Overview:

• The case arises from an alleged fraudulent mortgage scheme involving the law firm of Anthony Maniaci.
• Chicago Title Insurance Company (Chicago Title) faces multiple lawsuits from insured parties claiming losses due to this fraud.
• Maniaci and his firm are defendants in these actions and have filed third-party claims against Chicago Title seeking indemnification.

Motion to Disqualify Gardiner Roberts LLP:

• Chicago Title moved to disqualify Gardiner Roberts LLP (Gardiner Roberts) from representing Maniaci in an indemnity application.
• The core issue: Gardiner Roberts had previously represented Thomas Donnelly, a lawyer who provided coverage opinions to Chicago Title, and had access to confidential information.
• Chicago Title argued:
  • Gardiner Roberts’ dual representation (Donnelly and Maniaci) created a conflict of interest.
  • The confidential information from Donnelly could impact related litigation, including indemnification claims.
  • The risk of misuse justified disqualification to protect the integrity of the legal process.

Court's Decision & Legal Findings:

• The duty to defend in the indemnity application depends on pleadings and insurance policies, not external evidence.
• However, Donnelly’s coverage opinions could become central in future litigation over bad faith and indemnity claims.
• The court found a real risk of Gardiner Roberts using confidential information to Maniaci’s advantage.
• Ruling: Gardiner Roberts was disqualified. The court also suggested Bennett Jones LLP may have a conflict and should reconsider its role.
• The decision does not specify any damages or compensation awarded in this motion.