California Earthquake Authority v. Metropolitan West Securities, LLC
Opinion
Opinion
Damrell, J.
MEMORANDUM AND ORDER
This matter is before the court on the motion of plaintiff California Earthquake Authority (“CEA,” “the Authority,” or “plaintiff’) to disqualify defendants’ counsel Munger, Tolies & Olson, LLP (“Munger”). Defendants Metropolitan West Securities, LLC (“MWS”) and Wachovia Bank, N.A. (“Wachovia”) (collectively, “defendants”) oppose the motion.
The court heard oral argument on the motion on April 23, 2010. By this order, it now renders its decision, granting plaintiffs motion for the reasons set forth below.
BACKGROUND
On December 31, 2009, CEA filed the complaint in this action, alleging claims for breach of contract, breach of fiduciary duty, constructive fraud, and unfair business practices against defendants. In conjunction with its complaint, CEA filed a motion to disqualify Munger as defendants’ counsel on the grounds that Munger was either improperly (1) simultaneously representing parties with adverse interests or (2) representing defendants when Munger had a previous relationship with CEA, wherein CEA disclosed certain confidential information to Munger which bears a direct and substantial relationship to the present action.