Coldren

Plaintiffs Robert S. Coldren (Coldren) and his wife, Brook Coldren, sued defendants Hart, King & Coldren, Inc. (HKC), and William R. Hart asserting several causes of action arising out of Coldren’s departure from his law practice at HKC. Defendants appeal from an order disqualifying HKC’s counsel, Grant, Genovese & Baratta, LLP (Grant Genovese), who had been representing both Hart and HKC. The court held there was an unwaivable actual conflict between the two. The court concluded a conflict existed because Coldren is a 50 percent shareholder of HKC, and HKC would have duties to Coldren that were in conflict with Hart’s interests in defeating the litigation. Accordingly, the court ordered Hart to confer with Coldren on the appointment of “neutral” counsel for HKC.

We reverse. Coldren sued both Hart and HKC — directly, not derivatively — on essentially the same claims. He is seeking over $8 million in damages against both. Hart’s interest is perfectly aligned with HKC’s interest in seeing Coldren’s claims defeated. Coldren’s position seems to be that he can sue his company and then, because he is a 50 percent shareholder, have a say in its defense. That is not the law.…