Gatx/Airlog Co. v. Evergreen International Airlines, Inc.

Good Law

8 F. Supp. 2d 1182·98 Daily Journal DAR 10085·1998 U.S. Dist. LEXIS 9738

United States District Court, Northern District of CaliforniaJune 2, 1998And Related Case Nos. C-97-0378 WHO, C-97-2484 WHO, and C-98-0385-WHO. No. C-96-2494 WHOCalifornia4,029 words

Opinion

Orrick, J.

OPINION AND ORDER

The Bank of New York (“BNY”), plaintiff in No. C-98-0385 WHO, moved this Court to intervene in all related cases for the purpose of disqualifying the law firm ■ of Mayer, Brown & Platt (“MBP”) from representing GATX/Airlog Company, GATX Capital Corporation, Airlog Management Corporation, and GATX New Aircraft Corporation (collectively “GATX”). Because the duty of loyalty prevents MBP from representing two current clients with adverse interests in the same “matter” without an informed, written waiver, the Court grants the motion.

I.

In 1986, GATX entered into a contract with Pemco Aeroplex, Inc. (“Pemco”) in which Perneo agreed to design kits to convert 747 passenger aircraft' into cargo aircraft. GATX then converted aircraft according to that design. Central Texas Airborne Systems, Inc. (“CTAS”) also converted some aircraft utilizing the design.

Federal regulations require that entities seeking to convert passenger aircraft obtain Supplemental Type Certificates (“STCs”) from the Federal Aviation Administration (“FAA”), If the FAA concludes that the converted aircraft will meet applicable Federal Aviation Regulations (“FARs”) for airworthiness at a specified…

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