Ethics; Conflict of Interest; Arbitration; Injunctions
A large brokerage firm filed an action seeking to enjoin a prominent law firm from representing an investor in a million-dollar arbitration action against the brokerage firm. The suit claimed that the investor's law firm had a conflict of interest, since one of its partners had previously represented the brokerage firm when the lawyer was employed by another firm. The Firm was retained by the defendant law firm and, at an emergency hearing the next day, the judge was persuaded that disqualification was not justified. The Client was allowed to proceed with its representation of the investor in his claim against the brokerage firm.