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Summary judgment affirmed in favor of attorney

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An attorney who withdrew as counsel for two related family-owned businesses did not make false and defamatory statements in explaining his withdrawal, the Indiana Court of Appeals held.

In James Gagan, Fred Wittlinger, Jack Allen and Eugene Deutsch v. C. Joseph Yast, No. 45A05-1107-CT-377, James Gagan had claimed that C. Joseph Yast made defamatory statements in a conversation with Gagan’s son, Jamie. Yast is an attorney and was close friends with the Gagan family for nearly 30 years. Yast represented the Gagans and their various businesses in numerous lawsuits during a 20-year period. In 2006, Gagan, founder of DirectBuy, offered Yast a position as the company’s vice president and general counsel, and Yast accepted. Yast’s employment contract allowed him to work on outside projects, and Yast represented Jamie Gagan’s company ThinkTank in various litigation matters.

In 2007, Gagan and the minority shareholders in DirectBuy sold the company to Trivest, a holding company, for $550 million. Gagan and the other shareholders had taken $17 million in member merchandise money as a dividend, and Trivest challenged that withdrawal under the merger. DirectBuy’s highest ranking officers contacted Gagan to explain their concerns, believing the withdrawal was inconsistent with the company’s core values.

When Trivest and Gagan and the other sellers were unable to reach an agreement, Yast withdrew his appearance for Gagan in federal litigation, believing that representing Gagan presented a conflict of interest. Yast also determined that his conflict with Gagan created a conflict of interest in continuing to represent ThinkTank. Yast called Jamie to explain why he was withdrawing from ThinkTank litigation.

Two days later, Jamie filed a disciplinary grievance against Yast, challenging the manner in which Yast withdrew his representation. Jamie argued that Yast’s disclosure of his conflict of interest in their telephone call on April 23, 2008, was inappropriate because Yast’s purpose was to leverage his withdrawal to force Gagan to capitulate in his dispute with Trivest. The Disciplinary Commission determined that Jamie’s grievance did not raise a substantial question of misconduct and dismissed the matter on April 1, 2010.

In its opinion, the COA held that Gagan and the other sellers set forth no designated evidence demonstrating that they have suffered any reputational harm or actual damage from Yast’s statements to Jamie during the telephone call and that no evidence supported the claim that Yast abused his qualified common interest privilege. The COA concluded that the trial court properly granted Yast’s motion for summary judgment on this basis.

 

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  1. I work with some older lawyers in the 70s, 80s, and they are sharp as tacks compared to the foggy minded, undisciplined, inexperienced, listless & aimless "youths" being churned out by the diploma mill law schools by the tens of thousands. A client is generally lucky to land a lawyer who has decided to stay in practice a long time. Young people shouldn't kid themselves. Experience is golden especially in something like law. When you start out as a new lawyer you are about as powerful as a babe in the cradle. Whereas the silver halo of age usually crowns someone who can strike like thunder.

  2. YES I WENT THROUGH THIS BEFORE IN A DIFFERENT SITUATION WITH MY YOUNGEST SON PEOPLE NEED TO LEAVE US ALONE WITH DCS IF WE ARE NOT HURTING OR NEGLECT OUR CHILDREN WHY ARE THEY EVEN CALLED OUT AND THE PEOPLE MAKING FALSE REPORTS NEED TO GO TO JAIL AND HAVE A CLASS D FELONY ON THERE RECORD TO SEE HOW IT FEELS. I WENT THREW ALOT WHEN HE WAS TAKEN WHAT ELSE DOES THESE SCHOOL WANT ME TO SERVE 25 YEARS TO LIFE ON LIES THERE TELLING OR EVEN LE SAME THING LIED TO THE COUNTY PROSECUTOR JUST SO I WOULD GET ARRESTED AND GET TIME HE THOUGHT AND IT TURNED OUT I DID WHAT I HAD TO DO NOT PROUD OF WHAT HAPPEN AND SHOULD KNOW ABOUT SEEKING MEDICAL ATTENTION FOR MY CHILD I AM DISABLED AND SICK OF GETTING TREATED BADLY HOW WOULD THEY LIKE IT IF I CALLED APS ON THEM FOR A CHANGE THEN THEY CAN COME AND ARREST THEM RIGHT OUT OF THE SCHOOL. NOW WE ARE HOMELESS AND THE CHILDREN ARE STAYING WITH A RELATIVE AND GUARDIAN AND THE SCHOOL WON'T LET THEM GO TO SCHOOL THERE BUT WANT THEM TO GO TO SCHOOL WHERE BULLYING IS ALLOWED REAL SMART THINKING ON A SCHOOL STAFF.

  3. Family court judges never fail to surprise me with their irrational thinking. First of all any man who abuses his wife is not fit to be a parent. A man who can't control his anger should not be allowed around his child unsupervised period. Just because he's never been convicted of abusing his child doesn't mean he won't and maybe he hasn't but a man that has such poor judgement and control is not fit to parent without oversight - only a moron would think otherwise. Secondly, why should the mother have to pay? He's the one who made the poor decisions to abuse and he should be the one to pay the price - monetarily and otherwise. Yes it's sad that the little girl may be deprived of her father, but really what kind of father is he - the one that abuses her mother the one that can't even step up and do what's necessary on his own instead the abused mother is to pay for him???? What is this Judge thinking? Another example of how this world rewards bad behavior and punishes those who do right. Way to go Judge - NOT.

  4. Right on. Legalize it. We can take billions away from the drug cartels and help reduce violence in central America and more unwanted illegal immigration all in one fell swoop. cut taxes on the savings from needless incarcerations. On and stop eroding our fourth amendment freedom or whatever's left of it.

  5. "...a switch from crop production to hog production "does not constitute a significant change."??? REALLY?!?! Any judge that cannot see a significant difference between a plant and an animal needs to find another line of work.

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