Carnegie Cos., Inc. v. Summit Properties, Inc.

918 N.E.2d 1052 (2009)

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Carnegie Cos., Inc. v. Summit Properties, Inc.

Ohio Court of Appeals, Ninth District
918 N.E.2d 1052 (2009)

  • Written by Rose VanHofwegen, JD

Facts

On June 21, 2007, a representative of Carnegie Companies, Inc. (plaintiff) engaged Robert Karl of Ulmer & Berne L.L.P. (the firm) by telephone to purchase property in Marietta, Ohio. In August 2007, Carnegie began negotiating to buy an office building in Twinsburg, Ohio, from Summit Properties, Inc. (Summit) (defendant). Carnegie’s president negotiated directly with Summit’s lawyer, Stuart Laven, an attorney in another office of the firm. Karl had not formally terminated his representation of Carnegie in the Marietta purchase, and Laven did not run a conflicts check when he undertook the Twinsburg negotiations. A later conflicts check revealed recent billing to Carnegie, but neither lawyer identified the conflict. Meanwhile, the parties entered a contract to purchase the Twinsburg building, and Carnegie escrowed earnest money. When Carnegie rescinded and sued to recover the earnest money, Laven filed an answer and counterclaims on behalf of Summit. Carnegie moved to disqualify the firm based on concurrent representation of directly adverse clients without consent. The trial court found the firm violated the ethical rules and disqualified the firm. Summit appealed.

Rule of Law

Issue

Holding and Reasoning (Dickinson, J.)

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