Judge: Melissa R. Mccormick, Case: "Sall Spencer Callas & Krueger v. CEATS, Inc.", Date: 2022-08-04 Tentative Ruling

Plaintiff Sall Spencer Callas & Krueger’s Application for Interpleader Direction

Plaintiff Sall Spencer Callas & Krueger alleges it represented defendant CEATS, Inc. for approximately one month in 2020 until a dispute arose over control of CEATS.  Plaintiff alleges that in late June 2020 defendant Terry McEwen demanded plaintiff release CEATS’s client file to McEwen but that defendant Milford Skane disputed McEwen’s authority to demand CEATS’s client file.  Complaint in Interpleader ¶ 15; see also id. ¶ 19.  Plaintiff alleges that “[a]s a result of these disputes over control of CEATS, Plaintiff  . . . was ethically required to withdraw from representing CEATS,” and did so.  Id. ¶ 15.  Plaintiff alleges the control dispute is the subject of lawsuits currently pending in Nevada and this court.  Id. ¶¶ 16-17.

Plaintiff alleges it possesses its CEATS client file and that “Plaintiff is not in a position to determine which representative or representatives claiming authority to act for CEATS will ultimately prevail in the Nevada Litigation and which will ultimately be entitled to possession of the client file Plaintiff maintains,” and that “Plaintiff cannot resolve the dispute between the competing factions and therefore is unable to determine to whom the client file should rightfully be delivered.”  Id. ¶¶ 18, 20.  Plaintiff states that “[p]ending an adjudication of entitlement to the client file in this action, Plaintiff is ready, willing and able to deliver to a neutral person or maintain the client file as directed by the court, in a manner that preserves its privilege and confidentiality.”  Id. ¶ 22.

With the instant application, plaintiff seeks an order identifying the party or parties to whom plaintiff should provide its original and/or copies of its CEATS file.  Skane proposes the court order plaintiff to provide its original file to CEATS’s current management and order plaintiff to provide a copy of the file to Skane.  No oppositions to plaintiff’s application or Skane’s proposal have been filed.  The court accordingly adopts Skane’s proposal and orders plaintiff to provide its original file to CEATS’s current management and to provide a copy of the file to Skane. 

Plaintiff to give notice.