The defendant Jaclyn Szabo brought a motion to remove DH Professional Corporation as counsel for Ziya Hot Yoga Inc. and Jacqueline DiRenzo, alleging a conflict of interest.
DH had previously acted for Ziya and its principals, including Szabo and DiRenzo, in corporate structuring and shareholder agreements.
The court found that DH had acted as counsel for Szabo, or at least as a "near client," and owed her a duty of loyalty.
Given the close relationship between the corporate work and the current litigation, and the absence of ethical walls or independent legal advice for Szabo, the court concluded that DH was in a conflict of interest.
The motion to remove counsel was granted, and costs were awarded to Szabo.
