863 Conflicts of Interest – Attorney Disqualification (2025)

            Courts strictly apply ethical rules to ensure that clients can speak openly to their lawyers in litigation and not be concerned about a conflict of interest.  Courts may even rule that a law firm cannot represent a client, and that the client must find new representation, if a conflict exists.

            For example, in Hotel 237, LLC, v. G.M. Canmar Residence Corp., Case No. 2024-01714 (NY App. Feb 22, 2025) before the state appeals court in Manhattan, a lawyer who had represented the defendant joined the firm that represented the plaintiff.  The defendant asked the court to disqualify the whole firm that represented the plaintiff since it now employed its former lawyer.  The plaintiff’s firm said that was not necessary since the new lawyer was not a part of the team at the firm who represented the plaintiff.  The appeals court, however, said that was not enough and ruled that while there were some contexts in which keeping a potentially conflicted lawyer away from a case could be sufficient, this was not one of them.  It ruled that the defendant’s firm was therefore disqualified.