Moreci v. Scaffold Solutions, Inc.
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Moreci sustained work-related injuries assertedly caused by his use of scaffolding constructed by Scaffold Solutions. Moreci received workers’ compensation benefits, paid by Starstone Insurance. Moreci, while represented by the Boxer law firm, filed a personal injury action against third-party defendants, including Scaffold. Moreci settled the case. As part of the settlement, Moreci agreed to assume the defense of Scaffold for claims arising from Moreci’s accident and pay any resulting judgment. Before the dismissal of Moreci’s action, Starstone intervened, seeking reimbursement from the defendants for the benefits it had paid to Moreci. Boxer became associated co-counsel for Scaffold, which filed an answer to Starstone’s complaint in intervention.
Starstone Insurance moved to disqualify Boxer, arguing conflict of interest. The trial court held Starstone had no standing to seek the disqualification of counsel and denied the motion. The court of appeal affirmed. Because disqualification would have no effect on the alleged harms, Starstone sought the wrong legal remedy by bringing a disqualification motion. Any harm to Scaffold or Moreci stemming from a breach of the duty of loyalty in any way by their attorneys is “of no concern” to Starstone.
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