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568 S.W.3d 663
Tex.
2019
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Background

  • RSR sued Inppamet (and affiliate) over breach of contract and trade-secret misappropriation; dispute included allegations that RSR’s counsel received privileged/confidential information from a former Inppamet employee.
  • Inppamet initially moved to disqualify RSR’s counsel relying on Meador’s fact-intensive factors and Contico but later abandoned Meador and argued the presumptions from In re American Home Products should control.
  • A discovery special master and the trial court considered the matter; the trial court applied American Home Products and disqualified RSR’s counsel.
  • This Court granted mandamus in 2015 (In re RSR) holding American Home Products’ presumptions apply only to side-switching legal staff and that Meador governs when privileged information comes from non-law-firm fact witnesses, remanding without deciding Meador’s merits.
  • After this Court’s opinion, Inppamet sought to renew disqualification under Meador and to reopen discovery; the trial court denied reconsideration as untimely, dilatory, and waived; the court of appeals ordered the trial court to revisit the Meador analysis.
  • The Supreme Court reversed the court of appeals, holding the trial court did not clearly abuse its discretion in treating Inppamet’s Meador-based efforts as waived/dilatory and reinstated the trial-court denial to avoid further delay and tactical use of disqualification.

Issues

Issue Plaintiff's Argument (Inppamet) Defendant's Argument (RSR) Held
Proper standard for disqualification American Home Products presumptions control Meador factors govern when privileged info came from non-law-firm fact witness Court: Meador governs in those circumstances; AHP presumptions limited to side-switching legal staff (previously decided in In re RSR)
Whether Inppamet waived or untimely in seeking Meador relief after previously abandoning it Reassertion is timely after this Court’s opinion; discovery can be reopened Inppamet intentionally abandoned Meador earlier; failure to pursue constitutes waiver/dilatoriness Court: Trial court reasonably found waiver/dilatory conduct; no clear abuse of discretion
Whether special master’s discovery denial bars merits reconsideration Discovery denial unrelated to merits; court should consider Meador now Discovery was previously forgone; reopening now would unduly delay trial Court: Reopening discovery and relitigating would be dilatory and unjustifiably delay the decade-old case
Whether mandamus by court of appeals was appropriate to force merits reconsideration Mandamus necessary because trial court refused to apply Meador after this Court’s opinion Trial court’s exercise of discretion insulated; appellate mandamus inappropriate Court: Court of appeals erred; vacate its mandamus order and reinstate trial court’s denial

Key Cases Cited

  • In re American Home Products Corp., 985 S.W.2d 68 (Tex. 1998) (establishes presumptions for disqualification when legal staff switch sides)
  • In re Meador, 968 S.W.2d 346 (Tex. 1998) (articulates six-factor, fact-intensive test for disqualification where privileged info came from non-law-firm fact witnesses)
  • In re RSR Corp., 475 S.W.3d 775 (Tex. 2015) (this Court held Meador—not AHP—governs here and remanded without resolving Meador merits)
  • In re EPIC Holdings, Inc., 985 S.W.2d 41 (Tex. 1998) (addresses waiver and revival of abandoned disqualification motions under changed circumstances)
  • In re Prudential Ins. Co. of Am., 148 S.W.3d 124 (Tex. 2004) (mandamus availability turns on adequacy of appellate remedy; delay can make appellate relief inadequate)
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Case Details

Case Name: in Re Rsr Corporation and Quemetco Metals Limited, Inc.
Court Name: Texas Supreme Court
Date Published: Feb 15, 2019
Citations: 568 S.W.3d 663; NO. 18-0189
Docket Number: NO. 18-0189
Court Abbreviation: Tex.
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    in Re Rsr Corporation and Quemetco Metals Limited, Inc., 568 S.W.3d 663