Murray

MEMORANDUM OPINION RE: ORDER TO SHOW CAUSE WHY SANCTIONS SHOULD NOT BE IMPOSED AGAINST FORMER ATTORNEYS OF RECORD AND LAW FIRMS FOLLOWING DISQUALIFICATION FROM FURTHER REPRESENTATION OF PLAINTIFF; AND ORDER

I.INTRODUCTION

This matter is before the court on an order to show cause why sanctions should not be imposed against attorneys Kenneth S. Bayer, Timothy D. McCollum and the law firms of McCollum, Bayer & Bunch, and Bayer, Cut-singer & Lopez, following disqualification of these lawyers and their law firms as attorneys of record for plaintiff Terrebonne Ltd. of California.

II. BACKGROUND

The court’s order disqualifying the attorneys and law firms (collectively referred to herein as the “disqualified attorneys”) was entered on August 6, 1997, following the court’s memorandum decision detailing the facts upon which the motion to disqualify was granted. The grounds justifying the disqualification order were the following:

1. Undertaking representation of a new client (the New Hogan investors) whose interests presented an actual conflict of interest with a current client (Terrebonne), arising because of their competing interests in the subject real property, without first…