Risk Update

Conflicts News — Consulted Lawyer Conflict Clash, Rico Conflict Concern

Canada: Lawyer Who Was Consulted By Another Lawyer Disqualified From Acting Against Other Lawyer” —

  • 2658396 Ontario Inc. v. Sanayei. The action stemmed out of mortgage proceedings in which the plaintiff, which was the second mortgagee on a property, learned that the defendant lawyer had acted for the mortgagor on the property in relation to a subsequent third mortgage registered on the same property. A term of the plaintiff’s second mortgage prohibited the registration of any subsequent mortgages. The defendant lawyer did not contact the plaintiff at the time the third mortgage was registered.”
  • “The plaintiff later retained his current lawyer (DB), who was one of the lawyers referred by the defendant lawyer, and commenced a mortgage enforcement action of its own against the mortgagor.”
  • “The defendant lawyer contended that DB was in a conflict of interest in the action against him. The defendant lawyer provided evidence that DB had previously acted for him on matters that overlapped the mortgage enforcement dispute and that before DB had been retained by the plaintiff he had consulted with DB and sought advice about the second and third mortgage problem that was the subject matter of the plaintiff’s action.”
  • “Although there was no formal retainer between the defendant lawyer and DB, the defendant lawyer viewed the consultation as an occasion whereby he conveyed confidential and privilege protected information to DB.”
  • “The defendant lawyer and DB had known each other for 20 years and they had maintained a friendly and professional relationship during this period of time.”
  • “DB acknowledged that he knew the defendant lawyer for 20 years and that he had represented the defendant lawyer on a few matters over the years. In July 2019, DB had been specifically retained by the defendant lawyer to act for his mortgage company on the enforcement of a mortgage on another property. However, DB denied having disclosed to the plaintiff any information about this retainer and did not recall the defendant lawyer ever imparting any confidential information on him that could be used in the action against the defendant lawyer.”
  • “After retaining DB, but prior to commencing the action against the defendant lawyer, the plaintiff’s principal surreptitiously recorded a meeting between himself and the defendant lawyer. In this meeting, the defendant lawyer was told that DB had considered an appraisal given to the plaintiff about the value of the property was illegal, that DB advised the plaintiff to not accept settlement offers in respect of the mortgage enforcement and that the plaintiff’s principal was not interested in power of sale proceedings or purchasing the property.”

Judge Says Young Thug Can Keep Using His Own Attorney In RICO Case” —

  • “The Fulton County District Attorney’s office claimed that Brian Steel, a prominent Atlanta-area criminal defense lawyer, should be disqualified because he represents some of the other 27 alleged gang members named in the sweeping criminal case. Steel and another lawyer argued back that Young Thug should not be deprived of his ‘chosen counsel’ as he fights for his life in court.”
  • “In a ruling Thursday – issued hours before he denied bond to the rapper at the same hearing – Judge Ural Glanville sided with Steel. Despite ‘strong concerns’ that a conflict of interest might rear its head later in the case, the judge ruled that those fears were only ‘speculative’ in the early stages of the legal battle.”
  • “In an indictment unveiled last month, prosecutors claim Young Thug (Jeffery Williams), Gunna (Sergio Kitchens) and 26 others spent the last decade operating a violent street gang called “Young Slime Life” – allegedly the darker alter-ego of their YSL Records label. The case, built on the state’s RICO statute, includes accusations of murder, carjacking, armed robbery, drug dealing and illegal firearm possession against various YSL members.”