Interpreting what defines “substantial harm” to a prospective client when determining if an attorney should be disqualified, a unanimous appellate panel reversed a Commercial Division ruling that disqualified an attorney based on Rule 1.18, which was added to the Rules of Professional Conduct (22 NYCRR 1200.0) in 2009.
In a nine-page opinion by Justice David Saxe (See Profile) of the Appellate Division, First Department, the court held that even though the attorney in question had imparted confidential information gained from a prospective client that was “likely to be detrimental” to the client, “disqualification is not warranted because the conveyed information did not have the potential to be significantly harmful.”
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