Magin v. Solitude Homeowners, Inc.

After Barbara Magin purchased property in the Solitude subdivision, the Solitude site committee informed her that pre-existing fences and a barn were in violation of the subdivision covenants. Solitude filed a complaint against Magin, alleging violations of the covenants and seeking to recover attorney fees. Attorney Glenn Ford, who practiced in the same firm as the first attorney Magin hired before retaining other counsel, acted as Solitude's counsel. No written waiver of conflict was executed. Magin filed a motion to disqualify Ford from acting as Solitude's counsel due to conflict of interest. The motion was dismissed. The district court granted summary judgment in favor of Solitude. On appeal, the Supreme Court affirmed in part and reversed in part, holding (1) Solitude's counsel had a conflict of interest, but the district court did not err by refusing to disqualify the firm because Magin's motion to disqualify was untimely; (2) the district court properly granted summary judgment in favor of Solitude; and (3) the district court abused its discretion by ordering Magin to pay the attorney fees generated by her former firm because it failed to segregate the non-recoverable fees associated with clearing the conflict.