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Decision Pryor Representation

Decision Pryor Representation

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Published by mschwimmer

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Published by: mschwimmer on Feb 05, 2010
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07/12/2013

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1UNITED STATES DISTRICT COURT
(ECF)
SOUTHERN DISTRICT OF NEW YORK- - - - - - - - - - - - - - - - - -:REVISE CLOTHING, INC.,: 09 Civ. 3961 (BSJ) (JCF):Plaintiff,: MEMORANDUM: AND ORDER- against -::JOE’S JEANS SUBSIDIARY, INC., :JOES JEANS, INC.,::Defendants.:- - - - - - - - - - - - - - - - - -:JOE’S JEANS SUBSIDIARY, INC., and:JOES JEANS, INC.,::Third-Party Plaintiffs,::- against -::TARGET CORPORATION and TARGET:BRANDS, INC.,::Third-Party Defendants.:– - - - - - - - - - - - - - - - - -:JAMES C. FRANCIS IVUNITED STATES MAGISTRATE JUDGEA motion to disqualify counsel in this action presents twocritical issues of professional responsibility. First, when doesan attorney-client relationship terminate? Second, once therelationship has ended, under what circumstances may counsel takeon representation adverse to the former client?This is a trademark infringement case concerning back pocketstitching on denim jeans. Defendants and third-party plaintiffsJoe’s Jeans Subsidiary, Inc. and Joe’s Jeans, Inc. (collectively,“Joe’s Jeans”) contend that jeans manufactured by plaintiff ReviseClothing Inc. (“Revise”) and sold at retail by third-party
 
2defendants Target Corporation and Target Brands, Inc.(collectively, “Target”) infringe Joe’s Jeans’ trademark backpocket design. Revise initiated this action, seeking a declaratoryjudgment that it has not infringed.Revise now moves for an order disqualifying the law firm ofPryor Cashman LLP (“Pryor Cashman”) as counsel for Joe’s Jeans.According to Revise, Pryor Cashman has a conflict of interestbecause it currently represents Revise. Furthermore, Revise arguesthat even if that engagement has concluded, Pryor Cashman obtainedconfidential information during the course of that representationthat now places Revise at a disadvantage if Pryor Cashman isallowed to continue to represent Joe’s Jeans. While Pryor Cashmanconcedes that it previously represented Revise, it contends thatthe prior engagement has long since terminated. The firm alsomaintains that because the two matters are unrelated, anyconfidential information it received earlier from Revise could notbe used to the detriment of Revise in the instant litigation.Joe’s Jeans has also moved to strike the affidavit of MohammedSadiqulla, the Chief Financial Officer of Revise, which Revisesubmitted in support of its disqualification motion. In thealternative, Joe’s Jeans asks that the Court consider its surreply.In addition to submitting affidavits and legal memoranda, theparties presented evidence at a hearing on November 20 and December7, 2009.
 
“Tr.” refers to the transcript of the evidentiary hearing.
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Both in documents and in testimony presented at the
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evidentiary hearing on the instant motion, Mr. Sadiqulla is oftenreferred to as Mr. “Sadiq,” an abbreviated form of his name.3For the reasons set forth below, Joe’s Jeans’ motion to strikeMr. Sadiqulla’s affidavit is denied, but its alternativeapplication that the Court consider its surreply is granted. Themotion by Revise to disqualify Pryor Cashman as counsel for Joe’sJeans is denied.BackgroundIn October 2007, Gordon Troy, an attorney who had representedRevise in intellectual property matters, contacted Brad Rose, apartner at Pryor Cashman, requesting that Pryor Cashman representRevise in connection with a dispute it was having with Jean CityUSA and Wet Jeans, Inc. (collectively, “Wet Jeans”) (Declarationof Brad D. Rose dated Oct. 2, 2009 (“Rose Decl.”), ¶ 3; Tr. at148). Mr. Troy and Mr. Rose had met in 2003 and subsequently
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enjoyed a professional relationship. (Rose Decl., 2). Mr. Troyadvised Mr. Rose that Wet Jeans was selling jeans that bore a marksubstantially similar to Revise’s VANILLA STAR trademark. (RoseDecl., ¶ 3; Tr. at 148). Although Mr. Troy had sent Wet Jeans acease and desist letter, Wet Jeans continued its allegedlyinfringing activity. (Rose Decl., 3).On November 7, 2007, Mr. Sadiqulla contacted Mr. Rose andasked to discuss the case. (Rose Decl., 4 & Exh. A). The next
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