Another find from David Kluft: “Can a law firm fire a lawyer to avoid a disqualifying conflict?” —

• “A NY lawyer represented a defendant in a civil action through discovery. He then got a new job with the plaintiff’s firm. The Court held that the new hire created an unwaivable conflict of interest, and imputation of the conflict to the rest of the firm could not be cured by mere screening, per Rule 1.10(c) (presumably because the lawyer substantially participated in the litigation while on the defendant’s side).”
• “The firm argued that the new lawyer didn’t stick around long at the new firm, and in fact had departed even before a motion to disqualify had been filed (not clear if he quit or was let go). The Court rejected this argument – any employment during the litigation served to impute the conflict.”
• Decision here: “Hotel 237, LLC v G.M. Canmar Residence Corp.“

“Microsoft drops law firm that made a deal with Donald Trump from a case” —

• “When big law firms attacked by President Donald Trump decided to make a deal with him rather than fight, many did so because their leaders feared that clients would abandon a firm caught on the administration’s bad side.”
• “Now, that logic may be getting less compelling. A major company, Microsoft, has dropped a law firm that settled with the administration in favor of one that is fighting it.”
• “Large companies such as Microsoft often farm out legal work to dozens or even hundreds of firms and may move business depending on circumstances, such as pricing, expertise and potential conflicts. Microsoft declined to comment on why it changed law firms in a significant case last week, but the switch suggests that a firm that chose to fight the Trump administration could still attract an important client.”
• “On April 22, several attorneys at law firm Simpson Thacher & Bartlett informed the Delaware Court of Chancery that they would no longer be representing Microsoft in a case related to the company’s 2023 acquisition of video game giant Activision Blizzard, according to court filings.”
• “Simpson Thacher reached a deal with the White House last month in which the firm committed to perform $125 million in free legal work for causes acceptable to the Trump administration. In a joint statement with other firms making similar agreements, Simpson Thacher said the pro bono work would be on behalf of ‘a wide range of underserved populations.'”
• “On the same day that the Simpson Thacher lawyers filed paperwork withdrawing from the Microsoft case, at least three partners at firm Jenner & Block informed the court that they would be representing Microsoft in the case. Jenner is fighting in court to permanently block a Trump administration executive order targeting its business.”
• “In some cases, a client may worry that a law firm that has reached a deal with the White House has a conflict of interest that prevents it from aggressively representing the client. For example, the client may be a defendant in a lawsuit brought by the federal government and worry that a settling law firm would be reluctant to stand up to the administration.”
• “Other clients may have broader concerns. A senior partner at another firm that does not have an agreement with the White House said his firm was beginning to attract clients from firms that had settled with the administration. The partner, who was not authorized to discuss client matters publicly, said prospective clients had indicated that they had lost confidence in settling firms for not standing up to an attack on the rule of law.”

“Hegseth attorney’s dual roles trip conflict of interest alarms” —

• “Tim Parlatore is a personal attorney and top adviser to Defense Secretary Pete Hegseth. At the same time, he’s suing the Navy and defending private clients against the U.S. government.”
• “Parlatore, who represented Donald Trump in a criminal case two years ago and rejoined the Navy Reserve in March to aid Hegseth, was recently tapped to coordinate the leak investigation that led to chaos at the Pentagon. The probe was publicly tied to the firings of top advisers and preceded further revelations that Hegseth was careless with classified information. Parlatore was also reportedly in the Signal group with Hegseth’s wife and brother in which the Defense secretary shared details of a strike on Yemen.”
• “But despite Parlatore’s deep involvement at the Pentagon, he is pursuing litigation against the Navy. A review of federal court records shows Parlatore listed as an attorney on 11 cases — though a few appear to be dormant and not all involve the U.S. government. Often his clients are retired military personnel.”
• “The business of Washington is built on government officials leaving their jobs to trade access for private clients and using their connections to achieve client goals. While Parlatore insists his arrangement is above board, it’s highly unusual for a sitting top adviser for a Cabinet secretary to be working in the government while at the same time representing clients suing the government, or working for clients as they fight off the feds.”
• “That tension will be on display in federal court in Washington next week, as Parlatore — wearing his private lawyer hat — leads the defense of retired four-star Adm. Robert Burke against corruption charges. At the trial set to open Tuesday, the Justice Department will seek to prove that Burke, once the Navy’s second-highest-ranking officer, arranged a lucrative contract for a workforce training firm in exchange for a job he took at the company after leaving the Navy.”
• “That means Parlatore is likely to be cross-examining high-level Navy witnesses who know of his close ties with Hegseth and in-uniform responsibility for legal matters of keen interest to the secretary.”
• “And while Parlatore signed up Burke before Trump won last fall’s election, Parlatore’s new, dual role could allow him to capitalize on his ties to Hegseth and his role in the secretary’s office, legal experts say.”
• “‘It’s a great advertising possibility that Parlatore has: Take me to be your attorney because I’ve got unusual access,’ said former Air Force lawyer and judge Joshua Kastenberg, now a law professor at the University of New Mexico.”
• “‘Tim’s business is built around representing service members who are in the military justice system,’ said a person who has worked with Parlatore at the Pentagon. ‘So being close to the secretary and being in his front office provides him an advantage in that business.’ This person and two others — one who has worked with Parlatore, as well as a former defense official — were granted anonymity for fear of retribution.”
• “During a hearing last month in the Burke case, a prosecutor raised Parlatore’s ongoing work for the Defense Department as a ‘potential conflict’ and asked the judge to make sure Burke understood the two hats his attorney is wearing.”
• “‘We just need to make sure the defendant is aware … that his attorney has a job with the Navy and this trial will involve multiple witnesses from the Navy and involves allegations of criminal conduct while [Burke] was employed by the Navy,’ Assistant U.S. Attorney Rebecca Ross told U.S. District Judge Trevor McFadden, according to a court transcript. ‘We’d like to make sure that the defendant won’t raise it, to preserve everything on appeal.'”
• “Parlatore said he saw no issue. ‘I don’t know what the conflict would be. I’m in the Navy Reserves, as many attorneys are,’ the lawyer said. ‘I’ve tried many cases back when I was a Navy reservist before, including … in military courts, where I cross-examined people who were very much higher-ranking than me at the time.'”