Opinion ID: 1387773
Heading Depth: 2
Heading Rank: 1

Heading: Disqualification of Sutin Firm

Text: According to Carver, the trial court should have disqualified Sutin from representing Leon because Sutin's prior representation of Carver is substantially related to the present litigation. See United Nuclear Corp. v. General Atomic Co., 96 N.M. 155, 243, 629 P.2d 231, 319 (1980), appeal dismissed, 451 U.S. 901, 101 S.Ct. 1966, 68 L.Ed.2d 289 (1981) (citing Westinghouse Electric Corp. v. Gulf Oil Corp., 588 F.2d 221 (7th Cir.1978)). The substantial relationship test expressed in Westinghouse is based on Canons 4 and 9 of the Code of Professional Responsibility, and requires a three-tiered analysis: (1) a factual reconstruction of the scope of the prior legal representation; (2) a determination of whether it is reasonable to presume that the lawyer would have received confidential information of the type alleged by his former client; and (3) a determination of whether the alleged confidential information is relevant to the issues raised in the litigation pending against the former client. Id., 588 F.2d at 225. The trial court's findings of fact regarding the scope of the prior representation are not challenged. Having made those findings, the court determined that Sutin had received no confidential information relevant to the issues in this case. It is not appropriate for a trial court to inquire whether actual confidences have been disclosed during the prior representation, Westinghouse, 588 F.2d at 224, because it is difficult, if not impossible, to directly challenge such an inquiry or finding without disclosing the very confidences sought to be protected. Id. n. 3. We hold, however, that the trial court correctly concluded that there was no substantial relationship between Sutin's prior representation of Carver and the present litigation. A correct decision will not be reversed because the result was reached for the wrong reason. Melton v. New Mexico Department of Human Services, 97 N.M. 102, 104, 637 P.2d 52, 54 (Ct.App. 1981). A lawyer's conduct should always be constrained by his duty to avoid even an appearance of impropriety. See NMSA 1978, Code of Prof.Resp., Canon 9 (Repl. Pamp. 1985). The impropriety sought to be avoided by the substantial relationship test is the risk that a lawyer may inadvertently use the confidences or secrets of a former client against him. See id., Canon 4; Silver Chrysler Plymouth, Inc. v. Chrysler Motors Corp., 518 F.2d 751, 754 (2d Cir.1975). It might therefore have been wiser for Sutin to decline to represent Leon in this lawsuit; nonetheless, disqualification is mandatory only when the relationship between the prior representation and present litigation is patently clear. E.g., State v. Jones, 180 Conn. 443, 449, 429 A.2d 936, 939 (1980), overruled in part, State v. Powell, 186 Conn. 547, 555, 442 A.2d 939, 944 (1982); Silver Chrysler Plymouth, 518 F.2d at 753-54, 757. Even if the relationship between the past and present representations is not clear at the outset so as to justify disqualification, the court may later disqualify if, during trial, it appears that an attorney may be using confidential information against a former client. See Silver Chrysler Plymouth, 518 F.2d at 758 & n. 10. The trial court in this case did not deem such action necessary nor did Carver bring to the court's attention any of the potentially-violated confidences of which he now complains on appeal. Moreover, Carver's list of potential confidences to which Sutin might have gained access sets forth matters which are either irrelevant to this litigation or not actual confidences. The jury was not asked, as Carver implies, to determine whether the free ancillary services performed by Leon as broker for Carver's purchase of the land were sufficient to justify the size of Leon's commissions under the agreement. The fact that Carver may have paid Sutin to perform the same or similar services during the early stages of property development is not relevant to this lawsuit. Likewise, any knowledge Sutin may have gained about Carver's financial status is irrelevant to this litigation. The issue of punitive damages never reached the jury. In any event, Carver's financial status was discoverable. See Ruiz v. Southern Pacific Transportation Co., 97 N.M. 194, 638 P.2d 406 (Ct. App.), cert. quashed, 97 N.M. 242, 638 P.2d 1087 (1981). A superficial resemblance between the current and prior representations will not, without more, create a violation of the canons. Duncan v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 646 F.2d 1020, 1029 (5th Cir.1981). The trial court made a careful comparison of both periods of representation in its findings of fact. Because those findings have support in the evidence and have not been effectively challenged, we affirm the denial of Carver's motion to disqualify Sutin.