ETHICS  QUARTERLY

A Service of the San Diego County Bar Association's Legal Ethics Committee

December 2004   Vol. 1, No. 4

INTRODUCTION

This is the fourth and final edition of Ethics Quarterly for 2004.  Ethics Quarterly is a service provided by the SDCBA's Legal Ethics Committee.  This edition covers cases from September 15, 2004 to December 15, 2004.  Committee members Heather Rosing, of KLINEDINST PC; Steve Oetting, of the Office of the Attorney General; and Wendy Patrick, of the Office of the District Attorney, prepared this edition.  Heather Rosing served as Coordinating Contributor, and Wendy Patrick prepared the commentary at the end.  Please note the request for comment from the membership at the end of the case abstracts on a cutting edge question of legal ethics the Legal Ethics Committee is currently addressing.

The Legal Ethics Committee has appreciated the comments it has received from a broad cross-section of the Bar’s membership on the usefulness of Ethics Quarterly.  We also have appreciated the support and encouragement we have received from SDCBA President Wells Lyman, Past President Tom Warwick and the rest of the Bar Board in producing the Ethics Quarterly and our other projects and programs. 

The Legal Ethics Committee’s next seminar will be “The Ethical Edge: An Interactive Program” and will be held on January 27, 2005 from 5:30 p.m. to 9:00 p.m. at the Bar Center.  Most of the program will consist of attendees discussing, with fellow Bar members at their table, four problems in professional responsibility addressed in other jurisdictions, though not yet definitively in California. Attendees will receive 3 hours of MCLE credit in Legal Ethics.  To register online, please go to members.sdcba.org.  For more information about the program, please call the Bar at (619) 231-0781 or contact Committee Chair Dan Eaton at the e-mail address below. 

Comments or inquiries about the Ethics Quarterly or about the Committee’s other services, such as the Committee’s availability to provide Ethics seminars to individual practice sections at no cost, should be directed to Legal Ethics Committee Chair Dan Eaton at eaton@scmv.com.

 

 

CASE NOTES

 

1.4.1

Code Civ. Proc. § 1209, subd. (a)(3) & (5):  Willful neglect or violation of duty by an attorney/ disobedience of any lawful order. 

 

Case:

In re Aguilar (2004) 34 Cal.4th 386

 

Issue:

 

Is an associate attorney subject to contempt for failing to appear for oral argument before the California Supreme Court if, after notifying the Supreme Court he would appear at oral argument, the attorney terminated his employment with the law firm, which was counsel of record?

 

Holding:

 

Yes.  The Supreme Court found the associate in contempt, ruling that his “decision to leave the firm did not automatically terminate his professional responsibilities either to his former client or to this court.”  Id., p. 391.  The managing partner, who also did not show for oral argument and who was found to have lied to the court, was also found in contempt.

 




 


1.4.2

Prosecutorial Immunity

 

Case:

Genzler v. Longanbach (9th Cir. 2004) 384 F.3d 1092

 

Issue:

 

Is a prosecutor entitled to absolute immunity for allegations of manufacturing evidence in the process of interviewing a witness after a criminal complaint has been filed where there are no allegations the prosecutor discussed how the witness should testify?

 

Holding:

 

No.  Prosecutors are entitled to absolute immunity when they perform a “quasi-judicial function.”  When prosecutors perform an investigative function normally conducted by police, as opposed to an advocacy function of evaluating evidence and interviewing witnesses, they do not act in a quasi-judicial manner.  The timing of the evidence gathering is critical.  Investigation before there is probable cause to arrest is clearly investigatory.  On the other hand, interviews conducted even after probable cause is established are not necessarily protected.  In the instant case, the lack of evidence that the prosecutor discussed with the witness how to present evidence in a court proceeding undermined his ability to assert absolute immunity.  The Ninth Circuit concluded: “[T]he interview notes show a process of investigation – or, viewed in the light most favorable to [plaintiff], a process of manufacturing evidence while performing an investigatory function – not [prosecutors] acting as advocates by telling [the witness] how she should testify.”  Id., p. 1103.  In contrast, prosecutorial supervisors were entitled to absolute immunity because the allegations that they condoned the use of perjured testimony involved advocacy related to the judicial phase of the criminal process.

 

 

 

1.4.3

Attorney Third-Party Liability/Estate Planning Attorney’s Duty to Beneficiaries

 

Case:

Boranian v. Clark ( 2004) 123 Cal.App.4th 1012

 

Issue:

 

Does an estate planning attorney owe a duty to the children of his client’s estate where the children contend that the will does not reflect their mother’s true intent?

 

Holding:

 

No.  In this instance, the court found that the lawyer’s liability to the intended beneficiary children is not absolute or automatic, and “there is no such liability when the testator’s intent or capacity is placed at issue by the allegedly intended beneficiary.”  The court held that while a duty may arise “to act with due care with regard to the interest of the intended beneficiary, the scope of the duty owed to the beneficiary is determined by reference to the attorney-client relationship.”  The children’s allegations in this case would have put the attorney in a position where he was potentially forced to act in their best interest, as opposed to the directions of his client. 

 

Note:

The court cited the case of Moore v. Anderson Zeigler Disharoon Gallagher & Grey (2003) 109 Cal.App.4th 1287.  The court made reference to the Moore case:  “As Moore also explains, a rule that extended a lawyer’s duties to beneficiaries in this context would place ‘an intolerable burden’ on the lawyer.”

 

The Court of Appeal issued this opinion on the same date as the Featherson v. Farwell opinion.  Both cases deal with essentially the same issue, and reach the same result, using the same reasoning.

 

1.4.4

Attorney Third-Party Liability/Estate Planning Attorney’s Duty to Beneficiaries

 

Case:

Featherson v. Farwell (2004) 123 Cal.App.4th 1022.

 

Issue:

 

Does an estate planning attorney owe a duty to his client’s beneficiary where the testator’s intent or capacity is questioned?

 

Holding:

 

No.  In this case, the attorney did estate planning work for a mother.  When the mother passed away, the daughter claimed that the attorney should have recorded a deed transferring the mother’s house to her.  The attorney had not immediately recorded the deed, because he was concerned about the mental and physical state of the mother, his client.  The court found that, while beneficiaries may often be owed a duty by the attorney in question, the lawyer’s liability to the intended beneficiary is not automatic or absolute.  The court commented that “there is no such liability where the testator’s intent or capacity is questioned.”  In this case, if the lawyer had acted in the daughter’s best interest, as opposed to the mother’s best interest, the lawyer would have been potentially breaching a duty owed to the mother.  “Where, as here, the extension of that duty to a third party could improperly compromise the lawyer’s primary duty of undivided loyalty by creating an incentive for him to exert pressure on his client to complete her estate planning documents summarily, or by making him the arbiter of a dying client’s true intent, the court simply will not impose that insurmountable burden on the lawyer.” 

 

Note:

While the court did not impose a duty the lawyer in this particular situation, there are cases that have repeatedly held that an attorney who assumes preparation of a will incurs a duty not only the testator client, but also to his intended beneficiaries, and a lack of privy does not preclude the testamentary beneficiary from maintaining an action against the attorney based on either the contractual theory of third party beneficiaries or the tort theory of negligence.  See e.g., Osornio v. Weingarten discussed below.

 

 

1.4.5

Rule 3-310:  Avoiding Representation of Adverse Interests

 

Case:

Benasra v. Mitchell, Silberberg & Knupp (2004) 123 Cal.App.4th 1179

 

Issue:

 

Does Code of Civil Procedure section 425.16, the anti-SLAPP statute, require dismissal of a now-former client’s claim that an attorney breached its duty of loyalty by accepting representation of an adversary in an arbitration before ending its representation of the first client in violation of the duty if loyalty? 

 

Holding:

 

No.  The Court found that the potential breach of duty of loyalty and confidentiality caused by the conflict of interest occurred not when the attorney stepped into court to represent the new client, but when he abandoned the old client.  It is not the attorney’s conduct in court (a public forum) which forms the basis for the allegations of the old client, but rather the potential violation of the ethical duty in accepting representation adverse to the old client, while the representation of the old client is still continuing.  “In other words, once the attorney accepts a representation in which confidences disclosed by a former client may benefit the new client due to the relationship between the new matter and the old, he or she has breached a duty of loyalty.”  The Court continued, “As appellants so aptly put it, their claim is not based on ‘filing a petition for arbitration on behalf of one client against another, but, rather, for failing to maintain loyalty to, and the confidences of, a client.’”  Id., p. 1189.

 

Note:

In this case, the court did not find that the respondent attorneys had in fact breached a duty of loyalty or confidentiality, or engaged in conduct that constituted an impermissible conflict of interest.  Rather, the court said that the allegations of the appellants in the matter simply did not fall within the first prong of the anti-SLAPP statute.  The court did not do any analysis other than an analysis of the first prong.  The second prong of the anti-SLAPP statute is whether “the plaintiff has established that there is a probability that the plaintiff will prevail on the claim.”   

 

 

1.4.6

Penal Code Section 1054/ Criminal Discovery

 

Case:

Roland v.  Superior Court ( 2004) 124 Cal.App.4th 154

 

Issue:

 

Are oral statements made by a witness directly to a defense investigator or directly to defense counsel subject to disclosure?

 

Holding:

 

Yes.  The purpose of the criminal discovery statutes is to promote liberal discovery.  Interpreting sections 1054.3 (defense to prosecution) as well as 1054.1 (prosecution to defense) to include oral statements of witnesses will allow both sides to acquire the greatest amount of information with which to prepare their respective sides of the case, “which in turn facilitates the ascertainment of the truth at trial.”  Id. at 165.    Oral statements of witnesses are subject to disclosure when they are communicated to defense counsel by an investigator who has interviewed the witness, as well as when the oral witness statement is made directly to defense counsel. 

 

Note:

 The court noted that its holding would discourage attorneys from engaging in underhanded tactics such as failing to write down witness statements in order to not have to disclose them, Id. at 165, or conducting in-person interviews instead of using investigators, so as to exempt the statements from disclosure.  Id. at 167.  In both of these discussions the court cited from In re Littlefield (1993) 5 Cal.4th 122, 133: “such gamesmanship is inconsistent with the quest for truth, which is the objective of modern discovery.”  Id. at 165, 167. 

 

1.4.7

Ineffective Assistance of Counsel

 

Case:

Florida v. Nixon (2004) 125 S.Ct. 551

 

Issue:

Does defense counsel’s failure to get his capital defendant-client’s express consent to a strategic concession of guilt presumptively constitute prejudicial ineffective assistance of counsel?

 

Holding:

 

No.  Defense counsel’s failure to obtain the defendant’s express consent to employing a strategy of conceding guilt at the guilt phase of a capital trial did not automatically render counsel’s performance deficient.  Despite this concession, a defendant retains his rights as a criminal defendant to have the prosecution prove the evidence against him beyond a reasonable doubt, as well as his rights to object to the introduction of evidence and to cross-examine the witnesses against him.  Although defense counsel has a duty to strategize a case with his client, “when a defendant, informed by counsel, neither consents nor objects to the course counsel describes as the most promising means to avert a sentence of death, counsel is not automatically barred from pursuing that course.”  Id., p. 555.

 

 

 

Note:

What distinguishes this case from many others is the defendant’s unresponsiveness when defense counsel described his planned trial strategy.  The court held that the reasonableness of defense counsel’s strategic choice to concede guilt at the guilt phase of the trial after his client was unresponsive to his informing his client of his strategy choice, should be judged under Strickland v. Washington (1984)  466 U.S. 668, 688: “Did counsel’s representation ‘f[a]ll below an objective standard of reasonableness?’” Id., p. 555. The lower court erroneously judged the reasonableness of defense counsel’s performance under the standard announced in United States v. Cronic (1984) 466 U.S. 648, which presumed deficient performance by counsel as well as prejudice.  Ibid.  The presumption of prejudice applies when defense counsel fails to mount meaningful opposition to the prosecution’s case; it does not apply “based solely on a defendant’s failure to provide express consent to a tenable strategy counsel has adequately disclosed to and discussed with the defendant.”  Ibid.  

 

 

1.4.8

Attorney Third-Party Liability/Estate Planning Attorney’s Duty to Beneficiaries

 

Case:

Osornio v. Weingarten (2004) 124 Cal.App.4th 304

 

Issue:

Does an estate planning attorney owe a duty of care to the testator’s intended beneficiary, the testator’s care custodian,  (1) “to advise the testator that her intended beneficiary, [her care custodian], would be presumptively disqualified unless the testator obtained a Certificate of Independent Review from another attorney, under [Probate Code] section 21351, subdivision (b)”; and (2) “to take appropriate measures to ensure that the testator’s wishes were carried out by referring her to counsel to obtain such a certificate”?  Id., pp. 312-313.

 

Holding:

 

Yes.  “An attorney drafting instruments on behalf of the transferor-client – the dispositive provisions of which include a proposed transfer to a presumptively disqualified person under section 21350(a) – must assist the client in making the transfer in a manner that does not unduly expose the transfer to attack. . . . [T] he attorney owes a duty of care: (1) to advise the client that, absent steps taken under 21351(b), the subject transfer to the proposed transferee, if challenged, will have a significant likelihood of failing because of the proposed transferee’s presumptive disqualification under section 21350(a); and (2) to recommend that the client seek independent counsel in an effort to obtain a Certificate of Independent Review provided under  section 21351(b).”  Id., p. 334. 

 

Note:

The court distinguished Moore, relied upon in both Boranian v. Clark (2004) 123 Cal.App.4th 1012 and Featherson v. Farwell (2004) 123 Cal.App.4th 1022, discussed above, because “no such problem of conflicting loyalties arises here; imposing a duty upon [the attorney] under the circumstances presented promotes the objectives of the client to transfer the client’s estate to the nonclient/ beneficiary.”  Id., p. 326.

 

In a footnote, the Court noted that neither Boranian nor Featherson was final as of the time of the Osornio opinion.  In any event, those cases, like Moore, involved the imposition of a duty that “would place the attorney in a position of having divided loyalties between his or her client, the testator, and the beneficiary.”  Id., p. 337, note 29.  The issues in Osornio raised no such conflict.

 

The Court noted that it was reversing a judgment based on a demurrer sustained without leave to amend.  The Court noted that the “the facts may ultimately disclose that it would have been unlikely for a variety of reasons that [the testator] would have obtained a Certificate of Independent Review, even had [the defendant-attorney] advised her of the importance of seeking counsel to obtain it.”  Id., p. 332.   

1.4.9

Cal. Code Civ. Proc. § 2018:  Attorney Work Product

 

Case:

Laguna Beach County Water District v. Superior Court (2004) 2004 WL 2896565 (Cal.App. 4 Dist.)

 

Issue:

 

By sending letters containing thoughts, impressions and conclusions about pending litigation to auditors, does a lawyer waive the right to assert attorney work product protection?

 

Holding:

 

No.  A disclosure that does not contravene the purpose of the work product doctrine does not waive the privilege.  “’The purpose of the work product doctrine is to protect information against opposing parties, rather than against all others outside a particular confidential relationship, in order to encourage effective trial preparation.’”  Id. at 4.  (citing BP Alaska Exploration, Inc. v. Superior Court (1988) 199 Cal.App.3d 1240, 1256; see also Code Civ. Proc., section 2018, subd.(a).)  “[W]ork product protection ‘is not waived except by a disclosure wholly inconsistent with the purpose of the privilege, which is to safeguard the attorney’s work product and trial preparation.  [Citations.]’ [Citation.]”  Id. (citing Oxy Resources California v. Superior Court (2004) 115 Cal.App.4th 874, 891.) 

 

Note:

In deciding this issue, the court did not find any California law on the specific question of whether work product which is revealed to an auditor in an audit response letter loses its protection.  Id. at 5.   The court reached its conclusion by examining federal court cases on both sides of the issue, and distinguishing the ones that found against the protection.  Id.

 

 

IMPORTANT UPDATES:

On July 21, 2004, the California Supreme Court granted review in Jasmine Networks, Inc. v. Marvell Semiconductors, Inc. (2004) 117 Cal.App.4th 794, abstracted in issue 2 of Ethics Quarterly.  The question in that case was whether a party waives the protection of the attorney-client privilege by inadvertently disclosing communications between the party and its attorney on the voicemail system of the opposing party.  The Court of Appeal found that this could constitute a waiver.  The court held that "the language of Evidence Code section 912(a) is clear that the holder of the privilege . . . may waive it by disclosing the privileged information. . . .  There is no requirement in the statute itself, nor in the cases interpreting the statute that the privilege holder intend to disclose the information when that [sic] the holder makes an uncoerced disclosure."  Id., p. 804. Further action in the review process is deferred pending consideration and disposition of a related issue in Rico v. Mitsubishi Motors Corp., or pending further order of the court.

On December 15, 2004, the California Supreme Court unanimously granted review in Flatley v. Mauro, abstracted in the last issue of Ethics Quarterly and previously reported at (2004) 121 Cal.App.4th 1523.  Because the petition for review was granted, the case is no longer citable authority.  The case involved a civil extortion claim brought by Michael Flatley, the “Lord of the Dance” star, against an attorney who threatened on behalf of his client to “go public” with a claim that Flatley had raped his client unless Flatley paid one million dollars.   The court of appeal held that such a threat was not protected speech under the anti-SLAPP statute.  The grant of review will provide an opportunity for the court to balance the competing interests behind the litigation privilege/ First Amendment and California Rule of Professional Conduct 5-100 which bars threats of criminal proceedings to gain an advantage in civil litigation.

 

 

 

Disclaimer:  Counsel should read the full text of the cases discussed before relying on the necessarily limited discussion of them here.  Counsel also should be mindful that some of the Court of Appeal cases addressed may be subject to depublication or review by the California Supreme Court.   All cases should therefore be checked to confirm they are citable.

 

NEED FOR SDCBA MEMBER FEEDBACK:

 

The Legal Ethics Committee is looking for our bar members' views on the following two issues:

 

New Cal. R. Prof. Conduct 3-100(B) provides, "A member may, but is not required to, reveal confidential information relating to the representation of a client to the extent that the member reasonably believes the disclosure is necessary to prevent a criminal act that the member reasonably believes is likely to result in death of, or substantial bodily harm to, an individual" subject to certain conditions precedent.

 

  1. Is there anything unethical or unlawful about a client insisting, at the outset of the representation, that the attorney waive this discretionary right as a condition to representing the client in a specific matter?

 

  1. May an attorney ethically and legally announce his or her election to voluntarily abandon or waive this discretionary right at the outset of the representation if such a situation ever arises in the course of representing the client, regardless of any demand by the client?

 

 

 Please contact Bob Gerber at rgerber@sheppardmullin.com with your responses.


 

 

 

COMMENTARY:  A Statement is a Statement - Oral Witness Statements Must Be Disclosed in Criminal Discovery

by Wendy L. Patrick, Esq.[1]  

Criminal discovery is governed by Penal Code Section 1054 et seq, which describes the discovery obligations of both sides in a criminal case.  Under Section 1054.1, the prosecution is obligated to disclose the enumerated information “if it is in the possession of the prosecuting attorney or if the prosecuting attorney knows it to be in the possession of the investigating agencies.”  They also have the additional duty under PC 1054.1(e) disclose any exculpatory evidence.

 

Both sides are bound by a reciprocal obligation to disclose the names and addresses of witnesses intended to be called at trial as well as their statements.  In addition, PC 1054.1(f) mandates disclosure of “[r]elevant written or recorded statements of witnesses or reports of the statements of witnesses whom the prosecutor intends to call at the trial . . .”   The reciprocal defense obligation under Section PC 1054.3(a) is similarly phrased regarding witness statements other than the defendant, mandating disclosure of “relevant written or recorded statements of those persons, or reports of the statements of those persons . . .”     There has been discussion in the criminal arena, however, as to what constitutes a witness “statement” or “report.”  Those issues were addressed on November 18, 2004 by the California Court of Appeal, Third District, in deciding Roland v. Superior Court (2004) 21 Cal.Rptr.3d 151 [Not Yet Final]. 

 

Early in the opinion, Roland quoted from In re Littlefield (1993) 5 Cal.4th 122, 129, in recognizing that in a criminal case, “all court-ordered discovery is governed exclusively by--and is barred except as provided by--the discovery chapter . . . enacted by Proposition 115.”  Id. at 153.  The court noted the voters’ intent behind enacting the discovery statutes was to “reopen the two-way street of reciprocal discovery” (Id. at 154 [quoting Izazaga v. Superior Court (1991) 54 Cal.3d 356, 372], and “restore balance and fairness to our criminal justice system.”  Id. (citing Prop. 115, section 1(a).)   

 

The holding in Roland, which will have a significant impact on criminal case preparation, was that even oral statements made by witnesses must be disclosed.  In Roland, the defense attorney advised court and counsel that he would be calling seven new witnesses at trial; the court ordered him to provide the prosecution with all witness statements, both written and oral.  (Id. at 153.)  The court gave defense counsel the option of providing this information to the prosecutor by giving him written reports of their statements, or simply by calling him and providing the information in summary form over the phone.  (Id.)  Defendant Roland argued that PC 1054.3 did not include the obligation to disclose unrecorded oral witness statements.  (Id.) 

 

The Roland court first examined statements of witnesses that are conveyed to counsel through a third party.  The court began its analysis of PC 1054.3 by noting that the plain meaning of the language of PC 1054.3 included written witness statements, video or tape-recorded oral statements, and also the “raw written notes” of a defense investigator’s interview of a witness.  (Id. at 154-55 [citing Thompson v. Superior Court (1997) 53 Cal.App.4th 480, 486].)  The court proceeded to conclude through examining the plain meaning and purpose of PC 1054.3 that the statute’s disclosure requirement includes oral witness statements that are orally communicated to defense counsel by third parties, such as an investigator.  (Id. at 155-56.)  Part of the support for this conclusion stemmed from a close examination of the statutory language.  The court noted that “[t]he statute’s use of the word ‘or’ rather than ‘and,’ as well as its use of a comma to separate ‘statements’ from ‘reports of the statements,’ indicates that the words ‘written or recorded’ modify ‘statements,’ not ‘reports of the statements.’” (Id. at 155.)   The court also noted that PC 1054.3 used the language “of those persons” two times, which was likely designed to separate the two categories.  (Id.)  The rationale and two-way street nature of the conclusion was further explained, “[i]nterpreting section 1054.3 and concomitantly section 1054.1 to include witnesses’ oral statements contained in oral reports to counsel will help ensure that both parties receive the maximum possible amount of information with which to prepare their cases, which in turn facilitates the ascertainment of the truth at trial.”  (Id. at 156.)  Recognizing that there is no duty for defense counsel to acquire written witness statements, (Id. at 157 [citing In re Littlefield (1993) 5 Cal.4th 122, 136]), the court explained that they cannot avoid the duty to disclose relevant witness statements by simply failing to write down the information.  (Id. at 157.)

 

The court then tackled the issue of whether oral statements made directly to defense counsel were required to be disclosed, and concluded that they were.  (Id. at 157.)  The reasoning behind this conclusion included the recognition that “excluding such statements from the disclosure requirement of section 1054.3--and concomitantly section 1054.1--would undermine the voters’ intent because it would permit defense attorneys and prosecutors to avoid disclosing relevant information by simply conducting their own interviews of critical witnesses, instead of using investigators to perform this task, and by not writing down or recording any of those witnesses’ statements.”  (Id. at 158.) 

 

The impact of Roland will have a widespread effect on criminal practitioners, because the issue of how to deal with oral witness statements is a dilemma faced frequently in criminal proceedings.  Please stay tuned as we follow the progression of this case, and case law in this area.



[1]  Wendy L. Patrick is a Deputy District Attorney for San Diego County and a member of the SDCBA Legal Ethics Committee.  The views expressed are hers alone and are not necessarily those of the SDCBA or the San Diego County District Attorney’s office.