David Axelrad recently Named California Lawyer Magazine’s Attorney of the Year

It's a rare case that attracts amicus briefs on behalf of nearly 50 law firms, but that's what happened in Kirk v. First American Title Insurance Company, a case that set standards detailing what triggers the need for ethics walls within law firms. The defendant's appeal was briefed by Axelrad and Perrochet and argued by Perrochet. The underlying case involved a consumer class action against First American for allegedly unlawful title insurance procedures. When a large firm took over First American's defense, the plaintiffs won a disqualification motion against it because one of the firm's attorneys in a different office had participated in a confidential communication about the case with plaintiffs counsel while he was previously employed at another insurance company. Axelrad and Perrochet persuaded the Second Appellate District Court of Appeal to reverse the disqualification order and, in the process, elicited a groundbreaking opinion that outlines when and how an "ethical wall" must be maintained within a law firm.

Although the State Bar had proposed changes in the Rules of Professional Conduct to deal with discipline in this area, after this ruling last April it backed off--effectively leaving it to the courts to refine the standards for ethical screens. Given the frequent movement of lawyers between law firms and from government to private practice, the Kirk decision is sure to echo in California courtrooms and the corridors of its law offices for years to come.