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Keywords

settlementattorneyappealmotionclass action
settlementattorneyappealclass action

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Wyly v. Milberg Weiss Bershad & Schulman, LLP, 12 N.Y.3d 400, 908 N.E.2d 888, 880 N.Y.S.2d 898, 2009 N.Y. Slip Op. 03628

Facts

Sam Wyly, an absent class member in a federal securities class action against Computer Associates International, Inc., sought access to the law firms' files related to the class action after a settlement was approved. Wyly claimed that the settlement was procured by fraud and requested documents to support his motion to vacate the settlement judgment. The law firms, however, refused to provide access to their files, citing attorney work-product privilege. The Supreme Court initially granted Wyly's request for access, but the Appellate Division reversed this decision, leading to an appeal to the Court of Appeals.

Sam Wyly, an absent class member in a federal securities class action against Computer Associates International, Inc., sought access to the law firms' files related to the class action after a settlement was approved.

Issue

Does an absent class member in a securities fraud class action have a presumptive right to access class counsel's files after the representation has ended?

Does an absent class member in a securities fraud class action have a presumptive right to access class counsel's files after the representation has ended?

Rule

The presumption of full access to an attorney's file does not extend to absent class members, and they must demonstrate a legitimate need for the requested documents on a case-by-case basis.

The presumption of full access to an attorney's file does not extend to absent class members, and they must demonstrate a legitimate need for the requested documents on a case-by-case basis.

Analysis

The Court of Appeals analyzed the nature of the attorney-client relationship in class actions, noting that absent class members do not possess the same rights as traditional clients. The court emphasized that the Appellate Division did not abuse its discretion in denying Wyly access to the law firms' files, as he had not established a legitimate need for the work product he sought. The court also highlighted the role of the District Court in managing class actions and protecting the rights of absent class members.

The Court of Appeals analyzed the nature of the attorney-client relationship in class actions, noting that absent class members do not possess the same rights as traditional clients.

Conclusion

The Court of Appeals affirmed the Appellate Division's decision, concluding that Wyly was not entitled to access the law firms' files, including work product, as the presumption of access does not apply to absent class members.

The Court of Appeals affirmed the Appellate Division's decision, concluding that Wyly was not entitled to access the law firms' files, including work product, as the presumption of access does not apply to absent class members.

Who won?

Milberg Weiss Bershad & Schulman, LLP and other law firms prevailed in the case because the court found that the presumption of access to attorney files does not extend to absent class members, and Wyly failed to demonstrate a legitimate need for the requested documents.

Milberg Weiss Bershad & Schulman, LLP and other law firms prevailed in the case because the court found that the presumption of access to attorney files does not extend to absent class members, and Wyly failed to demonstrate a legitimate need for the requested documents.

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