Banning Ranch Conservancy v. The Superior Court of Orange County

Banning Ranch Conservancy (the conservancy) (plaintiff) sued the City of Newport Beach (the city) under the California Environmental Quality Act (CEQA) to oppose the city’s plans to build a four-lane highway on Banning Ranch, a 400-acre coastal property. In 2010, the city moved to disqualify the conservancy’s counsel, the firm of Shute, Mihaly & Weinberger (the firm). The city argued that (1) the city was the firm’s former client in at least eight different matters that were closed between 2000 to 2005, and (2) the city was the firm’s current client, based upon two letter agreements signed in 2005. Under the 2005 agreements, which were never officially terminated, the firm agreed to provide legal services to the city regarding public-trust matters on an as-requested basis, based upon the firm’s ability to take on each matter. The firm claimed that it prepared the 2005 agreements for a matter that the firm submitted a final invoice for in 2005. The city never requested any other work from the firm under the 2005 agreement. No firm attorney communicated with the city regarding any legal matter from early 2006 until the conservancy’s litigation. From 2006 until 2010, the city hired at least 10 other law firms in CEQA matters. The trial court granted the city’s motion to disqualify the firm, finding that the city was the firm’s current client. The conservancy appealed.