In re SLC Ltd. V
APPEAL
999 F.2d 464 (10th Cir.)
See 355.pdf
Chapter 11 debtor sought to disqualify a secured creditor's law firm. The bankruptcy court disqualified one firm attorney, but refused to disqualify the entire firm. On appeal, the district court disqualified the law firm by imputation. The secured creditor appealed the district court's order, and the 10th Circuit held that: (1) the bankruptcy court properly disqualified the attorney because the attorney's prior representation of the debtor's general partner was "substantially factually related" to the current litigation; (2) the attorney's disqualification did not have to be imputed to the law firm because the attorney did not have actual knowledge of material information protected by Utah Rules of Professional Conduct ("URPC") 1.6 and 1.9(b); and (3) the bankruptcy court improperly imposed screening measures because the URPC only require screening measures for former government attorneys. URPC 1.10, 1.6 and 1.9(b).