Posted: Thurs., Apr. 30, 1998

Legal grey matter

Judge nixes some attorneys in Shandling suit

In a key ruling in Garry Shandling's $100 million lawsuit against his former manager Brad Grey, an L.A. Superior Court judge has disqualified one group of attorneys for Grey because the law firm had previously defended Shandling in a lawsuit.

Judge Ralph W. Dau sided with attorneys for Shandling, who had filed a motion claiming law firm Munger, Tolles & Olson had a conflict of interest in their representation of Grey and should be removed from the lawsuit.

In January, Shandling sued Grey and Brillstein-Grey Entertainment, asserting that his former manager and partner in production of "The Larry Sanders Show" had extensive conflicts of interest, and favored Grey's interests over Shandling's. The comic/actor also claims he is entitled to a share of BG's profits. Grey later countersued Shandling, seeking to dissolve the partnership.

Alan Friedman, an attorney with Munger Tolles, had defended Shandling in a sexual harassment suit filed by Linda Doucett in 1995. In the disqualification motion, Shandling's lawyers asserted that Friedman had access to confidential information, which could be used to aid attorneys for Grey in the Shandling vs. Grey lawsuit.

Key 'issues'

In discovery documents, Grey's attorneys have stated their intention to question Shandling on "Linda Doucett issues."

Doucett sued Shandling on sexual harassment and wrongful termination grounds, claiming she was fired from her "Sanders" role when her relationship ended with Shandling. She later hired other lawyers to handle her claim; the case was eventually settled out of court.

Dau -- citing California State Bar Rules of Professional Conduct, which requires conflicts be disclosed -- ruled that Munger Tolles did not adequately inform Shandling of the conflict: Brillstein Grey was also longtime client of the firm.

"The court's opinion speaks for itself and I regretted the need to file this motion," Shandling's attorney Jonathan Schiller, of Boise & Schiller, told Daily Variety. "And I did everything I could to work this out with these defendants, but I had to bring the motion in order to protect (Shandling) from being prejudiced."

Citing Rules

The Rules, in part, require that clients receive written notice of the potential conflict and any adverse aspects of the representation. The court described Munger Tolles' efforts to protect Shandling's interests "legally inadequate."

The court found that Schiller had "amply demonstrated" a conflict existed.

But Bert Fields, one of Grey's lawyers, said he disagreed with the court's ruling, but hasn't decided whether to appeal.

"We had a choice: They asked us to keep out anything to do with (Doucett) in the case and we refused," Fields told Daily Variety. "But we think it is one of the many facets of the case we want in there. I suspect, though, that Mr. Shandling would much rather have Munger Tolles in the case than Linda Doucett out of it."


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