Hancock

This is an appeal from a preliminary injunction preventing the law firm of Hancock, Rothert & Bunshoft (Hancock) from representing the Contra Costa Water District (District) in any dispute with Morrison Knudsen Corporation (Morrison), or Morrison’s wholly owned subsidiary, Centennial Engineering, Inc. (Centennial) concerning the Vasco Road or Los Vaqueros construction projects in Livermore. The ultimate issue is whether the trial court abused its discretion in concluding that Hancock had a conflict of interest which disqualified it from undertaking this representation.

A number of difficult questions arise in analyzing the alleged conflict on the somewhat unusual facts presented. Hancock seeks to represent the District in proceedings on a cross-complaint against Centennial, and the alleged conflict stems primarily from Hancock’s ongoing representation of Morrison’s insurance underwriters in matters involving Morrison, rather than from representation of Morrison itself or of Centennial. We conclude: (1) that the court could consider the information Hancock received as underwriter’s counsel in determining whether there was a conflict; (2) that this information could be…