Cedar Rapids Bank & Trust Co. v. Mako One Corp., No. 18-1298 (8th Cir. 2019)Annotate this Case
After Mako acquired a historic building with intentions to restore it using state and federal historic tax credits, it retained the law firm of Winthrop & Weinstine to draft the tax credit bond. CRBT then retained Winthrop to represent it in connection with the building tax credit project. CRBT, through counsel Winthrop, later sought to foreclose on the building. Mako retained separate counsel and moved to dismiss the complaint and to disqualify Winthrop. The district court denied both of Mako's motions and awarded $5.2 million to CRBT.
The Eighth Circuit held that the district court did not err by denying Mako's motion to dismiss the action for failure to join Chevron as a necessary party under Federal Rule of Civil Procedure 19(a)(1); the district court did not err in calculating the money judgment; and, although the district court erred in failing to disqualify Winthrop as counsel for CRBT, the error was harmless. Accordingly, the court affirmed the district court's judgment for money damages; reversed the district court's denial to disqualify counsel in any future proceedings; and, as proceedings continue and the Winthrop law firm has a conflict of interest necessitating removal as counsel, remanded for further proceedings.