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Stratagem Development Corp. v. Heron International N.V.

United States District Court for the Southern District of New York

756 F. Supp. 789 (1991)

Facts

The law firm Epstein, Becker & Green (Epstein) represented Stratagem Development Corp. (Stratagem) (plaintiff) in connection with a joint venture with Heron International N.V. (Heron) (defendant). At that time, Epstein also represented a wholly owned subsidiary of Heron, Fidelity Service Corporation (FSC), in connection with labor disputes. After Heron terminated the joint-venture agreement with Stratagem, Epstein notified Heron that Epstein intended to file an action against Heron on behalf of Stratagem and resign from the representation of FSC in the labor-dispute matters. Heron responded that it would be a violation of the New York Code of Professional Responsibility for Epstein to file a suit against Heron. Epstein took the position that there was no conflict in its continued representation of Stratagem. After a further exchange of letters, Baer Marks & Upham advised Epstein that it would be assuming the representation of FSC. Epstein sent the FSC files to Baer Marks & Upham the same day that Heron’s counsel advised the court it would be seeking Epstein’s disqualification. A substitution-of-counsel form was sent but never filed. Shortly after Epstein filed the complaint against Heron, Heron moved to disqualify Epstein from representing Stratagem.

Rule of Law

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Issue

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Holding and Reasoning (Kram, J.)

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A "yes" or "no" answer to the question framed in the issue section;
A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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