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Morrison Knudsen Corp. v. Hancock, Rothert & Bunshoft

69 Cal. App. 4th 223 (1999)

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Morrison Knudsen Corp. v. Hancock, Rothert & Bunshoft

California Court of Appeal

69 Cal. App. 4th 223 (1999)

Facts

Hancock, Rothert & Bunshoft (Hancock) (defendant) sought to represent the Contra Costa Water District (the district) on a cross-complaint against Centennial Engineering, Inc. (Centennial), relating to construction projects. Centennial was a subsidiary of Morrison Knudsen Corp. (Morrison) (plaintiff). Morrison controlled Centennial’s legal affairs and contracting and administered Centennial’s contract on the district’s construction projects. Hancock had never represented Centennial but had formerly represented Morrison and was representing Morrison’s insurance underwriters in monitoring the defense attorneys Morrison engaged on claims. As monitoring counsel, Hancock received confidential communications from Morrison’s defense lawyers and was exposed to Morrison’s litigation policies and strategies and information about Morrison’s financial condition. The trial court granted Morrison’s motion for a preliminary injunction enjoining Hancock from representing the district in any dispute with Morrison or Centennial concerning the construction projects. Hancock appealed.

Rule of Law

Issue

Holding and Reasoning (Hanlon, J.)

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