IDS LONG DISTANCE, INC., A FLORIDA CORPORATION, IDS TELCOM, IDS TELCOM, LLC, A FLORIDA LIMITED LIABILITY COMPANY, AND JOAN M. CANNY, ESQ., PETITIONERS,
v.
PHYLLIS HEIFFER, TELECOMSTART.COM, INC., A FLORIDA CORPORATION, AND TERESA GROSSO, AN INDIVIDUAL, RESPONDENTS
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IDS Long Distance sought certiorari review of a trial court order imposing discovery sanctions and finding no attorney-client privilege applied to certain deposition questions. The appellate court affirmed the discovery abuse findings and sanctions but quashed the portion of the order applying the crime-fraud exception to attorney-client privilege, holding that the trial court failed to conduct the required evidentiary hearing before applying that exception.
The court quashed the portion of the order finding no attorney-client privilege exists and that the crime-fraud exception applies, holding that the trial court failed to conduct the evidentiary hearing required by American Tobacco Co. v. State before applying the crime-fraud exception. The court affirmed the trial court's conclusions that attorney-client privilege did not apply to four specific deposition questions and that sanctions were appropriate, but found remaining matters regarding attorney's fees not subject to certiorari review.
[1] A trial court's finding that the attorney-client privilege does not apply to certain deposition questions may be quashed if not preceded by an evidentiary hearing.
[2] The crime-fraud exception to the attorney-client privilege requires an evidentiary hearing to establish its applicability.
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“The parties asked for more discovery, this time limited to the issue of discovery abuse. This request operated on the questionable assumption that it is okay to utilize more discovery to see whether the discovery already done has been abused.”
Illustrates the trial court's skepticism about the parties' request for additional discovery to investigate discovery abuse.
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Join FLexlaw to unlock all legal intelligenceIDS Long Distance initiated a lawsuit involving breach of employment contract and counterclaims for breach of non-compete covenants. During discovery,…
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PER CURIAM.
Somehow this case has gotten terribly off track. The suit began with a claim for breach of employment contract, which generated a counterclaim for breach of a covenant not to compete. Discovery ensued. At some point, petitioner, IDS Long Distance, Inc. (IDS), arranged for depositions of respondents’s customers, who had previously been customers of IDS. It then came to light that IDS had agreed to cancel a deponent’s deposition upon the deponent’s agreement to return to IDS as a customer. This came to the attention of the trial judge, who understandably began to inquire into whether discovery was being abused.
At this point, things went astray. The parties asked for more discovery, this time limited to the issue of discovery abuse. This request operated on the questionable assumption that it is okay to utilize more discovery to see whether the discovery already done has been abused. Nonetheless, the trial judge allowed it, and this additional discovery, in turn, led to still more depositions. As before, objections abounded — some being based on an assertion of the attorney-client privilege — and witnesses were instructed not to answer questions. Again the issue of discovery abuse came back before the trial judge.
After a hearing, the trial judge announced a decision that IDS had indeed abused discovery and imposed sanctions. In addition, the judge found that the attorney-client privilege did not apply to certain questions asked at a deposition. Later, the judge entered the July 24, 2002 written order for which IDS seeks certiorari review.
IDS contends that the scope of the order extends to “any and all questions that may be asked by [respondent] Heiffer at future depositions.” However, the scope of the order is limited to depositions taken in connection with Heiffer’s motion to restrain harassment arising from IDS’s purported use of discovery tools to coerce business away from Heiffer. We agree with the trial court’s conclusion that the attorney-client privilege did not apply to the four questions asked at the deposition and set forth at pages eight and fifteen of the order, and that sanctions were appropriate.
We agree with IDS that the trial court’s application of the crime-fraud exception was not preceded by the evidentiary hearing contemplated by American Tobacco Co. v. State, 697 So. 2d 1249 (Fla. 4th DCA 1997). The July 16 hearing was not such a hearing. The “sword and shield” doctrine is not applicable here. IDS did not waive anything by implication; it was not basing any of its claims on the matters for which it seeks to invoke the privilege. We therefore quash that portion of the order finding that IDS could not invoke the attorney-client privilege in depositions directed at the discovery abuse issue.
As to the remaining matters raised in the petition concerning the imposition of attorney’s fees and other sanctions, we find that they are not subject to certiorari review. See, e.g., State Farm Mut. Auto. Ins. Co. v. Bravender, 700 So. 2d 796 (Fla. 4th DCA 1997) (holding that order assessing $300 in attorney’s fees for discovery misconduct is not reviewable by certiorari). We note that the trial judge has very broad discretion to fashion sanctions for the type of discovery abuse that appears in this record. This case may very well be a paradigm for what is wrong with civil discovery. The patience of Job would have been sorely tried by what has transpired here.
We quash only that portion of the order finding “no attorney-client privilege exists between IDS and their counsel,” “the crime-fraud exception applies to work product of IDS and their counsel,” and “because IDS has affirmatively placed information protected by the attorney-client privilege at issue, IDS is precluded from asserting attorney-client privilege to prevent discovery of such information.” Nothing in our ruling precludes the trial court from finding that the crime-fraud exception applies after an evidentiary hearing.
Writ granted in part, dismissed in part.
FARMER, SHAHOOD and GROSS, JJ., concur.
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BNP Paribas v. Wynne, 967 So. 2d 1065 (Fla. 4th DCA 2007)…estimony taken outside the hearing on the motion to compel.” This court has found that applying the crime-fraud exception without an eviden-tiary hearing is a departure from the essential requirements of law. See IDS Long Distance, Inc. v. Heiffer, 837 So. 2d 1130 (Fla. 4th DCA 2003). Wynne did not offer evidence to satisfy his burden, and Paribas and Duke should have been allowed to present countervailing evidence and argument before the court abrogated the attorney-client privilege. We grant the petition a…
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Meide v. Gibson, 855 So. 2d 1239 (Fla. 1st DCA 2003)…PER CURIAM. Having considered the appellant’s response to this Court’s September 9, 2003 order, this appeal is hereby dismissed for lack of jurisdiction. See IDS Long Distance, Inc. v. Heiffer, 837 So. 2d 1130 (Fla. 4th DCA 2003); State Farm Mutual Auto. Ins. Co. v. Bravender, 700 So. 2d 796 (Fla. 4th DCA 1997); Malone v. Costin, 410 So. 2d 569 (Fla. 1st DCA 1982). KAHN, WEBSTER and POLSTON, JJ., concur.…
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Walanpatrias Found. v. AMP Servs. Ltd. for the Walter & Anna Bronner Tr., 964 So. 2d 903 (Fla. 4th DCA 2007)…ides, the party defending the privilege must be “given the opportunity to be heard, by evidence and argument, at the hearing seeking an exception to the privilege.” Id. at 1255 (citing Haines, 975 F. 2d at 97). See also IDS Long Distance v. Heiffer, 837 So. 2d 1130, 1131 (Fla. 4th DCA 2003) (quashing portion of order applying crime/fraud exception to attorney-client privilege without the evidentiary hearing contemplated by American Tobacco)-, Butler, Pappas, Weihmuller, Katz, Craig, LLP v. Coral Reef of Key Bi…
Previewing 3 of 4 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Howard v. State, 697 So. 2d 1249 (Fla. 2d DCA 1997)
- State Farm Mut. Auto. Ins. Co. v. Bravender, 700 So. 2d 796 (Fla. 4th DCA 1997)