An insurance company retained a law firm to defend a civil suit brought against an insured and two of the insured's former employees. The law firm solicited discovery from each of the three defendants. As part of the discovery process, the firm tape recorded various conversations between the firm and the two former employees.
Tape recording such conversations is a standard operating procedure for the firm.
During the telephone conversations, one of the former employees indicated hostility toward his former employer and expressed dissatisfaction with the manner in which the former employer had treated him. The ex-employee stated his refusal to sign his completed discovery. He indicated that he was arranging for his own defense counsel and instructed the firm to withdraw immediately from his defense. The firm immediately forwarded a motion for withdrawal to the ex-employee, a transcript of the telephone conversation in which the former employee discussed his desire for a financial reward, and a reminder that perjury charges might possibly arise from his failure to tell the truth during sworn testimony. Questions Presented 1.