Adams
City National Bank v. Adams
Opinion
Opinion
Perluss, J.
Defendant Glenn Adams appeals from the trial court’s order disqualifying his counsel, Jeffrey L. Davidson and Davidson’s law firm, from further participation in this action based on Davidson’s previous representation of plaintiff City National Bank (CNB). We hold that, absent the informed written consent of both the former client and the present client, a lawyer may not represent a party whose interests are adverse to his or her former client when the two representations are in the same matter or the current representation involves the work performed by the lawyer for the former client. Accordingly, we affirm.
Factual and Procedural Background
1. The Loan, the Collateral and the Davidson Opinion Letter.
On April 30, 1998 CNB loaned $150,000 to Adams; and Adams executed and delivered to CNB a promissory note (the note) agreeing to repay the principal sum plus interest. The purpose of the loan was to enable Adams to exercise options to purchase stock in U.S. Digital Communications, Inc. (U.S. Digital). The loan was to be secured by the shares purchased with the loan proceeds (the stock).
Pursuant to his agreement with CNB, Adams was required to maintain collateral equal…