A new complaint against Cadwalader, Wickersham & Taft and
Sanford Heislerby a onetime engineer for Seagate Technology
who became a whistle-blower against his former employer, is the
latest evidence that whistle-blowers lead difficult lives. And
according to the engineer, Paul Galloway, the lawyers who were
supposed to be helping him instead made him unemployable.
In 2009 Galloway reached out to a company called Convolve,
which, along with the Massachusetts Institute of Technology, was
suing Seagate for patent infringement and theft of trade
secrets. Galloway, who was unemployed at the time (his complaint
does not provide details), suggested in an email that he might
have information about Seagate violating a non-disclosure
agreement. Debra Steinberg of Cadwalader, who represented
Convolve and MIT, followed up with Galloway. According to the
engineer's suit, Steinberg asked if he had his own lawyer.
Galloway said he didn't. He alleges that he subsequently
received a call from the CEO of Convolve, who recommended that
he retain Steven Wittels, then a name partner at the noted
employment firm now known as Sanford Heisler.
Galloway met with Wittels, who determined that the engineer
didn't have a cause of action against Seagate. But Wittels also
mentioned that Convolve's lawyers wanted to meet Galloway, and,
according to the complaint, later sent the engineer a retainer
agreement that linked Wittels's contingency fees to the Convolve
litigation. Galloway alleges that, unbeknownst to him, Wittels
was a personal friend of the Convolve CEO, and Convolve was
secretly paying Galloway's legal bills.
After supposedly receiving assurances from Steinberg that
his identity would be kept secret, Galloway agreed to sign an
affidavit attesting that Seagate misappropriated Convolve
technology and destroyed evidence in the suit. As promised,
Steinberg filed the affidavit under seal. But she disclosed
Galloway's name and role at Seagate in an accompanying brief
that was not sealed. Moreover, reporters at The New York Times
got wind of the filing and ran a story about Galloway's
allegations against Seagate.
Galloway claims that being outed as a whistle-blower
destroyed his chance to find another job as an engineer in the
tech industry. Days after the Times story ran, his complaint
said, a job offer he'd received was rescinded, and since then,
Galloway claims, potential employers in both the United States
and Britain have been scared off by his reputation for blowing
the whistle.
At first, Galloway claims, he didn't blame Cadwalader for
leaking his name or Wittels for putting Convolve's interests
ahead of his. He initially believed Cadwalader's explanation
that Seagate, not Convolve, had leaked his name to reporters. He
continued to help Cadwalader with its case against Seagate and
agreed to accept compensation for his time. Wittels, meanwhile,
filed a suit against the employer who rescinded Galloway's job
offer. (The complaint doesn't identify the employer, but the
docket in federal court in Denver indicates that it was Flexstar
Technology.)
Eventually, however, Galloway came to believe that Convolve
and Cadwalader had used him and his affidavit as bait to attract
other Seagate whistle-blowers. His relationship with Wittels
deteriorated as well. Though his case against Flexstar settled,
Galloway suspected that Wittels did not obtain as much as the
case was worth. He ultimately concluded that Convolve's
interests, and not his, were uppermost in Wittels' mind.
Galloway's complaint, filed in New York State Supreme Court
by Rosanne Felicello of Felicello Law, accuses Wittels and his
former firm of legal malpractice and breach of fiduciary duty
for failing to protect Galloway in his dealings with Convolve
and Cadwalader. The suit asserts a fraudulent misrepresentation
claim against Steinberg and Cadwalader, blaming them for
inducing him to sign the affidavit against Seagate with false
promises of confidentiality.
Wittels left his former firm last fall. In an email Tuesday,
a representative of Sanford Heisler indicated that Wittels's
representation of Galloway was the reason. "No one at the firm
had any knowledge of the wrongful actions allegedly committed by
Mr. Wittels," the firm said in its statement. "Within one week
of learning of some of the details of Mr. Wittels' alleged
conduct, the firm terminated Mr. Wittels effective October 1,
2012." Wittels, who is now of counsel at The Roth Law Firm,
declined to comment. His lawyer, Mercedes Colwin of Gordon &
Rees, sent an email statement: "The allegations brought by Mr.
Galloway are without merit, and Mr. Wittels is confident that
the court will dismiss all claims. Mr. Wittels is disappointed
that his former client filed this misguided lawsuit. He is also
disappointed that his former partners have chosen not to support
him and use Mr Galloway's baseless claims to dissolve their
partnership."
Debra Steinberg of Cadwalader referred my call to a
Cadwalader spokesman, who said in an email that the firm
believes Galloway's suit is "frivolous and without merit."
Galloway's testimony against Seagate, meanwhile, seems to
have been for nought. Last October, after tossing just about all
of Convolve's claims, U.S. District Judge George Daniels entered
judgment in the case (at Convolve's request) so the company
could appeal his rulings to the Federal Circuit. Convolve filed
its notice of appeal in November.
(This post has been updated to include a response from
counsel to Steven Wittels.)
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