Risk Update

Law Firm Conflicts Developments — Disqualification Under Former Client Conflict Rule, IP Practice Conflicts Cause Lawyer Laterals

Posted Dan Bressler

“Federal Court Addresses Standing to Bring Disqualification Motion under Former Client Conflict Rule” —

  • “The federal district court in Seattle recently highlighted a key procedural requirement for most disqualification motions based on asserted former client conflicts: The party bringing the motion must show that they were, in fact, a former client of the lawyer or law firm targeted. “
  • “Thompson v. Seattle Public Schools, 2025 WL 2654650 (W.D. Wash. Aug. 8, 2025) (unpublished), involved employment discrimination claims against the defendant school district. The lead lawyer for the school district had earlier investigated employment claims by the plaintiff against another local school district. The plaintiff argued that the lawyer’s earlier investigation constituted a former client conflict under RPC 1.9 that warranted disqualification.”
  • “The court noted that regardless of whether the two matters shared any common facts, the plaintiff lacked standing to bring a disqualification motion against the lawyer because the plaintiff had never been a client of the lawyer. The court reasoned that RPC 1.9 on its face is predicated on the fact that the lawyer or law firm involved had formerly represented the client. Disqualification motions for conflicts, in turn, are ordinarily reserved solely for current or former clients of the law firm involved—usually framed under the procedural requirement of ‘standing.’ Lacking that here, the court denied the motion. The court also later denied reconsideration at 2025 WL 2653675 (W.D. Wash. Sept. 16, 2025) (unpublished). “
  • “Although Thompson is an ‘unpublished’ decision, the federal court in Seattle discussed standing in the disqualification context for conflicts generally in the relatively recent reported decision of United States Fire Insurance Company v. Icicle Seafoods, Inc., 523 F. Supp.3d 1262 (W.D. Wash. 2021).”

“Rate Sensitivity, Conflicts Continue to Loom Over Big Law IP Practices” —

  • “The exit of 21 intellectual property litigators from Ropes & Gray for Sheppard, Mullin, Richter & Hampton last week is one of the latest group moves in the practice area this year, as some law firms decide to step back from the practice while others are taking advantage of recruiting top talent in a shifting Big Law environment. Among a number of IP litigator moves in the past year, Weil, Gotshal & Manges picked up at least six IP litigators from Latham & Watkins, and two IP Willkie Farr & Gallagher IP litigators moved to Gemini Law, a boutique based in New York.”
  • “Some observers point to increasing client demand in some corners of IP law for law firms that already have built-out practices and intersecting practices for blue-chip clients. Still others point to potential conflicts or higher billing rate pressure in some IP litigation, compared with other Big Law practices, leading many IP lawyers to move to smaller or slightly less profitable law firms. IP litigators have said that charging elevated premiums to IP clients has forced some attorneys to abandon their firms for ones that allow for lower rates.'”
  • “Besides rate pressure, conflicts may also prompt firms to step back more from IP litigation, said law firm consultant Lisa Smith, a principal with Fairfax Associates.'”
  • “‘Firms are taking a look at IP from a couple of perspectives. Certainly, one is a rate perspective. Some of the prosecution work, in particular, is not always a fit for an Am Law 50 firm. The litigation is still a desirable practice, but conflicts get in the way. That’s where we see it just doesn’t fit,’ she said.'”
    Conflicts can arise easily, she said, because IP litigation often involves going after competitors in a particular industry sector, so it can be problematic for a firm that represents multiple companies in a sector.'”
  • “William Munck, global managing partner of Dallas-founded technology firm Munck Wilson Mandala, said ‘nobody is backing off IP litigation,’ and his firm is seeing as much as it always has.’ However, he acknowledged seeing practice groups move from a ‘mega-firm’ to a smaller firm, because they can compete with lower leverage and the efficiency of using AI. ‘With AI tools, firms like ours can now compete with any project that’s out there,’ he said.'”