Last noted here in 2021, here’s an update: “Graham Weston can go forward with lawsuit against ex-lawyer over him representing wife in divorce” —

• “Graham Weston’s lawsuit against San Antonio attorney Jason Davis and his law firm over their representation of the prominent downtown developer’s ex-wife in the couple’s divorce can go forward. Davis had moved to dismiss the complaint, but a state appeals court denied his motion.”
• “Weston, who’s also a co-founder of Rackspace Technology Inc., said the attorney and his firm Davis & Santos breached their fiduciary duties and committed fraud by agreeing to ‘secretly represent’ Elizabeth Weston in the divorce while serving as counsel for Graham Weston and entities he manages. “
• “On Friday, a three-judge panel of the 3rd Court of Appeals in Austin affirmed a Comal County District Court judge’s order denying Davis’ request to toss the case.”
• “‘The firm intends to continue vigorously defending themselves for the work they did in loyally representing a long-standing client who came to them in a time of great need,’ said Austin lawyer Amanda G. Taylor, who represents Davis and Davis & Santos.”
• “He originally sued Davis and the law firm in the summer of 2021 after the divorce proceedings were underway. Davis appeared as Elizabeth Weston’s attorney of record in the divorce case after accepting more than $2.9 million in legal fees for representing Graham Weston and businesses he manages in at least nine matters between 2009 and 2021, according to the lawsuit.”
• “‘This is a case about an attorney who violated the solemn tenets of his professional creed in the name of personal financial gain,’ Graham Weston says. “
• “Elizabeth Weston filed for divorce on Oct. 26, 2020, with Davis as her lawyer. She accused her husband of sexually assaulting her and carrying on several extramarital affairs with women in London. Graham Weston accused his wife of recording him and hiring a private investigator to track him for a year and a half.”
• “Davis and his firm were disqualified from the case case after Graham Weston’s counsel accused them of conflicts of interest. She petitioned the 3rd Court of Appeals to set aside the disqualification order but it denied the petition.”
• “Elizabeth Weston ultimately represented herself in the divorce trial after hiring and terminating numerous other lawyers but she presented no evidence to support her allegations of abuse. The trial proceeded on claims Graham Weston made in his counterpetition for divorce.”
• “A judge granted a divorce in October 2022, ending the Westons’ marriage of more than 27 years.”

“Gorsuch steps down from major environmental case amid ethical conflict” —

• “Justice Neil Gorsuch won’t sit for next week’s environmental showdown because of ethical conflicts in the review of a proposed Utah oil and gas rail line.”
• “According to a letter from the high court’s clerk Scott Harris, the Donald Trump appointee determined he would not continue to participate in the case consistent with the justices’ code of conduct. “
• “Gorsuch did not detail his ethical conflict, but he has been pressured to recuse from the case because of his ties to an oil billionaire who stands to profit from the ruling. “
• “The U.S. Surface Transportation Board approved a permit to build a Utah railway that would quadruple oil production in the Uinta Basin. Philip Anschutz, the owner of Anschutz Exploration Corporation, operates oil wells in the area and could benefit from the 88-mile line. “
• “Gorsuch served as counsel to Anschutz and his companies in the early 2000s and maintained a cozy relationship with the oil billionaire in the ensuing years. Gorsuch said he went on annual hunting retreats on Anschutz’s estates and has property with business associates with the company. “
• “Anschutz’s company filed a friend of the court brief, asking the justices to narrow the scope of NEPA. A government watchdog said the Uinta Basin Railway would cut Anschutz’s freighting costs and increase the company’s profits. However, Anschutz also has oil and gas operations in other regions in Utah as well as Colorado and Wyoming that are all subject to environmental reviews. “
• “Ethics experts were initially skeptical of the validity of the calls for Gorsuch’s recusal since it has been almost two decades since he worked as outside counsel for the company and there is no public information about their relationship after 2017. “
• “It’s not clear if Gorsuch’s relationship with Anschutz led to his recusal or if another conflict arose. “
• “Gorsuch’s recusal is rare despite the increased focus on the justices’ ethical standards over the last few years. “

“Cooley Hid Tech CEO Fraud From Company, Bankruptcy Trustee Says” —

• “Cooley LLP is facing a new round of malpractice accusations related to a messy bankruptcy fight, this time from the court-appointed trustee in the case.”
• “The firm’s lawyers concealed fraud by a Carbon IQ executive from the tech company and its shareholders, according to a complaint filed Friday in an Ohio federal court. James Coutinho, the trustee in Carbon IQ’s bankruptcy proceedings, said the lawyers violated their ethical duties while representing Carbon IQ and CEO Ben Cantey.”
• “‘This case shows what happens when lawyers try to serve conflicting interests,’ Coutinho said in the complaint.”
• “Cooley partner Michael Tu learned of fraud allegations against Cantey as early as June 2022, while the firm was defending Carbon IQ and Cantey in a suit by a co-founder, according to Coutinho.”
• “The co-founder claimed Cantey forged business documents and had been investigated by the Texas State Securities Board for fraud in a previous business venture. Cantey later admitted to falsifying business records to shareholders, paying himself large commissions, and failing to pay taxes in an Oct. 7 email to Cooley partner Matt Hallinan, according to an exhibit attached to the complaint.”
• “Cooley lawyers allegedly withheld that information from shareholders and continued to assist Cantey as he tried to obtain additional investor financing. Coutinho cited a September 2022 email in which the lawyers said they were ‘trying to avoid’ calls from board members regarding potential fraud and requests for documents. Those calls turned into multiple shareholder lawsuits against the company, according to the complaint.”
• “‘This created a clear conflict of interest that caused substantial harm to Carbon IQ and its shareholders,’ Coutinho said.”
• “Discovery is necessary ‘to reveal the full extent of defendants’ knowledge regarding Cantey’s misconduct and the full extent of Defendants’ actions to conceal or aid Cantey’s misconduct,’ Coutinho told the court.”
• “‘If lawyers represent a corporation and learn that the CEO may be committing fraud, the lawyers can’t ignore the issue,’ Cooper Elliott partner Bart Keyes said in an email. ‘They have to protect the corporation, and this case shows just how devastating the consequences can be if they don’t.’ “