PT Gaming v. Kang CA2/4

Filed 5/29/14 PT Gaming v. Kang CA2/4 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FOUR

PT GAMING, LLC, et al., B251841

Plaintiffs and Appellants, (Los Angeles County Super. Ct. No. YC068331) v.

CONNIE KANG et al.,

Defendants and Respondents.

APPEAL from an order of the Superior Court of Los Angeles County, Stuart M. Rice, Judge. Reversed. Michael St. Denis Professional Corporation, Michael St. Denis; Law Office of Tracey Buck-Walsh, and Tracey Buck-Walsh, for Plaintiffs and Appellants. Fox Rothschild, Jeffrey S. Kravitz, and Patrick J. Hagan, for Defendants and Respondents.

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The issue on this appeal is standing. PT Gaming, LLC (PTG) retained attorney Michael St. Denis to sue former employees Connie Kang, Daein Kang, and Marcus Sheely (respondents) for breach of contract. After leaving PTG for a rival agency, respondents allegedly violated their employment agreement with PTG that prohibited them from soliciting their former colleagues to leave the company. St. Denis had represented respondents’ new employer, Certified Network M, Inc. (CNM) and its owner, John Park. The trial court granted respondents’ motion to disqualify St. Denis due to a concurrent conflict of interest. PTG and Michael St. Denis Professional Corporation (appellants) contend respondents lacked standing to bring the motion. It is clear that, under the circumstances alleged, Park had standing to disqualify St. Denis, but he has not sought to do so. The issue in this case is whether respondents have standing. We conclude they do not and, on that basis, reverse the order of the trial court. FACTUAL AND PROCEDURAL SUMMARY In California off-reservation casinos, a banker at each gaming table collects winnings and pays losses, all facilitated through a casino dealer. Agencies that employ these bankers must be owned and operated independently of casinos. John Park and Patrick Tierney owned Network Management Group (NMG), a company specializing in providing bankers to off-reservation casinos. During their partnership in NMG, St. Denis represented Park, Tierney, and their entities. After Park purchased a casino in 2008, he incorporated CNM to provide proposition player services. Then Park closed NMG and purchased Tierney’s interest. Park also sold NMG’s banking contracts to Tierney, who formed PTG to continue providing services under those agreements. PTG hired most of NMG’s bankers and other employees. CNM and PTG compete in Southern California, employing bankers who previously worked for NMG, Park, or his affiliates. St. Denis continued to represent Park, Tierney, PTG, CNM, and Park’s affiliates “in a variety of matters in which he provided business, litigation, and employment-related advice.” He appeared as attorney of record in several actions on behalf of Park, CNM,