Judge Bars Quinn Emanuel in Antitrust Conflict Case

A federal judge disqualified Quinn Emanuel Urquhart & Sullivan from representing commercial real estate platform CREXi in an antitrust lawsuit after finding the firm's simultaneous representation of rival CoStar Group created an impermissible conflict of interest. U.S. District Judge Consuelo Marshall of the Central District of California ruled that attorneys owe a continuing duty of loyalty to existing clients, which generally prevents a firm from representing another client with directly adverse interests unless the affected client provides informed consent. The judge found that CoStar never consented to Quinn Emanuel representing CREXi in litigation against it and granted CoStar's motion to disqualify the firm. The ruling does not determine the merits of the underlying lawsuit. Quinn Emanuel opposed the disqualification, arguing that the CoStar matter and the CREXi litigation involved different legal teams, separate facts, and unrelated witnesses, and that no confidential information would be misused. CREXi also argued that replacing long-time counsel would disrupt years of litigation and increase costs. Judge Marshall rejected those arguments, concluding the ethical duty of loyalty extends beyond whether confidential information is shared. CREXi will proceed with new legal counsel while the underlying copyright and antitrust claims remain active.