The opinion of the court was delivered by: WHITMAN KNAPP
We have before us the Mallah defendants' motion for reargument of our March 5 Opinion and Order denying in large part their motion to dismiss for failure to state a claim, familiarity with which is assumed.
With respect to the Mallah defendants' request to reargue the question of Kronish, Lieb's disqualification, it seems to us that the Mallah defendants misapprehend the nature of the case. According to the allegations of the complaint, which we must accept for present purposes, the various defendants (including the Mallah defendants) were engaged in a massive scheme to deprive a host of garage employees of rights to which they were entitled. Kronish, Lieb was retained by the Union to advise it of what action would be appropriate to afford relief to the persons so deprived (one of their alleged rights being membership in the Union). Contrary to the Mallah defendants' present suggestion, it seems to us that Kronish, Lieb's conduct has been quite consistent with an attempt conscientiously to carry forward the task for which it was retained. The mere fact that they "singled out large garage operators" (and presumably those with the most readily reachable assets), instead of complicating the lawsuit by naming every possible defendant, hardly seems a just cause for criticism. Nor do we find any merit in any of the Mallah defendants' other suggestions of conflicting interests on the part of Kronish, Lieb.
With respect to Directors Guild of America, et al., v. Warner Brothers, Inc., et al. (C.D. Ca. 1985) (CV 83-4764-PAR, 83-8311-PAR), which though before us we did not specifically mention, the crux of the court's opinion on the question of disqualification of class counsel for conflicting interests among clients is as follows:
The [plaintiff and third party defendant] DGA is named as representative of the class composed of women and minority members. At the same time, defendants have filed counterclaims against the DGA which assert that it is wholly or partially responsible for whatever discrimination may exist against women and minorities as a result of its role as bargaining representative and acquiescence in discriminatory practices, if any.
No such consideration is here involved.
We also observe that, though our March 5 Opinion does not mention the application for a stay and the request that we dismiss the individual Mallah defendants, we implicitly denied those requests. Accordingly, we modify that Opinion expressly to include our rejection of the Mallah defendants' application for a stay pending the outcome of arbitration unconnected with the lawsuit before us, and its related application that we bifurcate the lawsuit and initially hold a hearing or trial to determine specific limited issues in the case. We further modify the Opinion expressly to conclude that plaintiff's complaint alleges a claim against the individual Mallah defendants and expressly to decline to dismiss them from the action at this point. See Compl. at P164(b) and (c).
Concluding that we have overlooked no controlling principle of law nor any material matter of fact, the motion is in all respects denied.