Western Continental Operating Co. v. Natural Gas Corp

In Western Continental Operating Co. v. Natural Gas Corp. (1989) 212 Cal. App. 3d 752, there was a complex fact pattern involving an attorney disqualification motion regarding a law firm that had formerly represented the defendant, NGC, an operator of a natural gas unit, that was now representing an adverse party, a natural gas producer, plaintiff Western. The attorneys were involved in both the prior and the current litigation in disputing the relationship of the defendant NGC with its parent company, and there were alter ego allegations in both. The court said, "While the former representation primarily concerned a third-party dispute, in the course of the resolution of such dispute, the firm gained crucial knowledge of the internal operating practices of NGC. Additionally, the firm became informed of NGC's purported alter ego status with respect to its parent company, a crucial factual thread which runs through five of the six causes of action against NGC in plaintiff's complaint. One of NGC's affirmative defenses to the complaint refutes the application of the alter ego allegations. Further, the former representation provided the firm with the opportunity to acquire information as to NGC's performance of its duties as operator of the natural gas unit. A substantial relationship between past and current representation is shown here as NGC's alleged breach of its duties as operator of the natural gas unit is the subject of at least three causes of action in Western's complaint." ( Id. at pp. 760-761; )