Legacy Villas at La Quinta Homeowners Ass'n v. Homes

MEMORANDUM

Appellant law firm Peters & Freedman, LLP appeals (1) the district court’s April 30, 2012 order disqualifying the law firm from representing La Quinta Homeowners Association (“the Homeowners Association”) against Centex Homes (“Centex”), and (2) the district court’s November 7, 2012 order finding the law firm in contempt of the disqualification order.

We have jurisdiction under 28 U.S.C. § 1291 . Reviewing the orders for abuse of discretion, see Kayes v. Pac. Lumber Co., 51 F.3d 1449 , 1465 (9th Cir.1995); Irwin v. Mascott, 370 F.3d 924, 931 (9th Cir.2004), we reverse.

In 2004, Centex, a developer of residential properties, created the Homeowners Association to manage Legacy Villas, one of Centex’s condominium communities. In the beginning, Centex employees served on the Homeowners Association’s Board of Directors as the controlling majority. In May 2006, the Homeowners Association retained Peters & Freedman as legal counsel. In May 2008, control of the Homeowners Association was turned over to the homeowners.

During the two year period from 2006-2008 in which Peters & Freedman represented the Centex-controlled Homeowners Association, Peters & Freedman attended four…