In re EPIC Holdings

In In re EPIC Holdings, 985 S.W.2d 41 (Tex. 1998), the Court disqualified the law firms of McKool Smith and Jordaan, Howard & Pennington ("McKool and Pennington") from representing plaintiff and real-party-in-interest Vicki Anderson in her lawsuit against HealthTrust, Inc.-The Hospital Company, Kenneth George and other directors of EPIC Holdings, Inc. ("EPIC"). The Court ordered disqualification because attorneys at those firms previously worked at Johnson & Gibbs, which represented Kenneth George and EPIC during EPIC's formation. The Court held that the firms violated Texas Disciplinary Rule of Professional Conduct 1.09 in two ways. First, their representation of Anderson was substantially related to their prior representation of EPIC because there was a genuine threat that confidential information obtained during the earlier representation would be disclosed in the course of their current representation. See TEX. DISCIPLINARY R. PROF'L CONDUCT 1.09(a)(3) reprinted in TEX. GOV'T CODE, tit. 2, subtit. G app A (Vernon Supp. 2000) (TEX. STATE BAR R. art. X 9). Second, the firms questioned the validity of the work performed for EPIC by their former firm. See TEX. DISCIPLINARY R. PROF'L CONDUCT 1.09(a)(1). The Court concluded that the principles embodied in Rule 1.09, including preserving confidences and maintaining the integrity of the bar, required disqualification.