885 F.3d 1324
11th Cir.2018Background
- Collingsworth, a partner at Conrad & Scherer (C&S), led Alien Tort Statute suits in which witnesses later were revealed to have received undisclosed payments; Drummond defeated those suits and sued C&S and Collingsworth for defamation based on public letters.
- In the defamation case, discovery revealed previously-undisclosed witness payments (to El Tigre, Samario, Blanco), including monthly payments routed through intermediaries and third-party payments arranged or facilitated by Collingsworth.
- Drummond moved for sanctions and invoked the crime-fraud exception to pierce C&S/Collingsworth’s assertions of attorney-client privilege and work-product protection for communications and materials related to witness payments and related litigation strategy.
- The district court found a prima facie showing of fraud on the court, witness bribery, and suborning perjury, applied the crime-fraud exception to certain categories of communications/work product, and appointed a special master for in camera, document-by-document review.
- C&S obtained interlocutory permission to appeal two certified questions under 28 U.S.C. § 1292(b); the Eleventh Circuit declined to review the agency-imputation factual question but affirmed that the crime-fraud exception may defeat work-product protection when the attorney (or firm) engaged in wrongdoing even if the client is innocent.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether interlocutory review proper of district court’s imputation of partner Collingsworth’s intent to C&S under agency principles for crime-fraud application | The district court’s imputation was factually and legally supported; appeal appropriate to resolve controlling legal question | C&S argued agency imputation was improper and the certified question presented a pure legal issue for interlocutory review | Court declined to review: issue is fact-specific (not a pure legal question) and interlocutory review under §1292(b) was improvidently granted as to this question |
| Whether the crime-fraud exception can defeat attorney work-product protection when the attorney/firm engaged in crime or fraud but the client was innocent | Drummond: attorney misconduct alone can vitiate work-product protection; disclosure warranted for materials made/used to further fraud | C&S: an innocent client’s interest in secrecy bars piercing work product; client should not be punished for counsel’s misconduct | Court held crime-fraud exception may overcome work-product protection based on attorney misconduct even if client is innocent; remanded for in camera review to identify documents made in furtherance of or closely related to the fraud |
Key Cases Cited
- In re Grand Jury Investigation, 842 F.2d 1223 (11th Cir.) (articulates two-part test for crime-fraud exception)
- Zolin v. United States, 491 U.S. 554 (1989) (crime-fraud exception removes privilege when communications further crime/fraud)
- Cox v. Adm’r U.S. Steel & Carnegie, 17 F.3d 1386 (11th Cir.) (work-product doctrine and applicability of crime-fraud exception to work product)
- Parrott v. Wilson, 707 F.2d 1262 (11th Cir.) (attorney misconduct can vitiate work-product protection)
- Moody v. I.R.S., 654 F.2d 795 (D.C. Cir.) (balancing approach to whether innocent client’s interests outweigh disclosure after attorney misconduct)
- In re Impounded Case (Law Firm), 879 F.2d 1211 (3d Cir.) (permitting crime-fraud exception to overcome work product for law-firm criminal activity)
- In re Doe, 662 F.2d 1073 (4th Cir.) (crime-fraud exception allowed disclosure of attorney work product when lawyer committed fraud)
