Meyerhofer v. Empire Fire and Marine Ins. Co.
United States Court of Appeals for the Second Circuit
497 F.2d 1190 (1974)
The Sitomer firm (defendant) represented Empire Fire and Marine Insurance Company (Empire) (defendant) in a public stock offering. Sitomer attorney Stuart Goldberg raised concerns about undisclosed information in Empire's registration statement, and after the firm rejected his concerns, he resigned and gave a sworn affidavit to the SEC. Investors Dietrich Meyerhofer and Herbert Federman (plaintiffs), represented by the Bernson firm, sued Empire, Sitomer, and others (including Goldberg) for securities fraud. When Goldberg learned he was named as a defendant, he met with the Bernson firm and gave them an affidavit similar to the one he gave the SEC, detailing the alleged cover-up; Bernson then dropped Goldberg as a defendant and amended its complaint. The defendants moved to disqualify the entire Bernson firm, and the district court granted the motion and dismissed the complaint without prejudice.
Whether, under the rules of professional conduct, an attorney may reveal client confidences reasonably necessary to defend himself against an accusation of wrongdoing.