MADELINE COX ARLEO, District Judge.
This matter comes before the Court upon the Motions for Summary Judgment of Defendants Carpenter, Bennett & Morrisey ("CBM"), Irving Hurwitz, Esq. ("Hurwitz"), and Linda Celauro, Esq. ("Celauro") (collectively, "Defendants" or "CBM") against Plaintiff David Oestreicher ("Oestreicher") and Plaintiff Adriana Greci Green ("Green"). Dkt. Nos. 198, 199. Plaintiffs oppose the motions. Dkt. Nos. 201, 202. There was no oral argument. Fed. R. Civ. P. 78. For the reasons set forth herein, Defendants' motions are
The Plaintiffs in this case are former graduate students in the Rutgers University Anthropology Department. This case arises out of the CBM Defendants' representation of Rutgers, The State University of New Jersey ("Rutgers" or the "University") in its dismissal proceedings against former professor William Powers ("Powers") and in a lawsuit Powers filed against Rutgers.
Beginning in 1994, Rutgers students, including Green and Oestreicher, complained that Powers had acted inappropriately towards them. An internal Rutgers' investigation proceeded. During that investigation, Powers brought a federal lawsuit against Rutgers, its officers, and administrators. In 1997, Rutgers filed disciplinary charges against Powers and a hearing before a faculty panel commenced. Ultimately, these actions were amicably resolved between Rutgers and Powers.
Plaintiff Green, who earned her doctoral degree from Rutgers in 2001, was a witness in the dismissal proceedings and a non-party deponent in the federal lawsuit. Defs.' Green Statement ¶¶ 1, 56-57. Plaintiff Oestreicher, who earned his doctoral degree from Rutgers in 1995, was also a witness in the dismissal proceedings. Defs.' Oest. Statement ¶¶ 1-2, 37. In this action, Plaintiffs assert a legal malpractice and breach of constructive trust/fiduciary duty claim against CBM based on CBM's alleged representation of them.
The genesis of these proceedings was a sexual harassment complaint filed in May 1994 by Green against Powers. Defs.' Green Statement ¶ 7. In October 1994, Rutgers rendered a decision and sanctioned Powers, prohibiting him from accepting new graduate students for a period of three years. Defs.' Green Statement ¶¶ 8-9. Green appealed this decision in accordance with Rutgers' administrative procedures. Defs.' Green Statement ¶ 10. Based on this appeal, Assistant Vice President Jean Ambrose ("Ambrose") conducted an additional investigation and issued two reports, one relating to Green's appeal and the other detailing Powers' conduct towards other present and former students, including Oestreicher. Defs.' Green Statement ¶¶ 11-12. CBM was not involved in this internal investigation.
In 1996, Powers sued Rutgers in federal court. Defs.' Oest. Statement ¶ 17. Neither Oestreicher nor Green were named as defendants in the lawsuit. Defs.' Oest. Statement ¶ 19. Green, however, was subpoenaed to testify as a witness at a deposition. Defs.' Green. Statement ¶ 21. Prior to her deposition, Green consulted with and obtained legal advice from Emily Alman, Esq., an attorney, in regard to her anticipated testimony. Defs.' Green Statement ¶ 22. Alman attended Green's deposition, where she identified herself as Green's attorney. Defs.' Green Statement ¶¶ 23-24; Defs.' Oest. Statement ¶ 21. During the deposition, when Green was asked about her arrangement with Attorney Alman, Green explained that, "[s]he's representing me." Defs.' Green Statement ¶ 25.
On January 2, 1997, Rutgers President Francis Lawrence ("President Lawrence") dismissed Powers from his tenured employment at Rutgers. Defs.' Green Statement ¶ 28. In accordance with his rights under the University's regulations, Powers requested a public hearing before tenured faculty members. Defs.' Green Statement ¶¶ 29-30, 32. Pursuant to the regulations, the panel conducts the hearing, makes the determination as to whether or not the President's charges are true, considers the faculty member's record and recommends to the Rutgers's Board of Governors whether the faculty member should be dismissed, or if other action should be taken. Defs.' Green Statement ¶ 33.
In 1997, the University hired the CBM Defendants to represent it at the public hearings in support of President Lawrence's charges against Powers. Defs.' Oest. Statement ¶ 40. Celauro was the primary CBM attorney who presented the President's dismissal charges. Defs.' Oest. Statement ¶ 42. CBM attorney Irving Hurwitz became involved in presenting the charges in September 1997. Defs.' Oest. Statement ¶ 43. The only two parties to the dismissal proceedings were Rutgers and Powers. Defs.' Oest. Statement ¶ 36.
On June 23, 1997, Rutgers sent a letter to several former and current students explaining that a hearing was set, that CBM would be presenting evidence in support of the President's charges against Powers, and that CBM would be contacting the students to discuss their testimony.
CBM never told Oestreicher they represented him in connection with the dismissal hearings. Defs.' Oest. Statement ¶ 49; Pls.' Oest Statement ¶ 49. Oestreicher's father, Julius Y. Oestreicher, Esq., claims he had a conversation with Vice President Jean Ambrose where Ambrose said that it was not necessary for his son to get an attorney to represent him in the dismissal hearings because the University would be acting on his son's behalf. Pls.' Oest. Statement ¶¶ 38-39, 49; Dkt. No. 203-2, Menna Cert., Ex. B., Julius Y. Oestreicher Cert., dated March 9, 2000 ("J. Oest. 2000 Cert."), ¶ 4.
CBM sent letters to the students, including Oestreicher and Green, to schedule testimony at the hearings and to discuss that testimony in advance. Defs.' Oest. Statement ¶ 67; Defs.' Green Statement ¶ 58. Rutgers provided CBM with all written documents and witness statements it had received from present and former graduate students during its own internal investigation, before it hired CBM. Defs.' Green Statement ¶ 55; Defs.' Oest. Statement ¶ 63.
Oestreicher met with CBM in July 1997 and September 1997. Defs.' Oest. Statement ¶¶ 86, 87, 98. As part of the preparation sessions, CBM sent a fax to Oestreicher that included the client-matter number for Rutgers's dismissal proceedings against Powers.
Oestreicher and Green had no formal retainer agreement with CBM. Pls.' Oest. Statement ¶ 45; Pls.' Green Statement ¶ 45. They also did not receive any writing that set forth the nature and extent of any legal services that CBM would provide them. Defs.' Oest. Statement ¶ 45; Defs.' Green Statement ¶ 45. Oestreicher and Green were never billed for any legal services rendered by CBM, nor did they pay any money directly to CBM. Defs.' Oest. Statement ¶ 46; Defs.' Green Statement ¶ 46.
During the dismissal hearing, on August 15, 1997, in the presence of Green and Oestreicher, Celauro said, "I don't represent Adriana Greci Green, nor do I represent Christopher DeFrancisco or any other witness, I represent the President of the University. . . ." Defs.' Oest. Statement ¶¶ 72-73; Defs.' Green Statement ¶ 60-62. Oestreicher and Green state now that they believed this to be a "formality." Pls.' Oest. Statement ¶ 72; Defs.' Green Statement ¶ 61. Celauro reaffirmed this position at another hearing, on August 25, 1997, in the presence of Green and Oestreicher. There, Powers' counsel sought to question Mark Speeney, a former Plaintiff and Rutgers student like Oestreicher and Green, about his discussions with CBM. Celauro replied:
Defs.' Oest. Statement ¶¶ 76-77; Defs.' Green Statement ¶¶ 63-64. Celauro and Hurwitz also repeatedly identified themselves as the President's representative during the proceedings. Defs.' Oest. Statement ¶¶ 78-80; Defs.' Green Statement ¶¶ 65-67.
Oestreicher never solicited legal advice from CBM about potential lawsuits he might file. Defs.' Oest. Statement ¶¶ 56-57 (citing Dkt. No. 198-39, Eapen Cert. Ex. 35, Evidentiary Hearing, dated January 24, 2006, at 373:23-374:02, 374:03-06). He did, however, consult with other attorneys during the proceedings. During the dismissal hearings, he spoke with Emily Alman, Esq., Green's attorney, about possible legal action against Powers and Rutgers. Defs.' Oest. Statement ¶ 59. He also spoke with his father, Julius Y. Oestreicher, Esq., about his testimony and involvement in the hearings. Defs.' Oest. Statement ¶¶ 108-109. In 1993, Oestreicher and his father consulted with other attorneys regarding the possibility of filing a lawsuit against Powers. Defs.' Oest. Statement ¶ 8;
After the depositions in the federal suit, Green continued to seek guidance from Attorney Alman. Defs.' Green Statement ¶ 69. During the dismissal proceedings, Alman identified herself as Green's attorney, addressed the panel as Green's attorney, and referred to Green as her "client." Defs.' Green Statement ¶¶ 72, 79, 83. Attorney Alman was also identified as, and referred to herself as, Green's "advisor," which enabled her to speak on Green's behalf before the panel. Pls.' Green Statement ¶ 72, 79, 83. Green was present when Alman identified herself as her attorney. Defs.' Green Statement ¶ 80. Attorney Alman also provided Green with advice relating to the dismissal hearings and Green's concerns about Powers. Defs.' Green Statement ¶ 70. Attorney Alman also attended Green's meetings with CBM. Defs.' Green Statement ¶¶ 71, 74. In addition, Green's testimony at the dismissal hearings was always cleared with Attorney Alman and set around her schedule. Defs.' Green Statement ¶ 73. The panel also referred to Alman as Green's attorney and let Alman stay in the room when everyone was asked to leave except attorneys. Defs.' Green Statement ¶¶ 75, 77.
Oestreicher also understood that Attorney Alman represented Green during the hearings. Defs.' Green Statement ¶ 76; Defs.' Oest. Statement ¶ 124. Celauro referred to Alman as "attorney for Adriana Greci Green." Defs.' Green Statement ¶ 78. Attorney Alman also proffered a number of objections on Green's behalf during the hearings. Defs.' Green Statement ¶ 82. For instance, at one hearing Alman objected to admission of testimony on Green's teaching abilities saying "[m]y client is here as a witness to certain events." Defs.' Green Statement ¶ 85.
In June 1998, after the hearing concluded but before a decision was released by the panel, CBM and Powers' attorney, Alan Compagnon, conducted settlement negotiations.
By mid-July 1998, Oestreicher, Green, and several other students, decided to find an attorney to sue Rutgers and Powers. Defs.' Oest. Statement ¶ 143; Defs.' Green Statement ¶ 101. In August 1998, Oestreicher and Green retained the services of Attorney Alman, who had represented Green during the hearings, to draft a complaint against Rutgers and Powers. Defs.' Oest. Statement ¶ 144; Defs.' Green Statement ¶¶ 102-103. Attorney Alman assured them that she "would meet all the relevant statutes of limitation and file a Complaint by sometime in December 1998." Defs.' Oest. Statement ¶ 144; Defs.' Green Statement ¶¶ 102-103. Alman never filed a complaint or a notice of tort claim and never sent a demand to Rutgers or Powers on behalf of Oestreicher and Green. Defs.' Oest. Statement ¶ 145. In February 1999, Oestreicher, Green, and the other students decided to seek new counsel to represent their interests. Defs.' Oest. Statement ¶ 146. On March 25, 1999, Oestreicher, Green and other students retained the law firm of Katich, Werse, & Petillo ("KWP") to pursue a civil action on their behalf. Defs.' Oest. Statement ¶ 147. On May 26, 1999, KWP filed a complaint on behalf of the students in New Jersey Superior Court, Middlesex County, which named Rutgers, Powers, and several other employees of Rutgers as defendants. Defs.' Oest. Statement ¶ 148. KWP did not serve a notice in compliance with the New Jersey Tort Claims Act and did not write any demand letter to Rutgers or Powers. Defs.' Oest. Statement ¶ 149.
CBM defended Rutgers in the state action filed by Plaintiffs against Rutgers and Powers. Defs.' Oest. Statement ¶ 150. On February 5, 2001, Plaintiffs filed an Amended Complaint, which named additional defendants including Attorney Alman, the law firm of KWP, and CBM. Defs.' Oest. Statement ¶ 154; Pls.' Oest. Statement ¶ 154. Oestreicher and Green filed three counts against CBM: breach of constructive trust/fiduciary duty (Count Seven), legal malpractice (Count Eighteen), and breach of ethical obligations (Count Nineteen). Defs.' Oest. Statement ¶ 158. On March 5, 2002, this action was removed to this Court. Dkt. No. 1, Notice of Removal.
In January 2005, Plaintiffs moved to disqualify CBM as counsel for Rutgers, alleging that CBM's attorney-client relationship with the Plaintiffs during the dismissal proceedings barred them from representing Rutgers. Dkt. No. 42. After conducting a four-day evidentiary hearing, the District Court found that there was no attorney-client relationship, express or implied, between Plaintiffs and the CBM Defendants, and denied Plaintiffs' motion to disqualify CBM. Dkt. No. 65. Thereafter, on November 9, 2006, based on its earlier finding of implied attorney-client relationship, the District Court granted CBM's motion for summary judgment and dismissed all of Plaintiffs' claims against CBM Defendants. Dkt. Nos. 99-100; Defs.' Oest. Statement ¶ 205. After settling with the remaining Defendants, the Plaintiffs appealed. Defs.' Oest. Statement ¶ 216.
On March 10, 2010, the Third Circuit Court of Appeals vacated the order granting summary judgment and remanded to the District Court for further proceedings. Defs.' Oest. Statement ¶ 217. The Third Circuit held that Plaintiffs' claims were not barred by the law of the case doctrine because Plaintiffs "did not have a full and fair opportunity to litigate the merits of their malpractice and breach of fiduciary duty claims," and the lower court did not consider whether the new evidence presented an exception to the law of the case doctrine. Defs.' Oest. Statement ¶ 218. The Plaintiffs and CBM Defendants subsequently engaged in additional discovery. Defs.' Oest. Statement ¶ 220. This renewed summary judgment motion was filed thereafter, seeking to dismiss all claims against CBM.
Summary judgment is appropriate "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). The "mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact."
Not every issue of fact will be sufficient to defeat a motion for summary judgment; issues of fact are genuine "if the evidence is such that a reasonable jury could return a verdict for the nonmoving party."
Defendant CBM moves for summary judgment dismissing with prejudice Plaintiff Oestreicher and Green's claims of legal malpractice (Count Eighteen) and breach of constructive trust/fiduciary duty (Count Seven) against the CBM Defendants. Dkt. Nos. 198, 199. Plaintiffs oppose this motion. Dkt. Nos. 201, 202. The central dispute is whether there was an implied attorney-client relationship between the Plaintiffs and the CBM Defendants.
New Jersey courts have defined legal malpractice as "negligence relating to an attorney's representation of a client."
An attorney-client relationship can be express or implied.
After carefully examining the totality of the circumstances, the Court is satisfied that there is no implied attorney-client relationship here. Giving Plaintiffs the benefit of all possible inferences from the undisputed evidence, the Court finds that there is no objectively reasonable basis to conclude that an implied attorney-client relationship was formed between Plaintiffs and CBM.
First, CBM repeatedly and consistently advised Plaintiffs that they did not represent them, and that they only represented Rutgers. An individual cannot reasonably rely upon an attorney who informs the person that the attorney does not represent their interests.
During the proceedings, in the presence of Green and Oestreicher, Celauro explicitly stated that "I don't represent Adriana Greci Green, nor do I represent Christopher DeFrancisco or any other witness, I represent the President of the University. . . ." She later reaffirmed this position at another hearing, explaining there was no attorney-client privilege between communications she had with any of the witnesses. Moreover, throughout the proceedings, CBM repeatedly referred to themselves as counsel for the University and the President only. Green and Oestreicher never objected to those statements. The Court finds that CBM's express statements rendered objectively unreasonable any reliance by Green or Oestreicher on CBM as their attorneys.
Second, at the same time that CBM expressly disclaimed that they represented Plaintiffs and made clear that they only represented Rutgers, Plaintiffs retained their own attorneys who expressly stated that they represented each of the Plaintiffs.
Here, both Green and Oestreicher had their own attorneys during the dismissal proceedings. Oestreicher sought advice from other attorneys at the very same time he alleges that CBM represented him. Oestreicher consulted with his father, Attorney Julius Y. Oestreicher, Esq., about his testimony and involvement in the hearings. In 1993, before the dismissal hearings commenced, Oestreicher and his father consulted with other attorneys regarding the possibility of retaining them to pursue a suit against Powers. During the hearings, Oestreicher referred to his father as his attorney. Julius Oestreicher, Esq., also submitted a letter to the panel as "Attorney for [his] son David" because Oestreicher was concerned about the admission of certain evidence. The fact that Oestreicher's attorney was his father and arguably provided paternal advice as well does not change the objective fact that Oestreicher sought legal advice from his father.
Oestreicher also spoke to Attorney Alman, Green's attorney, during the hearings about possible legal action against Powers and Rutgers. Even though Attorney Oestreicher and Attorney Alman did not enter an appearance on behalf of Oestreicher at the dismissal proceedings, Oestreicher had access to both for legal advice before and during the proceeding.
Like Oestreicher, Green also had an attorney during the proceedings.
Moreover, neither Oestreicher nor Green sought any legal advice from CBM after the hearings were over. After Rutgers and Powers entered into a settlement agreement, the Plaintiffs decided to find an attorney to sue Rutgers and Powers. Despite their dissatisfaction with the settlement, neither Oestreicher nor Green contacted CBM again. Instead, Oestreicher, Green, and several other students, retained Attorney Alman to draft a complaint against Rutgers and Powers. After Alman failed to file a complaint, they retained yet another law firm, KWP, to represent their interests and file suit against Rutgers and Powers. There is no evidence to suggest that Oestreicher or Green attempted to utilize CBM to assist them with this action, which is further proof that an attorney-client relationship never existed with CBM in the first place.
In support of Oestreicher and Green's claim that CBM's representation of Rutgers created an implied attorney-client relationship with them, Plaintiffs point to: (1) their meetings with CBM to prepare for the dismissal hearing, (2) representations made by the University about CBM, and (3) two specific pieces of evidence—a client number on a fax and an "ATTORNEY-CLIENT PRIVILEGE" designation on a document. Viewed together, and in light of the surrounding circumstances, none of these facts support a finding that an implied attorney-client relationship existed here.
First, the fact that Oestreicher and Green met with CBM as witnesses did not create, in and of itself, an implied attorney-client relationship. The University retained CBM to represent it at the public hearings to support President Lawrence's dismissal charges against Powers.
There is no factual dispute that Oestreicher and Green participated in the proceedings as witnesses. As stated above, CBM made clear, on the record, that they did not represent the students, including Plaintiffs, and only represented Rutgers. Although Oestreicher and Green voluntarily met with CBM to prepare their witness testimony, and voluntarily turned over documents to Rutgers and CBM, they both had retained their own attorneys at the same time.
Second, Plaintiffs argue that the representations made by the University and by Assistant Vice President Ambrose prove that CBM represented them. Specifically, Plaintiffs claim that Ambrose's comments that Green and Oestreicher did not need attorneys at the hearing because CBM would be prosecuting it meant that CBM was representing Plaintiffs individually. But a party's claim that her attorney represents another party does not, alone, bind the attorney. "A successful non-client legal malpractice claim requires evidence showing an
Third, Oestreicher relies on two specific pieces of evidence to support the existence of an attorney-client relationship between him and CBM. First, he claims that CBM sent him a fax that had a client-matter number on it, which he believed was his. It was not, and Oestreicher presents no evidence that the number was his. The mere existence of a communication with a client-matter number on it does not create an attorney-client relationship. Second, Oestreicher brought a document to a preparation session with CBM, expressed concerns about confidentiality, and the CBM attorney, Celauro, wrote "ATTORNEY-CLIENT PRIVILEGE" on the document in response. But Celauro's writing "ATTORNEY-CLIENT PRIVILEGE" on the document does not necessarily make the document confidential, nor does it alone create an attorney-client relationship, especially in light of the fact that Oestreicher was meeting with CBM as a witness for the proceeding.
The existence of an attorney-client relationship is a condition precedent to a finding of legal malpractice. The conduct of the parties, surrounding circumstances, and statements made by the lawyers demonstrate that there was not an objectively reasonable basis for Oestreicher and Green to believe that the CBM Defendants were their attorneys or representing them in the proceedings. Plaintiffs' subjective after-the-fact beliefs cannot alter this finding. Because there is no express
In order for Plaintiffs to prevail on Count Seven of the Complaint, they must show that the CBM Defendants owed a fiduciary duty to Plaintiffs. In Count Seven, Plaintiffs allege that they:
Dkt. No. 1, Compl. ¶¶ 190-96.
In order to establish a claim for breach of constructive trust/fiduciary duty, a plaintiff must show the existence of a fiduciary relationship. "A fiduciary relationship arises between two persons when one person is under a duty to act for or give advice for the benefit of another on matters within the scope of their relationship."
Here, the undisputed facts demonstrate that there was no express or implied attorney-client relationship between Plaintiffs and CBM.
In New Jersey,
For the reasons set forth above, there are no facts to support the finding that CBM should have known that Green or Oestreicher would rely on them for legal advice or that such reliance was foreseeable. CBM expressly informed Oestreicher and Green, on more than one occasion during the dismissal proceedings, that CBM did not represent them. They also repeatedly referred to themselves as attorneys for the University. CBM never retracted those statements. Oestreicher and Green did not seek legal advice from the CBM Defendants regarding any potential claims they may have against Powers. Oestreicher and Green both consulted with other attorneys during the hearings. Oestreicher consulted with his father, Julius Oestreicher, Esq., and with Alman, Green's attorney. Green was represented by Alman before, during, and after the dismissal hearings. Plaintiffs' reliance on legal advice from other attorneys, instead of CBM, makes Plaintiffs' alleged reliance on CBM's counsel objectively unreasonable.
In order to be entitled to protection, a non-client must not be "too remote from the attorney[]."
Here, Green's attorney-client relationship with Attorney Alman, and Oestreicher's relationship with both Attorney Alman and Attorney Julius Oestreicher, demonstrates that Plaintiffs' relationship with CBM was too remote to create an attorney-client relationship.
Based on the totality of the circumstances, there is no factual dispute that the CBM Defendants should not have known that Plaintiffs were relying on CBM for legal advice and Oestreicher and Green's reliance was not foreseeable.
For the reasons set forth above, Defendants' Motions for Summary Judgment are