Background: Farid Yazdi Samadi and Noushin Naraghi, the plaintiffs, filed a lawsuit against Farid Sayari, Nazila Kimiaee, North Royal Holding Ltd., Royal Palace Construction & Design Ltd., 1209661 BC Ltd., and Michael S. Menkes. The dispute centered around a discharge and dispute resolution agreement dated February 13, 2024, related to the sale of properties.

Legal Issues: The plaintiffs sought to remove Michael S. Menkes as counsel for the Borrower Defendants due to alleged breaches of the agreement. They claimed Mr. Menkes:

• Filed discharges before having sufficient funds in trust.
• Made unauthorized deductions from the sale proceeds.
• Failed to provide net sale proceeds on time.
• Made false representations and assisted in fraudulent breaches of trust.

The plaintiffs also alleged civil fraud, knowing assistance, and knowing receipt against Mr. Menkes, and breach of contract, breach of trust, civil fraud, and unjust enrichment against the Borrower Defendants.

Court’s Inherent Jurisdiction: The plaintiffs argued for the court’s inherent jurisdiction to control the litigation process by removing Mr. Menkes due to conflict of interest, given his role as a named defendant and counsel.

Ruling: The court, presided by Madam Justice Wilkinson, granted the plaintiffs' application, finding a substantial risk of a compromised trial process due to Mr. Menkes' dual role as defendant and counsel. Consequently, Mr. Menkes was removed as counsel for the Borrower Defendants.

Costs: The plaintiffs were awarded their costs, with details to be arranged if the parties could not agree within 30 days.

Total awarded costs were not specified in the judgment.