Judge: Serena R. Murillo, Case: 19STCV33158, Date: 2023-09-26 Tentative Ruling

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Case Number: 19STCV33158    Hearing Date: September 26, 2023    Dept: 31

TENTATIVE

Plaintiffs’ motion to disqualify is DENIED in its entirety.

Legal Standard

A trial court is empowered to disqualify counsel through its inherent power to control the conduct of its ministerial officers, and of all other persons in any manner connected with a judicial proceeding before it. (M’Guinness v. Johnson (2015) 243 Cal.App.4th 602, 669.)

 

A party may move to recuse (disqualify) counsel for the opposing party on grounds recognized by law, including mandatory disqualification for conflict of interest.  Conflicts of interest generally include: concurrent or successive representation of clients with adverse interests, receipt of confidential information outside the attorney-client relationship, the lawyer’s relationships with nonclients, conflicts based on the lawyer’s own interests, business dealings with clients and conflicts in criminal cases. (Lynn v. George (2017) 15 Cal.App.5th 630, 638.)

 

Attorneys are forbidden from accepting employment adverse to current or former clients without informed written consent where the attorney, by virtue of his or her current or former representation, “has obtained confidential information material to the employment.”  (Cal. Rules of Prof. Conduct, rule 3-310(E).)  This rule is designed to “protect the confidential relationship … between attorney and client … which continues after the formal relationship ends.”  (Henriksen v. Great American Savings & Loan (1992) 11 Cal.App.4th 109, 113 (Henriksen); accord Bus. & Prof. Code, § 6068, subd. (e)(1) [an attorney must “maintain inviolate the confidence, and at every peril to himself or herself to preserve the secrets, of his or her client”].) 

 

In ruling on a motion to disqualify, the court should weigh: (1) the party’s right to counsel of choice; (2) the attorney’s interest in representing a client; (3) the financial burden on a client for change of counsel; (4) any tactical abuse underlying a disqualification motion; and (5) the principal that the fair resolution of disputes requires vigorous representation of parties by independent counsel. (Mills Land & Water Co. v. Golden West Refining Co. (1986) 186 Cal.App.3d 116, 126.) Whether an attorney should be disqualified is a matter addressed to the sound discretion of the trial court. (Henriksen, supra, Cal.App.4th at p. 113.) In exercising that discretion, the trial court is required to make a reasoned judgment which complies with the legal principles and policies applicable to the issue at hand.  (Ibid.)

 

 

Discussion

 

Plaintiffs move to (i) disqualify counsel for ACLU, arguing they engaged in misconduct and violated their ethical duties by ignoring an obvious conflict of interest and (ii) to prohibit the ACLU from pursuing its injunctive relief claim under Code of Civil Procedure 526a on the ground that ACLU breached, and in any event unilaterally terminated, the co-counseling agreement that formed the basis of its participation in this action in the first place and therefore its ability to prosecute the claim.

Disqualification of ACLU attorneys is sought because Peter Bibring, a former attorney of record and lead attorney for ACLU in this case up through 2023, quietly began negotiating with Defendant County of Los Angeles for a job as Assistant Inspector General, a position in the office that is overseeing the deputy gang issue for Defendant. Bibring later admitted that he had been in talks with Defendant County for months regarding employment with them, while negotiating with the County over the terms and scope of the reform agreement. Bibring’s co-counsel, Melanie Ochoa and Tiffany Bailey, were aware of Bibring’s “backroom negotiations” but failed to take appropriate action to avert a clear conflict of interest.

Plaintiffs argue that ACLU and its counsel have engaged in self-dealing and endeavored to disregard and even undermine the interests of the Deputy Plaintiffs by hijacking settlement negotiations with the defendants and unilaterally and prematurely pursuing a reform settlement at the expense of the Deputy Plaintiffs in violation of their Co-Counsel Agreement, which states, “Neither Party will enter into settlement discussions, or agree to a settlement, without first securing the review and consent of the other Party.” (Emphasis added.) Plaintiffs argue that ACLU’s attorney’s intentional breach of the co-counseling agreement constitutes an ethical violation requiring their disqualification.

i.                     Standing

As an initial matter, ACLU argues that Plaintiffs lack standing to challenge ACLU’s counsel’s representation of ACLU. Deputy Plaintiffs have not alleged that they had an attorney-client relationship with ACLU’s counsel and, in fact, they could not, as the parties’ Agreement expressly disclaimed any attorney-client relationship. The Deputy Plaintiffs also have not alleged that Ms. Ochoa or Ms. Bailey have violated any duty to the Deputy Plaintiffs that would serve as a basis to disqualify the ACLU: they have not alleged that they possess any confidential information of the Deputy Plaintiffs’ or had any fiduciary relationship that would require them to maintain the confidentiality of such information. Again, they could not make such an allegation because no private or confidential information about the Deputy Plaintiffs was ever disclosed to ACLU counsel. Instead, the Deputy Plaintiffs allege that a former ACLU attorney, Peter Bibring, had a conflict in that he was seeking employment with the County during a time he was also representing the ACLU as a plaintiff in this case. Yet any duty that Bibring owed was to his clients, not to the Deputy Plaintiffs. And his client provided informed consent to his continued representation, which resolved the conflict. ACLU also argues that the Deputy Plaintiffs have not alleged a cognizable injury sufficient to convey standing to challenge ACLU counsel’s participation in this case.

Plaintiffs argue they have standing under Kennedy v. Eldridge (2011) 201 Cal.App.4th 1197, 1205. “[T]he court has an independent interest in ensuring trials are conducted within ethical standards of the profession and that legal proceedings appear fair to all that observe them.” (In re A.C. (2000) 80 Cal.App.4th 994, 1001.) Accordingly, where an attorney's continued representation threatens an opposing litigant with cognizable injury or would undermine the integrity of the judicial process, the trial court may grant a motion for disqualification, regardless of whether a motion is brought by a present or former client of recused counsel. (Kennedy v. Eldridge, supra, 201 Cal.App.4th 1205.)

However, it is not clear what the cognizable injury claimed here is. Plaintiffs argue that the nature of the parties’ relationship and interests indicates that the conduct of the former and current ACLU attorneys would likely have a continuing effect on the proceeding. They argue that implicit in the arrangement was that neither co-plaintiff would do anything to harm the interests of the other co- plaintiff, least of all engage in self-dealing. This peculiar arrangement could only work if the co-plaintiffs viewed their litigation strategy in a cooperative manner, but the ACLU opted to pursue its own interests seemingly without regard the consequences its strategy would have for the Deputy Plaintiffs.

Plaintiffs argue the County is well aware that signing such a reform agreement prior to a judgment in favor of the Plaintiffs at trial renders it a hollow and useless reform agreement. Any reform agreement on deputy gangs and subgroups in LASD will face tremendous pushback and a demand to “show us the evidence to support the need for reform and that deputy gangs even exist.” It is understandable that detractors would demand to see a foundation for the reform. As long as the County continues to hide and deny the evidence generated in this case, it will continue to render any signed reform agreement a sham, as it will not get the necessary support to make it successful.

Again, the Court is unable to decipher what interests will be injured. It appears Plaintiffs were seeking ACLU to join them as plaintiffs at trial for strategic and monetary purposes. Nevertheless, assuming there was a cognizable injury, the motion is nevertheless not supported by any legal basis.

ii.                  Conflict of Interest

Plaintiffs’ basis for moving to disqualify ACLU’s attorneys’ is their alleged intentional breach of the Co-Counseling Agreement, which Plaintiffs contend constitutes an ethical violation requiring their disqualification. Plaintiffs argue that an attorney owes a duty to support the laws of this state. (Bus. & Prof. Code § 6068(a).) In addition to the California Rules of Professional Conduct, attorneys in the state must adhere to Division 3, Chapter 4, of the Business and Professions Code. Plaintiffs continue, a violation of these statutory provisions constitutes a basis for bringing disciplinary charges against the attorneys. Intentionally breaching a contract in order to obtain a particular outcome in the case constitutes grounds for discipline under section 6068, Plaintiffs argue.

In opposition, ACLU argues that what the Deputy Plaintiffs characterize as ACLU’s purported breach of the Co-Counseling Agreement does not implicate a conflict of interest recognized by the California Rules of Professional Conduct, which focuses on duties lawyers owe to their current or former clients, nor does it support disqualification of counsel. (See Cal. R. of Prof. Conduct, Rules 1.7 and 1.9). Rather, the Deputy Plaintiffs and their counsel’s attempt to manufacture a “conflict of interest” because ACLU has different interests than do the Deputy Plaintiffs.

The Court agrees. Plaintiffs have not shown that this section of the Business and Professions Code would provide a basis to disqualify counsel for ACLU. Further, even if it did, it is not apparent that there was any such breach.

In support of their argument that co-counsel breached the agreement, Plaintiffs argue that the Agreement provides that, “Neither Party will enter into settlement discussions, or agree to a settlement, without first securing the review and consent of the other Party.” (Exh. 1.)

In opposition, ACLU argues that Plaintiffs cannot establish that ACLU violated any terms of the Agreement. ACLU explains that until June 27, 2023, both the Deputy Plaintiffs and the ACLU were actively participating in settlement negotiations with the County and neither set of plaintiffs objected to the participation of the other. (Ochoa Decl., ¶ 9, 13.) On that date, when Plaintiffs’ counsel informed ACLU’s counsel that his clients were going to refuse the proposed settlement and asserted that settlement negotiations should cease, ACLU immediately stopped settlement communications with the County. (Id., ¶¶ 13, 14.) ACLU’s counsel then consulted with its own ethics counsel and terminated the Agreement pursuant to Paragraph 12 of the parties’ agreement, and provided notice to Plaintiffs’ counsel that they could no longer maintain the co-counsel arrangement because the interests of the parties had diverged greatly—ACLU was continuing to seek injunctive relief for reform around LASD, while the Deputy Plaintiffs appeared willing to sacrifice potential reform in favor of greater monetary damages. (Id., ¶ 15.) ACLU did not resume settlement negotiations with the County until after its counsel provided notice terminating the Agreement to Plaintiffs’ counsel. (Id., 18.)

The Court finds that even if there were an injury or a basis providing for disqualification under Plaintiffs’ cited section, Plaintiffs have not shown that ACLU counsel breached any section of the agreement to support disqualification on the alleged grounds. The parties were in settlement discussions together, and when Plaintiffs objected to the proposed settlement between the County and ACLU, ACLU realized that their interests were not aligned and terminated the agreement, under a section of the agreement which specifically allowed them to do so.

As to Bibring’s employment with the County, ACLU provides evidence that it explicitly waived any potential conflict of interest that could arise due to Mr. Bibring’s past representation of the ACLU before Mr. Bibring applied for the position with the Office of Inspector General. (Ochoa Decl., ¶ 21.) Further, the parties’ agreement states that Plaintiffs are not ACLU’s clients. “Separate Clients. In the litigation, Vincent Miller will represent [the Deputy Plaintiffs]. ACLU Foundation shall represent itself and/or the American Civil Liberties Union of Southern California (“the Union”). Nothing in this agreement or any other document creates an attorney-client relationship between Miller and either the ACLU Union or ACLU Foundation, or between ACLU Foundation and the Plaintiff Deputies. Each Party agrees to be bound by its own retainer to its clients.” (Id., ¶ 6.)

iii.                Request to Remove ACLU

Plaintiffs argue that ACLU’s unilateral termination of the agreement coupled with engaging in “highly unethical conduct” requires it to withdraw form this case because the agreement was the vehicle for its participation in the first place.

However, the Court has already found that the attorneys did not breach the agreement. Moreover, as ACLU argues, Plaintiffs have not identified any law that would allow this Court to remove ACLU from this matter as a result of participating in settlement discussions after they terminated the agreement or terminating the agreement under its own terms allowing ACLU to do so. Plaintiffs claim that participation in the co-counsel agreement was a “condition for [ACLU] joining this action as co-plaintiff,” but do not point to any provision in the agreement which states this.

Conclusion

Based on the foregoing, Plaintiffs’ motion to disqualify is DENIED in its entirety.

Moving party is ordered to give notice.