Maryville Academy v. Loeb Rhoades & Co., Inc., 77 C 1206
| Citation | 559 F. Supp. 7 |
| Decision Date | 28 May 1982 |
| Docket Number | 78 C 947,77 C 2536,77 C 1629,78 C 896,78 C 843,78 C 388,77 C 2440,78 C 850,78 C 705,77 C 3820,78 C 994 and 78 C 2242.,77 C 2860,77 C 4314,77 C 2704,No. 77 C 1206,77 C 1206 |
| Court | U.S. District Court — Northern District of Illinois |
| Parties | MARYVILLE ACADEMY, et al., Plaintiffs, v. LOEB RHOADES & CO., INC., et al., Defendants, and Cases Coordinated for Discovery. |
William J. Harte, Kevin M. Forde, Richard J. Prendergast, Chicago, Ill., for Thomas Origer.
Jay R. Franke, Don H. Reuben, James A. Serritella, Reuben & Proctor, Chicago, Ill., for Maryville Academy.
Robert S. Levin, Richard J. Phelan, Michael A. Pope, John M. Christian, Phelan, Pope & John, Chicago, Ill., for Hilda B. Mangel and Wendell M. Mew.
John W. Dondanville, Baker & McKenzie, Chicago, Ill., for Insurance Co. of North America.
Stephen C. Sandels, Steven H. Hoeft, McDermott, Will & Emery, Chicago, Ill., for John R. & Donna R. Powell, First Investors Discovery Fund, First Investors Fund for Growth and First Investors Trend Fund.
John M. Hadlock, Michael S. Press, Whitman & Ransom, New York City, for First Investors Discovery Fund, First Investors Fund for Growth and First Investors Trend Fund.
William E. Snyder, Thomas W. Johnston, Chadwell, Kayser, Ruggles, McGee & Hastings, Ltd., Chicago, Ill., Andrew C. Freedman, Reavis & McGrath, New York City, for Robert Wilson & Robert Wilson Associates.
Lowell B. Komie, William Levinson, Levinson, Komie & Murray, P.C., Chicago, Ill., for Arnold Heltzer.
David O. Danis, Whalen, O'Connor, Danis & Tobben, St. Louis, Mo., James P. Chapman, Chapman & Royce, Ltd., Chicago, Ill., for Thomas P. Danis.
William M. Ward, David M. Hartigan, Michael J. Hogan, Hartigan & Ward, Chicago, Ill., for Deane W. Lindstrom, Victor H. Fink & Sheila Fink, Paul B. Smithson, Mary C. Smithson, Susan Smithson, Paula B. Smithson & Janet Smithson, Robert A. Byfield, Frances Piacenti, Gerald M. Aamodt, Michael Aamodt and Ann Aamodt.
William Thomas Huyck, Gerald A. Niederman, Roan & Grossman, Chicago, Ill., for Frances V. Papas.
Nicholas J. Etten, Richard G. Schultz, Kenneth W. Sullivan, Foran, Wiss & Schultz, Chicago, Ill., for Richard & Peggy Shure, Strombecker Corporation, Penta Capital, Alan H. Shure and Myron B. Shure.
Lowell E. Sachnoff, Andrew M. Schatz, George A. Vinyard, Steven H. Cohen, Sachnoff, Weaver & Rubenstein, Ltd., Herbert Beigel, Barnett & Beigel, Chicago, Ill., for J. William Holland.
Ronald A. Lev, Lev & Sneckenberg, Chicago, Ill., for Rikki's, Inc., William T. Valos.
Henry L. Pitts, John V. Ryan III, William M. Stevens, Rooks, Pitts, Fullagar & Poust, Chicago, Ill., for Jon Hedrich.
Edward T. Joyce, Christopher J. McElroy, Steven J. Rotunno, John T. Doyle, Joyce & Kubasiak, P.C., Chicago, Ill., for Frank McNichols and Louis Singer.
Lewis S. Sandler, New York City, for Louis Singer.
John J. Enright, Jeffrey R. Liebman, Arvey, Hodes, Costello & Burman, Chicago, Ill., for Marina Bank.
George W. Thompson, John E. McGovern, Kendall R. Meyer, John Michael Ryan, Wilson & McIlvaine, Chicago, Ill., for Walter M. Glass.
D. Daniel Barr, Larry L. Thompson, Bell, Boyd & Lloyd, Chicago, Ill., for Thomson McKinnon Securities.
Howard R. Koven, Steven L. Bashwiner, H. Nicholas Berberian, Friedman & Koven, Chicago, Ill., for Loeb Rhoades & Co., Inc., Loeb Rhoades & Co., First Wall Street Settlement Corp., and all partners, officers and directors unless otherwise specified.
R. Jack Bernhardt, Wilmette, Ill., Stephen J. Schostok, Laser, Schostok, Kolman & Frank, Chicago, Ill., Paul D. Keller, Jr., Lake Forest, Ill., Howard A. Tullman, Chicago, Ill., for Victor Nemeroff.
Paul B. Uhlenhop, Lawrence, Lawrence, Kamin & Saunders, Chicago, Ill., for Richard J. Bertoldi.
Harry F. Polos, Chicago, Ill., for A.T. Tsoumas.
Turn-Key Enterprises, Andrew C. Papas, A. Patrick Papas, Beef Steak Inn, John T. Papas, pro se.
Plaintiffs' Committee's motion to compel testimony by William J. Fitzpatrick raises the question of whether disclosure of documents and giving of testimony protected by the attorney-client privilege to the SEC in compliance with a subpoena constitutes a limited or a complete waiver of the privilege.
I have decided to apply the holding of The Permian Corporation v. United States, 665 F.2d 1214 (C.A.D.C.1981), that voluntary disclosure of privileged documents and testimony to the SEC is a complete waiver of the attorney-client privilege.
In this case the disclosures to the SEC were voluntary in that, while the documents were produced pursuant to subpoena, the privilege could have been asserted and was not. The decision not to assert the privilege and to fully disclose all attorney-client communications involving Mr. Fitzpatrick was stated on the record by counsel for Loeb Rhoades & Co. and Mr. Fitzpatrick at the time of Mr. Fitzpatrick's testimony.* No confidentiality was sought for the documents, despite a specific warning by the SEC that the documents may be covered by the Freedom of Information Act, and the documents subsequently were turned over by the SEC to Trustee Holland, one of the plaintiffs in these consolidated cases. No one was put on notice that the privilege was claimed by Loeb Rhoades until Mr. Fitzpatrick was deposed by Trustee Holland in these cases.
The cases which recognize a limited waiver based on public policy considerations of encouraging full cooperation with government agencies conducting investigations are rejected by me. They are also factually distinguishable. In this case, there were no specific documents prepared by independent outside counsel which directly related to the same issues being...
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...the privilege prior to turning over the privileged documents constitutes a voluntary waiver. See Maryville Academy v. Loeb Rhoades & Co., 559 F.Supp. 7, 8–9 (N.D.Ill.1982). The determination of whether a party has waived the privilege must be made on a case-by-case basis. Ritacca v. Abbott ......
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