Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Employment Law StrategistKickerFeaturesTopicsLaw Firm ManagementSectionsNewsLJN Newsletters

Will That New Associate Get You Disqualified?

By Kasey T. Ingram
April 28, 2010

In these tough economic times, many attorneys are changing firms. When your firm takes on a new hire, you may be putting the firm at risk for disqualification from a large case. For example, suppose you literally just hired a superstar. Ima Superstar graduated from a top law school, clerked for a great judge and spent the last two years practicing at Big & Expensive, LLP (“B&E“), the most prestigious law firm in this region. Now she works for you. Even better, she spent her two years at B&E in the bankruptcy group researching and writing on complex issues. You were just retained by Mom & Pop Construction (“MPC“) to represent it as a creditor in the bankruptcy case of Grew Too Fast, Inc. (“GTF“). Superstar will help you prove that MPC's mechanic's liens have first priority on GTF's assets. This will be great. Or maybe not.

MegaBank was GTF's primary secured lender, and asserts that it holds a first priority lien on GTF's assets. B&E represents MegaBank. MegaBank files an adversary proceeding to determine lien priority. Just as the discovery process begins, B&E moves to disqualify you and your firm. B&E asserts that Superstar worked for B&E when it analyzed MegaBank's case. Thus, Superstar is disqualified from representing MPC and, by imputation, so are you.

This premium content is locked for LJN Newsletters subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Compliance Officers: Recent Regulatory Guidance and Enforcement Actions and Mitigating the Risk of Personal Liability Image

This article explores legal developments over the past year that may impact compliance officer personal liability.