Wednesday, March 11, 2015

Boies Schiller Sanctions Affirmed

Thanks to a reader for sending this decision of the United States Court of Appeals for the Second Circuit affirming sanctions against Boies, Schiller & Flexner for a conflict of interest in a representation adverse to former client Host Hotels & Resorts, Inc.

Host moved for sanctions on the grounds that BSF’s  representation of Madison 92nd Street Associates, LLC  (“Madison”) presented a clear conflict of interest in light of BSF’s earlier, substantially related representation of  Host, and that BSF unreasonably refused to withdraw from its  representation of Host until faced with a motion to  disqualify. The district court agreed, concluding that “[a]  clearer conflict of interest cannot be imagined” and that  Host was entitled to fees and costs incurred in preparing  the motion to disqualify BSF.

The court found that the district court properly rejected claims of mere negligence

contrary to BSF’s argument, the court concluded BSF’s conduct was “far, far worse” than mere negligence.  See DLC Mgmt. Corp. v. Town of Hyde Park, 163 F.3d 124, 136 28 (2d Cir. 1998) (“[T]hese findings [are] sufficiently concise  and based on clear evidence so as to amount to the bad faith required to impose sanctions.”).

(Mike Frisch)

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