Jacobs v. Eastern Wire Products Co., C.A. NO. PB-03-1402.

• Decision Date: 07 May 2003
• Docket Number: C.A. NO. PB-03-1402.
• Parties: PHILIP JACOBS v. EASTERN WIRE PRODUCTS CO. and J.D.M. INDUSTRIES & SALES, INC. d/b/a EASTERN DISPLAY GROUP/IMPULSE DISPLAY MAKERS, FREDERICK GRANOFF, And KEVIN FALARDEAU.
• Court: Rhode Island Superior Court

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PHILIP JACOBS v. EASTERN WIRE PRODUCTS CO. and J.D.M. INDUSTRIES & SALES, INC. d/b/a EASTERN DISPLAY GROUP/IMPULSE DISPLAY MAKERS, FREDERICK GRANOFF, And KEVIN FALARDEAU.

C.A. NO. PB-03-1402.

Superior Court of Rhode Island, Providence, S.C.

Filed May 7, 2003.

DECISION

SILVERSTEIN, J.

This matter is before the Court for decision with respect to the motion of Defendants, Eastern Wire Products Co. (hereinafter Eastern) and Frederick Granoff (hereinafter Eastern), to disqualify Jonathan N. Savage, Esquire (hereinafter Savage) as counsel to Plaintiff Philip Jacobs (hereinafter Jacobs).

This Court heard argument on the motion on or about the 22^nd of April, took evidence on the matter on or about April 29^th and sought and thereafter received supplemental memoranda. This decision is based on the Court's review of all of the material and hearings hereinbefore referred to.

This Court finds that on March 19^th of this year, Savage on behalf of Plaintiff, filed with this Court a Verified Complaint, Petition for the Appointment of Master or Receiver, and Jury Demand naming, inter alia, Eastern and its president, Granoff, as parties. The complaint essentially seeks relief for the Plaintiff as a result of certain allegations pertaining to the terms and conditions of Jacobs' employment by Eastern including his claim to option rights to ten percent of the equity interest in Eastern Display Group, an enterprise which for purposes of this decision shall be deemed to be part of or the alter ego of Eastern. According to the complaint, Jacobs and Granoff commenced discussions in July 2001 which ultimately resulted in Jacobs becoming an employee of Eastern Display Group in the fall of 2001, to wit, as its chief financial officer.

Eastern and Granoff object to Savage's participation in this matter citing the provisions of the Rhode Island Supreme Court Rules and, specifically, Article V entitled Rules of Professional Conduct with specific reference to Rule 1.9(a) which reads as follows:

"Rule 1.9. Conflict of interest: Former client.

A lawyer who has formerly represented a client in a matter shall not thereafter: (a) represent another person in the same or a substantially related matter in which that persons's interests are materially adverse to the interest of the former client unless the former client consents after consultation."

The evidence before the Court discloses that Granoff contacted Savage in 1997 with respect to Granoff's efforts to return to the employ of and the ultimate acquisition of Eastern, a business owned by Granoff's family. In what apparently were contentious negotiations, Savage represented Granoff who in fact did acquire the company from his parents. Savage also obtained or assisted greatly in the obtaining of requisite financing to that end. For not fully explained reasons, the Court notes that the financing transaction was closed for Eastern and Granoff by another law firm. It is clear that Savage and/or attorneys in his then law firm thereafter performed other discrete services from time to time for Eastern and/or Granoff. The record does not disclose the last date on which services were performed by Savage for Eastern but somewhat surprisingly, however, Savage acknowledges having assisted a creditor of Eastern's in its collection efforts ...