Posted Jun 14, 2013 10:00 am CDT
Winston & Strawn has been disqualified from representing a bond insurer in the San Bernardino bankruptcy, due to a conflict created by the law firm’s hire of a lawyer who formerly worked for an opponent in the litigation.
The Chicago-based international law firm had argued that the former California Public Employees’ Retirement System lawyer could be screened from those involved in the Chapter 9 bankruptcy. However, Judge Meredith Jury agreed with CalPERS in a Thursday ruling, holding that Winston & Strawn may not represent National Public Finance Guarantee Corp. in the Riverside case, according to Bloomberg and Reuters.
“No matter how good the ethical wall is, there will always be a sense that there is a fox in the henhouse,” said Jury during a court hearing.
At issue in the matter was a former K&L Gates partner who worked for the firm, on behalf of CalPERS, in San Bernardino and Stockton bankruptcy cases and was subsequently hired by Winston & Strawn.
Reuters: “Winston disqualification flap raises issue: What is direct conflict?”
Sacramento Bee: “CalPERS wins round in city’s bankruptcy case”