Professional Documents
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Ravelo Friedman Ethics Expert Professor Roy Simon 28 July 2015 Amex Antitrust Expert Report
Ravelo Friedman Ethics Expert Professor Roy Simon 28 July 2015 Amex Antitrust Expert Report
28304
EXHIBIT 1
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fairness'or'merits'of'the'settlement.)''
7.! Approximately'one'year'after'the'Court'approved'the'settlement,'documents'came'to'
light'in'the'files'of'Willkie'Farr'&'Gallagher,'Hunton'&'Williams,'and'the'Law'Offices'
of'Gary'B.'Friedman'showing'that'during'the'pendency'of'MDL'1720'and'the'Amex'
Litigation,'Mr.'Friedman'sent'many'emails,'texts,'and'attachments'to'Ms.'Ravelo'that'
contained'(i)'client'confidential'information,'(ii)'work'product'from'himself'or'other'
attorneys' representing' the' plaintiff' class' in' both' cases' (MDL' 1720' and' the' Amex'
Litigation),' and' (iii)' summaries' of' and' quotations' from' highly' confidential,'
competitively'sensitive'business'records'and'other'documents'that'were'covered'by'
a'protective'order'in'the'Amex'Litigation.'Ms.'Ravelos'files'also'contained'hard'copies'
of'certain'documents.'I'refer'to'these'materials'collectively'as'the'Friedman1Ravelo'
documents.'
8.! The' Friedman1Ravelo' documents' show' that' Mr.' Friedman' and' Ms.' Ravelo' had' an'
unusually'close'relationship'that'entailed'financial'dealings,'business'ventures,'family'
vacations,' frequent' communications,' numerous' social' activities,' and' professional'
endeavors' together.' Mr.' Friedman' and' Ms.' Ravelo' also' had' an' attorney1client'
relationship' in' at' least' three' matters' where' Mr.' Friedman' acted' as' Ms.' Ravelos'
lawyer'(including'the'criminal'charges'which'Ms.'Ravelo'and'her'husband,'Mel'Feliz,'
are'currently'facing).''Mr.'Friedman'and'Ms.'Ravelo'also'served'as'co1counsel'in'at'
least'one'matter.'
9.! The' centerpiece' of' the' injunctive' relief' in' MDL' 1720' was' revising' the' Visa' and'
MasterCard' rules' against' surcharging.' ' The' surcharging' relief' is' qualified' by' a' so1
called'level1playing1field'provision'(LPF),'which'essentially'permits'merchants'to'
surcharge' Visa' and' MasterCard' only' on' the' same' terms' that' those' merchants' are'
permitted'to'surcharge'Amex.''
10.!Once'the'level1playing1field'provision'was'introduced'into'the'negotiations'leading'to'
the' MDL' 1720' settlement,' the' outcome' in' the' Amex' Litigation' (which' sought' to'
change' the' surcharging' rules' of' Amex)' became' highly' material' to' the' MDL' 1720'
settlement' negotiations.' Mr.' Friedman' possessed' valuable' information' and' insight'
into'the'potential'impact'of'the'level1playing1field'provision.''
11.!Given'Mr.'Friedmans'role'as'lead'counsel'for'the'putative'class'in'the'Amex'Litigation,'
this'information'and'insight'was'material'to'the'MDL'1720'settlement.''He'shared'this'
material'information'and'insight'with'Ms.'Ravelo,'who'was'counsel'for'MasterCard,'
but'apparently'did'not'share'it'with'his'co1counsel'in'MDL'1720'or'with'his'clients'in'
MDL'1720.'
12.!Mr.' Friedman' was' a' senior' member' of' the' team' in' MDL' 1720' and' had' primary'
responsibility'for'handling'the'negotiations'for'the'surcharging'relief'that'included'
the'LPF'term.'At'the'same'time,'he'was'lead'counsel'for'the'class'in'the'separate'Amex'
Litigation.'Virtually'all'members'of'the'putative'Amex'class'are'merchants'who'also'
accept'MasterCard'and'Visa,'and'are'therefore'members'of'both'classes.'
Summary+of+Opinions+
13.!In'brief,'my'opinion'regarding'attorney'Gary'B.'Friedman,'in'his'capacity'as'counsel'
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Declaration of Professor Roy D. Simon, Jr. 3'
to' the' plaintiff' classes' in' both' MDL' 1720' and' the' Amex' Litigation,' is' that:' (i)' he'
breached'his'duties'to'his'clients,'his'co1counsel,'and'the'Courts'by'disclosing'work'
product,' attorney1client' communications,' and' internal' communications' among'
plaintiffs'class'counsel'to'Keila'Ravelo;'(ii)'he'had'a'conflict'of'interest'because'he'
treated'opposing'counsel,'Keila'Ravelo,'as'a'covert,'undisclosed'member'of'his'legal'
team;'(iii)'he'had'a'personal'conflict'of'interest'arising'out'of'his'close,'long,'and'multi1
faceted'relationship'with'Keila'Ravelo'that'he'did'not'disclose'to'his'clients'and'for'
which'he'did'not'seek'or'obtain'consent'from'his'clients;'(iv)'he'did'not'disclose'the'
professional'or'personal'conflicts'to'his'clients'in'either'case;'(v)'he'gave'material'
information'to'Ms.'Ravelo'but'failed'to'disclose'that'information'to'his'clients'or'co1
counsel''or'use'that'information'and'insight'for'the'benefit'of'his'own'clients'in'MDL'
1720'or'in'the'Amex'Litigation''and'he'thus'failed'to'act'as'a'zealous'advocate'in'the'
manner'that'an'unconflicted'lawyer'would'have'acted.'
14.!Given'the'materiality'of'the'information'that'Mr.'Friedman'provided'to'Ms.'Ravelo,'
she'presumably'used'it'on'MasterCards'behalf,'as'a'zealous'advocate'was'bound'to'
do.' If' it' had' become' known' that' she' possessed' this' information,' she' and' her' firm'
would' have' been' disqualified' to' prevent' the' inherent' unfairness' of' a' defendants'
counsel' possessing' material,' sensitive,' confidential' information' about' the' views' of'
the'plaintiffs'and'about'the'strategy'and'thinking'of'plaintiffs'counsel.'
15.!In'my'three'decades'studying'professional'responsibility'for'lawyers''more'than'20'
of'those'years'advising'class'action'lawyers''I'cannot'recall'ever'seeing'such'repeated'
and'serious'violations'of'professional'duties'by'an'attorney'representing'a'class,'or'
such'willing'participation'in'those'violations'by'an'attorney'for'a'defendant'in'a'class'
action.'In'my'view,'Mr.'Friedmans'disregard'of'his'professional'responsibilities'was'
prejudicial'to'the'administration'of'justice'and'creates'an'intolerable'appearance'of'
impropriety.'
Opinions+and+Reasoning+
A.+General+Principles+of+Attorney+Conduct!
16.!The'New'York'Rules'of'Professional'Conduct'contain'black'letter'rules'that'state'the'
minimum'standards'for'attorneys'practicing'law'in'New'York.''The'Eastern'District'
of'New'York'evaluates'the'conduct'of'attorneys'according'to'the'New'York'Rules'of'
Professional'Conduct''see'Local'Rule'1.5(b)(5).'An'attorney'who'violates'a'Rule'of'
Professional'Conduct'is'subject'to'discipline.'
17.!The'two'most'fundamental'duties'articulated'in'the'Rules'of'Professional'Conduct'are'
the'duty'of'loyalty'and'the'duty'of'confidentiality.''
17.1.! The'duty'of'loyalty'requires'a'lawyer'to'avoid'improper'conflicts'of'interest'
and'to'exercise'independent'professional'judgment'solely'in'a'clients'best'
interests,'free'of'competing'or'compromising'influences.'As'expressed'in'
Comment'[1]'to'New'York'Rule'1.7:'
[1]' Loyalty' and' independent' judgment' are' essential! aspects! of! a!
lawyers! relationship! with! a! client.' The' professional' judgment' of' a'
lawyer'should'be'exercised,'within'the'bounds'of'the'law,'solely'for'the'
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Declaration of Professor Roy D. Simon, Jr. 4'
benefit'of'the'client'and'free'of'compromising'influences'and'loyalties.'
'[Emphasis'added.]''
17.2.! The' duty' of' confidentiality' requires' a' lawyer' to' avoid' improper' use' or'
disclosure'of'information'received'from'and'about'clients.'As'expressed'in'
Comment'[2]'to'New'York'Rule'1.6:'
[2]'A'fundamental!principle!in!the!client5lawyer!relationship'is'that,'
in'the'absence'of'the'clients'informed'consent,'or'except'as'permitted'
or' required' by' these' Rules,' the' lawyer' must' not' knowingly' reveal'
information'gained'during'and'related'to'the'representation,'whatever'
its' source.' ! The' lawyers' duty' of' confidentiality' contributes' to' the'
trust'that'is'the'hallmark'of'the'client1lawyer'relationship.''[Emphasis'
added.]''
18.!The'duty'of'confidentiality'is'integrally'bound'up'with'the'duty'of'loyalty.'The'Rules'
of'Professional'Conduct'recognize'that'a'lawyers'fulfillment'of'the'duty'of'loyalty'to'
a'client'goes'hand'in'hand'with'the'lawyers'adherence'to'the'duty'of'confidentiality'
to' that' client.' For' example,' Rule' 1.9(a)' prohibits' a' lawyer' from' opposing' a' former'
client'in'a'substantially'related'matter'absent'the'former'clients'informed'consent,'
because' otherwise' the' lawyer' would' be' in' a' position' to' use' the' former' clients'
confidential'information'to'advance'the'interests'of'the'former'clients'adversary.''
19.!A' lawyer' who' improperly' reveals' confidential' information' to' a' current! clients'
adversary'is'engaging'in'a'breach'of'trust'that'is'extremely'disloyal'and'harmful'to'
the'client.'A'proceeding'in'which'a'lawyer'clandestinely'reveals'key'work'product'and'
confidential'information'to'the'opposing'partys'counsel'flies'in'the'face'of'the'theory'
of' the' adversary' system.' ' The' basic' theory' of' the' adversary' system' is' that' each'
opposing' party' has' its' own' zealous' and' loyal' advocate,' and' the' clash' of' opposing'
views' of' the' facts' and' the' law' will' lead' to' a' fair' result.' See,! e.g.,! Roy' Simon,' Carol'
Needham'&'Burnele'Powell,'LAWYERS'AND'THE' LEGAL' PROFESSION:' CASES'AND' MATERIALS'
Ch.'14'(Principles'of'the'Adversary'System)'(Lexis/Nexis'4th'ed.'2009).'If'opposing'
lawyers'are'colluding'with'each'other,'the'clash'of'zealous'advocates'does'not'occur'
and'the'outcome'of'the'proceeding'cannot'be'trusted.'
20.!In'my'opinion,'Mr.'Friedman'violated'his'duty'of'confidentiality'and'his'duty'of'loyalty'
during'his'representation'of'his'clients'in'both'MDL'1720'and'in'the'Amex'Litigation.'
These' violations' are' especially' serious' in' the' context' of' this' litigation,' which' has'
pitted'historically'hostile'parties'against'each'other'for'years.'The'stakes'have'been'
magnified'by'the'class'action'process,'which'has'essentially'grouped'every'merchant'
in' the' United' States' who' accepts' Visa,' MasterCard,' or' American' Express' ' from'
Walmart'to'small1mart'(my'phrase)''into'two'mammoth'parallel'proceedings.'I'will'
now'explain'my'opinions'in'greater'detail.'
B.+ Mr.+Friedmans+Breaches+of+Duties+to+Clients,+CoKCounsel,+and+the+Courts.++
21.!While'representing'his'clients'in'MDL'1720'and'in'the'Amex'Litigation,'Mr.'Friedman'
repeatedly'violated'his'duties'of'loyalty'and'confidentiality'to'his'clients.'Specifically:''
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Declaration of Professor Roy D. Simon, Jr. 5'
21.1.! He'violated'his'duty'of'loyalty'to'his'clients'by'engaging'in'serious'conflicts'
of' interest' (effectively' playing' both' sides)' and' by' allowing' his' close'
personal' relationship' with' Ms.' Ravelo' to' cloud' and' adversely' affect' his'
independent'professional'judgment'on'behalf'of'his'clients.'Many'times,'he'
was'more'loyal'to'Ms.'Ravelo'than'to'his'clients.'
21.2.! Compounding' his' disloyalty,' Mr.' Friedman' failed' to' disclose' his' close'
relationship'with'Ms.'Ravelo'to'his'clients,'failed'to'disclose'that'this'close'
relationship' created' a' conflict,'and' failed' to' obtain' (or' even' to' seek)' his'
clients'consent'to'the'conflict.''
21.3.! He' violated' his' duty' of' confidentiality' by' giving' Ms.' Ravelo' sensitive'
confidential'information.'For'example,'he'gave'her'(i)'his'material'insights'
into' the' potential' effect' of' the' LPF' term;' (ii)' selected' key' portions' and'
analysis'of'highly'confidential,'competitively'sensitive'Amex'documents;'
(iii)' an' internal' strategy' document' detailing' his' negotiating' positions'
regarding'the'critical'outstanding'issues'on'the'surcharging'and'LPF'relief;'
and' (iv)' other' work' product' that' had' been' entrusted' to' him' by' his' co1
counsel'in'both'cases.'
C.++Mr.+Friedmans+Conflicts+of+Interest+Among+His+Clients.+ +
22.!Mr.' Friedman' engaged' in' unacceptable' conflicts' of' interest' among' clients.' For'
example,'in'his'capacity'as'counsel'to'the'plaintiff'class'in'the'Amex'Litigation,'Mr.'
Friedman'covertly'treated'opposing'counsel,'Keila'Ravelo,'as'a'member'of'his'team.''
He'shared'confidential'information'with'her'that'a'lawyer'ordinarily'could'share'only'
with'a'partner,'associate,'or'of'counsel'in'his'own'firm,'or'with'attorneys'from'other'
firms'operating'under'a'properly'documented'common'interest'agreement.'He'did'
this' over' the' life' of' the' case,' sharing' documents' relating' to' damages' analysis,'
differential' surcharging,' parity' surcharging,' settlement' strategy,' settlement'
discussions,'and'appellate'strategy.'
23.!Specifically,' Mr.' Friedman' treated' Ms.' Ravelo' as' an' undisclosed' member' of' the'
plaintiffs'legal'team'in'the'Amex'Litigation'by'(i)'sharing'confidential'attorney1client'
communications'with'her;'(ii)'sharing'attorney'opinion'work'product'with'her;'(iii)'
sharing'communications'from'other'co1counsel'regarding'developments'or'plans'not'
yet'made'public'or'not'yet'communicated'to'defendants;'and'(iv)'seeking'her'advice'
on' legal' positions' and' negotiating' strategy' that' he' proposed' to' use' in' the' Amex'
Litigation.''
24.!Critically,' on' the' eve' of' an' important' settlement' conference' in' MDL' 1720,' Mr.'
This'
unauthorized' disclosure' about' the' settlement' terms' Amex' desired' created' two'
violations'of'Mr.'Friedmans'professional'duties'to'his'clients.'First,'he'gave'aid'and'
comfort' to' the' enemy.' Second,' he' deprived' his' own' clients,' and' apparently' his' co1
counsel'as'well,'of'the'benefit'of'his'unique'insights.'
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Declaration of Professor Roy D. Simon, Jr. 6'
25.!Once'the'issue'of'a'level'playing'field'was'injected'into'the'settlement'negotiations,'
Mr.'Friedman'had'a'duty'to'use'the'insights'he'had'gained'in'the'Amex'case'for'the'
benefit' of' the' class' in' MDL' 1720.' ' This' is' fundamental' to' the' concept' of' zealous'
advocacy'on'behalf'of'a'client'within'the'bounds'of'the'law.''
26.!Mr.' Friedman' also' counseled' Ms.' Ravelo' on'
'By'advising'MasterCards'lawyer,'Mr.'Friedman'was'advising'MasterCard.'In'
effect,' Mr.' Friedman' became' co1counsel' for' MasterCard,' a' client' whose' interests'
diametrically'differed'from'the'interests'of'the'class'that'Mr.'Friedman'represented'
in'both'MDL'1720'and'the'Amex'Litigation.'That'was'an'impermissible'conflict.'
27.!The' most' important' rule' governing' conflicts' of' interest' in' New' York' is' Rule' 1.7'
(Conflict'of'Interest:'Current'Client).'Rule'1.7(a)(1)'provides:'
(a)'Except'as'provided'in'paragraph'(b),'a'lawyer'shall'not'represent'a'client'
if'a'reasonable'lawyer'would'conclude'that''the'representation'will'involve'
the'lawyer'in'representing'differing!interests'.'[Emphasis'added.]''
28.!By' teaming' up' with' Ms.' Ravelo' and' advising' her' about' settlement' terms' that' she'
should' 'Mr.'Friedman'became'involved'in'representing'differing'
interests.' (Differing' interests' are' broadly' defined' in' New' York' Rule' 1.0(f)' to'
include'every'interest'that'will'adversely'affect'either'the'judgment'or'the'loyalty'of'
a' lawyer' to' a' client,' whether' it' be' a' conflicting,' inconsistent,' diverse,' or' other'
interest.)'It'was'as'if'Mr.'Friedman'was'representing'the'plaintiff'merchant'classes'
by'day'and'the'defendant'MasterCard'by'night.'He'was'a'double'agent,'appearing'to'
be'loyal'to'the'class'of'merchants'(which'was'composed'of'basically'the'same'class'
members' in' both' MDL' 1720' and' Amex)' while' secretly' assisting' the' merchants'
adversary.'He'was'a'turncoat.'
29.!In'practical'terms,'Mr.'Friedman'was'simultaneously'representing'both'the'plaintiffs'
and'the'defendants'in'MDL'1720.''Simultaneous'representation'of'opposing'parties'
in'litigation'is'absolutely'prohibited'by'the'ethics'rules.'Representing'parties'on'both'
sides'of'the'same'suit'is'one'of'the'most'extreme'forms'of'conflict'of'interest,'and'it'is'
never'permitted'under'any'circumstances,'even'if'the'parties'desire'it.'
30.!This'absolute'prohibition'representing'both'sides'in'a'lawsuit'is'made'explicit'in'New'
York'Rule'1.7(b)(3),'which'says:'
(b)'Notwithstanding'the'existence'of'a'concurrent'conflict'of'interest'under'
paragraph'(a),'a'lawyer'may'represent'a'client'if:'
(3)'the'representation'does'not'involve'the'assertion'of'a'claim'by'one'
client' against' another' client' represented' by' the' lawyer' in' same'
litigation'or'other'proceeding'before'a'tribunal'.'
31.!Rule' 1.7(b)(3)' is' one' of' the' only' per! se! categories' of' nonconsentable' conflicts.'
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Declaration of Professor Roy D. Simon, Jr. 7'
Comment' [17]' to' New' York' Rule' 1.7' illuminates' the' rationale' underlying' Rule'
1.7(b)(3)'as'follows:'
[17]'Paragraph'(b)(3)'describes'conflicts'that'are'nonconsentable'because'of'
the'institutional'interest!in!vigorous!development!of!each!clients!position!
when'the'clients'are'aligned'directly'against'each'other'in'the'same'litigation'
or'proceeding'before'a'tribunal.''[Emphasis'added.]''
32.!When'the'LPF'concept'emerged'as'a'central'issue'in'the'MDL'1720'negotiations,'Mr.'
Friedman' ' uniquely' among' co1counsel' in' MDL' 1720' ' possessed' valuable' and'
material'insight'and'ideas'developed'during'the'Amex'case.'He'could'and'should'have'
shared'these'insights'and'ideas'with'his'clients'and'his'co1counsel'in'MDL'1720'and'
in' the' Amex' Litigation.' If' Mr.' Friedman' had' been' acting' as' a' zealous' advocate' on'
behalf'of'his'clients'in'MDL'1720'and'the'Amex'Litigation,'he'would'not'have'given'
valuable'confidential'information'and'work'product'to'opposing'counsel.'Instead,'he'
would'have'used'his'insight'into'surcharging'and'into'the'potential'consequences'of'
LPF'relief'to'advance'the'interests'of'his'clients,'and'he'would'have'shared'his'insight'
with'his'co1counsel'in'MDL'1720'and'the'Amex'Litigation.'But'Mr.'Friedman'turned'
the'adversary'system'on'its'head,'giving'the'MasterCards'lawyer'the'benefit'of'his'
unique'insight'but'deliberately'withholding'that'insight'from'his'own'clients.''
33.!The' adversary' system' depends' on' independent' counsel' to' vigorously' develop' and'
advance' his' clients' position.' Mr.' Friedmans' competing' loyalties' thus' undermined'
the'vigorous'development'of'each'clients'position,'as'Comment'[17]'warns'against,'
particularly'because'of'his'role'in'the'negotiations.'The'Court'and'the'public'cannot'
have'confidence'in'the'outcome'of'a'proceeding'in'which'a'lawyer'for'the'class'who'
was'primarily'responsible'for'a'key'issue'was'essentially'a'traitor'to'his'own'clients.'
D.++Mr.+Friedmans+Personal+Conflicts+of+Interest+
34.!Mr.'Friedman'was'also'burdened'by'a'personal'conflict'of'interest'in'MDL'1720'and'
in'the'Amex'Litigation.'Rule'1.7'required'him'to'disclose'this'personal'conflict'to'his'
clients,'but'he'did'not.'Instead'of'disclosing'it,'he'concealed'it.'
35.!Mr.'Friedmans'personal'conflict'arose'out'of'his'remarkably'close,'long,'frequent,'and'
multi1faceted'relationship'with'Ms.'Ravelo.'This'was'not'just'a'good'friendship'or'a'
typical' social' relationship.' It' was' also' a' business' relationship,' a' professional'
relationship,'a'co1counsel'relationship,'and'an'attorney1client'relationship,'carried'on'
in'person,'by'phone,'by'email,'and'by'text,'involving'meals'and'money,'vacations'and'
communications,'social'events'and'secrets.''For'example:'
35.1.! Mr.'Friedman'on'two'occasions'extended'a' 'loan'to'Ms.'Ravelo'
and'her'husband,'Mel'Feliz.'
35.2.! Mr.'Friedman'and'Ms.'Ravelo'had'previously'served'together'as'co1counsel'
in'other'matters,'and'Mr.'Friedman'asked'Ms.'Ravelo'whether'she'could'
co1counsel' with' him' in'
'''
35.3.! Mr.'Friedman'and'Ms.'Ravelo'considered'going'into'business'together,'at'
one'point'
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Declaration of Professor Roy D. Simon, Jr. 8'
35.4.! Mr.' Friedman' had' an' attorney1client' relationship' with' Ms.' Ravelo,'
representing'or'advising'her'in'at'least'three'matters,'including'
35.5.! Mr.' Friedman' and' Ms.' Ravelo' exchanged' literally' hundreds' of' text'
messages'and'emails,'and'these'communications'interlaced'business'and'
personal'topics.''
35.6.! Mr.' Friedman' and' Ms.' Ravelo' often' met' socially' and' ate' many' meals'
together,'and'they'likely'discussed'both'business'and'personal'topics'on'
many'of'these'occasions.'
36.!Especially' disturbing' is' that' the' tight' relationship' between' Mr.' Friedman' and' Ms.'
Ravelo' blurred' or' obliterated' the' ethical' lines' between' the' personal' and' the'
professional.'Their'professional'actions'as'attorneys'for'the'class'and'for'MasterCard'
in' MDL' 1720' were' intertwined' with' their' personal,' social,' and' business,'
relationships.''
37.!The' New' York' Rules' of' Professional' Conduct' treat' personal' conflicts' of' interest' as'
seriously'as'they'treat'conflicts'of'interest'among'clients.'Rule'1.7'sets'forth'the'test'
for'determining'whether'a'lawyers'personal,'business,'or'financial'interests'create'
an'impermissible'conflict'of'interest.'Specifically,'Rule'1.7(a)(2)'provides:'
(a)!Except'as'provided'in'paragraph'(b),'a'lawyer'shall'not'represent'a'client'
if'a'reasonable'lawyer'would'conclude'that''(2)'there'is'a'significant!risk'
that' the' lawyers' professional' judgment' on' behalf' of' a' client' will' be'
adversely' affected' by' the' lawyers' own' financial,' business,' property' or'
other'interests.'[Emphasis'added.]''
38.!In'terms'of'Rule'1.7(a)(2),'the'close'personal'and'relationship'between'Mr.'Friedman'
and'Ms.'Ravelo'created'much'more'than'a'significant'risk'that'his'personal'interests'
would' adversely' affect' his' professional' judgment' of' on' behalf' of' the' class.' The'
relationship'with'Ms.'Ravelo'actually'led'Mr.'Friedman'to'be'disloyal'to'his'clients'and'
to' breach' his' duty' of' confidentiality' to' his' clients' in' MDL' 1720' and' the' Amex'
Litigation.'The'lack'of'boundaries'between'his'personal'and'professional'roles'caused'
him' to' engage' in' conduct' that' was' unethical,' inappropriate,' and' contrary' to' the'
interests'of'his'clients.'
39.!As'mentioned'above'in'connection'with'my'analysis'of'conflicts'among'clients,'Mr.'
Friedman'treated'Ms.'Ravelo'as'a'covert'member'of'his'team'in'the'Amex'Litigation,'
and'he'counseled'Ms.'Ravelo'during'the'negotiations'in'MDL'1720.''Specifically:''
39.1.! He' shared' his' critical' insights' from' the' Amex' Litigation' regarding' the'
potential' impact' of' an' LPF' provision' in' the' settlement' agreement' with'
Ravelo,'but'not'with'his'clients'in'MDL'1720'and'apparently'not'with'his'
co1counsel'in'MDL'1720.'
39.2.! He'gave'Ms.'Ravelo'work'product'created'for'the'benefit'of'the'putative'
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Declaration of Professor Roy D. Simon, Jr. 9'
class' of' plaintiffs' in' the' Amex' Litigation,' and' he' shared' summaries' of'
confidential'and'competitively'sensitive'Amex'documents'with'Ms.'Ravelo'
'but'he'did'not'use'these'materials'to'advocate'for'the'plaintiff'class'in'
MDL'1720.'
39.3.! He'shared'privileged'and'confidential'work'product'from'MDL'1720'with'
Ms.' Ravelo,' including' communications' between' class' counsel.' ' These'
communications' included
.'
39.4.! He'counseled'Ms.'Ravelo'during'the'MDL'1720'negotiations'on'how'best'to'
protect'MasterCards'position.'
40.!In' sum,' the' close,' continuous,' multi1faceted,' and' frequently' surreptitious'
business/financial/personal/co1counsel/attorney1client' relationships' between' Mr.'
Friedman'and'Ms.'Ravelo'created'not'only'a'significant'risk'of'adversely'affecting'Mr.'
Friedmans' zealous' representation' on' behalf' of' the' plaintiff' class,' but' created' an'
environment' that' actually' blossomed' into' improper' behavior' on' his' part.' The'
entangling'personal,'business,'and'professional'relationships'between'Mr.'Friedman'
and'Ms.'Ravelo'compromised'his'duty'of'loyalty'to'his'clients'in'MDL'1720'and'the'
Amex' Litigation,' and' his' relationships' with' Ms.' Ravelo' overrode' and' distorted' his'
independent'professional'judgment'on'behalf'of'his'clients'in'those'cases.''Thus,'Mr.'
Friedman'had'a'serious'conflict'of'interest'under'Rule'1.7(a)(2).'Yet'he'did'nothing'to'
cure'it'despite'the'clear'command'in'the'Rules'of'Professional'Conduct'that'obtain'
consent'to'the'conflict'or'abandon'the'representation.'
41.!When'a'conflict'of'interest'arises'under'Rule'1.7(a)(2),'a'lawyer'can'cure'the'conflict'
only'by'withdrawing'from'representation'pursuant'to'Rule'1.16'or'by'complying'with'
the'waiver'provisions'in'Rule'1.7(b),'which'provides'as'follows:'
(b)'Notwithstanding'the'existence'of'a'concurrent'conflict'of'interest'under'
paragraph'(a),'a'lawyer'may'represent'a'client'if:''
(1)' the' lawyer' reasonably' believes' that' the' lawyer' will' be' able' to'
provide'competent'and'diligent'representation'to'each'affected'client;''
(2)'the'representation'is'not'prohibited'by'law;''
(3)'the'representation'does'not'involve'the'assertion'of'a'claim'by'one'
client' against' another' client' represented' by' the' lawyer' in' the' same'
litigation'or'other'proceeding'before'a'tribunal;'and''
42.!Here,'Mr.'Friedman'did'not'disclose'this'remarkably'close'relationship'to'his'clients'
or'seek'their'consent'to'the'conflict'it'created.'He'had'a'conflict'of'interest'that'he'
neither'cured'nor'attempted'to'cure''and'the'undisclosed'conflict'caused'harm'to'his'
clients'in'both'cases.'+
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28315
Exhibit A
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28316
Exhibit B
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28319
Roy D. Simon
Distinguished Professor of Legal Ethics Emeritus
205 West End Avenue Suite 8N
New York, NY 10023
Education
1977 J.D., NEW YORK UNIVERSITY SCHOOL OF LAW, New York, N.Y.
Academic Employment
Courses taught at Hofstra: (1) Ethics & Economics of Law Practice (also called
Lawyers Ethics) (1992-2009); (2) Civil Procedure (1997-2006); (3) Antitrust
(2001-2004); (4) Insurance Law (1999, 2000, & 2003); (5) Contracts (2006-
2010); (6) Disabilities Law Clinic (Director from 1992-1997); and (7) Law &
Economics (2007-2009).
1
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A. Books.
REGULATION OF LAWYERS: STATUTES AND STANDARDS (Aspen Law & Business 2015) (co-
authored with Professor Stephen Gillers of N.Y.U. School of Law, Professor Andrew
Perlman of Suffolk University Law School, and John Steele of California). This annual
volume, now in its twenty-sixth edition, compiles and annotates the ABA Model Rules of
Professional Conduct and various statutes, court rules, and other sources governing lawyers.
LAWYERS AND THE LEGAL PROFESSION: CASES AND MATERIALS (LexisNexis, 4th ed. 2009)
(co-authored by Professors Carol Needham and Burnele Powell). This is a textbook for law
students taking professional responsibility. I have been the lead co-author since 1992.
Forward, Symposium: The Ethics of Lawyers in Government, 38 Hofstra L. Rev. 825 (2010).
Forward, Conference on Legal Ethics: What Needs Fixing?, 30 Hofstra L. Rev. 685 (2002).
Legal Ethics Advisors and the Interests of Justice: In an Ethics Advisor a Conscience or a Co-Conspirator?
70 Fordham L. Rev. 1869 (2002).
The 1999 Amendments to the Ethical Considerations in New Yorks Code of Professional Responsibility,
29 Hofstra L. Rev. 265 (2000).
Gross Profits? An Introduction to a Program on Legal Fees, 22 Hofstra L. Rev. 625 (1994).
Fee Sharing Between Lawyers and Public Interest Groups, 98 Yale L. J. 1069 (1989).
The New Meaning of Rule 68: Marek v. Chesny and Beyond, 14 N.Y.U. Rev. of Law & Social
Change 475 (1986) (lead article in symposium on attorneys fees).
The Riddle of Rule 68, 54 Geo. Wash. L. Rev. 1 (1985) (selected by AALS Section on Civil
Procedure as one of fifteen particularly noteworthy articles on civil procedure for 1986).
Rule 68 at the Crossroads: The Relationship Between Offers of Judgment and Statutory Attorneys Fees, 53
U. Cin. L. Rev. 889 (1984) (cited by Justice Brennan, dissenting, in Marek v. Chesny, 473 U.S.
1, 34 n.50 (1985)).
2
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Clinical Programs That Allow Both Credit and Compensation: A Model Program For Law Schools, 61
Wash. U. L.Q. 1015 (1984) (with Tom Leahy).
C. Book Chapters.
Attorney Fees and Conflicts of Interest, a chapter in a six-volume set entitled ENVIRONMENTAL
LAW PRACTICE GUIDE (Matthew Bender 1992).
Rule 68 in Civil Rights Litigation, a chapter in 3 J. Lobel & B. Wolvovitz, eds., CIVIL RIGHTS
LITIGATION AND ATTORNEY FEES ANNUAL HANDBOOK (Clark Boardman 1987).
D. Additional Publications.
Developments in the Regulation of Lawyers, a column each Spring and Fall since 1991 in the
Newsletter of the AALS Section on Professional Responsibility (distributed to approximately
800 law professors who teach professional responsibility).
Chief Editorial Advisor and lead writer (1998 2011), New York Professional Responsibility
Report (NYPRR), a monthly newsletter that focused on professional responsibility issues
for lawyers practicing in New York. The newsletter began publication in April 1998, and I
contributed an article to virtually every monthly issue -- more than 160 articles until the
newsletter ceased publication after the publishers death in November 2011. I now write
articles for and serve on the Editorial Board of New York Legal Ethics Reporter (NYLER),
which commenced publication in January 2015.
New York Law Journal Back Page, quarterly column on ethics issues August 2001
November 2004.
The Ethical Patchwork -- The Rules in Federal Court, Federal Bar Council News, June 1997.
Lawsuit Syndication: Selling Stock in Justice, Business & Society Review No. 69 (Spring 1989).
Current Practice Under Rule 68: A Guide to the Existing Rule (Practising Law Institute 1984).
The 1984 Proposal to Amend Rule 68: A Line-by-Line Analysis (Practising Law Institute 1984).
1976 Summer Associate, DAVIS POLK & WARDWELL, New York, New York.
(Received but declined permanent offer.)
1977-78 Law Clerk, HON. ROBERT R. MERHIGE, JR., United States District
Court for the Eastern District of Virginia, Richmond, Virginia.
3
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Professional Activities
Chair and Chief Reporter, New York State Bar Association Committee on Standards of
Attorney Conduct (COSAC). This Committee drafted proposed New York Rules of
Professional Conduct from 2003 to 2008. COSAC continues to monitor and propose
amendments to the New York Rules of Professional Conduct, and it comments on other
existing and proposed rules, standards, and guidelines affecting lawyers.
Member (1995-present) and former Chair (2008-2011) of the New York State Bar
Association Committee on Professional Responsibility. This Committee responds to ethics
inquiries from attorneys regarding the New York Rules of Professional Conduct, and the
Committee comments on proposals affecting regulation of lawyers. In January of 2015, the
Committee presented me with the Sanford P. Levy Award to recognize a lifetime of
achievement for publications in the field of legal ethics.
Member, Association of the Bar of the City of New York Committee on Professional
Responsibility, September 2005 - August 2008.
Member, New York City Bar Committee on Professional Ethics, 2002-2005 (three year
term) and September 2012 - present.
Member (1993-2012) and former Chair (1996-1998) of the Nassau County Bar Committee
on Professional Ethics.
Member, New York City Bar Task Force on the Role of the Lawyer in Corporate
Governance from inception to completion, 2005 to 2006.
Member, New York City Bar Ethics 2000 Committee. This seven-member special
committee, appointed by the President of the Association, spent two years reviewing and
commenting on the work of the American Bar Associations Ethics 2000 Commission.
Member, New York City Bar Committee on Professional Discipline, 1995-1998 (three-year
term). Chair of Subcommittee on Ethics Rules in Federal Courts.
Testified before the Advisory Committee on Civil Rules about a pending proposal to amend
Fed. R. Civ. P. 68, Washington, D.C., February 1, 1985.
Active member in good standing of the New York, Illinois, and Missouri Bars.
[End]
4
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Exhibit C
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MaterialsReviewedbyProfessorRoySimonasObjectors'ExpertonLegalEthics
28324
BATES#
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DeclarationofDouglasKantor,datedJuly27,2015
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