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DEFENDANTS WAIVED ANY OBJECTION TO PLAINTIFF’S ATTORNEY BY PARTICIPATING IN THE LITIGATION FOR MORE THAN TWO YEARS AND EIGHT MONTHS WITH KNOWLEDGE OF THE ALLEGED CONFLICT OF INTEREST.

The Second Department determined the Brach defendants' motion to disqualify counsel for the plaintiff limited-liability-company (Goldberg) was properly denied. Plaintiff sued defendant Brach, a member of the company, alleging Brach violated his duties to the company. After more than two years and eight months of litigation, the Brach defendants moved to disqualify Goldberg, alleging a conflict of interest. The Brach defendants were aware of the alleged conflict from the beginning. Therefore the Brach defendants had waived any objection to Goldberg's representation. The Second Department explained the relevant law:

“Where a party seeks to disqualify counsel of an adversary in the context of ongoing litigation, courts consider when the challenged interests became materially adverse to determine if the party could have moved at an earlier time” … . If the party moving for disqualification knew or should have known of the facts underlying the alleged conflict of interest for a prolonged period before bringing the motion, that party may be found to have waived any objection to the other party's representation … . Further, where a motion to disqualify is brought in the middle of litigation where the moving party was aware of the alleged conflict of interest well before bringing the motion, it can be inferred that the motion was made to secure a tactical advantage … . Ike & Sam's Group, LLC v Brach, 2016 NY Slip Op 02620, 2nd Dept 4-6-16


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