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PBI Electronic Publication # EP-3640
How to Avoid Crossing the Ethical Boundaries in
Collective Bargaining and the Grievance Process
Steven W. Suflas, Esquire Ballard Spahr Andrews & Ingersoll, LLP Voorhees, NJ
A chapter from E-Commerce
Pub. No. 5571, published December 2008
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Table of Contents How to Avoid Crossing the Ethical Boundaries in Collective Bargaining & the
Grievance Process
By Steven W. Suflas, Esquire
The Grievance Process ................................................................................................... H-1
A. Grievances - Generally..............................................................................H-1
B. Ethical Obligations of the Parties and Representatives ............................H-1
C. Arbitration.................................................................................................H-1
.
Ethics and the Arbitrator ...................................................................................... H-2
D. Importance of Ethics ............................................................................ H-2
E. Ethical Obligations of the Arbitrator ........................................................H-2
F. The Code of Professional Responsibility for Arbitrators of LaborManagement Disputes...............................................................................H-2
1. Arbitrator’s Responsibilities to the Parties .........................H-2
a. Respect for the Arbitration Agreement .........................H-2
b. Disclosure – What to Disclose ........................................H-3
c. Disclosure – Whether to Disclose ...................................H-3
d. Special Disclosure Considerations in Arbitration.........H-4
e. Disclosure and the Non-Neutral Arbitrator ..................H-5
2. Privacy ..................................................................................H-5
3. Pre-Hearing Conduct............................................................H-5
4. Hearing Conduct...................................................................H-5
5. Post-Hearing Conduct ..........................................................H-5
G. Attorney as Arbitrator ...............................................................................H-5
1. Special Conflicts of Interest .................................................H-6
2. Obligations of Parties ...........................................................H-6
H. Effect of Violations...................................................................................H-6
.
Ethics and the Advocate: General Rules ............................................................. H-7
A. The ABA Model Rules of Professional Conduct .......................................H-7
1. Generally...............................................................................H-7
2. Duty of Candor......................................................................H-7
J. Advocate’s Duty to Inquire.......................................................................H-8
K. Advocate’s Duty to Advise ........................................................................H-8
L. The Union Advocate and Special Conflict Considerations........................H-8
.
Ethics Issues Regarding Multi-Jurisdictional Practice................................... H-10
M. Increase in Multi-Jurisdictional Activities ...............................................H-10
N. ABA Model Rule......................................................................................H-10
O. Potential Problems....................................................................................H-10
.
Advocates and the Attorney-Client Privilege – The Contours of
Privilege ....................................................................................................... H-11
P. Origin ......................................................................................................H-11
Q. Purpose....................................................................................................H-11
R. Elements..................................................................................................H-12
S. Scope (briefly).........................................................................................H-12
T. The Collective Bargaining Privilege.......................................................H-13
Advocates and the Attorney Client Privilege – Organizational Clients
(including corporate employers and labor unions) ........................................ H-15
U. Organization as Client.............................................................................H-15
1. Two Major Principles..........................................................H-15
2. Model Rule ..........................................................................H-15
3. Organization’s Constituents ..............................................H-16
4. Model Code, Canon 5, EC-18 Provides ..............................H-16
V. Duty to Make Clear the Identity of the Client ........................................H-16
1. Explain ................................................................................H-16
2. Advise..................................................................................H-16
3. Be Careful ...........................................................................H-16
4. Personal Privilege...............................................................H-16
Advocates and the Attorney Client Privilege – In-House Counsel .......... H-17
W. Legal Matters ..........................................................................................H-17
X. Business Matters ....................................................................................H-17
Y. Applying the Rules..................................................................................H-18
Z. Helpful Hints for In-House Counsel (Labor and Management) for
Preserving the Privilege ..........................................................................H-19
AA. Consultants/Third Parties........................................................................H-19
Advocates and the Attorney-Client Privilege – Waiver......................................... H-20
BB. Disclosure of Information .......................................................................H-20
CC. Disclosures of Third Parties....................................................................H-20
DD. Disclosures Among Employees/Agents of Corporation .........................H-21
EE. Disclosures to Non-Lawyers...................................................................H-22
FF. Selective Waiver .....................................................................................H-22
GG. Partial Waiver .........................................................................................H-22
HH. Subject Matter Waiver ...............................................................................H-23
Advocates and Inadvertent Disclosure..................................................................... H-24
II.
Lawyer’s Obligation Upon Receipt of Documents Inadvertently
Disclosed.................................................................................................H-24
JJ.
Effect of Inadvertent Disclosure on the Attorney-Client Privilege and the
Work-Product Doctrine...........................................................................H-25
Advocates and Unauthorized Disclosures........................................................ H-27
KK. Lawyer’s Obligation Upon Receipt of Documents Disclosed Without
Authorization (as opposed to Documents Inadvertently Disclosed).......H-27
TABLE OF AUTHORITIES
FEDERAL CASES
Advanced Tech. Associates, Inc. v. Herley Industries, Inc., No. CIV. A.
96-0132, 1996 WL 711018 (E.D. Pa. 1996) ................................................................21
ALS & Associates, Inc. v. AGM Marien Constructions, Inc., 557 F. Supp.
2d 180 (D. Mass. 2008)..................................................................................................6
Allen v. Chicago Transit Authority, 198 F.R.D. 495 (N.D. Ill. 2001) ...............................13
Amcast Industrial Corp. v. Detrex. Corp., No. 588-620, 1991 WL 441904
(N.D. Ind. July 26, 1991) .............................................................................................12
Amway Corp. v. Proctor & Gamble Co., No. 1:98CV 726, 2001 U.S. Dist.
LEXIS 4561 (W.D. Mich. Apr. 3, 2001) .....................................................................19
Andritz Sprout-Bauer v. Beazer East, 174 F.R.D. 609 (M.D. Pa. 1997) .....................17, 19
Applied Industrial Materials Corp. v. Ovalar Makine Ticaret Ve Sanayi,
A.S., 492 F.3d 132 (2d Cir. 2007) ...............................................................................3,4
Arnold v. Air Midwest, Inc., 100 F.3d 857 (10th Cir. 1996)................................................9
Atkinson v. Sinclair Refining Co., 370 U.S. 238 (1962) ......................................................9
Beneficial Franchise Co. v. Bank One, N.A., 205 F.R.D. 212 (N.D. Ill.
2001) ............................................................................................................................23
In re Bevill, Bresler & Schulman Asset Management Corp., 805 F.2d 120
(3d Cir. 1986)...............................................................................................................17
B.F.G. of Ill., Inc. v. Ameritech Corp., No. 99 C 4604, 2001 U.S. Dist.
LEXIS 18930 (N.D. Ill. Nov. 8, 2001) ........................................................................19
In re Bieter Co., 16 F.3d 929 (8th Cir. 1994) ....................................................................20
Boca Investering Partnership v. United States, 31 F. Supp. 2d 9 (D.D.C.
1998) ......................................................................................................................17, 18
Bonin v. World Umpires Association, 204 F.R.D. 67 (E.D. Pa. 2001) ..............................14
Breda v. Scott, 1 F.3d 908 (9th Cir. 1993)...........................................................................9
Bristol Myers Squibb Co. v. Rhone-Poulenc Rorer, Inc., No. 95-CIV8833, 1997 WL 801454 (S.D.N.Y. Dec. 31, 1997) .....................................................23
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Carino v. Stefan, 376 F.3d 156 (3d Cir. 2004) ....................................................................9
Chamberlain Manufacturing Corp. v. Maremont Corp., No. 90 C 7127,
1993 U.S. Dist. LEXIS 371 (N.D. Ill. Jan. 19, 1993) ..................................................23
Chevron Corp. v. Pennzoil Co., 974 F.2d 1156 (9th Cir. 1992) ........................................23
Chopper v. R.J. Reynolds Tobacco Co., 195 F.R.D. 648 (N.D. Iowa 2000) .....................22
Clark v. Buffalo Wire Works Co., 190 F.R.D. 93 (W.D.N.Y. 1999) .................................13
Coltec Industrial v. American Motorists Insurance Co., 197 F.R.D. 368
(N.D. Ill. 2000).............................................................................................................12
In re Columbia/HCA Healthcare Corp., 192 F.R.D. 575 (M.D. Tenn.
2000) ............................................................................................................................22
In re Commercial Financial Services, 247 B.R. 828 (Bankr. N.D. Okla.
2000) ............................................................................................................................23
Commonwealth Coatings Corp. v. Continental Casualty Co., 393 U.S. 145
(1968).............................................................................................................................4
Constand v. Cosby, 232 F.R.D. 494 (E.D. Pa. 2006).........................................................13
Containment Tech. Group, Inc. v. American Society of Health System
Pharmacists, No. 07-cv-997, 2008 U.S. Dist. LEXIS 80688 (Oct. 10,
2008) ............................................................................................................................26
Cuno, Inc. v. Pall Corp., 121 F.R.D. 198 (E.D.N.Y. 1988)...............................................18
Deel v. Bank of America, N.A., 227 F.R.D. 456 (W.D.Va. 2005) .....................................21
Diversified Industrial v. Meredith, 572 F.2d 596 (C.A. Mo. 1977)...................................22
FDIC v. Ogden Corp., 202 F.3d 454 (1st Cir. 2000).........................................................11
Faloney v. Wachovia Bank, N.A., No. 07-cv-1455, 2008 U.S. Dist. LEXIS
49547 (E.D. Pa. 2008)..................................................................................................13
Fisher v. United States, 425 U.S. 391 (1976) ....................................................................12
Frye v. Ayers, No. 99-0628, 2008 U.S. Dist. LEXIS 82490 (E.D. Ca. Oct.
16, 2008) ......................................................................................................................26
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Fullerton v. Prudential Insurance Co., 194 F.R.D. 100 (S.D.N.Y. 2000).........................20
In re Grand Jury Investigation, 445 F.3d 266 (3d Cir. 2006) ...........................................11
In re Grand Jury Proceedings, 78 F.3d 251 (6th Cir. 1996) .............................................23
In re Grand Jury Proceedings, 219 F.3d 175 (2d Cir. 2000) ......................................17, 23
In re Grand Jury Subpoena, 274 F.3d 563 (1st Cir. 2001)................................................17
Granite Partners, L.P. v. Bear Stearns & Co., 184 F.R.D. 49 (S.D.N.Y.
1999) ............................................................................................................................23
Green v. IRS, 556 F. Supp. 79 (N.D. Ind. 1982)................................................................12
Griesemer v. Retail Store Employees Union, Local 1393, 482 F. Supp.
312 (E.D. Pa. 1980)........................................................................................................9
Haines v. Liggett Group, Inc., 975 F.2d 81 (3d Cir. 1992)................................................12
Hardy v. New York News, Inc., 114 F.R.D. 633 (S.D.N.Y. 1987).....................................18
Hobet Mining Inc. v. International Union, United Mine Workers, 877 F.
Supp. 1011 (S.D. W.V. 1994)............................................................................2, 4, 6, 8
Hpd Laboratoriess v. Clorox Co., 202 F.R.D. 410 (D.N.J. 2001).....................................11
JCI Communs., Inc. v. IBEW Local 103, 324 F.3d 42 (1st Cir. 2003).................................6
Jenkins v. Barlett, 487 F.3d 482 (7th Cir. 2007)................................................................21
Kai USA Ltd. v. Camillus Cutlery Co. (In re Kroll), 224 F.R.D. 326
(E.D.N.Y. 2004)...........................................................................................................12
Karen Suss v. MSX International Engineering Serv., Inc., No. 2 Civ. 0667,
2002 WL 31854883 (S.D.N.Y. Dec. 19, 2002) ...........................................................22
Kearns v. Caterpiller, Inc., No. 06-1113, 2008 WL 351233 (M.D. Tenn.
Feb. 7, 2008) ................................................................................................................14
Leonen v. Johns-Manville, 135 F.R.D. 94 (D.N.J. 1990) ..................................................18
Long v. Anderson University, 204 F.R.D. 129 (S.D. Ind. 2001)........................................21
Marc Rich & Co., A.G., v. U.S., 731 F.2d 1032 (2d Cir. 1984).........................................18
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Marc Rich & Co. v. Transmarine Seaways Corp., 443 F. Supp. 386
(S.D.N.Y. 1978) .............................................................................................................4
In re Martin Marietta Corp., 856 F.2d 619 .................................................................22, 23
Merit Insurance Co. v. Leatherby Insurance Co., 714 F.2d 673 (7th Cir.
1983) ......................................................................................................................4, 6, 8
Maldonado v. New Jersey, 225 F.R.D. 120 (D.N.J. 2004) ................................................27
Murray v. Gemplus International, S.A., 217 F.R.D. 362 (E.D. Pa. 2003) .........................23
Navigant Consulting, Inc. v. Wilkinson, 220 F.R.D. 467 (N.D. Tex. 2004) ......................19
Nesse v. Pittman, 206 F.R.D. 325 (D.D.C. 2002)..............................................................21
Nesselrotte v. Allegheny Energy, Inc., No. 06-1390, 2008 U.S. Dist.
LEXIS 56411 (W.D. Pa. July 23, 2008) ......................................................................28
New Regency Products, Inc. v. Nippon Herald Films, Inc., 501 F.3d 1101
(9th Cir. 2007)............................................................................................................3, 4
North America Mortgage Investors v. First Wisconsin National Bank, 69
F.R.D. 9 (E.D. Wis. 1975) ...........................................................................................18
Oxyn Telecomms., Inc. v. Onse Telecom, No. 01 Civ. 1012, 2003 U.S.
Dist. LEXIS 2671 (S.D.N.Y. 2003) .............................................................................13
Peterson v. Kennedy, 771 F.2d 1244 (9th Cir. 1985) ......................................................8, 9
Pichler v. UNITE, No.04-2841, 238 F.R.D. 405 (E.D. Pa. Dec. 4, 2004) .........................13
In re Pioneer Hi-Bred International Inc., 238 F.3d 1370 (Fed. Cir. 2001).......................22
Positive Software Solutions, Inc. v. New Century Mortg. Corp., 476 F.3d
278 (5th Cir. 2007).........................................................................................................6
Prudential Equity Group, LLC v. Ajamie, 538 F. Supp. 2d 605 (S.D.N.Y.
2008) ............................................................................................................................11
Remmey v. PaineWebber, Inc., 32 F.3d 143 (4th Cir. 1994) ...............................................8
Rowe v. E.I. duPont de Nemours & Co., No. 06cv01810, 2008 U.S. Dist.
LEXIS 81053 (D.N.J. Sept. 30, 2008) ...................................................................17, 18
Schmitz v. Zilveti, 20 F.3d 1043 (9th Cir. 1994) ..................................................................4
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In re Sealed Case, 676 F.2d 793 (D.C. Cir. 1982).............................................................23
In re Sealed Case, 877 F.2d 976 (D.C. Cir. 1989).............................................................20
Sedco International, S.A, v. Cory, 683 F.2d 1201 (8th Cir. 1982), cert.
denied, 459 U.S. 1017 (1982) ......................................................................................18
Sheet Metal Wkrs. International Association Local 420 v. Kinney Air
Cond., 756 F.2d 742 (9th Cir. 1985)..............................................................................8
Simmons v. Children's Hospital of Phila., No. 01-5607, 2002 WL
31968951 (E.D. Pa. June 24, 2002) .............................................................................21
Sizemore v. City of Madras, No. CIV. 02-74-MA, 2004 WL 1318883 (D.
Ore. June 10, 2004)......................................................................................................23
Smithkline Beecham Corp. v. Apotex Corp., 232 F.R.D. 467 (E.D. Pa.
2005) ............................................................................................................................19
Sparks v. Seltzer, No. 05-1061, 2007 U.S. Dist. LEXIS 6234 (E.D.N.Y.
Jan 29, 2007)................................................................................................................22
Steelworkers v. Warrior & Gulf Navigation Co., 363 U.S. 574 (1960)...............................1
Stone v. City of Philadelphia, 1986 WL 13483 (E.D. Pa. 1986) .........................................9
In re Steinhardt Partners, L.P., 9 F.3d 230 (2d Cir. 1993)................................................22
In re Subpoenas Duces Tecum, 738 F.2d 1367 (D.C. Cir. 1984) ......................................22
Sun Refining & Mktg. Co. v. Statheros Shipping Corp., 761 F. Supp. 293,
300 (S.D.N.Y .)), aff’d, 948 F.2d 1277 (2d Cir. 1991). .................................................4
In re Syncor ERISA Litigation, 229 F.R.D. 636 (C.D. Cal. 2005).....................................20
In re Teleglobe Communs. Corp., 493 F.3d 345 (3d Cir. 2007)........................................11
Trammel v. United States, 445 U.S. 40 (1980) ..................................................................12
Tucker v. Fischbein, 237 F.3d 275 (3d Cir. 2001).............................................................17
United States ex rel. Magid v. Barry Wilderman, No. 96-4346, 2006 U.S.
Dist. LEXIS 56116 (E.D. Pa. Aug. 11, 2006)..............................................................17
United States v. Adlman, 68 F.3d 1495 (2d Cir. 1995)......................................................11
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United States v. Defonte, 441 F.3d 92 (2d Cir. 2006)........................................................11
United States v. IBM, Corp., 66 F.R.D. 206 (S.D.N.Y. 1974)...........................................18
United States v. International Brotherhood of Teamsters, 119 F.3d 210
(2d Cir. 1997)...............................................................................................................17
United States v. MIT, 129 F.3d 681 (1st Cir. 1997).....................................................20, 22
United States v. Mendelsohn, 896 F.2d 1183 (9th Cir. 1990)............................................23
United States v. Munoz, 233 F.3d 1117 (9th Cir. 2000) ....................................................12
United States v. Rowe, 96 F.3d 1294 (9th Cir. 1996) ........................................................18
United States v. Stewart, 287 F. Supp. 2d 461 (S.D.N.Y. 2003) .......................................21
United States v. Wilson, 798 F.2d 509 (1st Cir.1986)........................................................17
United Steelworkers of America v. Ivaco, Inc., No. 01-0426, 2003 U.S.
Dist. LEXIS 10008 (N.D. Ga. Jan. 13, 2003) ................................................................9
Upjohn Co. v. United States, 449 U.S. 383 (1981)..........................................11, 12, 13, 17
Vaca v. Sipes, 386 U.S. 171 (1967) .....................................................................................1
Valente v. Pepsico, Inc., 68 F.R.D. 361 (D. Del. 1975).....................................................18
In re Vioxx Products Liability Litigation, 501 F. Supp. 2d 789 (E.D. La.
2007) ............................................................................................................................18
In re von Bulow, 828 F.2d 94 (2d Cir. 1987).....................................................................23
Waterman v. Transport Workers' Union Local 100, 176 F.3d 150 (2d Cir.
1999) ..............................................................................................................................9
Webb v. ABF Freight System, Inc., 155 F.3d 1230 (10th Cir. 1998) ...................................1
Westinghouse Electric Corporation v. Republic of Philippines, 951 F.2d
1414 (3d Cir. 1991)..........................................................................................20, 21, 22
Williamson v. Quinn Contr. Corp., 537 F. Supp. 613 (S.D.N.Y. 1982) ............................10
Winnett v. Caterpillar, Inc., No. 06-00235, 2008 WL 399301 (M.D. Tenn.
Feb. 6, 2008) ................................................................................................................14
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STATE CASES
Beebe Medical Ctr. v. Insight Health Services Corp., 751 A.2d 426 (Del.
Ch. 1999)........................................................................................................................3
Central Franklin Process Co., 17 LA 142, 145 (Marshall, 1951) ......................................1
Colmar, Ltd., v. FremantleMedia N.A., Inc., 344 Ill. App. 3d 977 (Ill.
App. 4th 2003) .............................................................................................................10
Nasca v. State Farm Mutual Automobile Insurance Co., 12 P.3d 346
(Colo. Ct. App. 2000) ....................................................................................................5
ADMINISTRATIVE CASES
Berbiglia, Inc., 233 N.L.R.B. 1476 (1977) ........................................................................13
Boise Cascade Corp., 279 N.L.R.B. 422 (1986) ...............................................................13
Champ Corp., 291 N.L.R.B. 803 (1988), enforced, 933 F.2d 688 (9th Cir.
1990) ............................................................................................................................13
King Soopers, Inc., 344 N.L.R.B. 838 (2005) ...................................................................13
Patrick Cudahy, Inc., 288 N.L.R.B. 968 (1988)..........................................................12, 13
United Nurses Ass’n of Cal., No. 21, CB-13798, 2005 WL 545231
(NLRB Div. of Advice Feb. 17. 2005). .......................................................................14
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