(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Alison Frankel
May 21 (Reuters) - WarnerMedia is seeking to disqualify
plaintiffs firm Zimmerman Reed from representing claimants in a
mass arbitration campaign against the entertainment
conglomerate, accusing the law firm's managing partner of
committing serious ethical breaches.
Warner's petition to disqualify, filed last week in New York
State Supreme Court, alleges that Zimmerman Reed managing
partner Caleb Marker and two other unnamed Zimmerman Reed
professionals engaged in deceit and dishonesty when they signed
up as claimants in identical mass arbitration campaigns against
the company by two different plaintiffs firms.
Warner contends that Marker and the other two Zimmerman Reed
professionals - an associate and a data analyst - were never
legitimate claimants but signed up as clients of Keller Postman
and Labaton Sucharow in order to "surreptitiously gain access to
information" to boost Zimmerman Reed's own mass arbitration
campaign.
The company claimed that as spurious mass arbitration
clients, Zimmerman Reed gained "improper insight" into how
Warner responded to demands and settlement offers from Keller
Postman and Labaton campaigns. Warner asserted that Zimmerman
Reed tailored its demands to reflect what it learned from the
other firms' efforts.
Zimmerman Reed partner Marker criticized Warner's petition
on Tuesday in an email statement. "WarnerMedia's complaint
appears to be filed solely to malign any counsel willing to
represent customers who challenge the company's privacy
invasions," the statement said. "In our view, the complaint is
replete with misrepresentations of matters that were previously
disclosed to all parties. The company's decision to misrepresent
these facts supports our belief that this petition was filed for
improper purposes."
Marker did not immediately respond to a follow-up query
about Warner's alleged misrepresentations.
WarnerMedia's lawyers at Loeb & Loeb did not respond to a
query on the petition.
The petition alleges that in 2023, Marker contacted Warner
and Discovery Digital, both affiliates of Warner Bros Discovery ( WBD )
, on behalf of about 70,000 purported clients who alleged
that the Discovery video streaming platform illicitly disclosed
their viewing history to Facebook parent Meta.
Zimmerman Reed claimed that Discovery's disclosures violated the
Video Privacy Protection Act, which includes statutory damages
of $2,500.
Marker did not inform Warner and Discovery, according to the
petition, that he and the other Zimmerman Reed professionals,
both of whom worked in the firm's mass arbitration practice,
were claimants in ongoing mass arbitration campaigns in which
Keller Postman and Labaton Sucharow accused the company's HBOMax
platform of violating the Video Privacy Protection Act.
Warner said in its petition that it uncovered the alleged
overlap by reviewing client lists provided by Labaton and Keller
Postman when they asserted arbitration demands. According to
Warner, Marker's name first turned up on a list of Labaton
claimants who sent a demand letter to the company in December
2022. The following month, Warner received a pre-arbitration
notice of dispute in which Keller Postman said it represented
Marker.
The petition argued that the only way to block Zimmerman
Reed from making use of its allegedly ill-gotten information is
to disqualify the firm from representing claimants in mass
arbitration against Warner.
The company also alleges that Marker and the other Zimmerman
Reed professionals probably breached their retainer agreements
with Keller Postman and Labaton by signing up with both firms to
pursue identical claims.
Labaton partners Jonathan Waisnor and Jonathan Gardner did
not respond to my query about the Warner petition.
Keller Postman partner Warren Postman said in a email
statement that it is "unsurprising and commonplace" that a small
number of claimants will choose to retain multiple law firms to
pursue arbitration demands. Postman faulted Warner for "pursuing
a tortured legal theory that reflects its desperation to throw
sand in the gears of an arbitration process it authored," adding
that the company has no legal standing to interfere with the
right of Zimmerman Reed clients to pick their counsel.
After initially informing Discovery that it represents
70,000 clients with Video Privacy Protection claims, Zimmerman
told the company in January that its original client list
contained a data error and that it in fact represents only about
12,200 claimants, according to the petition.
Warner counsel Evan Farber and Jay Musoff did not respond to
an email query.
The Warner petition is not the first time Zimmerman & Reed
has been sued by the target of a mass arbitration campaign. As
my Reuters colleague David Thomas reported earlier this year,
French skincare company L'Occitane accused the plaintiffs firm
in a Los Angeles federal court complaint of conspiring with
about 3,100 clients to manufacture frivolous website tracking
claims under California's Invasion of Privacy Act.
The law firm, according to the complaint, continued to
encourage prospective clients to visit L'Occitane's website
after the company informed Zimmerman Reed that it was not
authorized to access the site.
Zimmerman Reed vehemently denied wrongdoing, calling out
L'Occitane for baselessly accusing its own customers of a
conspiracy. The law firm asked U.S. District Judge Percy
Anderson to dismiss L'Occitane's claims under the Computer Fraud
and Abuse Act and, in a separate motion, to compel the skincare
company to arbitrate its dispute with Zimmerman Reed's 3,100
clients.
Last month, as Thomas reported for Reuters, the Los Angeles
judge denied Zimmerman's motion to compel arbitration, ruling
that the company was not subject to arbitration agreements with
consumers who merely visited its website -- and that Zimmerman
Reed failed to establish that its clients had even accessed the
site.
The judge also, however, dismissed L'Occitane's case against
the law firm and its clients. The Computer Fraud and Abuse Act,
Anderson held, does not apply when the operator of a public
website allegedly revokes authorization to access the site but
does not impose technological barriers to block unwanted
visitors.
Zimmerman Reed partner Marker said the firm intends to press
on with its clients' claims over alleged video privacy
violations by HBOMax and Discovery. "Without customer consent,
WarnerMedia shared their customers' video streaming history with
Facebook, which then sold that information to advertisers,"
Marker said. "We intend to keep focusing on that."
Read more:
L'Occitane defeats mass arbitration bid in fight with
consumer law firm
Law firm blasts L'Occitane case challenging mass arbitration
claims
L'Occitane sues US law firm over wiretapping law 'shakedown'