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When may corporate counsel not represent corporation?

When may corporate counsel not represent corporation?

When may corporate counsel not represent corporation?

When the corporation is the nominal plaintiff in a derivative action and the counsel has a sense of loyalty to the officers and directors who are charged with wrongdoing. The issue has arisen in a case involving a nonprofit gun club in California. Member Lawrence Sarkis sued the Club and one of its directors, David VerHalen, for wrongfully expelling him from membership. He also alleged that the directors had breached their fiduciary duty for failing to prevent theft of money and ammunition after such thefts had been reported. Attorney Christopher Egan of the firm of Porter Scott filed an answer on behalf of the Club and VerHalen. A few months later, Sarkis and other members, including two...

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