(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Alison Frankel
Dec 11 (Reuters) - An already-vicious ethics battle
between Fox Corp's ( FOXA ) streaming subsidiary Tubi and mass
arbitration pioneer Keller Postman reached new heights of
vitriol on Tuesday.
Keller Postman filed a motion to disqualify and sanction
Tubi's lawyers at Jenner & Block, asserting that Jenner breached
California ethics rules by engaging an ex-FBI agent to interview
nearly two dozen Keller clients who had dropped their demands
for arbitration against Tubi.
Jenner knew the former claimants had been represented by
Keller Postman, Keller argued, but nonetheless sent an
investigator to interview them outside of the presence (or even
awareness) of Keller Postman lawyers.
Moreover, according to Keller Postman, Jenner's investigator
used harassing, deceptive and intimidating tactics - such as
implying that she worked for Keller Postman and refusing to
leave someone's home without a signed declaration - to squeeze
privileged and confidential information out of the former
claimants.
"This misleading and oppressive conduct would have violated
ethical rules even if the clients were no longer represented by
Keller Postman," the firm wrote in its motion to disqualify
Jenner. "It is doubly improper because the clients are still
represented."
In an email statement on Wednesday, Jenner & Block denied
any impropriety, describing its investigation as "ethical,
necessary and warranted."
The firm previously said in a court filing that it took care
to respect ethics rules prohibiting communications with
represented parties when it tracked down people who had
withdrawn arbitration demands against Tubi. Its investigator,
Jenner said in the filing, first asked the erstwhile arbitration
claimants whether they were still represented by Keller Postman
and only proceeded if they said they were not.
The context for this latest fusillade of accusations is
Tubi's request to file an amended complaint against Keller
Postman in its lawsuit before U.S. District Judge Ana Reyes in
Washington, D.C.
As my colleague Dave Thomas and I have previously told you,
Tubi sued Keller Postman last May, asserting that the law firm
improperly induced about 24,000 Tubi subscribers to demand
arbitration of claims that the streaming service violated a
California anti-discrimination law that has been interpreted to
prohibit age- and gender-targeted advertising.
Tubi's original complaint alleged that Keller Postman put
its own interests ahead of its clients' when it advised clients
to file arbitration demands without engaging in a contractually
mandated informal dispute resolution process.
The company also claimed that Keller Postman did a woefully
inadequate job of vetting its clients, asserting that about 40%
of the alleged subscribers demanding arbitration did not have an
email in Tubi's database or had not watched content from the
streamer in the relevant time frame.
That particular statistic came into question after some of
Keller Postman's clients sought to intervene in an Illinois
state-court class action over Tubi's alleged violations of video
privacy laws. I'll spare you the details of that dispute, but
what you need to know is that Tubi acknowledged an additional
database of customer emails that turned out to include
purportedly missing information about some of Keller's clients.
Tubi and Keller Postman have dramatically different views of
the significance of the second database. Tubi insists that it
doesn't much matter because thousands of Keller Postman clients
still cannot show that they signed up for Tubi accounts or
watched Tubi content. Keller, meanwhile, contends that the
revelation shows Tubi's accusations against the mass arbitration
firm were baseless, making the Fox subsidiary desperate
to distract attention away from its overblown assertions.
That brings me to Tubi's motion last month to file an
amended complaint. Tubi's proposed new complaint adds
information about the company's search of the second database
but insists that even after an additional search, its records
show that more than 7,000 Keller Postman claimants had filed
unjustified arbitration demands.
Tubi also disclosed, for the first time, that it had engaged
an investigator to interview claimants who had dropped
arbitration demands. The company said its investigator's
findings were alarming.
Of the 21 former claimants located by its investigator, Tubi
said, only three indicated that they were still represented by
Keller Postman. Nine of the remaining 19 said they were not
familiar with the firm. Three others said they knew of the firm
but did not think Keller had represented them in claims against
Tubi. Three others said they hadn't filed arbitration demands or
didn't know demands had been filed in their names.
Most of the former claimants, according to Tubi, did not
understand the basics of the targeted advertising claim. Some
thought the case involved a data breach. One even said he wanted
more targeted ads.
Not one of the former claimants, according to Tubi, was
aware of the streamer's informal dispute resolution requirement.
That fact, Tubi said in its proposed amended complaint, is
strong support for its contention that Keller Postman failed to
obtain informed consent from its clients when it skipped that
process and filed arbitration demands.
"What we know is simple and straightforward," Jenner said in
its statement on Wednesday. "Keller Postman brought thousands of
frivolous arbitration claims. They acted unilaterally and
without the informed consent of their purported clients."
In its filings on Tuesday, Keller Postman said Tubi's
depiction of these interviews cannot be trusted, both because
Jenner & Block improperly directed its investigator to contact
Keller clients and because the investigator bullied the former
claimants.
Jenner, according to Keller Postman, should have known that
the withdrawal of a claim does not end a client relationship. At
the very least, Keller said, Jenner was obligated to consult
with Keller before reaching out to people it knew to have been
Keller clients.
"It is becoming increasingly clear that the accusations
against Keller Postman by Tubi's counsel are an act of
projection," Keller said in a brief opposing the filing of
Tubi's amended complaint. "Instead of showing any misconduct by
Keller Postman, the new allegations show a shocking pattern of
unethical conduct by Tubi's counsel."
Warren Postman of Keller did not immediately respond to a
query on the new filings and Jenner's statement in response.
Reyes is scheduled to oversee a hearing in the case on Dec.
19. Don't count on a lot of holiday good cheer.
Read more:
Tubi tries to keep ethics case alive against mass
arbitration firm Keller Postman
Fox's Tubi sues law firm over 'manufactured' mass
arbitration claims