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Real Estate Training International, LLC v. Nick Vertucci Companies, Inc.

Citations: 124 F. Supp. 3d 1005; 2015 U.S. Dist. LEXIS 111433; 2015 WL 5072002Docket: Case No. SACV 14-0546 AG (DFMx)

Court: District Court, C.D. California; August 14, 2015; Federal District Court

Narrative Opinion Summary

The case involves a motion to disqualify Andrew Moon, counsel for Plaintiff Real Estate Training International, LLC (RETI), which was denied by the court. The primary legal issue revolves around the application of California Rule of Professional Conduct 5-210, which governs the disqualification of attorneys who may serve as necessary witnesses. The court emphasized that disqualification motions are often improperly used for strategic purposes, such as removing formidable legal opponents or increasing litigation expenses. The defendants mistakenly cited ABA Model Rule 3.7, failing to recognize the informed-consent exception under California's Rule 5-210. This exception allows a party to retain counsel who is also a potential witness, provided there is informed consent. The court referenced the California Supreme Court's decision in Comden v. Superior Court, which established this exception to prevent abuse of disqualification motions. Despite other California cases suggesting additional considerations, the court affirmed that informed consent alone suffices under Rule 5-210. The Plaintiffs agreed to provide such consent if Moon becomes a necessary witness, leading the court to deny the disqualification motion, thereby allowing RETI to retain its chosen counsel.

Legal Issues Addressed

Disqualification of Counsel under California Rule of Professional Conduct 5-210

Application: The court denied the motion to disqualify counsel Andrew Moon, emphasizing that under California Rule 5-210, disqualification is not necessary with informed consent, even if the attorney is a necessary witness.

Reasoning: In California, parties can retain their counsel even if the attorney is a necessary witness, provided there is informed consent from the parties involved.

Improper Use of Disqualification Motions

Application: The court highlighted that disqualification motions are often improperly used to eliminate strong opponents or increase litigation costs.

Reasoning: The court emphasized that disqualification motions are often motivated by improper tactics such as eliminating strong opponents or increasing litigation costs.

Informed Consent as an Exception to Disqualification

Application: The court allowed the retention of counsel based on the informed consent exception provided by California Rule 5-210, despite the defendants' reliance on an incorrect rule.

Reasoning: The defendants, who filed the motion against Moon, incorrectly relied on ABA Model Rule 3.7 instead of the applicable California Rule of Professional Conduct 5-210, which allows for the informed-consent exception.

Limitations on Judicial Modification of Disqualification Rule

Application: The court noted that judicial modifications to the rule, as seen in some California cases, are not permissible and affirmed the rule's application as written.

Reasoning: Courts are not to modify this rule, despite confusion stemming from cases like Lyle regarding its application.