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Nemours Foundation v. Gilbane, Aetna, Federal Ins. Co., 632 F.Supp. 418, 54 USLW 2582

Facts

The Nemours Foundation filed a motion to disqualify Pierce Associates, Inc.'s counsel, Biggs & Battaglia, due to a conflict of interest stemming from attorney Paul A. Bradley's prior representation of Furlow Associates, Inc., a co-defendant in the same litigation. The case involved disputes arising from the construction of an addition to the A.I. DuPont Institute Children's Hospital. Nemours alleged that Bradley's previous work for Furlow created a conflict because he had access to confidential information that could disadvantage Nemours in the ongoing litigation.

Nemours alleged that Bradley's previous work for Furlow created a conflict because he had access to confidential information that could disadvantage Nemours in the ongoing litigation.

Issue

The main legal issues were whether attorney Paul A. Bradley's prior representation of Furlow Associates necessitated his disqualification from representing Pierce Associates, and whether the entire law firm of Biggs & Battaglia should also be disqualified due to this conflict.

The first question is whether Bradley's previous involvement on behalf of Furlow in this litigation calls for his disqualification.

Rule

The court applied the Delaware Lawyers' Rules of Professional Conduct, particularly Rules 1.6 and 1.9, which address confidentiality and conflicts of interest, respectively. It also considered the concept of imputed disqualification under Rule 1.10 and the potential for screening mechanisms to prevent such disqualification.

In ruling on the present motion, the Court will refer to the recently promulgated Delaware Lawyers' Rules of Professional Conduct (“Rules”).

Analysis

The court found that Bradley's previous involvement with Furlow did create a conflict of interest, as he had access to confidential information that could disadvantage Nemours. However, the court also recognized that Biggs & Battaglia had effectively screened Bradley from any involvement in the current litigation, which allowed the firm to continue representing Pierce without violating ethical rules. The court emphasized the importance of balancing the need for confidentiality with the right of clients to choose their legal representation.

The court found that Bradley's previous involvement with Furlow did create a conflict of interest, as he had access to confidential information that could disadvantage Nemours.

Conclusion

The court concluded that while attorney Paul A. Bradley was disqualified from representing Pierce Associates due to a conflict of interest, the entire law firm of Biggs & Battaglia was not disqualified because they had implemented an adequate screening mechanism to protect confidential information.

Who won?

Pierce Associates, Inc. prevailed in the sense that their law firm was allowed to continue representing them despite the conflict of interest raised by Nemours. The court's ruling on the effectiveness of the screening mechanism was pivotal in this outcome.

Pierce Associates, Inc. prevailed in the sense that their law firm was allowed to continue representing them despite the conflict of interest raised by Nemours.

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