1. In the case of Young v. Achenbauch, the Florida Supreme Court found that the balancing test used by the Third District Court of Appeals was inappropriate for addressing conflict of interest issues in class action lawsuits.
2. The court determined that the Florida Rules of Professional Conduct fully addressed the conflict of interest issue in class action lawsuits.
3. The case involved flight attendants who had initiated a class action suit against tobacco companies for diseases caused by second-hand smoke in airline cabins, resulting in a settlement agreement.
4. The settlement agreement allowed class members to waive intentional tort and punitive damages claims, while retaining the right to pursue individual compensatory damages claims against the tobacco companies.
5. A $300 million settlement fund was established to form the Flight Attendant Medical Research Institute (FAMRI), with several class members becoming members of FAMRI’s board.
6. Following the establishment of FAMRI, many of the flight attendants, including the petitioners in the case, initiated their own individual suits for compensatory damages. – Hunter and Gerson, along with other attorneys, represented flight attendants in progeny suits against FAMRI.
– They tried to have FAMRI produce accounting but were allegedly unresponsive.
– A group of attorneys filed a petition against FAMRI on behalf of some flight attendants, leading to conflict of interest claims from FAMRI board members.
– Blissard and Young, FAMRI board members, objected to the petition and stated that they had shared confidential information with Hunter and Gerson.
– Both Blissard and Young had their individual representation by Hunter and Gerson withdrawn after the objection.
– Two other individuals, Chambers and Waerness, submitted affidavits in support of disqualifying Hunter and Gerson.
– Hunter and Gerson subsequently withdrew from the cases. 1. The trial court found that the attorneys for the petitioners violated Florida’s Rules of Professional Conduct 4-1.9.
2. The Third District held that a balancing test should be used before disqualifying a class member’s attorney on the motion of another class member.
3. The Florida Supreme Court quashed the Third District’s decision and reinstated the trial court’s disqualification order, finding the usage of the balancing test to be inappropriate. 1. The attorneys attempted to sidestep rule 4-1.7 by taking on representation in which a conflict of interest already existed and then converting a current client into a former client by withdrawing from the client’s case.
2. The matters were found to be “substantially related” under rule 4-1.9, as the individual litigation and the action against FAMRI involved the same transaction or legal dispute.
3. The interests of the individuals participating in the action against FAMRI were found to be materially adverse to the interests of Hunter and Gerson’s former clients who objected to the petition against FAMRI and who did not give their informed consent. 1. The court found the attorneys in violation of rule 4-1.9(a).
2. The court held that disqualification was proper in the case of Young v. Achenbauch.
3. Attorneys may not simply “withdraw” to resolve conflicts of interest and must obtain consent from former clients to represent other clients with substantially related and materially adverse cases.
4. Class action litigation requires careful consideration of conflicts of interest as the “team” approach creates attorney-client relationships.
5. Rule 4-1.7(a) prohibits attorneys from representing clients with directly adverse interests or a substantial risk of limitations due to responsibilities to other clients, former clients, or personal interests.
6. Rule 4-1.9(a)-(c) outlines the restrictions on attorneys who have formerly represented a client in a matter, including the need for informed consent to represent another person in the same or substantially related matter with materially adverse interests.
https://www.jimersonfirm.com/blog/2014/05/conflicts-interest-florida-class-action-cases/
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