Wow Fred - what a mess!

There are several issues at play here, but first let me say ... I'm not a
lawyer, and a lawyer is certainly someone who should be consulted in this
matter.

Okay, now that that is out of the way, there are a few things you can look
into.

The Model Rules of Professional will provide some insight, at least where
the transfer of representation is concerned.  Refer first to Rule 1.17: Sale
of Law Practice.  http://www.abanet.org/cpr/mrpc/rule_1_17.html

This guides the firm/lawyer on the ethical obligations surrounding the
proposed transfer of representation to an acquiring firm, which of course
has implications for the client's file.  However in this case, the last
paragraph in that section is of the most importance as notice to clients was
likely not possible in light of the bankruptcy.  I just have to assume that
the acquiring firm has gone through the hoops noted to petition the court to
have the files transferred as assets in the acquisition.  (Also note that
the Rule identifies "appropriate jurisdiction" ... makes things more
complicated, particularly with a firm who practiced in multiple states).

There are plenty of other Rules that address the ethical obligations of a
lawyer with regard to safe keeping client property as well as their duty of
competent representation and obligation to avoid prejudicing the interests
of their clients.  All of those should inform the course of action taken.
(Rules 1.1, 1.3, 1.15, and 1.16 come to mind).

Keep in mind, the Model Rules are just that, the Model Rules.  Each
jurisdiction may have their own version of the Model Rules that will likely
apply with regard to specific clients and specific matters in their
jurisdictions.

As for the storage company, it would seem to me that they would be
considered creditors in the matter and therefore would be subject to the
bankruptcy plan with regard to fees owed.  However, I imagine it is far more
complicated than that, considering contract law in whatever jurisdiction
prevails, what the contract actually said, and the relief allowed to
creditors with regard to physical assets in their control.

I don't, however, think it is prudent, and perhaps not legal, for a storage
provider to open containers to obtain confidential information of clients,
and use that information to coerce the clients to, effectively, coerce the
dissolving or acquiring firm to pay up.  This part REALLY, REALLY needs a
lawyer to intervene, and to intervene right now.

Not being clear on which side you find yourself on, I'm not sure where else
to point you other than first, a lawyer (a bankruptcy lawyer and perhaps a
M&A lawyer) and then the Trustee's office.

I hope this has been helpful.  Call or email me if I can help further.

Julie


-- 
Julie J. Colgan, CRM

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