Bridgepoint Construction Services v. Newton

Filed 9/4/18 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

BRIDGEPOINT 2d Civ. No. B283239 CONSTRUCTION SERVICES, (Super. Ct. No. 1468021) INC., (Santa Barbara County)

Plaintiff, Cross-complainant and Respondent;

SPECTRA AMERICA, LLC,

Plaintiff and Appellant,

v.

MARTIN NEWTON et al.,

Defendants, Cross- complainants and Respondents;

DILIP RAM,

Cross-defendant, Cross- complainant and Appellant;

RAVELLO HOLDINGS, INC., et al.,

Cross-defendants and Appellants.

An attorney represents more than one client, all of whom seek damages from a pool of money controlled by another party. In addition to multiple other reasons why the attorney here should be disqualified, when more than one client is seeking funds from the same source, the conflict is self-evident. There might not be enough money to satisfy each client's claim. This is an appeal from an order disqualifying an attorney for a conflict of interest. We affirm. FACTS Bridgepoint Construction Services, Inc. (Bridgepoint) was hired by Vista Oceano La Mesa Venture, LLC (Vista) to perform construction services on a project in Santa Barbara. Bridgepoint has two shareholders, Norman Salter, who owns 25 percent, and Martin Newton, who owns 75 percent. Newton also has an interest in Vista. Salter and Dilip Ram are business associates. Bridgepoint and Salter brought an action against Vista, Newton and others, alleging defendants owed them approximately $2 million for construction services. Vista cross-complained against Salter, Ram and others, alleging Salter and Ram diverted assets from Bridgepoint, depriving Vista of moneys due to it. In December 2014, Robert Klein became attorney of record for Bridgepoint, Salter and Ram. In December 2016, Klein designated an expert, Karl Schulze, to review Bridgepoint’s financial records. Schulze reviewed Bridgepoint’s financial records, including records related to the Vista project, and determined Bridgepoint is owed $2 million. In January 2017, Newton successfully moved to disqualify Klein from representing Bridgepoint and Salter. The trial court found that Bridgepoint and Salter have conflicts of interest