BARKLEY v CITY OF DETROIT
Docket No. 141932
204 MICH APP 194
March 21, 1994
Submitted October 5, 1993, at Detroit.
The Court of Appeals held:
- Although there may be some question whether the case should be dismissed for want of actual case or controversy, review on the merits was undertaken because the case presents questions of public significance that may be repeated and yet evade review.
- Dual representation of the city and a police officer by the
city‘s law department where both the city and an officer are named as defendants creates a situation in which the potential for a conflict of interest precludes such dual representation. Further, the city‘s law department should be treated like a law firm; accordingly, the potential conflict cannot be avoided by having separate attorneys from the law department represent the separate interests of the officer and the city. - The city charter and code and the collective bargaining agreement obligate the city to provide counsel to police officers being sued for activities done in the course of official duties. That obligation implies that independent and unbiased counsel will be provided. There is no provision that entitles the officers to select their own counsel at city expense. The city may discharge its obligation by selecting as counsel for the officers in the underlying cases attorneys who are independent and unbiased and have none of the ethical problems associated with representation by the city‘s law department.
Affirmed in part and reversed in part.
TAYLOR, P.J., dissenting, stated that the trial court had no authority to hear this matter, but, even if it did, it was bound to find that any conflict of interest was waived by the collective bargaining agreement, assuming that the procedures for handling conflicts were the same in 1977 as those exercised in this case. The collective bargaining agreement continued in effect the conflict resolution procedures in effect on July 1, 1977.
ATTORNEY AND CLIENT — CONFLICTS OF INTEREST — MUNICIPAL CORPORATIONS.
The potential for a conflict of interest arising as a result of the representation by an attorney of a city law department of both the city and a police officer of the city in a suit alleging police misconduct where both the city and the officer are named as defendants is so great as to preclude such dual representation; because a city law department should be treated in the same manner as a private law firm, representation by separate attorneys of the same law department does not eliminate the potential for a conflict of interest.
Rubenstein, Isaacs, Haroutunian & Sabel, P.C. (by Allan D. Sobel and Casimir J. Swastek), for the plaintiffs.
William G. Ashworth, Assistant Corporation Counsel, for the defendant.
HOOD, J. This is an action for declaratory judgment1 concerning the duty of defendant, the City of Detroit, to provide legal counsel to police officers being sued for injuries allegedly inflicted by the officers during the performance of their official duties. Plaintiffs, who are all police officers and members of the Detroit Police Officers Association (DPOA), and the City of Detroit were named as defendants in nine separate civil suits that alleged various acts of police misconduct. At issue is whether ethical considerations prevent attorneys from the city‘s law department from fulfilling the city‘s obligation to provide counsel for plaintiffs in those civil actions.
Plaintiffs appeal as of right from the trial court‘s partial denial of their motion for summary disposition under MCR 2.116(C)(10). Defendant does not cross appeal. We affirm in part and reverse in part.
The Detroit Charter,
* Recorder‘s Court judge, sitting on the Court of Appeals by assignment.
In order to be eligible for city-provided counsel and reimbursement, an employee who is sued must follow the procedure outlined in
Plaintiffs argue that as soon as the city‘s corporation counsel (acting through the city‘s law department) decides to recommend to the city council that no representation be provided, a conflict of interest arises. This conflict, they argue, requires that the corporation counsel withdraw from representing them in the underlying suit. Thus, in order to meet its obligations under the city code and the collective bargaining agreement, the city must pay for plaintiffs to be represented by attorneys of their own choosing. We disagree in part.
In this case, seven of the nine plaintiffs were
required by either the
The trial court held that there is indeed a conflict of interest that arises when the city council refuses to provide representation and an employee seeks to overturn that decision through arbitration. That conflict arises because the corporation counsel would be representing the employee in the underlying suit while at the same time representing the city in the arbitration proceeding, in effect, arguing for the employee in one forum and against the employee in another. The parties do not challenge this determination, which we agree is a correct holding.
The trial court also held that, once a conflict arises, the city should pay for the employee to be represented in the underlying suit by independent counsel. However, the court concluded that such independent counsel was to be chosen by the city, not by the employee. The court further found that no conflict of interest existed before an adverse determination by the city council. Plaintiffs take issue with these last two determinations.
Plaintiffs, by virtue of being represented by the city‘s corporation counsel in the underlying suits, are the corporation counsel‘s clients. See Atlanta Int‘l Ins Co v Bell, 438 Mich 512, 520-521; 475 NW2d 294 (1991) (insured is the client of the
A lawyer shall not represent a client if the representation of that client will be directly adverse to another client, unless:
(1) the attorney reasonably believes the representation will not adversely affect the relationship with the other client; and
(2) each client consents after consultation.
[A] lawyer shall not represent a client if the representation of that client may be materially limited by the lawyer‘s responsibilities to another client or to a third person, or by the lawyer‘s own interests, unless:
(1) the lawyer reasonably believes the representation will not be adversely affected; and
(2) the client consents after consultation.
[A] lawyer shall not knowingly:
(1) reveal a confidence or secret of a client;
(2) use a confidence or secret of a client to the disadvantage of the client; or
(3) use a confidence or secret of a client for the advantage of the lawyer or of a third person, unless the client consents after full disclosure.
See also
Also relevant to this case is
A lawyer shall not accept compensation for representing a client from one other than the client unless:
(1) the client consents after consultation;
(2) there is no interference with the lawyer‘s independence of professional judgment or with the client-lawyer relationship; and
(3) information relating to representation of a client is protected as required by Rule 1.6.
Additionally,
A lawyer who represents two or more clients shall not participate in making an aggregate settlement of the claims of or against the clients . . . unless each client consents after consultation, including disclosure of the existence and nature of all the claims . . . involved and of the participation of each person in the settlement. [
MRPC 1.8(g) .]
The Supreme Court Rules Concerning the State
The Ethics Committee has said that the conflict of interest rules are “a frank recognition that, human nature being what it is, a dual relationship involving adverse or conflicting interests, constitutes enormous temptation to take advantage of one or both parties to such relationship” and that “[t]he purpose of [the conflict of interest rules] is to condemn the creation and existence of the dual relationship instead of merely scrutinizing the results that may flow therefrom.” Formal Opin-
An attorney owes undivided allegiance to a client and usually may not represent parties on both sides of a dispute. For example, in Olitkowski v St Casimir‘s Savings & Loan Ass‘n, 302 Mich 303, 309-310, 325-326; 4 NW2d 664 (1942), a clear conflict of interest was found where an attorney representing an estate advised its administratrix to invest in a certain savings and loan association that he also represented, without disclosing that the investment was illegal. In Bd of Trustees of the Policemen & Firemen Retirement System v Detroit, 143 Mich App 651, 655-656; 373 NW2d 173 (1985), it was held that a city may not use its law department to meet its obligation to provide counsel to a retirement fund where the fund was suing the city for failure to make contributions and the city was asserting that it had no duty to pay and was itself being represented by its law department. Similarly, where a fire fighter was charged with reckless driving after he was involved in an accident on the way to a fire, the city could not satisfy its statutory obligation to provide him with an attorney by assigning an attorney from its law department where another attorney from its law department was prosecuting the case. Formal Opinion 109 (October 1947). In that situation, it was concluded that the city could select an independent attorney, provided the attorney was not barred from the case by ethics considerations, to satisfy its statutory obligation to provide counsel to the fire fighter in question.
It is also clear that an attorney may only undertake to represent a new client against a former client where all business ties with the former client have been severed, where the subject matter of the current representation is not substantially
Where a City Attorney rendered advice on a matter to members of City Council who later sued the City over the same matter, the City Attorney may defend the City in the case only if he did not gain and did not appear to gain confidential information from the council members involved and if his contact with them would not affect or appear to affect his independent professional judgment on behalf of the City. [Informal Opinion CI-335 (January 16, 1978).]
It is less clear what is allowed when the parties are not in direct conflict. Thus, the committee has concluded:
Where a city‘s law department has formerly opined on a matter in controversy between the Mayor and the City Council of that City, the City law department may not represent both the Council and the Mayor in litigation, (declaratory judgment action) to resolve the controversy, even if both adverse parties consent to the dual representation. [Informal Opinion CI-811 September 17, 1982).]
However, the Ethics Committee has also concluded that while a city attorney who advises the city on labor relations matters was barred from sitting on an arbitration panel that reviews employee griev-
At a minimum, it becomes clear to us from our review of the pronouncements that have been made in this area and our review of the Rules of Professional Conduct that an attorney from the city‘s law department may not first interview an employee concerning an underlying suit, thus obtaining confidential information, and then use that information to argue to the city council that no representation should be provided in the underlying case because the particular employee was not acting in good faith within the scope of employment. It is quite clear that such conduct would be a prohibited use of confidential information obtained from one client for the benefit of another client.
The ethical issue presented is whether the representation of these individual plaintiffs by an attorney from the city‘s law department “may be materially limited by the lawyer‘s responsibilities” to the city, given that these plaintiffs obviously do not wish to consent to such dual representation. See
[a]lthough the [Rules of Professional Conduct] would not automatically prohibit a city attorney from representing both the city and the police officers in a suit brought against both, alleging police brutality, the best policy would be for the city attorney to decline representation of the police officers because of possible conflicts that may arise under the [Rules of Professional Conduct] which could cause harm to either client because of necessity of the attorney withdrawing from representation of one or both parties at a critical stage of the proceedings. [Informal Opinion CI-475 February 18, 1980)].
We also note that
Additionally,
As a whole, the various conflicting or potentially conflicting obligations reviewed above lead us to conclude that an attorney with the city‘s law department reasonably could not believe that representation of plaintiffs while also representing the city would not be materially limited or adversely affected by the attorney‘s preexisting duties to the city. See
The general rule is that “[w]hile lawyers are associated in a firm, none of them shall knowingly represent a client when any one of them practicing alone would be prohibited from doing so by Rules 1.7, 1.8(c), 1.9(a) or (c), or 2.2.”
It might be argued that a so-called “Chinese wall” might be erected such that a disqualified attorney would have neither any role in the case nor any contact with the attorneys actually involved in the case, so that the result would be the same as if two separate firms were involved. But see People v Doyle, 159 Mich App 632, 646; 406 NW2d 893 (1987) (entire prosecutor‘s office disqualified where supervisory attorney with personal interest in case was not immediately shielded from any involvement).
The present case, however, does not involve a particular attorney with a particular disqualification. Rather, because all attorneys in the department represent the city and owe it the duties discussed above, none of them are free to also represent an individual employee once a conflict arises. See
We, therefore, hold that, assuming that the city law department is representing the city in the underlying suit, no attorney from the city law department may also represent plaintiffs in the
Where there is an obligation to provide counsel, it is implied that independent and unbiased counsel will be provided. See Bd of Trustees, supra at 655-656. However, there appears to be some possible confusion regarding when the city will be allowed to choose the attorney who will fulfill the city‘s contractual obligation to provide representation. Thus, in the Bd of Trustees case, where the city was being sued by a retirement fund and there were conflicting statutory sections — one allowing the fund to choose its own counsel and one requiring the city to appoint counsel for the fund — this Court found that the fund rather than the city should be allowed to choose. We note, however, that in Formal Opinion 109 (October 1947) the Ethics Committee concluded that where a statute required the city to provide an independent and unbiased lawyer for a fire fighter charged with driving recklessly during the course of his employment, the city should be allowed to select an attorney to represent him even though the fire fighter was being prosecuted by the city‘s corporation counsel.
In the case at bar, there is no statute that even arguably gives plaintiffs the right to select their own counsel at city expense. Also, unlike in the Bd of Trustees case, there is no direct conflict here, because these plaintiffs are being sued with the city, not by the city. We therefore hold that the city may select plaintiffs’ counsel in the underlying cases as long as it selects an independent and
Affirmed in part and reversed in part.
B. A. JASPER, J., concurred.
TAYLOR, P.J. (dissenting). The majority adopts the position that it is appropriate to make a judicial finding that there was a conflict of interest inherent in representation of both plaintiff police officers and the City of Detroit by an attorney from the office of the Detroit corporation counsel. In taking this position, the majority relies upon the Michigan Rules of Professional Conduct to establish that there was, in fact, a conflict of interest. I disagree with the majority‘s analysis on the grounds that there was no jurisdiction for the trial court to hear this matter and that, if there was a conflict of interest, it was waived by the plaintiffs.
The rules do not, however, give rise to a cause of action for enforcement of a rule or for damages caused by failure to comply with an obligation or prohibition imposed by a rule. In a civil or criminal action, the admissibility of the Rules of Professional Conduct is governed by the Michigan Rules of Evidence and other provisions of law.
There is then no jurisdiction for plaintiffs’ cause of action based on the MRPC. This is reinforced in the comment to
Governmental Agency
The duty defined in this rule applies to governmental organizations. However, when the client is
This limitation in the use of the MRPC is never addressed by the majority. Further, in none of the cases cited does a court review a conflict of interest except where a claim of conflict is raised in an existing lawsuit by the opposing party. There simply are no cases of which I am aware, nor I assume of which the majority is aware, where a party seeks conflict relief concerning the party‘s own lawyer. That person‘s remedy is to discharge the attorney, bring a grievance, or, perhaps, sue for malpractice.
Even if there is a conflict of interest over which the trial court could take jurisdiction, under
The city will continue to defend and indemnify employees in accordance with
Section 13-11-3 of the 1984 municipal code and all practices and procedures related thereto, in effect July 1, 1977, except that such defense and indemnification is mandatory upon a finding that the claim, demand or suit against the employee arises out of or involves the performance in good faith of the official duties of the employee. A contrary determination by the city council is not final and binding as provided by the code but is subject to review by an arbitration panel under Article 8 of this agreement. Pending a final determination of whether or not the employee is entitled to defense and indemnification by the city, the city shall promptly undertake such defense on behalf of such employee. [Emphasis added.]
Here, the union entered into a contract to have done exactly what was done.1 The union did not
This is so because an employee is bound by the contract that his union has negotiated for him. Farmington Hills v Farmington Hills Police Officers Ass‘n, 79 Mich App 581, 589; 262 NW2d 866 (1977), holds that the public employee relations act (PERA),
The statute [
29 USC 159 ] contemplates the making of agreements by representatives of the employees, not by the employees themselves, giving “statutory approval to the philosophy of bargaining as worked out in the labor movement in the United States.” [NLRB v Darlington Veneer Co, 236 F2d 85, 89 (CA 4, 1956), quoted in Farmington Hills, supra, p 590.]
secured for its members additional protection over and above that afforded nonunion employees, namely an arbitration procedure if the employee lost following exhaustion of the ordinance-provided procedures.
Here, the collective bargaining agreement has extinguished plaintiffs’ right to challenge the conflict in this case, and I accordingly would hold that plaintiffs are bound, just like the Farmington Hills police officers were, by the contract that their union negotiated for them.
An employee may attack a contract as being in violation of a union‘s duty of fair representation. However, a union‘s activities in this regard only can be held to be arbitrary, and as such to constitute a breach of the duty of fair representation, if the union‘s behavior is so far outside a wide range of reasonableness as to be irrational. Air Line Pilots Ass‘n, Int‘l v O‘Neill, 499 U.S. 65; 111 S Ct 1127; 113 L Ed 2d 51 (1991). Such a standard could not be met here.
In summary, I would hold that the trial court had no authority to hear this matter, but that, even if it did, it was bound to find that any conflict of interest was waived by the union contract (assuming, upon remand, it is determined that the procedures for handling conflicts were the same in 1977 as those exercised in this case).
