Robert Price v. Costco Wholesale Corporation

CourtDistrict Court, E.D. California
DecidedNovember 3, 2025
Docket1:25-cv-00807
StatusUnknown

This text of Robert Price v. Costco Wholesale Corporation (Robert Price v. Costco Wholesale Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert Price v. Costco Wholesale Corporation, (E.D. Cal. 2025).

Opinion

2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10

11 ROBERT PRICE Case No. 1:25-cv-00807-SAB

12 Plaintiff, ORDER DENYING DEFENDANT’S MOTION TO DISQUALIFY PLAINTIFF’S 13 v. COUNSEL

14 COSTCO WHOLESALE CORPORATION, (ECF No. 6) 15 Defendant.

16 17 Currently before the Court is Defendant’s motion to disqualify Downtown L.A. Law Group 18 (“DTLA Law”) as counsel for Plaintiff. (ECF No. 6.) Having considered the motion, opposition 19 and reply papers, the declarations and exhibits attached thereto, and arguments presented at the 20 October 8, 2025 hearing, as well as the Court’s file, the Court issues the following order. 21 I. 22 BACKGROUND 23 On August 27, 2024, Plaintiff filed a complaint against Defendant Costco Wholesale 24 Corporation (“Defendant” or “Costco”) in the Superior Court of California alleging premises 25 liability and negligence when he was injured on Defendant’s premises. (ECF No. 1. Ex. D.) In 26 his complaint, Plaintiff alleges that on or about October 24, 2022, he was walking within the 27 parking lot of the premises when he “stepped on an unmarked and/or unsecured unknown object 1 25.) The case was removed to this Court on July 2, 2025. (Id.) On July 28, 2025, Defendant 2 filed the motion to disqualify DTLA Law as counsel for Plaintiff, along with its request for 3 judicial notice in support of the motion to disqualify. (ECF Nos. 6, 6-4.) 4 Plaintiff is currently represented by Sako Demirjian of DTLA Law. Anthony Werbin 5 (“Werbin”) is currently an attorney at DTLA Law but is not counsel of record in this case. Prior 6 to joining DTLA Law, Werbin was counsel for Costco on 21 cases from July 5, 2017 to January 7 16, 2020. (ECF No. 6-1; Ruijters Decl., ¶ 2.) During that period, Werbin billed 1,195 hours of 8 time. (Id. at ¶ 8.) Werbin’s representation involved personal injury matters, including trip-and- 9 fall, and slip-and-fall injuries. (Id. at ¶ 3.) Notably, Werbin served as one of Costco’s trial counsel 10 in a personal injury matter in Guo Jun Chen v. Costco Wholesale Corporation, (Los Angeles 11 County Superior Court, Case No. BC654699), which went to trial on May 29, 2019, with a verdict 12 rendered on June 4, 2019. (Id. ¶ 4.) 13 While representing Costco, Werbin was lead counsel and “handled virtually every aspect 14 of Costco’s file, which included, but was not limited to, developing strategy, communicating with 15 Costco employees as well as its claims administrator Gallagher Bassett, reviewing confidential 16 and privileged documents, preparing responses to discovery, preparing witnesses to testify at 17 depositions, defending numerous depositions of Costco employees, and developing litigation 18 strategy.” (Id. at ¶ 5.) In connection with this representation, “Werbin was privy to Costco’s pre- 19 litigation strategies, case handling procedures, attorney-client communications, confidential and 20 proprietary information about Costco’s operations, confidential client documentation, policies 21 and procedures, and trade secrets.” (Id. at ¶ 6.) Further, on March 19, 2019, Werbin attended a 22 one-day California Defense Counsel Conference that Costco held for its panel of California 23 defense attorneys to discuss California litigation, provide information, and share defense tools 24 and strategies with its defense counsel. (Id. at ¶ 7.) 25 Defendant is concerned that Werbin has not been properly screened from participation in 26 cases involving Costco since the beginning of his employment at DTLA Law. (ECF No. 6-1., p. 27 2.) In Werbin’s prior declarations in opposition to the same motion, he admits that he “brought a 1 with his prior firm ended but allegedly prior to joining DTLA Law Group. (ECF No. 6-4, Ex. B 2 at ¶ 11.) However, a notice of settlement in the Staats case was filed and signed by Werbin on 3 behalf of the Downtown LA Law Group. (ECF No. 6-4, Ex. A.) 4 Plaintiff attests that Werbin has not worked on the defense of any Costco’s files for five 5 years and seven months. (ECF No. 13, pp. 3-4.) Any information he may possess concerning the 6 defense of such claims is derived from his own personal knowledge and experience accumulated 7 during his eight years as a defense attorney, and not from any prior representation for Defendant. 8 (Id.) Additionally, Werbin is not assigned as counsel in this case and has no access to any 9 documents or information related to this matter. (Demirjian Decl., ¶¶ 4-5.) DTLA Law manages 10 its practice by dividing into various teams, which do not share personnel, workloads, or case files. 11 (Id. at ¶ 9.) Werbin's team is not assigned any Costco cases. (Id.) 12 In December 2021, DTLA Law implemented an ethical wall to prevent any attorney or 13 employee from viewing documents or information related to a matter they were not assigned to. 14 (Id. at ¶¶ 6-9.) As a result, Werbin is effectively isolated from all Costco-related matters and was 15 unaware that this case is being handled by DTLA Law. (Id. at ¶¶ 4-9.) Although the Staats case 16 predates the implementation of this ethical wall, the wall had already been in place for 17 approximately two years before DTLA Law was retained in this matter. (ECF No. 13, p. 6; Id. 18 ¶¶ 6–9.) 19 II. 20 LEGAL STANDARD 21 In federal court, motions to disqualify counsel are decided under state law. In re Cnty. of 22 L.A., 223 F.3d 990, 995 (9th Cir. 2000); Hitachi, Ltd. v. Tatung Co., 419 F. Supp 1158, 1160 23 (N.D. Cal. 2006); Local Rule 180(e). Under California law, “the starting point for deciding a 24 motion to disqualify counsel is the recognition of interests implicated by a motion.” Hitachi, 419 25 F.Supp.2d at 1160. The movant bears the burden of proof. Hernandez v. Guglielmo, 796 F. Supp. 26 2d 1285, 1289 (D. Nev. 2011). The decision to grant a motion to disqualify based on conflict of 27 interest lies within the trial court’s discretion. Id. Disqualification motions involve 1 client, and the financial burden imposed on a client to replace disqualified counsel. Id. at 1161. 2 “Disqualification is a blunt tool meant to encourage wide berth of ethical grey areas, its 3 ruthlessness warranted only after a clear showing of conflict.” Lennar Mare Island, LLC v. 4 Steadfast Ins. Co., 105 F.Supp.2d 1100, 1107 (E.D. Cal. 2015). Merely anticipatory or 5 speculative concerns are insufficient to justify disqualification. Agena v. Cleaver-Brooks, Inc., 6 428 F. Supp. 3d 267, 273 (D. Haw. 2019). Because “disqualification is a drastic measure, it is 7 generally disfavored and should only be imposed when absolutely necessary.” Id. (quoting 8 Concat LP v. Unilever, PLC, 350 F.Supp.2d 796, 814 (N.D. Cal. 2004)). 9 III. 10 DISCUSSION 11 A. Judicial Notice 12 Under the Federal Rules of Evidence, a court may take judicial notice of a fact that is “not 13 subject to reasonable dispute in that it is either (1) generally known within the territorial 14 jurisdiction of the trial court or (2) capable of accurate and ready determination by resort to 15 sources whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201(b). Judicial notice 16 may be taken “of court filings and other matters of public record.” Reyn’s Pasta Bella, LLC v. 17 Visa USA, Inc., 442 F.3d 741, 746 n.6 (9th Cir. 2006). Documents in the public record may be 18 judicially noticed to show, for example, that a judicial proceeding occurred, that proceedings are 19 ongoing, or that a document was filed in a particular case. Lee v. City of Los Angeles, 250 F.3d 20 668, 689-90 (9th Cir. 2001). Federal courts may also take notice of proceedings if those 21 proceedings have a “direct relation” to matters at issue. U.S. Ex. Rel. Robinson Rancheria 22 Citizens Council v.

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Robert Price v. Costco Wholesale Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-price-v-costco-wholesale-corporation-caed-2025.