Opinion ID: 2524663
Heading Depth: 1
Heading Rank: 3

Heading: screening devices

Text: We next address whether a screening device or Chinese wall is an appropriate remedy where the person in question is a nonlawyer who has switched sides by moving from one firm to another. This court has twice held that the use of screening devices or a Chinese wall is unavailable as a remedy when faced with a KRPC 1.10(b) problem. See Lansing-Delaware Water District, 248 Kan. at 573 (rejecting the use of screening devices as a remedy for the taint of an incoming attorney who has switched sides during ongoing litigation by moving from one firm to another); Parker v. Volkswagenwerk Aktiengesellschaft, 245 Kan. 580, 589, 781 P.2d 1099 (1989) (holding that the model rules reject ... any thought that the `taint' of the incoming lawyer can be cured by screening him or her out of the affected client's matter, or by erecting a `Chinese wall' or by imposing a `cone of silence'). This court has never addressed whether the use of a screening device or Chinese wall is appropriate for nonlawyer employees of a firm. Although not binding on this court, KBA Ethics Opinion No. 90-05 addresses whether screening is available for nonlawyer employees who have switched firms in order to avoid disqualification and sets forth: A law firm that employs a nonlawyer who formerly was employed by another firm may continue representing clients whose interests conflict with the interests of clients of the former employer if (1) the former employing firm and their affected clients consent after consultation, or (2) the employee can meet the burden of proof that he or she did not acquire `material and confidential information during the course of his former employment.' A screening wall imposed unilaterally is inappropriate to meet this burden under our case law. In Williams, the court considered the risk of nonlawyers leaking confidential information and stated: In fact, a persuasive argument can be made that a nonlawyer would be more likely to reveal confidential information. Presumably, an attorney would be acutely aware of his or her ethical obligation not to reveal confidences of a former client. A nonlawyer might not be as sensitive to the need to safeguard the confidences of his or her previous employer gained while working with an attorney. 588 F. Supp. At 1043. The Nevada Supreme Court rejected the use of a Chinese wall for the nonlawyer employee in Ciaffone. The Ciaffone court held that screening devices are not a proper or effective remedy when a finding has been made that a nonlawyer employee who has switched firms possesses material and confidential information. The court stated: `Attorney disqualification of counsel is part of a court's duty to safeguard the sacrosanct privacy of the attorney-client relationship which is necessary to maintain public confidences in the legal profession and to protect the integrity of the judicial process.' [Citation omitted.] Moreover, `a client must be secure in the knowledge that any information he reveals to counsel will remain confidential.' [Citation omitted.] Therefore, we decline to carve out an exception allowing screening of nonlawyers in situations where lawyers would be similarly disqualified. 113 Nev. at 1169. The appellant cites Smart Industries in support of their argument that a screening devise or Chinese wall is an appropriate remedy when faced with a nonlawyer who has switched sides by moving from one firm to another. In Smart Industries, the Arizona Court of Appeals considered whether the plaintiff's firm which had hired a paralegal who was formerly employed by the defendant's counsel should have been disqualified by the district court. The court held that screening devices are a useful remedy when faced with a situation where a nonlawyer switches sides by moving from one firm to another, but recognized that in jurisdictions where screening devices are not allowed for lawyers, they are not allowed for nonlawyer employees either. The court stated: [W]e note that very few jurisdictions have considered the issue, either in the context of litigation case law or in ethical opinions. Those that have addressed the issue tend to apply the same standards to nonlawyers as are applied to lawyers under the jurisdiction's applicable disciplinary rules regarding imputed disqualification. [Citations omitted.] Thus, if, under the jurisdiction's applicable ethical rules, a lawyer can be saved from imputing disqualification to his or her new firm by appropriate screening mechanisms, then a paralegal's or secretary's potential conflict in the new firm can be avoided by the same mechanisms, sometimes described as `Chinese Walls,' or `cones of silence.' [Citation omitted.] However, if the jurisdiction does not recognize such as `screening' option as adequate protection against a lawyer's potential conflict in the new firm, then it usually does not recognize such an exception to the imputed disqualification rule for a nonlawyer assistant. See, e.g., Glover Bottled Gas Corp.; Kansas Bar Ass'n Ethical Op. No. 90-555. 179 Ariz. App. at 147. The appellant suggests that there are several policy reasons to treat nonlawyers differently than lawyers and that screening devices can be effectively used to prevent communication of material and confidential information. They are: (1) screening devices will adequately protect the former client's confidentiality concerns; (2) screening balances the interest of the current client in maintaining his or her choice of counsel throughout the litigation; (3) screening would protect the interests of the nonlawyer employee in allowing them greater flexibility to change jobs; and (4) screening is allowed under the rules when a governmental attorney leaves employment with the government and moves to a private firm. Screening devices, however, are prohibited under the KRPC. There is no provision or exception which allows them for lawyers. Because the provisions of the KRPC apply to nonlawyers as well, we decline to create a screening exception in this case. The need for confidentiality, the trust of the client, and the public's respect for the legal system all support the rule in Kansas prohibiting the use of screening devices. Although recognizing that nonlawyer employees may have different or special needs from lawyers, the court in Ciaffone justified similar treatment, stating: The reasoning of Smart Industries implicitly recognizes that a nonlawyer's employment opportunities or mobility must be weighed against client confidentiality before disqualification occurs. While this approach may appear fairer to the paralegal/secretary, it has been roundly criticized for ignoring the realities of effective screening and litigating that issue should it ever arise. For example, one commentator explained that a majority of courts have rejected screening because of the uncertainty regarding the effectiveness of the screen, the monetary incentive involved in breaching the screen, the fear of disclosing privileged information in the course of proving an effective screen, and the possibility of accidental disclosures. [Citation omitted.] Accordingly, we conclude that adherence to the existing SCR scheme [disallowing screening for lawyers moving from private firm to private firm] is the better rule. We, therefore, refrain from creating an exception to the imputed disqualification rule embodied in SCR 160. 113 Nev. At 1169-70. (Emphasis added.) In concluding, the Ciaffone court stressed that movement of nonlawyer employees from private firm to private firm does not necessarily require disqualification if the firms are on adverse sides of pending litigation. The court stated: This does not mean that anytime a nonlawyer employee changes law firms that the new employer must be disqualified under SCR 160. First, if the nonlawyer employee never obtained confidential information as defined by SCR 156 and 159, no ethical problem arises requiring disqualification. Second, even if a nonlawyer employee had access to privileged information, SCR 160(4) provides that the former law firm and its client may waive disqualification if they are satisfied the present employer law firm is adequately screening the nonlawyer employee. 113 Nev. at 1169 n.3. As previously mentioned, nonlawyers are privy to a great deal of confidential information regarding the litigation in the office they work in. They are also often involved in legal strategy and planning. The client expects and our legal system requires the client's confidences to be protected. To treat nonlawyers in a different manner than lawyers would seriously erode the foundation of the KRPC and place at risk the public trust in the legal system. Because KRPC 1.10 does not allow for the implementation of a screening device or Chinese wall for lawyers, it likewise does not allow for the use of a screening device for nonlawyers. Our holding today does not mean that disqualification is mandatory whenever a nonlawyer moves from one private firm to another where the two firms are involved in pending litigation and represent adverse parties. A firm may avoid disqualification if (1) the nonlawyer employee has not acquired material and confidential information regarding the litigation or (2) if the client of the former firm waives disqualification and approves of the use of a screening device or Chinese wall. The district court's order disqualifying Fisher Patterson from the Zimmerman case is affirmed. SIX, J., not participating. ROBERT J. LEWIS, JR., J., assigned. [1]