Unsecured creditors seek removal of Diamond law firm as Howrey LLP trustee due to alleged conflict of interest

Law360 reports that the California bankruptcy court has been asked to remove the Chapter 11 trustee from the case of venerable antitrust firm Howrey LLP, due to a perceived conflict of interest after Diamond McCarthy LLP had announced several new attorney hires — one of whom (Christopher Sullivan) allegedly represented unsecured Howrey creditors.

The creditors filing the motion last Thursday were Advanced Discovery LLC, Give Something Back Inc., Kent Daniels and Associates Inc., L.A. Best Photocopies Inc. and Western Messenger Inc., Howrey Claims LLC (= William Imhoff — does anyone know him or this Georgia/California based entity?!) and Matura Farrington Staffing Services Inc.

Law360 quotes the motion and the trustee’s response as follows:

“How this could have happened in the era of computerized conflict checks is a mystery,” the creditors said in a court filing.

…

“There is absolutely no conflict and his motion is completely without merit and it will be addressed through the courts,” Diamond said.

The case is In re: Howrey LLP, case number 3:11-bk-31376, in the U.S. Bankruptcy Court for the Northern District of California.