Zarrella again did not object or suggest that such representation was in any way improper to either Pacific Life's counsel or this Court; rather, it proceeded to depose Miller. This publication/newsletter is for informational purposes and does not contain or convey legal advice. We welcome your email, but please understand that if you are not already a client of K&L Gates LLP, we cannot represent you until we confirm that doing so would not create a conflict of interest and is otherwise consistent with the policies of our firm. Lawyers solicited for peer reviews include both those selected by the attorney being reviewed and lawyers independently selected by Martindale-Hubbell. The test that best balances the competing interests, the court said, is one that defines the word party in the no-contact rule to include three categories of people: corporate employees whose acts or omissions in the matter under inquiry are binding on the corporation (in effect, the corporations alter egos) or, corporate employees whose acts or omissions in the matter under inquiry are imputed to the corporation for purposes of its liability, or, employees implementing the advice of counsel.. 956 (D. Md. If you stand to lose some money by taking a day off of work, I suggest that you contact the party (lawyer) who subpoenaed you, and . Counsel must be aware of certain issues that arise depending on what kind of witness is chosen. . Please explain why you are flagging this content: * This will flag comments for moderators to take action. The rationale for the rule is that A potential for overreaching exists when a lawyer, seeking pecuniary gain, solicits a person known to be in need of legal services. If the witness desires representation, they should then be provided with outside litigation counsels contact information. Except as provided in subdivision (b) of this rule [which pertains to an attorney's unsolicited written communications to prospective clients], a lawyer shall not solicit professional employment from a prospective client with whom the lawyer has no family or prior professional relationship, in person or otherwise, when a significant motive for the lawyer's doing so is the lawyer's pecuniary gain. A case addressing both categories is Armsey v. Medshares Management Services, Inc. [184 F.R.D. The employer paid the employee to render the work and now owns it. Despite this limitation, the ABA Committee on Ethics and Professional Responsibility, Formal Opinion 96-402, clarifies that Model Rule 3.4 does not prohibit payment "made solely for the purpose of compensating the witness for the time the witness has lost in order to give testimony in litigation in which the witness is not a party," noting also that counsel must make it "clear to the witness that the payment is not being made for the substance or efficacy of the witness's testimony.". If the interests of the former employee and the Company are sufficiently aligned, the Company's own outside counsel can also represent the former employee through a separately executed engagement letter. Aug. 7, 2013). At that point, the nature and results of the inquiry can be examined and an appropriate remedy fashioned for any breach of ethics and/or other relevant rules governing discovery or admission of evidence. Still other courts have based their decisions on the positions held by the former employees, holding that there should be no ex parte communication with former employees who held managerial responsibilities with a represented corporate party. Between Dec. 12, 1996, and May 4, 1997, Davis is accused of anally penetrating a teen in King Cottage at YDC. These ratings indicate attorneys who are widely respected by their peers for their ethical standards and legal expertise in a specific area of practice. CIV-08-1125-C, 2010 WL 1558554, at *2 (W.D. Its five oclock somewhere: Lawyers working remotely from other jurisdictions during COVID-19, Censure serves as reminder that zealous advocacy is no excuse for lack of candor toward tribunal, New York says presumption for sharing confidential information in joint representations does not apply retroactively, Ohio clarifies when out-of-state lawyers are permitted to conduct and defend depositions, Supreme Court Ultimately Declines to Decide Attorney-Client Privilege Case, Impairment considered mitigating factor but insufficient to shield from meaningful sanctions. Supplemental Terms. Avoiding problems starts before employees become "former." *This Litigation Minute uses the gender-neutral pronoun their for purposes of inclusivity. The court said: Any question concerning the appropriateness of the adversarys decision to proceed with ex parte contact with specific former employees can be resolved by determining whether any information gathered by the opponent actually intrudes upon privileged matters. May you talk to them informally without the knowledge or consent of the adversarys counsel? The Court of Appeals held that some current employees could be interviewed informally without the companys consent, but others could not. It is therefore important to establish contact (and hopefully a rapport) before your adversary does. You would need to provide an attorney with all your information and documents to fully respond to your questions and concerns. Whether to represent a former employee during the deposition. Bishop and Miller elected to have Pacific Life provide counsel for their depositions, and Schafer indicated that he wished to retain his own independent counsel, and he did so.***. (See points 8 & 9). Meanwhile, if all parties want the deposition to occur in California, Stewart should be no bar. Similarly, in Peralta v. Cendant Corp., 190 F.R.D. One of the first questions a former employee will ask is whether they should retain a lawyer. The attorney 5. An Unaffiliated Third Party Has No Duty to Preserve Evidence for a Litigant Compliance with Law Is a Valid Defense to a Spoliation Motion. employees, so it is possible that your former employee has already spoken with the plaintiff's counsel. This list provides ten tips to help counsel manage the Company's risk when interacting with former employees. For the deposition of an employee, limited representation may include meeting with the employee in advance and evaluating and advising the employee whether their potential testimony could result in criminal or civil liability. 1986); Camden v. State of Maryland, 910 F.Supp. They might also be uncooperative at least at first. Report Abuse Alena Shautsova Partner at Law Offices of Alena Shautsova no peer reviews 100% 2 client reviews Contact 917-475-0420 website Answered on Sep 12th, 2013 at 1:21 PM Depending on the claims, there can be a personal liability. civil procedure, corporation law, evidence plaintiff corporation's failure to make a reasonable effort to produce a former employee for deposition by defendant warranted precluding plaintiff from presenting testimony by the former employee pursuant to cplr 3126, however preclusion of secondary and hearsay evidence relating to the former employee, which would preclude plaintiff from asserting . The consequences of a misstep range from losing the ability . "A corporate employee who does not qualify as an officer, director, or managing agent is not subject to deposition by notice. Is there any possibility that the former employee may become a party? (See point 8.). You should treat everyone . Rather, the employee is treated as any other non-party; before being compelled to testify, he or she must be served with a subpoena pursuant to Federal Rule of Civil Procedure 45." Karakis v. Foreva Jens Inc., COMMUNICATIONS WITH FORMER EMPLOYEES. Defense counsel did not act beyond the scope of their pro hac vice admission by contacting some of their clients former employees and offering to represent them at their depositions, said a California district court last week, turning back plaintiffs motion to disqualify the Ohio lawyers. Karen is a member of Thompson Hines business litigation group. Leverage the vast knowledge and experience of your global in-house peers, Connect with hundreds of in-house counsel all over the world, Find your next career opportunity and be prepared for the interview, Learn more about ACCs Seat at the Table initiative, Use this Model to Gauge the Maturity of Your Department's DE&I Functions, Need Help? Weve pointed out before (here and here) that being admitted pro hac vice requires you to be alert for potential issues that might have an impact on your ability to practice away from home. These calls can be difficult. fH\A&K,H` 1"EY Communications between the Company's counsel and former employees may not be privileged. An adversarys former employees are often the most valuable witnesses in litigation. 1988).] And make it easy for the former employee however you can, including by offering to provide legal representation, either through the Company's lawyers or independent counsel, as appropriate. But Arana recommended that O'Sullivan first obtain the advice of his current employer's in-house counsel before deciding whether he wished for Arana to represent him. But each jurisdiction is different, and counsel should check the relevant jurisdiction's rules before agreeing to a payment to any deposition or trial witness. You represent a company embroiled in a dispute over a contract that was entered into 15 years ago. In other words, it is not enough for the employee to have engaged in illegal conduct--all lawsuits involve allegedly illegal conduct--, the employee must have known that his or her conduct was illegal at the time. Florida Rule of Professional Conduct Rule 4-7.4(a) (footnote added). 2013 WL 4040091, *6 (N.D. Cal. Yet, this does not prevent liability being imposed upon their former employer based on the statements, acts or omissions of these individuals which occurred during the course of their employment. 2005-2023 K&L Gates LLP. After all, the privilege does not belong to, and is not for the benefit of, the former employees Thus, efforts to induce or listen to privileged communications may violate Rule 4.4 which requires respect for the rights of third persons., 2. This could be accomplished by simply interviewing the former employees with firsthand knowledge and relaying that information in the deposition. 3. Management, Inc. v. Estate of Schwartz, 693 So.2d 541 (Fla. 1997), among bar ethics committees nationwide, the clear consensus is that former managers and other former employees are not within the scope of the rule against ex parte contacts.] In most states, therefore, parties who want protection for their former employees will have to look beyond the no-contact rule. Bar Debates Liberalizing Multijurisdictional Practice Courts Propose Mandatory Engagement Letters , Need help? The following are Section 207's main restrictions: Lifetime Ban - An employee is prohibited from . Courts in multiple jurisdictions, including Washington and New York, have disqualified outside litigation counsel from representing non-control group employees where it has the effect of improperly preventing informal interviews of such employees by counsel for the opposing party. This rating indicates the attorney is widely respected by their peers for high professional achievement and ethical standards. Unfortunately, the general rule is that unlike jury service, witnesses are not paid for providing testimony pursuant to a subpoena. Importantly, if an employee is no longer with the company, the usual prohibition of opposing counsel contacting a party's employee may not apply. The information in this article is not a substitute for legal advice and may not be suitable in a particular situation. The plaintiffs argued that the Ohio lawyers PHV admission to represent defendant meant just that, and did not include representing non-party witnesses. But information given to the former employee by the attorney, of which that employee did not have personal knowledge, would not be privileged. The Court found that Niesig only restricted contact by counsel with employees of a represented party who are in a position to bind that party. Here youll find timely updates on legal ethics, the law of lawyering, risk management and legal malpractice, running your legal business and more. Martindale-Hubbell Client Review Ratings display reviews submitted by individuals who have either hired or consulted the lawyers or law firms. 250, 253 (D. Kan. The Martindale-Hubbell Peer Review Ratings process is the gold standard due to its objectivity and comprehensiveness. at 7. 303 (E.D. Despite the strong majority tide, courts in a significant minority of jurisdictions have held that the no contact rule does protect former employees who fall into one of two categories: (1) former employees who were members of the adversary's management team or control group during their employment, or who were "confidential employees," or who In this article is not a substitute for legal advice plaintiff & # x27 ; s.. Agreement which tell me that former employee during the deposition due to its objectivity comprehensiveness... Subpoena fee and required to attend a deposition without compensation as the deposition can be used trial... Camden v. Maryland [ 910 F. Supp Rule 4-7.4 ( a ) ( footnote added.! Length in Camden v. Maryland [ 910 F. Supp due to its objectivity comprehensiveness! Guarantee a similar outcome and Martindale-Hubbell accepts no responsibility for the content or accuracy any! Of a misstep range from losing the ability to render the work and now owns.... The adversarys counsel problems starts before employees become `` former. for moderators to take action 207 & # ;... For depositions Thompson Hines business litigation group publication/newsletter is for informational purposes and not... Uses the gender-neutral pronoun their for purposes of inclusivity mechanism to protect strategic communications with the former employees for! The court of Appeals held that some current employees or accuracy of Review. With a former employee as the deposition need to provide retainer agreement which tell me that former employee the! X27 ; s travel, it should help ease the disruption and time lost work... Uses the gender-neutral pronoun their for purposes of inclusivity standard in attorney Ratings, and no attorney-client or How the... Employees may not be suitable in a specific area of practice at least at first it therefore be! Employees was addressed at length in Camden v. State of Maryland, F.Supp. Is unavailable, they should retain a lawyer may want to speak with the former employees at depositions represent meant... No responsibility for the unwary in dealing with such witnesses Ratings, and did not include representing non-party witnesses there. That some current employees could be interviewed informally without the knowledge or consent of adversarys! Uses the gender-neutral pronoun their for purposes of inclusivity represent him at his deposition no... With a former employee Ratings, and did not retain them important to contact... Employee to render the work and now owns it pursue another opportunity with another firm starts before employees ``. Subpoena fee and required to attend a deposition without compensation then be provided with outside litigation contact. Become a Party when interacting with former employees with firsthand knowledge and relaying information... 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' representing former employee at deposition, no by the attorney being reviewed and lawyers independently selected by Martindale-Hubbell be... Him at his deposition Peer reviews include both those selected by the attorney being reviewed lawyers. Any Review Martindale-Hubbell Peer Review Ratings are the gold standard due to its and... Be aware of certain issues that arise depending on what kind of witness is chosen Section 207 & x27. Area of practice to jail for contempt of court represent current representing former employee at deposition and even former, employees of corporate during. On what kind of witness is chosen a century lawyer shall not permit employees agents... Then the former employees to prepare one or more witnesses to speak with the attorneys representing the HOA prepare... Before your adversary may want to speak on the designated topics of practice prove compliance RPC! 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Comments for moderators to take action work for depositions first questions a employee. The Ohio lawyers PHV admission to represent a former employee the gender-neutral pronoun their for of! 2013 WL 4040091, * 6 ( N.D. Cal of inclusivity provide an attorney with your! At first contact ( and hopefully a rapport ) before your adversary may want speak! Is Armsey v. Medshares management Services, Inc. [ 184 F.R.D set appropriate ground rules advance. Permit employees or agents of the lawyer prove compliance with RPC 4.3 should work with the former firm 's will... Case law ) that must be considered in advance former managerial employees was addressed at in. Questions and concerns publication/newsletter is for informational purposes and does not constitute a lawyer shall not permit or... To pursue another opportunity with another firm and comprehensiveness number of reviews from non-affiliated attorneys are to. Even former, employees of corporate clients during depositions ethical obligations, whether... A litigation consulting agreement with a former employee will ask is whether they should then provided... Paid for providing testimony pursuant to a subpoena or revoke their PHV admission a... Represent a Company embroiled in a particular situation practice Courts Propose Mandatory Engagement Letters, help... Minute uses the gender-neutral pronoun their for purposes of inclusivity the following are Section 207 #!
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