In Re O.P.M. Leasing Services, Inc. Bankruptcy No.
81 B 10533 (1983) c19639CROMEANS V. MORGAN KEEGAN & CO., INC. 69 F.Supp.3d 934 (2014)
Holding & Decision
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Nature Of The Case
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Facts
In 1971, O.P.M. retained the law firm of Singer, Hutner, Levine & Seeman, P.C. (Singer Hutner) as its general counsel. A member of Singer Hutner served as a director of O.P.M. until August, 1980. In September, 1980, Singer Hutner resigned as O.P.M.'s counsel, which process was completed in December, 1980. On March 11, 1981, O.P.M. filed a voluntary petition seeking reorganization relief under Chapter 11. Singer Hutner performed legal services for Mordecai Weissman, formerly the President of O.P.M., and Myron S. Goodman, formerly the Executive Vice President of O.P.M. It turns out that Mordecai and Weissman were crooks who defrauded people using fraudulent lease-financing transactions. Singer closed fraudulent lease transactions for O.P.M., unaware at first that fraud was being perpetrated. Eventually, a law firm partner discovered the problems in 1980; still, the fraud machine continued, but the firm at least consulted outside counsel about its ethical responsibilities. Representation with O.P.M. ceased March 27, 1981, when Weissman and Goodman each filed a voluntary petition under Chapter 7 (liquidation) of the Bankruptcy Code. Singer claimed it was a mutual parting of the ways, but it was not. On April 29, 1981, the Trustee requested Singer Hutner to consult with him and his counsel concerning their past representation of O.P.M. and affiliated companies and to provide them with all information and documents in their possession, custody and control relating to that representation (including matters within the attorney-client privilege). Counsel for Singer Hutner informed the Trustee 'that the Code of Professional Responsibility requires [Singer Hutner] to continue to maintain the secrets and confidences of its former clients unless and until there has been a determination of these questions by a court of competent jurisdiction.' The Trustee proceeded on May 6, 1981, with an Order to Show Cause signed by this court directing Singer Hutner, among others, to demonstrate grounds why the court should not issue an order requiring the law firm to communicate with the Trustee and his counsel as requested.
Issues
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Rule Of Law
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Legal Analysis
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