AI Credit Corp. v. Aguilar & Sebastinelli

Aguilar & Sebastinelli (Aguilar) is a law firm, which represented A.I. Credit Corp., Inc. (AICCI) in a collection action against Richard W. Peterson (Peterson). It appeals from a summary judgment in a separate declaratory relief action regarding Aguilar’s right to attorney fees in the collection action. The judgment was entered on the basis that Aguilar’s claim for legal fees against AICCI was barred because the court disqualified Aguilar from representing AICCI in its collection action against Peterson. We affirm.

BACKGROUND

The underlying actions arise out of an unsatisfied judgment in favor of AICCI against Peterson, entered in 1995. Pillsbury Madison & Sutro (Pillsbury) represented AICCI in that action. AICCI collected a portion of the judgment. Between June 1997 and June 2000, AICCI made no attempts to collect the remaining portion of the judgment, which totaled approximately $675,000.

For “several years” prior to 1993, Aguilar was “general, business and claims counsel” to Peterson and “several entities associated with [Peterson].” During that time, Peterson owned AAMB Insurance Agency, Inc., “had an interest” in American Emerald Insurance Company, “was [a]…