Law School Case Briefs
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Stratagem Development Corp. v. Heron International N.V.
District Court, S.D. New York (1991) | 756 F. Supp. 789; 1991 U.S. Dist. LEXIS 1474; 1991 WL 18083
TL;DR: A law firm attempted to sue the parent company of a current client. The court disqualified the firm, holding it could not cure the conflict by dropping the existing client "like a hot potato" once the conflict became apparent.
Legal Significance: This case establishes that a firm cannot unilaterally convert a current client into a former client to avoid the strict per se rule against concurrent adverse representation. The duty of undivided loyalty requires disqualification absent informed consent from both clients.