RICHARD J. GATON AND EDWARD STIEFEL, PETITIONERS,
v.
HEALTH COALITION, INC., RESPONDENT

Fla. 3d DCA | 1999-11-24
No. 99-1315
Before COPE, GODERICH, and FLETCHER, JJ.
745 So. 2d 510 Florida District Court of Appeal, Third District (1999) Positive Treatment
Cited by 29 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

Petitioners Gaton and Stiefel sought to disqualify opposing counsel's law firm (Greenberg, Traurig) because one of its newly-associated attorneys (Lipton) had previously served as their co-counsel and acquired confidential information about their case strategy. The court granted the petition, holding that under Florida Bar Rule 4-1.10(b), Lipton's mere claim of not remembering the confidential information was insufficient to rebut the clear evidence that he had acquired such information.


Holding

Yes, the firm must be disqualified. While vicarious disqualification under Rule 4-1.10(b) requires a showing that the newly associated attorney acquired confidential information (not a presumption), once the opposing party establishes this prima facie case, the burden shifts to the firm to demonstrate that the new associate has no actual knowledge of confidential information material to the case. A mere claim of failure to remember does not rebut clear evidence that confidential information was acquired.


Headnotes

[1] A law firm may not represent a client in a matter if a lawyer who has joined the firm previously represented a client with materially adverse interests in the same or a s…

[2] When seeking disqualification based on a lawyer's move to a new firm, the moving party must first establish a prima facie case that the lawyer acquired confidential infor…

Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.

Join FLexlaw to unlock all legal intelligence

Key Quotes

“When a lawyer becomes associated with a firm, the firm may not knowingly represent a person in the same or a substantially related matter in which that lawyer ... had previously represented a client whose interests are materially adverse to that person and about whom the lawyer had acquired information protected by rules 4-1.6 and 4-1.9(b) that is material to the matter.”

Statement of the controlling Florida Bar Rule 4-1.10(b) establishing the standard for vicarious disqualification based on conflict of interest when an attorney moves to a new firm.

Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.

Join FLexlaw to unlock all legal intelligence

Facts & Procedural History

Gaton and Stiefel attempted to have sanctions imposed against Health Coalition, Inc. (HCI) and retained attorney Paul Lipton as co-counsel for that li…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
FLETCHER, Judge.

FLETCHER, Judge.

Richard J. Gaton and Edward Stiefel petition this court for a writ of certiorari quashing an order of the trial court denying their motion to disqualify Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quen-tel, P.A. [Greenberg, Traurig] as Health Coalition, Ine.’s [HCI] counsel on the ground of conflict of interest. We grant the petition and direct the disqualification.

Gaton and Stiefel moved to disqualify Greenberg Traurig upon learning that attorney Paul Lipton had joined that firm. According to Gaton and Stiefel’s motion and supporting affidavits, Lipton had previously served in this case as their co-counsel in connection with their attempts in the trial court to have sanctions imposed against HCI. Gaton and Stiefel’s affidavits state that in this capacity Lipton conferred with their lead counsel and became privy to confidential information as to their cause. In an affidavit filed in opposition to the motion, Lipton admits that he was retained on a limited matter, but states that he has no present recollection of any material or confidential information imparted by Gaton and Stiefel’s lead counsel.

Rule 4-1.10 of the Rules Regulating the Florida Bar addresses conflict of interest problems which may arise when a lawyer moves from one firm to another. See Nissan Motor Corp. in USA v. Orozco, 595 So. 2d 240 (Fla. 4th DCA 1992); R. Regulating Fla. Bar 4-1.10 cmt. (1994). Rule 4-1.10(b) states:

“When a lawyer becomes associated with a firm, the firm may not knowingly represent a person in the same or a substantially related matter in which that lawyer ... had previously represented a client whose interests are materially adverse to that person and about whom the lawyer had acquired information protected by rules 4-1.6 and 4-1.9(b) that is material to the matter.”

In cases involving a direct attorney-client relationship, the courts have recognized an irrefutable presumption that confidences were disclosed. State Farm Mutual Auto. Ins. Co. v. K.A.W., 575 So. 2d 630 (Fla.1991); Boca Investors Group, Inc. v. Potash, 728 So. 2d 825 (Fla. 3d DCA 1999); Garner v. Somberg, 672 So. 2d 852 (Fla. 3d DCA 1996).

We agree with HCI that for vicarious disqualification under rule 4-1.10(b), however, Gaton and Stiefel may not rely on this presumption. There must be a showing that the newly associated attorney acquired confidential information during his prior representation. See Koulisis v. Rivers, 730 So. 2d 289 (Fla. 4th DCA 1999); Nissan, 595 So. 2d 240. After the moving party meets its burden of establishing a prima facie case for disqualification by such a showing, the burden then shifts. The firm whose disqualification is sought must then demonstrate that their new associate has no actual knowledge of any confidential information material to the case. Koulisis, 730 So. 2d at 292; R. Regulating Fla. Bar 4-1.10 cmt. (1994) (“In any such inquiry, the burden of proof should rest upon the firm whose disqualification is sought.”).

As the Koulisis court pointed out, this allocation of burden acknowledges the difficulty of proving what someone knows and places the procedural hurdle before the law firm that could have best avoided the ethical problem.

The affidavits submitted in support of the disqualification motion clearly state that counsel for Gaton and Stiefel provided Lipton with “extensive background on all aspects of the case,” “mental impressions on the entire matter,” “strategies and how they impacted the future of the case,” and “overall thoughts regarding liability, damages, and discovery of the case as a whole.” This was sufficient to meet their burden of proof. Lipton’s affidavit, on the other hand, does not deny that he acquired such confidential information during his prior representation, but merely states that he has “no present recollection.” A failure to remember, however, does not rebut clearly set-out assertions, as here. See, e.g., Walker v. State, 742 So. 2d 342 (Fla. 3d DCA 1999) (belated appeal granted to defendant where defense counsel did not recall whether defendant had asked him to file an appeal); Allstate Ins. Co. v. Eckert, 472 So. 2d 807 (Fla. 4th DCA 1985) (insured’s failure to remember receipt of forms explaining insurance options deemed insufficient to rebut presumption of receipt).

Based on the foregoing, we grant certiorari, quash the order under review, and remand for entry of an order disqualifying Greenberg, Traurig as attorneys for HCI.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By (18 total)

  • Selina Akrey v. Kindred Nursing Ctrs. E., L.L.C., 837 So. 2d 1142 (Fla. 2d DCA 2003)
    …at burden, the Bales Weinstein firm must then show that Mr. DiStasio has no actual knowledge of any confidential information material to this case. See Scott v. Higginbotham, 834 So. 2d 221 (Fla. 2d DCA 2002) (citing Gaton v. Health Coalition, Inc., 745 So. 2d 510, 511 (Fla. 3d DCA 1999); Koulisis v. Rivers, 730 So. 2d 289, 292 (Fla. 4th DCA 1999)). The comments to the Rules Regulating the Florida Bar provide guidance in making these determinations. The Bar recognizes that an individual lawyer is obligated t…
  • Scott v. Higginbotham, 834 So. 2d 221 (Fla. 2d DCA 2002)
    …appellate remedy. Id. Cases involving imputed disqualification of a law firm based on the prior representation of a newly associated attorney are governed by rule 4 — 1.10(b) of the Rules Regulating the Florida Bar. Gaton v. Health Coalition, Inc., 745 So. 2d 510, 511 (Fla. 3d DCA 1999); Koulisis v. Rivers, 730 So. 2d 289, 293 (Fla. 4th DCA 1999); see also Graham v. Wyeth Labs. Div. of Am. Home Prods. Corp., 906 F. 2d 1419, 1421-22 (10th Cir.1990) (applying the Kansas Supreme Court version of Model Rule 1.10…
  • …w firm based on the prior representation of a newly associated attorney [is] governed by rule 4 — 1.10(b) of the Rules Regulating the Florida Bar.” Scott v. Higginbotham, 834 So. 2d 221, 223 (Fla. 2d DCA 2002) (citing Gaton v. Health Coalition, Inc. 745 So. 2d 510, 511 (Fla. 3d DCA 1999), and Koulisis v. Rivers, 730 So. 2d 289, 293 (Fla. 4th DCA 1999)). The rule provides: (b) Former Clients of Newly Associated Lawyer. When a lawyer becomes associated with a firm, the firm may not knowingly represent a person…

Previewing 3 of 18 citing cases — full citator treatment, depth of discussion, and citing context are member features.

Join FLexlaw to unlock all legal intelligence

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw