Motion To Disqualify Counsel Denied For Lack Of Standing And On Merits

Posted: March 9, 2026 / Written by: Thomas A. Kissane, Joshua Wurtzel, Channing J. Turner, Samuel L. Butt / Category Law Firms and Professional Ethics

Motion To Disqualify Counsel Denied For Lack Of Standing And On Merits

On January 6, 2026, Justice Jennifer G. Schecter denied defendant’s motion to disqualify plaintiffs’ counsel. The case is 630 West 52nd LLC v. Fresh Inventory Services, LLC, Index No. 654862/2024.

The Court explained:

Defendant moves to disqualify plaintiff’s counsel on the ground that Akerman LLP (Akerman) maintains a conflict arising from its representations of nonparty Fresh Direct, LLC (Fresh Direct), an affiliate of defendant.

The motion fails at the outset because defendant was never a client of Akerman. New York law is clear that only a current or former client has standing to seek disqualification on conflict grounds (Tekni-Plex, Inc. v Meyner & Landis, 89 NY2d 123, 131 [1996]) . . ..

Even if defendant had standing, the record does not establish that Fresh Direct was a current client when Akerman undertook the representation of plaintiff. . ..

Moreover, the Rules of Professional Conduct do not bar a lawyer from undertaking matters adverse to a former client absent a “substantial relationship” between the prior matter and the current litigation (Tekni-Plex, Inc. v Meyner & Landis, 89 NY2d 123, 130-131 [1996]). Defendant fails to demonstrate such a relationship. . ..

Nor does the motion satisfy the requirement of showing that Akerman possesses specific, materially relevant confidential information (Jamie v Jamie, 309 AD2d 605, 606 [1st Dept 2003]). Defendant’s assertions that Akerman acquired “highly sensitive commercial information” from Fresh Direct are generalized and speculative . . . Generalized access to a former client’s financial condition does not justify disqualification (Jamaica Pub. Serv. Co. v. AIU Ins. Co., 92 NY2d 631, 632, 637-38 [1998]).

Slip op., pp. 4-5.

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