Opinion ID: 2134849
Heading Depth: 1
Heading Rank: 3

Heading: Ireland's Motion to Withdraw as Counsel for Beuning

Text: The South Dakota Rules of Professional Conduct, SDCL § 16-18 Appx., Rule 1.7 (1993) provide in pertinent part: (b) A lawyer shall not represent a client if the representation of that client may be materially limited by the lawyer's responsibilities to another client or to a third person, or by the lawyer's own interests, unless: (1) the lawyer reasonably believes the representation will not be adversely affected; and (2) the client consents after consultation. When representation of multiple clients in a single matter is undertaken, the consultation shall include explanation of the implications of the common representation and the advantages and risks involved. S.D. RULES OF PROFESSIONAL CONDUCT Rule 1.7(b). The Comment to the rule explains its application: Simultaneous representation of parties whose interests in litigation may conflict, such as ... co-defendants, is governed by paragraph (b). An impermissible conflict may exist by reason of substantial discrepancy in the parties' testimony, incompatibility in positions in relation to an opposing party or the fact that there are substantially different possibilities of settlement of the claims or liabilities in question. Rule 1.7 cmt. Thus, it appears that under the facts of this case, a conflict has developed. When Ireland, on behalf of State Farm, elicited testimony from Dr. Boyer that Fullmer's RSD was caused by Beuning's negligence, this resulted in an incompatibility in positions in relation to an opposing party, quoting the language of the comment to the rule. This is an impermissible conflict, and Ireland's motion to withdraw should be granted. In light of our examination of the voluminous record in this case, continued analysis is in order. Other possible conflicts may exist, as the following pertinent history reveals. As stated previously, on July 14, 1989, Ireland answered the complaint on behalf of all three defendantsState Farm, Drolc and Beuning. On February 11, 1991, Kappelman first appeared for Drolc, paid by State Farm, who has also agreed to pay any judgment against Drolc. Throughout the proceedings, Drolc maintained that she never touched Fullmer. After listening to the opening statements on July 24, 1991, the first day of the battery trial, court reporter Pamela McMahon (McMahon) came forward to inform the trial court that she recalled overhearing a conversation between Cline and Drolc, wherein Drolc admitted to Cline that she (Drolc) had raised Fullmer's arm. McMahon was deposed that night; and stated that on February 23, 1989, she overheard that conversation. Following the deposition, Ireland angrily stated, to McMahon's employer and in McMahon's presence, that from now on, under no circumstances, is Pam to ever be a court reporter in any case that I'm involved in. Five days later, on July 29, 1991, McMahon testified at trial to her recollections of the overheard admissions of Drolc. During direct examination, the record reveals that McMahon appeared to be rather emotional, and the jury was sent from the courtroom. The trial court was then informed of Ireland's statement, which the court described as intimidation of a prospective witness. [2] Although Ireland apologized and waived cross-examination of McMahon, there was no other sanction. Then, also on July 29, Kappelman called Cline as a witness for Drolc in the battery trial, so that Cline could testify as to her recollections (or lack thereof) of the conversation between herself and Drolc. Also as stated previously, Ireland's motion to withdraw was filed on April 8, 1993; and on May 10, 1993, Cline filed a notice of appearance on behalf of Beuning. As a result of our opinion in Fullmer I, the new trial is limited to the medical causation of Fullmer's RSD and resulting damages, plus whatever punitive damages, if any, should be awarded against defendants State Farm and Drolc; and the issue of whether Drolc was acting within the scope of her employment. [3] Because the issues are so limited, it appears that the issue of whether Drolc raised Fullmer's arm will not be presented in the retrial; thus, it should not be necessary for Cline to again be called as a witness. However, Cline has already served as a witness for Drolc a co-defendant in a position adverse to Beuning in the first battery trial. Further, there is no indication in the record that Beuning has any knowledge that Cline was a witness for Drolc. Obviously, before Beuning consents to having Cline serve as her lawyer, Beuning should be informed that Cline served as a witness for State Farm and Drolc in the earlier trial. We continue our analysis of this situation by noting additional comments to Rule 1.7. In regard to payment of lawyers, the Comment continues: A lawyer may be paid from a source other than the client, if the client is informed of that fact and consents and the arrangement does not compromise the lawyer's duty of loyalty to the client. See Rule 1.8(f). For example, when an insurer and its insured have conflicting interests in a matter arising from a liability insurance agreement, and the insurer is required to provide special counsel for the insured, the arrangement should assure the special counsel's professional independence. Rule 1.7 cmt. (emphasis added). SDCL § 16-18 Appx., Rule 1.8(f) provides: A lawyer shall not accept compensation for representing a client from one other than the client unless: (1) the client consents after consultation; (2) there is no interference with the lawyer's independence of professional judgment or with the client-lawyer relationship; and (3) information relating to representation of a client is protected as required by Rule 1.6. S.D. RULES OF PROFESSIONAL CONDUCT Rule 1.8(f) (emphasis added). There is some indication that Beuning's attorney may, in reality, be taking direction from Ireland and State Farm. In his brief in support of his motion to withdraw, Ireland states that newly-hired attorney Cline is not taking direction from State Farm, but rather is taking all direction from [Beuning]. However, Beuning did not seek out Cline as an attorney; rather, Cline was contacted by State Farm, and paid by State Farm. Cline informed the court that she was taking no direction from State Farm in her representation of Beuning. However, after the point in time that Cline was hired by State Farm, Ireland repeatedly emphasized that one reason he should be allowed to withdraw was so that Beuning could hire her own medical expert witnesses; noting that  we would want to use an expert from Biodynamics Research out of Texas, for an analysis of the force of impact and give testimony as to whether or not the car accident could in any way account for the injury complained of to the left shoulder and left arm. (Emphasis added.) The trial judge reacted to this argument by stating that Ireland's argument lends to my conclusion that really it's Mr. Ireland and State Farm who is directing this search for additional expert evidence. Ireland continues this argument in his briefs to this court. We note the statement in State Farm's reply brief that Beuning is entitled to hire her own expert witness, i.e., Biodynamic Research, to give an opinion as to whether or not the car accident caused [Fullmer's] RSD. Ireland attaches to this reply briefas an appendix including materials outside of the settled record [4] a letter from Biodynamic Research Corporation, addressed to Ireland and offering a report of preliminary opinions based on materials apparently sent to him by Ireland. In this case, steps must be taken to assure that there is no interference with the independence of professional judgment of the counsel hired by State Farm for Beuning. Further, in granting Ireland's motion to withdraw as counsel for Beuning, we must additionally note Rule 1.9(a) in the Code of Professional Conduct: A lawyer who has formerly represented a client in a matter shall not thereafter represent another person in the same or a substantially related matter in which that person's interests are materially adverse to the interests of the former client unless the former client consents after consultation. S.D. RULES OF PROFESSIONAL CONDUCT Rule 1.9(a). If Ireland remains in the case, as Beuning's former counsel, Ireland would now represent State Farm in a position that is materially adverse to Beuning. Although the record contains a statement signed by Beuning that she consents to Ireland's withdrawal as her counsel of record, there is nothing to show that she consents to Ireland's remaining in the case, despite the fact that he will now represent an interest adverse to her own. Clearly, in accordance with Rule 1.9(a), Beuning must be advised by independent counsel on this issue.