USA Gymnastics Refuses to Grant Conflict Waiver, Stalling Houston Lawyer's Lateral Move
Efrain Gonzalez needs a conflict of interest waiver from USA Gymnastics to join Abraham. Watkins, Nichols, Sorrels, Agosto & Aziz, but the troubled organization is refusing to provide it.
November 26, 2018 at 05:33 PM
4 minute read
A Houston lawyer resigned from litigation firm MehaffyWeber in September, but can't join Abraham, Watkins, Nichols, Sorrels, Agosto & Aziz as planned because USA Gymnastics, a MehaffyWeber client, has refused to waive a conflict of interest.
Efrain Gonzalez Jr. has filed a petition in state district court in Houston, seeking a declaratory judgment that there is “no actual or imputed” conflict of interest based on his previous employment as an associate at MehaffyWeber and potential future employment at Abraham Watkins, which represents individuals who have sued USA Gymnastics.
Gonzalez seeks a court order to restrain USA Gymnastics from impeding his ability to work at Abraham Watkins, including the filing of any motion to disqualify him or the firm in litigation against USA Gymnastics.
A spokeswomen for USA Gymnastics could not be reached for comment. The Indianapolis-based organization faces numerous lawsuits around the country relating to a sex abuse scandal. A former team doctor, Larry Nassar, is serving a life sentence on a sexual abuse conviction.
Gonzalez alleges in a petition filed Nov. 21 in state district court in Harris County that in September, Abraham Watkins—the oldest plaintiffs firm in Texas—offered him an associate's position, and he shortly afterward put in his notice at MehaffyWeber. He alleges in Gonzalez v. USA Gymnastics that after he informed MehaffyWeber of his intention to move to Abraham Watkins, he was “immediately screened from all cases in which adverse parties were represented by Abraham Watkins, including those cases involving defendant USA Gymnastics.”
Gonzalez alleges that he worked at MehaffyWeber for about a year-and-a-half, but a lawyer who represents USA Gymnastics in litigation with Abraham Watkins on the opposing side did not join the firm until three months prior to his resignation. Gonzalez alleges in the petition he signed an affidavit that he had never worked on any matter for USA Gymnastics or acquired any confidential information about it.
Despite that affidavit, Gonzalez alleges that USA Gymnastics, through its acting chief legal officer Christopher Schneider, informed him on Oct. 18—well past his final day at MehaffyWeber—that the organization would not grant the waiver. Gonzalez alleges Schneider, a partner at Miller Johnson in Grand Rapids, Michigan, did not provide any reason “aside from stating '[g]iven the circumstances.'” Schneider could not be reached for comment.
On Nov. 2, Gonzalez alleges, he sent a formal demand stating that without the waiver, he would be forced to file a suit seeking a declaratory judgment. USA Gymnastics responded Nov. 9, informing Gonzalez it would not sign a waiver, would file a grievance against him with the State Bar of Texas in connection with the request for the waiver, and would fight the declaratory judgment action.
On Nov. 21, the day Gonzalez filed the suit, 281st District Judge Sylvia Matthews held a hearing on Gonzalez's request for a TRO. Matthews denied the request, but Gonzalez said she set a hearing for next month on his request for a permanent injunction.
Gonzalez said he is not working at a firm and is anxious to join Abraham Watkins. Randy Sorrels, managing partner of Abraham Watkins, said the firm would like to hire Gonzalez, but not without the waiver.
“The law as we understand it is that if a person worked at a law firm and doesn't work on a case, and goes to work for another law firm that has that case and [the lawyer] is shielded from the case … there's no conflict,” Sorrels said.
Sorrels said he joined Abraham Watkins in 1990 and does not recall any situation where a lawyer could not join the firm because a client would not waive a conflict.
He questions why USA Gymnastics is taking such a hard line.
“We've never had an issue before. This one surprises me a little bit,” he said.
|Further Reading:
Gymnast-Turned-Lawyer Sues USA Gymnastics Over Sex Abuse Scandal
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTexas Social Media Law: Federal Circuit Gives Trial Court Instructions
3 minute readTrending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Trump's Return to the White House: The Legal Industry Reacts
- 3Election 2024: Nationwide Judicial Races and Ballot Measures to Watch
- 4Climate Disputes, International Arbitration, and State Court Limitations for Global Issues
- 5Judicial Face-Off: Navigating the Ethical and Efficient Use of AI in Legal Practice [CLE Pending]
- 6How Much Does the Frequency of Retirement Withdrawals Matter?
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250