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Anthony Fioravanti

Anthony Fioravanti Achieves Appeals Court Victory Clarifying Rule 1.7 Conflicts

Anthony Fioravanti recently secured a significant Appeals Court victory involving the ethical limits on representation in disputes between members of a closely held limited liability company. The court affirmed the disqualification of opposing counsel, concluding that an LLC has interests distinct from its member-managers and that those interests must be protected when allegations of self-dealing are at issue.

The case arose from a dispute between two equal members of a cannabis-related LLC. In the course of the litigation, Anthony’s client, Robert Bujold, asserted third-party impleader claims against the other member, Sean Morrison, for breach of contract and breach of fiduciary duty. Anthony later moved to disqualify opposing counsel, who represented both Morrison and the LLC, arguing that their interests were directly adverse in violation of Massachusetts Rule of Professional Conduct 1.7. Anthony discussed the decision with Massachusetts Lawyers Weekly, noting that the ruling reflects a straightforward application of the rule.

“Cannaburg has interests distinct from each of its members, Mr. Bujold and Mr. Morrison, and the court was correct to recognize that,” Anthony said. “To the extent that Mr. Morrison engaged in self-dealing or otherwise breached his fiduciary duties to the company, Cannaburg has a right to vindicate those claims. It cannot do that where the lawyer controlling the claim simultaneously represents the alleged wrongdoer.”

Read the article “Lawyer’s disqualification in LLC member dispute upheld” on the Massachusetts Lawyers Weekly website (subscription required).

 

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