The petitioners, Fireman's Fund Insurance Company and National Surety Corporation (hereinafter, collectively Fireman's Fund), seek a writ of mandate vacating the trial court's order of November 18, 2010, which required an attorney, who was a member of a law firm that had formerly represented Fireman's Fund in this litigation, to answer at her deposition five questions to which objections of attorney-client privilege and/or work product privilege had been asserted. In overruling these objections, the trial court generally held that (1) the attorney-client privilege applies only to communications directly between an attorney and his or her client, but does not extend to communications among and between multiple counsel (or other reasonably necessary parties) who are representing the client and (2) the absolute work product privilege applies only to an attorney's work product that has been reduced to written form.
As we explain, the trial court's ruling improperly restricted the scope of these two privileges. We will therefore grant the petition and remand with directions.
Front Gate Plaza, LLC (hereinafter Front Gate), owns and operates a shopping mall in Lancaster, California. Primero Management, Inc. (Primero), provides management and accounting services for Front Gate. Raymond Arjmand, either individually or as trustee for the Arjmand Family Trust (Arjmand), is a managing member of Front Gate and the principal of Primero. Primero apparently provides management and accounting services not just for Front Gate, but for other Arjmand-owned entities as well.
In April of 2008,
In May of 2009, Fireman's Fund's counsel, Carlson, Calladine & Peterson LLP (CCP), was contacted by Sunil Chand (Chand), the acting director of accounting for Primero, who claimed to be a whistleblower in possession of evidence demonstrating that Front Gate's insurance claims were fraudulent. Chand spoke with Attorney Melissa Dubbs, an associate at CCP. Chand initially made several calls to Dubbs without disclosing his name. Dubbs referred Chand to Pamela Pierce (Pierce), an investigator retained by CCP, who traced Chand's calls and discovered his identity.
According to Chand, he had discovered, while working at Primero, that his employer was engaging in financial and accounting irregularities with respect to Front Gate and another Arjmand entity, not a party to these proceedings. According to Chand, Front Gate sought insurance compensation for expenses which did not arise from covered events, submitted inflated repair bids from vendors who were part of Arjmand's scheme, and split insurance proceeds with the vendors who had submitted the inflated bids. Chand was fired by Arjmand on June 2, 2009, shortly after he informed Arjmand that he had filed amended 1099 forms for certain vendors and asserted that he no longer wished to be a party to Arjmand's fraud.
On or about June 7, 2009, Chand met with Dubbs and investigator Pierce in CCP's office in San Francisco. He brought with him and delivered documents that he had copied from Primero's records. At the request of Dubbs, CCP partner Donald Carlson wrote a check to Chand for $1,000 to reimburse him for his time and travel expense in coming from Los Angeles to San Francisco.
In September 2009, Fireman's Fund filed a cross-complaint against Front Gate, Primero, Arjmand and others,
The parties became embroiled in protracted discovery disputes over the so-called "Chand documents/incident" because real parties in interest refused to produce copies of the documents that Chand had provided to CCP and sought to preclude Fireman's Fund from using these documents in this litigation. On November 6, 2009, at Fireman's Fund's request, the trial court designated retired Los Angeles Superior Court Judge Arnold Gold (hereinafter, the Referee) to assist the court with "issues raised by the Chand documents incident." Specifically, the court authorized the Referee to "hear, determine and make recommendations" as to: "(1) All discovery and evidentiary issues and the use of the Chand documents in the litigation, (2) whether defendants had violated their ethical and legal duties, and (3) whether plaintiffs or any other party or attorney had violated their legal or ethical duties by suppressing or withholding documents or evidence in previous responses to defendant's discovery request."
The dispute at issue in this writ proceeding surrounds certain questions propounded at the deposition of Attorney Dubbs.
Thereafter, real parties in interest requested, in September of 2010, that the Referee compel Attorney Dubbs to answer 10 specific questions to which Fireman's Fund had previously objected on privilege grounds. On October 3, 2010, the Referee issued his fourth report and recommendation (Fourth Report) recommending that Dubbs be compelled to answer all 10 questions. Fireman's Fund then agreed to let her answer five of those questions. (Questions 1, 2, 3, 4 and 8.) With respect to the remaining five questions (questions 5, 6, 7, 9 and 10), however, Fireman's Fund argued that the attorney client and/or the absolute work product privileges (Code Civ. Proc., § 2018.030, subd. (a))
(5) Q: "Do you know how Mr. Peterson drafted the declaration of Mr. Chand without meeting with Mr. Chand?"
A: "I think I know."
Q: "And what is it?"
(7) Q: "Was Pamela Pierce aware that Sunil Chand was paid $1,000 on your initial meeting with Mr. Chand?"
A: "Yes. . . . She was aware of it because she and I had a discussion about how to—how to pay Mr. Chand—how to pay Mr. Chand $1,000."
Q: "What were those discussions?"
(9) Q: "Did you prepare any subpoenas based on any documents that Chand gave you[?]"
A: "Yes."
Q: "Which ones?"
(10) "Did you explain who Mr. Chand was to Mr. Carlson before he wrote the check?"
The Referee (and the trial court) took a very narrow and restricted view of the attorney-client privilege and the absolute work product privilege. The Referee expressed the view that the attorney-client privilege protects only communications between an attorney and a client, but not an attorney's communications with members or agents of her law firm about client matters. In addition, because he was of the view that the communications at issue were not reduced to writing and did not seek an attorney's legal opinions, the Referee concluded that only the qualified work product privilege applied and therefore those communications should be divulged to avoid "unfair[] prejudice" to real parties in interest. As indicated, the trial court issued the recommended order on November 18, 2010.
Fireman's Fund responded with the petition for writ relief that is now before us.
The pending petition for writ relief raises two very narrow and specific questions. First, is the attorney-client privilege limited to communications between an attorney and his or her client or is it broad enough to cover communications related to a client's matter or interests among and between multiple counsel (or other reasonably necessary parties) who are representing the client? Second, is the absolute work product privilege limited to matters reduced to writing or does it extend to an attorney's impressions, conclusions, opinions, legal research or theories whether or not reduced to writing?
The trial court adopted the narrower view with respect to both privileges. As we explain, this was error.
"The appellate court may entertain a petition for extraordinary relief when compulsion to answer a discovery order would violate a privilege." (BP Alaska Exploration, Inc. v. Superior Court (1988) 199 Cal.App.3d 1240, 1249 [245 Cal.Rptr. 682].) Discovery orders are reviewed for an abuse of discretion. (Costco Wholesale Corp. v. Superior Court (2009) 47 Cal.4th 725, 733 [101 Cal.Rptr.3d 758, 219 P.3d 736].) A trial court's application of the wrong legal standard is an abuse of discretion. (Ibid.) In this case, the principal issue raised is whether the trial court applied the proper legal standard with respect to both the attorney-client privilege and the work product privilege. Based on this record, it is clear that it did not.
Against this framework, we now consider several of the questions asked Attorney Dubbs which are at issue in this proceeding. Questions 6 and 10 asked, "What did you tell Mr. Carlson in order for him to write a personal check to Mr. Chand?" and "Did you explain who Mr. Chand was to Mr. Carlson before he wrote the check?" Both of these questions seek information regarding Dubbs's evaluation of Chand and his possible usefulness to Fireman's Fund's case, as expressed to another attorney at CCP. In other words, they seek from Dubbs her legal opinions, which, as far as the record indicates, were expressed only to another CCP attorney. These opinions are confidential communications, which are protected by the attorney-client privilege.
Question 5 asked Dubbs how Attorney Peterson drafted Chand's declaration without speaking to Chand. This question clearly seeks privileged information, that is, Peterson's legal opinions involved in the drafting of the Chand declaration. The information does not lose its confidential characterization by being shared with Dubbs (or others at the CCP firm) and there is no indication that the information has been shared with anyone else. As such, this question sought information subject to the attorney-client privilege, and an answer should not have been compelled.
In sum, questions 5, 6, 10, and possibly 7, sought "confidential communications," including attorney legal opinions, protected by the attorney-client privilege. Attorney Dubbs should not have been compelled to answer these questions. We now turn to a consideration of the work product privilege.
While the plain language of this statute is perhaps amenable to the interpretation adopted by the trial court, further investigation of the issue suggests that a different interpretation is also possible. It may be that the Legislature believed that statutory protection was necessary only for written work product, and simply limited the entire statute's scope to writings, as writings were all that needed statutory protection. That is, the absolute privilege was expressly provided for written opinion work product, and the
Moreover, a comparison of section 2018.030 to the federal work product privilege, found at rule 26(b)(3) of the Federal Rules of Civil Procedure (28 U.S.C.), demonstrates the reasonableness of this interpretation. The federal rule provides, in pertinent part, that "documents and tangible things that are prepared in anticipation of litigation or for trial" by a party's attorney are discoverable only when the party seeking discovery shows that it has substantial need for the materials to prepare its case and cannot, without undue hardship, obtain their substantial equivalent by other means. (Ibid.) However, the rule further provides that if discovery of such materials is ordered, the court "must protect against disclosure of the mental impressions, conclusions, opinions, or legal theories of a party's attorney."
If this interpretation is correct, it raises a second question: Did the Legislature's restriction of the statutory protection to written work product intend to leave unwritten work product unprotected, or was there reason to believe the Legislature assumed unwritten work product was already protected? To best understand this issue, it is helpful to turn to the case in which the United States Supreme Court first adopted the work product doctrine, Hickman v. Taylor (1947) 329 U.S. 495 [91 L.Ed. 451, 67 S.Ct. 385] (Hickman).
The Hickman case arose out of a lawsuit filed by the family of a man who drowned when a tugboat on which he was working sank. Counsel for the
However, although the Supreme Court concluded that written work product may sometimes be discoverable, the court's analysis began from the premise that an attorney's thoughts are inviolate, and the Hickman opinion never suggested that the law should be otherwise. The court stated that an attorney's work "is reflected . . . in interviews, statements, memoranda, correspondence, briefs, mental impressions, personal beliefs, and countless other tangible and intangible ways—aptly though roughly termed . . . the `work product of the lawyer.' Were such materials open to opposing counsel on mere demand, much of what is now put down in writing would remain unwritten. An attorney's thoughts, heretofore inviolate, would not be his own. Inefficiency, unfairness and sharp practices would inevitably develop in the giving of legal advice and in the preparation of cases for trial. The effect on the legal profession would be demoralizing. And the interests of the clients and the cause of justice would be poorly served." (Hickman, supra, 329 U.S. at p. 511, italics added.) In other words, the United States Supreme Court extended protection to written opinion work product because unwritten opinion work product was already inviolate.
The history of the work product privilege in California has been set forth at length in Dowden v. Superior Court (1999) 73 Cal.App.4th 126, 130-133 [86 Cal.Rptr.2d 180]. Key for our purposes are the facts that (1) in the federal system, the work product privilege was adopted by the United States Supreme Court in Hickman and (2) thereafter, the California Supreme Court concluded that, despite the persuasiveness of the Hickman opinion, adoption of a work product privilege in California was a matter for the Legislature, not the courts. (Greyhound Corp. v. Superior Court (1961) 56 Cal.2d 355, 401 [15 Cal.Rptr. 90, 364 P.2d 266].) The result was the enactment, in 1963, of an amendment to then section 2016, which adopted a work product privilege in California.
References in the legislative history indicate that the Legislature believed that the effect of the statute was to "establish in California substantially the same rule" as Hickman, and the "numerous decisions of other U.S. courts in interpreting and applying the rule." (State Bar of California, letter to Governor Edmund G. Brown, July 2, 1963, p. 2; Mem. entitled "Explanation of Senate Bill 24" in legislative bill file of Sen. James Cobey, May 29, 1963, p. 2.) Thus, the California Legislature appears to have had the intent of adopting the rule of Hickman which, as we discussed above, protected written opinion work product because it assumed unwritten opinion work product was already inviolate.
It is useful to consider the way federal courts have resolved the issue of the protection to be accorded unwritten opinion work product. There are two lines of analysis taken in the federal cases, both of which reach the conclusion that unwritten opinion work product is entitled to absolute protection.
The second line of cases acknowledges that the language in Federal Rules of Civil Procedure, rule 26(b)(3) (28 U.S.C.) is limited to written work product, but nonetheless interprets the rule to extend its protection to intangible work product. "[T]he courts have rejected an interpretation of Rule 26(b)(3) that provides protection only for an attorney's mental impressions that are contained in `documents and tangible things.' [Citations.] These decisions make clear that a party cannot discover what an attorney said to a witness in interviewing him or in preparation for his deposition because such statements are likely to reveal the attorney's mental impressions, opinions and theories of the case." (Connolly Data Systems, Inc. v. Victor Technologies, Inc. (S.D.Cal. 1987) 114 F.R.D. 89, 96;
While the federal cases reach their results on different theories, they are in agreement that unwritten opinion work product is absolutely privileged— based on the policy set forth in Hickman. Thus, both lines of cases are of assistance in interpreting the California privilege, and both support the conclusion that unwritten opinion work product is absolutely privileged.
Moreover, such an interpretation of the privilege would inevitably result in attorneys documenting their every thought (in order to obtain complete protection for their work product) at the expense of higher client bills for the time taken in documentation, and at the risk of malpractice lawsuits if the failure to document an opinion resulted in its being held discoverable. We cannot conclude that our Legislature intended such absurd results.
The petition for writ of mandate is granted. Upon remand, the trial court is directed to vacate its order of November 18, 2010, and to enter a new and different order sustaining petitioners' objections to deposition questions 5, 6, 9 and 10, and that part of question 7 seeking Attorney Dubbs's opinions with respect to Chand. The trial court (or the Referee pursuant to the trial court's referral and designation orders) shall conduct such further proceedings as may be appropriate and consistent with the views expressed herein. Fireman's Fund shall recover its costs in these appellate proceedings.
Klein, P.J., and Kitching, J., concurred.
Section 2018.030 provides: "(a) A writing that reflects an attorney's impressions, conclusions, opinions, or legal research or theories is not discoverable under any circumstances. [¶] (b) The work product of an attorney, other than a writing described in subdivision (a), is not discoverable unless the court determines that denial of discovery will unfairly prejudice the party seeking discovery in preparing that party's claim or defense or will result in an injustice." (Italics added.)