CENTRA, INC. v. Estrin

639 F. Supp. 2d 790, 2009 U.S. Dist. LEXIS 46757, 2009 WL 1544383
CourtDistrict Court, E.D. Michigan
DecidedJune 3, 2009
DocketCase 06-15185
StatusPublished
Cited by1 cases

This text of 639 F. Supp. 2d 790 (CENTRA, INC. v. Estrin) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CENTRA, INC. v. Estrin, 639 F. Supp. 2d 790, 2009 U.S. Dist. LEXIS 46757, 2009 WL 1544383 (E.D. Mich. 2009).

Opinion

*793 ORDER DENYING PLAINTIFFS’ MOTION FOR PRELIMINARY INJUNCTION [46]

NANCY G. EDMUNDS, District Judge.

The Ambassador Bridge arches gracefully across the Detroit River, a familiar landmark to those who live or work in Detroit or Windsor. Sadly, the last decade has shown that the lovely bridge, now eighty years old, may no longer be up to the demands of North America’s busiest border crossing. The increased security demands of 9-11, the volume of truck traffic, the advent of casino traffic in both directions, and the stress on the infrastructure itself, all have contributed to the pressure to expand capacity at the border, most likely through building another bridge.

CenTra, Inc. the private company which owns the Ambassador Bridge has actively pursued a plan to build a second span adjacent to the existing bridge, a project sometimes referred to as “twinning.” Another group known as DRIC (Detroit River International Crossing) is also developing and pursuing plans for a new bridge down river from CenTra’s proposed second span. The City of Windsor, in the meantime, has had an ongoing battle with the bridge developers over traffic, inadequate roads and infrastructure, land use and zoning, and environmental issues.

CenTra and its owner, Matty Moroun, have moved forward aggressively with plans for a second span, despite opposition from the City of Windsor, which has been a persistent thorn in their side. The instant case is a small part of the antagonism between CenTra and Windsor, arising out of a legal conflict which occurred when the law firm of Gowling Lafleur Henderson, LLP (“Gowlings”) inadvertently represented both Windsor and CenTra for 16 months in 2005-06. Claiming they had been unaware of Gowlings’ work on behalf of Windsor, CenTra seeks a preliminary injunction, which would rid them of one of their ablest adversaries, David Estrin of Gowlings, Windsor’s counsel.

For the reasons set forth below, the Court denies the motion for preliminary injunction.

I.FINDINGS REGARDING BACKGROUND FACTS AND PROCEDURAL HISTORY

A. Parties and Key Individuals

1. Plaintiffs CenTra, Inc. and Detroit International Bridge Company (“DIBC”), together with their non-party affiliate, Canadian Transit Company (“CTC”), own the Ambassador Bridge (collectively, “CenTra” unless there is a reason to refer to them individually). Since 1990, Dan Stamper has been the president of DIBC and CTC, where he began working in 1986. (Prelim. Inj. Hr’g Tr., Stamper, 1/29/09, 8-11, 131). 1 Manuel “Matty” Moroun is the primary owner of CenTra. Fred Calderone is a vice-president of CenTra, Inc., a certified public accountant and attorney, and his office is next to Stamper’s. (Calderone, 1/13/09, 22, 25, 99-100).

2. Defendant Gowling Lafleur Henderson LLP (“Gowlings”) is a Canadian law firm, with approximately 750 lawyers and nine offices in Canada, as well as offices in Moscow and London. Gowlings has no offices in the United States. None of Gowlings’ attorneys are licensed to practice law in Michigan. (Jolliffe, 2/20/09, 3-6).

3. Defendant David Estrin is a Gowlings partner who, since 1971, has specialized in environmental and related planning matters. Estrin is an attorney licensed by the Law Society of Upper Canada, and is *794 not licensed in the United States. (Estrin, 2/3/09, 42-45).

4. The City of Windsor (not a party to this action) is a Canadian city of approximately 216,000 residents, located in Southeastern Ontario, on the Detroit River, at the Canadian access point of the Ambassador Bridge.

5. CenTra contends that Defendants breached contractual and fiduciary duties owed to CenTra and committed malpractice. To support those claims, CenTra presented evidence that Defendants violated certain ethical obligations concerning the representation of clients with adverse interests.

B. Basic Contentions of the Parties

6. CenTra has an interest in building a second span across the Detroit River, adjacent to the existing Ambassador Bridge (“the Second Span”). This project is occasionally referred to as “twinning” the existing bridge. CenTra contends that in 2005 and 2006 Estrin was representing Windsor against the Second Span adverse to CenTra’s interest, at the same time Dale Hill and Tim Wach (Gowlings professionals) were representing CenTra and assisting CenTra to obtain financing to build the Second Span. CenTra contends that this was a current client conflict of interest to which it did not consent, and, as a result, Gowlings should now be enjoined from representing Windsor adverse to the Second Span. CenTra sued Gowlings and Estrin in November 2006, after which Gowlings withdrew from representing CenTra but continued and continues to represent Windsor.

7. CenTra also contends that Gowlings represented it in the 1980’s and early 1990’s on matters substantially related to Estrin’s current representation of Windsor. CenTra contends that this earlier work creates a conflict with Estrin’s present representation of Windsor, to which it did not consent. CenTra contends that even if the Hill and Wach representations of CenTra are analyzed under the former client standards, such representations are substantially related to Estrin’s representation of Windsor, and, as a result, Gowlings should be enjoined from representing Windsor adverse to the Second Span.

8. Gowlings contends that CenTra impliedly consented to Gowlings’ representation of Windsor, and CenTra cannot now seek to enjoin Gowlings from representing Windsor adverse to the Second Span or otherwise. More specifically, Gowlings contends that when CenTra hired Hill and Wach in 2005, CenTra did so knowing that Estrin and Gowlings already represented Windsor adverse to CenTra on the Second Span and on other related border crossing traffic issues. In addition, Defendants contend that even before CenTra hired Gowlings in 2005, CenTra’s lack of any objection to Estrin’s representation of Windsor adverse to CenTra on the Second Span (which was known to CenTra) is also implied consent and waiver to the alleged former client conflicts arising out of Gowlings’ representation of CenTra in the 1980’s and 1990’s. Gowlings contends that CenTra’s consent was fully informed and that any conflict was in fact consentable.

9. Gowlings also contends that even absent consent, under a former-client conflict analysis, neither Gowlings’ representation of CenTra in the 1980’s and 1990’s, nor the Hill and Wach representations of CenTra in 2005-2006, is sufficiently related to Estrin’s representation of Windsor to constitute a conflict. Nor have any confidences of CenTra ever been compromised, and there is no danger they ever will. Gowlings also contends that, even if an ethics violation were found, CenTra has made no showing of irreparable harm nor met any of the other injunction factors.

*795 C. Procedural History of the Dispute

10. The Complaint in this matter was filed on November 20, 2006. Gowlings immediately moved • for summary judgment, which was granted by the Court on April 30, 2007. Plaintiffs appealed and prevailed, and that case was remanded to the District Court on August 15, 2008.

11.

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Cite This Page — Counsel Stack

Bluebook (online)
639 F. Supp. 2d 790, 2009 U.S. Dist. LEXIS 46757, 2009 WL 1544383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centra-inc-v-estrin-mied-2009.