Foss Maritime Co. v. Brandewiede
Foss Maritime Co. v. Brandewiede
Opinion of the Court
f 1 — Disqualification of counsel is a drastic sanction, to be imposed only in compelling circumstances because it “exacts a harsh penalty from the parties as well as punishing counsel.”
FACTS
f 2 This case arose from a contract dispute for the renovation of the vessel Alucia. Foss Maritime subcontracted with Core Logistic Services to do the work. A key question in the underlying dispute is whether Jeff Brandewiede and Brandewiede Construction Inc. were affiliated with Core Logistic Services or were an independent contractor.
¶3 Foss terminated Van Vorwerk, the project manager, in May 2012. In July 2012, Foss sued Core Logistic Services
¶4 In September 2013, Brandewiede’s counsel John Welch contacted Foss’s counsel John Crosetto about setting Vorwerk’s deposition. Crosetto explained that Vorwerk no longer worked for Foss and gave Welch contact information for Vorwerk. In late September 2013, Welch met Vorwerk for an interview “in lieu of sitting for a deposition.”
f 5 During the interview, Vorwerk gave Welch a copy of a “wrongful termination” letter that Vorwerk drafted and gave to Foss after his employment was terminated. Vor-werk’s letter recited facts about his work on the project. The letter included several e-mails between Vorwerk, Foss’s in-house counsel Frank Williamson, and several other Foss employees. The e-mails were not designated as attorney-client privileged communications but did contain some privileged information. Brandewiede later identified the letter as a proposed trial exhibit. At the interview, Vorwerk offered to provide copies of his other e-mails with Foss management about the project.
¶6 In late October 2013, Welch again met with Vorwerk. Vorwerk gave Welch a thumb drive containing e-mails about all of his work as a project manager for Foss.
¶7 About two weeks later, Welch informed Crosetto of the materials he received from Vorwerk, stating he had “only
¶8 Crosetto was concerned that Vorwerk had provided Welch with privileged information. On November 12, 2014, Crosetto requested that Brandewiede give Foss “all documents provided by Mr. Vorwerk.”
¶9 On November 22, 2013, Foss filed a motion to disqualify Welch and his firm. Foss argued that Vorwerk’s materials contained privileged information and that Welch’s possession and use of the documents prejudiced Foss in violation of both RPC 4.2 and 4.4(a). Foss also sought a CR 26(b) discovery sanction excluding all evidence “tainted” by Vorwerk’s and Welch’s “wrongful conduct.”
¶10 The trial court heard the parties’ arguments on Foss’s motion to disqualify counsel and for sanctions.
¶11 The trial court reviewed the documents in camera and issued an order disqualifying Welch and his firm. The trial court determined that “Brandewiede’s counsel did not
¶12 Brandewiede sought discretionary review of the trial court’s order disqualifying counsel and excluding evidence. This court granted discretionary review and a temporary stay.
ANALYSIS
¶13 We generally review a disqualification order for an abuse of discretion.
¶14 Brandewiede contends the trial court erred in not conducting an on-the-record analysis of the Burnet v. Spokane Ambulance factors before disqualifying his counsel and excluding evidence.
¶15 CR 26(b)(1) limits the scope of discovery, allowing for discovery of anything material and relevant to the litigation except for privileged matters.
If information produced in discovery is subject to a claim of privilege ..., the party making the claim may notify any party that received the information of the claim and the basis for it. After being notified, a party must promptly return, sequester, or destroy the specified information and any copies it has; must not use or disclose the information until the claim is resolved; and must take reasonable steps to retrieve the information if the party disclosed it before being notified. Either party may promptly present the information in camera to the court for a determination of the claim. The producing party must preserve the information until the claim is resolved.
¶16 The trial court here neither made findings nor entered conclusions as to whether any discovery or ethical rules were violated. The trial court determined Vorwerk’s and Welch’s conduct was wrongful but did not state what conduct was wrongful and whether that conduct violated any rules.
¶17 Burnet and its progeny constrain a trial court’s discretion to order “dismissal, default, and the exclusion of
¶18 Mayer v. Sto Industries, Inc. held that a trial court need not apply the Burnet factors when imposing lesser sanctions, e.g., monetary sanctions, but must do so when imposing severe sanctions under CR 37(b).
¶19 Washington courts have applied Burnet to a trial court’s orders excluding witnesses,
Firestorm and Fisons
¶20 Firestorm and Fisons define the standard for disqualification of counsel here. Fisons established the principles that trial courts must follow in imposing discovery sanctions for CR 26(b) violations.
¶21 Prejudice. In many discovery disputes, prejudice focuses on the opposing party’s ability to prepare for trial when improperly denied discovery.
¶22 Fault. Counsel’s access to privileged information may range from an innocuous, inadvertent disclosure by the opposing party to serious ethics violations. The level of fault or misconduct by counsel is an important factor in deciding whether disqualification is appropriate.
¶23 Counsel’s Knowledge of Claim of Privilege. If an attorney reviews materials clearly designated as privileged information or continues review once the attorney becomes aware there are claims of privileged information, disqualification may be warranted.
¶24 Lesser Sanctions. Discovery sanctions serve to deter, punish, compensate, educate, and ensure that the wrongdoer does not profit from the wrong.
¶25 No one factor predominates or has greater importance than others. It is best practice to enter written findings and conclusions identifying the specific grounds relied on for disqualification and applying the four factors above.
¶26 Foss contends mere access to privileged communications requires disqualification under Firestorm. But Firestorm did not establish a per se rule that mere access to privileged information taints the judicial process and requires disqualification, regardless of the circumstances. Rather, Firestorm requires disqualification when counsel has access to an opposing party’s privileged information in a conflict of interest setting.
f 28 Further, CR 26(b)(6) provides that once a party has been notified that it has access to an opposing party’s privileged information, that party “must promptly return, sequester, or destroy the specified information and any copies it has; must not use or disclose the information until the claim is resolved; and must take reasonable steps to retrieve the information if the party disclosed it before being notified.” Nowhere does CR 26(b)(6) state that an attorney must be disqualified for acquiring an opposing party’s privileged information. To the contrary, CR 26(b)(6) permits either party to “promptly present the information in camera to the court for a determination of the claim” of privilege. We reject any suggestion that an attorney’s mere access to an opposing party’s privileged information compels disqualification.
¶29 Foss attempts to distinguish Firestorm, but Firestorm and Fisons control. As in Firestorm, the trial court here neither made findings nor entered conclusions supporting its disqualification order. And as in Firestorm, Welch was not trolling for Vorwerk or attempting to “create delay or confusion” by interviewing Vorwerk.
¶30 Therefore, because the trial court did not expressly apply the four factors of prejudice, counsel’s fault, counsel’s knowledge of claim of privilege, and possible lesser sanctions, we reverse the trial court’s disqualification order and remand for further proceedings consistent with this opinion.
¶31 We note there are practical concerns in reviewing the disputed materials in order to effectively argue prejudice. Before appeal, Welch accessed and reviewed significant portions of Vorwerk’s termination letter. But Brandewiede’s counsel on appeal intentionally avoided reviewing any of Vorwerk’s materials to preclude any suggestion of impropriety. As a consequence, he is unable to articulate the presence or absence of prejudice informed by the contents of the alleged privileged communications. In such a setting, it may be appropriate for the trial court to enter a protective order allowing special counsel to review the alleged privileged materials solely for the purpose of presenting argument in the trial or appellate court regarding prejudice.
¶32 Such an order would be similar to a “quick-peek” agreement, where “counsel are allowed to see each other’s entire data collection before production and designate those items that they believe are responsive to the discovery requests.”
Tainted Records
¶33 The trial court’s disqualification order, as drafted by Crosetto, excludes evidence “tainted” by Vorwerk’s and
¶34 First, Foss concedes that “Brandewiede can offer the Vorwerk Letter (properly redacted to remove privileged communications).”
¶35 Second, Foss concedes that Brandewiede can also offer “non-privileged, non-proprietary, and non-confidential information on the thumb drive (all of which Foss has already produced in discovery).”
¶36 Moreover, there are significant distinctions between attorney-client privilege and proprietary or other confidential information. This appeal concerns only the unauthorized disclosure of privileged information. Because the brief
¶37 Lastly, Brandewiede suggests the trial court may have imputed Vorwerk’s wrongful conduct in sanctioning Brandewiede and his counsel, but any claim against Vorwerk is beyond the scope of this appeal.
CONCLUSION
¶38 We conclude the trial court’s order of disqualification does not satisfy the principles and guidelines of Fisons and Firestorm. We therefore reverse the trial court’s order of disqualification. On remand, any order of disqualification will require the consideration and analysis of (1) prejudice, (2) counsel’s fault, (3) counsel’s knowledge of privileged information, and (4) possible lesser sanctions. We reverse the existing order of disqualification and remand for further proceedings consistent with this opinion.
Review denied at 185 Wn.2d 1012 (2016).
In re Firestorm 1991, 129 Wn.2d 130, 140, 916 P.2d 411 (1996).
129 Wn.2d 130, 916 P.2d 411 (1996).
122 Wn.2d 299, 858 P.2d 1054 (1993) (plurality opinion).
Clerk’s Papers (CP) at 135.
CP at 114.
CP at 200.
CP at 116.
CP at 82.
CP at 45.
While not at issue on appeal, both parties filed motions for CR 37 discovery sanctions. The trial court denied both parties’ motions.
CP at 277.
CP at 277.
Pub. Util. Dist. No. 1 of Klickitat County v. Int’l Ins. Co., 124 Wn.2d 789, 812, 881 P.2d 1020 (1994); State v. Schmitt, 124 Wn. App. 662, 666, 102 P.3d 856 (2004).
Firestorm, 129 Wn.2d at 135.
Eriks v. Denver, 118 Wn.2d 451, 457-58, 824 P.2d 1207 (1992).
Firestorm, 129 Wn.2d at 135; Lyons v. U.S. Bank Nat’l Ass’n, 181 Wn.2d 775, 783, 336 P.3d 1142 (2014).
131 Wn.2d 484, 933 P.2d 1036 (1997).
Dana v. Piper, 173 Wn. App. 761, 770, 295 P.3d 305 (2013).
Mayer v. Sto Indus., Inc., 156 Wn.2d 677, 690, 132 P.3d 115 (2006); see also Jones v. City of Seattle, 179 Wn.2d 322, 338, 314 P.3d 380 (2013).
Burnet, 131 Wn.2d at 490-91.
Id. at 494 (quoting Snedigar v. Hodderson, 53 Wn. App. 476, 487, 768 P.2d 1 (1989)).
156 Wn.2d 677, 688-90, 132 P.3d 115 (2006) (concluding that Burnet’s, reference to “ harsher remedies allowable under CR 37(b)’ ” applies to “sanctions that affect a party’s ability to present its case” (quoting Burnet, 131 Wn.2d at 494)).
Id.; Wash. Motorsports Ltd. P’ship v. Spokane Raceway Park, Inc., 168 Wn. App. 710, 716, 282 P.3d 1107 (2012).
Jones, 179 Wn.2d at 335-37; Teter v. Deck, 174 Wn.2d 207, 212, 274 P.3d 336 (2012); Blair v. TA-Seattle E. No. 176, 171 Wn.2d 342, 346, 254 P.3d 797 (2011) (Blair II); In re Dependency of M.P., 185 Wn. App. 108, 114-18, 340 P.3d 908 (2014).
Rivers v. Wash. State Conf. of Mason Contractors, 145 Wn.2d 674, 683, 41 P.3d 1175 (2002) (dismissing claims for violating discovery orders).
Magaña v. Hyundai Motor Am.., 167 Wn.2d 570, 581-82, 220 P.3d 191 (2009) (ordering default judgment for discovery violations); Smith v. Behr Process Corp., 113 Wn. App. 306, 315, 54 P.3d 665 (2002) (same).
Mayer, 156 Wn.2d at 688.
Firestorm, 129 Wn.2d at 142 (citing Fisons, 122 Wn.2d at 355-56).
Id. at 139-45.
Foss contends we should adopt the six-factor test enunciated by the Texas Supreme Court to determine whether an attorney’s receipt of privileged information merits disqualification. In re Meador, 968 S.W.2d 346, 351-52 (Tex. 1998). Although several concepts in the Meador test overlap with our four factors, we decline to adopt Meador here.
See, e.g., Magaña, 167 Wn.2d at 588-90.
Kurbitz v. Kurbitz, 77 Wn.2d 943, 947, 468 P.2d 673 (1970) (‘‘[Alccess to confidential information which is material to the present suit” supports disqualification. (emphasis omitted)).
Firestorm, 129 Wn.2d at 139-45; Fisons, 122 Wn.2d at 339-42; Richards v. Jain, 168 F. Supp. 2d 1195, 1208 (2001).
Firestorm, 129 Wn.2d at 142 (quoting Fisons, 122 Wn.2d at 355-56). Additionally, the trial court may also consider the moving party’s fault, such as its failure to timely apprise the court of the misconduct. See id. at 144-45.
Id. at 143.
See Richards, 168 F. Supp. 2d at 1205-06 (different case if counsel, “when first reviewing the documents with the plain and clear warning of‘attorney-client’ and ‘privileged’ markings had . . . stopped all work and sealed or destroyed the documents”).
Fisons, 122 Wn.2d at 356.
Firestorm, 129 Wn.2d at 139-45; Fisons, 122 Wn.2d at 339-42.
Magaña, 167 Wn.2d at 583; see Burnet, 131 Wn.2d at 494.
See Blair v. TA-Seattle E. No. 176, 150 Wn. App. 904, 909, 210 P.3d 326 (2009), rev’d on other grounds, 171 Wn.2d at 352.
Firestorm, 129 Wn.2d at 140.
Id. (citing First Small Bus. Inv. Co. of Cal. v. Intercapital Corp. of Or., 108 Wn.2d 324, 337, 738 P.2d 263 (1987); Teja v. Saran, 68 Wn. App. 793, 798-99, 846
CR 26(c) permits a trial court to issue a protective order “to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense.”
Richard Van Duizend, Guidelines for State Trial Courts Regarding Discovery of Electronically-Stored Information — What? Why? How?, 35 W. St. U. L. Rev. 237, 252 n.36 (2007).
Laura Catherine Daniel, Note, The Dubious Origins and Dangers of Clawback and Quick-Peek Agreements: An Argument Against Their Codification in the Federal Rules of Civil Procedure, 47 Wm. & Mary L. Rev. 663, 667 (2005).
CP at 277.
Resp’t’s Br. at 40-41.
Id. at 41.
CP at 277.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.