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In re Teligent, Inc.

United States Court of Appeals for the Second Circuit
640 F.3d 53 (2011)

Written by Tammy Boggs, JD

Facts

In a bankruptcy case involving Teligent, Inc. (debtor), the bankruptcy court entered two protective orders that prohibited disclosure of communications made during mediation. The bankruptcy case included claims against Alex Mandl, a former officer of Teligent. Mandl asserted in his defense that his former law firm K&L Gates (K&L) had committed malpractice in representing him. Mandl reached a settlement through mediation in the bankruptcy case. Thereafter, Mandl sued K&L for malpractice. K&L, which had not participated in the mediation, sought discovery from Mandl regarding “all mediation and settlement” communications that had led to Mandl’s settlement. K&L argued that the information was necessary to its defense in the malpractice suit on issues of causation and damages. To obtain the requested discovery, K&L moved to lift the bankruptcy court’s protective orders. The bankruptcy court denied the motion, which was affirmed by the district court. K&L appealed.

Rule of Law

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Holding and Reasoning (Pooler, J.)

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