US bankruptcy firm Pachulski Stang Ziehl Young Jones & Weintraub has been disqualified from acting for a group of former Brobeck Phelger & Harrison partners who are attempting to sue Clifford Chance for $100m.
It is understood that the decision to disqualify Pachulski Stang, was made at a hearing in San Francisco yesterday (25 August).
The move followed calls from Brobeck’s bankruptcy trustee Ronald Greenspan earlier this month that firm be disallowed for acting for the former Brobeck partners.
He alleged that Pachulski Stang was conflicted because it had advised Brobeck on its liquidation and was now acting for parties who could potentially have interests in opposition to those of the debtor.
The former Brobeck partners are suing Clifford Chance and former Brobeck chairman Tower Snow, claiming that the departure of 16 partners, led by Snow, to the magic circle firm in May 2002, contributed to the demise of the West Coast firm.