Nazareth

BACKGROUND

The Underlying Litigation Between 2007 and 2012 Nazareth, a real estate broker, contracted with Freddie Mac to sell foreclosed homes in Contra Costa and Alameda Counties. In June 2009, Freddie Mac assigned Nazareth a house on Harvey Avenue in Oakland to manage and list

1 for sale. The house was occupied by tenants Zach Clemons and Wesley Payne. Nazareth had the Harvey Avenue property re-keyed and the contents “trashed-out,” or disposed of as garbage. In August 2011 she informed Freddie Mac that the “trashout” was complete. Clemons and Payne filed the underlying suit against Nazareth, Freddie Mac and others in September 2011. Anthony Haynes and Melissa Sgroi of M&C were assigned to defend Freddie Mac. Nazareth initially retained attorney Nathan Borris, but on December 29, 2011, Sgroi advised her that Freddie Mac would allow M&C to represent her “until Freddie Mac has an opportunity to complete a review of this asset.” On January 4, 2012, Borris advised Nazareth of conflicts that could arise from M&C’s joint representation. He wrote, “It would appear that your defenses would be the same as Freddie Mac’s, but each of you had distinct tasks and duties in the eviction and…