Wickline accuses his Guam counsel of using info against him

The former president and chief executive officer of United Micronesia Development Association Inc., David L. Wickline, has accused a Guam law firm that is representing him of using confidential information that he gave them against him in order to advance the UMDA litigation.

Wickline, through counsel Colin M. Thompson, said that Calvo Fisher & Jacob LLP is not only at risk of violating its duties to him, it has already breached several of the American Bar Association Model Rules.

Saipan Tribune emailed the Calvo Fisher law firm yesterday for comments. There was no reply as of press time.

Thompson said the only remedy is to disqualify the Calvo Fisher law firm as UMDA’s counsel to prevent further violations.

Last week, U.S. District Court for the NMI designated judge Consuelo B. Marshall dismissed UMDA’s lawsuit against Wickline.

Marshall dismissed with prejudice UMDA’s claims for declaratory relief, fraud, and wrongful dilution. That means UMDA cannot re-open the claims.

In the same order, Marshall dismissed without prejudice UMDA’s claims for breach of fiduciary duty, unjust enrichment, and injunctive relief. The judge gave UMDA up to Oct. 22, 2014, to file an amended complaint.

Dismissed without prejudice allows UMDA to re-file the case on those claims in the future.

UMDA filed its lawsuit against Wickline “to protect its shareholders from dilution of their interests in the company, to recover substantial damages that UMDA discovered during the course of its investigation, and to stop Wickline from working behind the scene to undermine shareholder confidence.”

Wickline countersued UMDA, seeking monetary damages. The court consolidated the cases.

In Wickline’s motion to disqualify filed in federal court, Thompson said Calvo Fisher represents UMDA in this case but the same law firm has also been, and remains, Wickline’s counsel in other matters.

Most notably, Thompson said, Wickline sought and received advice from attorney Kathleen V. Fisher, a partner in Calvo Fisher law firm, in June 2013 regarding this UMDA litigation.

When this dispute arose in July 2012, attorney Robert T. Torres represented UMDA as its Saipan counsel.

Thompson said once the October 2013 mediation failed and it became apparent that the dispute might proceed to litigation, Calvo Fisher suddenly turned on Wickline “in order to represent what it presumably perceived to be the client with deeper pockets.”

Thompson said over Wickline’s objection, Calvo Fisher appeared as co-counsel for UMDA at the second mediation in January 2014.

Two days later, Thompson said, Calvo Fisher placed its name as co-counsel on UMDA’s complaint that levels a series of accusations against its own current client.

“Nothing short of Calvo Fisher’s disqualification will protect Wickline and preserve the integrity of these proceedings,” Thompson said.

Wickline claimed that he met Eduardo A. Calvo, founding partner of Calvo Fisher law firm, in 2003, and Calvo has been his friend and trusted adviser ever since.

Calvo is both a director and beneficial shareholder of UMDA, Wickline said.

It was Calvo who reportedly recommended that Wickline become a director of UMDA.

Thompson said as a result of his close relationship with Calvo, Wickline frequently engaged Calvo Fisher to represent Wickline’s business interests.

Thompson said Calvo Fisher previously represented UMDA in a litigation with its former officers and director, but the firm terminated all matters with UMDA in August 2010.

In contrast, Thompson said, Calvo Fisher continued to advise Wickline on various matters through 2013, and the law firm never notified Wickline that it was no longer his counsel.

Thompson said in March 2012, Calvo introduced Wickline to their firm’s tax partner, William Davis, whoprovided tax advice to Wickline, reviewing the latter’s tax returns from 2007 through 2010.

Thompson said UMDA’s complaint contains information regarding Wickline’s taxes that Calvo Fisher obtained when Wickline provided confidential information to Davis in February 2012 regarding the 2007 to 2010 taxes.

Thompson said while tax advice is not apparently “substantially related” to this case, Calvo Fisher made the tax representation “substantially related” by using the information against Wickline in the UMDA lawsuit.

Thompson cited American Bar Association Model Rules that Calvo Fisher may have violated.