Because it hadn't been fully compensated for services performed, Celi Electric Light sued the project's general contractor--Sanders Construction--and the homeowners, Benedict and Arlene Morelli.
While the case was pending, Celi asked that the defendants' lawyers--Morelli Ratner P.C.--be disqualified because a possible "conflict" might emerge as the litigation progressed.
When that request was granted by the New York County Civil Court, the homeowners and general contractor argued that Celi didn't have standing to challenge their choice of counsel, that the defendant's respective interests were aligned, and that no "conflict" existed.
On appeal, not only was Celi's standing not established to the Appellate Term, First Department's satisfaction, but that court thought any potential conflict was "speculative" and thus didn't warrant the law firm's disqualification.
They sure shed light on that.
To view a copy of the Appellate Term's decision, please use the following link: Celi Elec. Light, Inc. v. Sanders Constr. Corp.