Opinion ID: 506328
Heading Depth: 2
Heading Rank: 3

Heading: Chinese Wall

Text: 33 Since the presumption of shared confidences is applicable to the Skjerven firm, the disqualification of the firm must follow. That is, disqualification must follow unless the presumption is rebuttable and the elements of successful rebuttal are satisfied. Again, this court will review procedural matters that are not unique to patent issues under the law of the particular regional circuit court where appeals from the district court would normally lie. Panduit Corp. v. All States Plastic Manufacturing Co., 744 F.2d 1564, 1574-75, 223 USPQ 465, 471 (Fed.Cir.1984). Thus, Ninth Circuit law is controlling in the instant appeal. 34 Circuits which allow rebuttal of the presumption require evidence of an effective screening of the tainted attorney from the rest of the firm in order for the presumption to be successfully rebutted. This is generally known as the Chinese Wall defense. As the district court in the present case noted, the Ninth Circuit has not yet found it necessary to rule on the availability of such a defense to imputed disqualification. 5 See Paul E. Iacono Structural Engineer, Inc. v. Humphrey, 722 F.2d 435, 442 (9th Cir.), cert. denied, 464 U.S. 851, 104 S.Ct. 162, 78 L.Ed.2d 148 (1983); Trone v. Smith, 621 F.2d 994, 999 n. 4 (9th Cir.1980). It would be improper for this court to predict how the Ninth Circuit would decide that issue unless such a prediction was essential to the disposition of the appeal. W.L. Gore & Associates v. International Medical Prosthetics Research Associates, 745 F.2d 1463, 1466-67, 223 USPQ 884, 887 (Fed.Cir.1984). In the instant appeal, as in our decision in W.L. Gore, such a prediction is not essential to the disposition of the appeal since the presumption of shared confidences has not been clearly overcome. That is, despite the alleged oral screening of Kallman by a Skjerven firm partner who instructed Kallman before he was hired to refrain from involvement in this litigation, the district court noted, there is a complete lack of evidence before the court indicating that the entire Skjerven firm was also notified of this oral screening procedure before Kallman assumed his 'of counsel' position. [Emphasis in original.] 35 Atasi argues, alternatively, that timely implementation of the Chinese Wall is not the only way to rebut the presumption of shared confidences. Atasi contends the so-called cone of silence is sufficient to rebut the presumption. 6 Under this method screening is sufficient to rebut the presumption where the attorney switching firms, but not the other members of the firm, agrees not to share confidences of prior clients with his new associates. As with the Chinese Wall, however, the Ninth Circuit Court of Appeals has never approved the cone of silence. 7 Since the Ninth Circuit has yet to approve the Chinese Wall, which provides more assurance against shared confidences than the cone of silence, we do not now approve the latter method of rebuttal.