In Re Guaranty Insurance Services, Inc.
343 S.W.3d 130
| Tex. | 2011Background
- Paralegal Clyde Williams worked at Godwin Pappas from 2005 to 2006, billing hours in the underlying Trans-Global/Guaranty suit.
- Strasburger & Price, LLP later represented Guaranty in the related indemnity proceeding; Williams applied to Strasburger in Oct. 2008 and was hired in Jan. 2009.
- Strasburger ran conflicts checks and instructed Williams not to disclose confidential information gained from prior employment; he signed a confidentiality agreement and acknowledged duties in the Employee Information Handbook.
- Williams failed to disclose his prior involvement in the underlying suit; Strasburger later learned of the conflict from Kane Russell after Williams’s access was discovered.
- Trans-Global moved to disqualify Strasburger; the trial court granted the motion, finding a conclusive presumption of shared confidences due to Williams’s work on both sides.
- Supreme Court granted mandamus relief, conditioning on vacating the disqualification order, and held Strasburger’s screening measures were effectively implemented and sufficient to rebut presumption.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether nonlawyer work on both sides triggers conclusive presumption | Guaranty argues presumption applies; Williams’s work on both sides could contaminate confidences. | Strasburger contends screening and lack of actual shared confidences rebut presumption. | Presumption rebuttable under effective screening. |
| Whether Strasburger's screening was effective | Presumption remains if screening ineffective; Williams’s access should have been barred. | Formal, institutionalized screening was thorough and reasonably prevented disclosure. | Screening deemed effective; presumption rebutted. |
| Whether the supervising attorney’s knowledge of the conflict was reasonably foreseeable | Strasburger should have known Williams’s prior involvement. | Record shows supervising attorney reasonably should not have known; rebuttable presumption applies. | Reasonable belief that conflict was not known; presumption rebuttable. |
| Whether mandamus relief was proper to overturn disqualification | Disqualification was an abuse of discretion given screening effectiveness. | Disqualification appropriate absent effective rebuttal. | Mandamus relief proper; disqualification order vacated. |
Key Cases Cited
- In re American Home Prods. Corp., 985 S.W.2d 68 (Tex.1998) (nonlawyer confidences presumptions; rebuttable where appropriate screening exists)
- Phoenix Founders, Inc. v. Marshall, 887 S.W.2d 831 (Tex.1994) (six-factor screening test; ultimate question is effectiveness of measures)
- In re Columbia Healthcare Sys., L.P., 320 S.W.3d 819 (Tex.2010) (nonlawyer screening; knowledge and actual work affect presumption)
- Grant v. Thirteenth Court of Appeals, 888 S.W.2d 466 (Tex.1994) (cautionary duty to prevent nonlawyer disclosures; relies on ABA ethics guidance)
- In re Prudential Ins. Co., 148 S.W.3d 124 (Tex.2004) (orig. proceeding; framework for mandamus relief in disqualification contexts)
- NCNB Tex. Nat’l Bank v. Coker, 765 S.W.2d 398 (Tex.1989) (orig. proceeding; standard for mandamus-related disqualification review)
