Client claims Rutan & Tucker represented both sides in lawsuit

A former client alleges Rutan & Tucker LLP represented his opponent at the same time it was representing him in a 2011 fraud case.

Rutan partners Richard K. Howell, Roger F. Friedman and now-retired partner Edward Sybesma are named as defendants in a lawsuit. Sean Tucker v. Rutan & Tucker, LLP, 19STCV23100 (L.A. Super. Ct. filed July 1, 2019).

Partner William T. Eliopoulos, co-General Counsel for Rutan, said on Monday that the firm "views this lawsuit as entirely baseless and frivolous, replete with inaccuracies," but declined to comment further as it is pending litigation.

Plaintiff Sean Tucker sued Jeffrey Childs in 2010 for fraud, stemming from the sale of a rare coin collection and an unrelated personal loan, according to the complaint filed by Andrew D. Stolper and Jason M. Frank of Irvine-based Frank Sims & Stolper LLP.

Tucker told Rutan lawyers Childs' primary asset was his interest in mining claims in San Bernardino and Kern counties through Triple Nine Plus Fine Land and Mining Co. LLC, a corporate entity jointly owned by Childs and third-party C.B. Nanda, the complaint states.

Rutan's lawyers encouraged Tucker to pursue recovery against Childs when they knew Childs' primary asset in Triple Nine had been stripped of its value, according to the complaint.

Tucker knew the firm represented Triple Nine in 2007 but wasn't aware the representation was ongoing and even extended to Nanda and other Nanda entities, the complaint states.

With Rutan's help, Tucker won a $2.43 million judgment against Childs in June 2012, and Rutan collected more than $758,000 in legal fees. In November, Childs filed for Chapter 7 bankruptcy protection, according to the complaint.

A trustee appointed to the bankruptcy case subpoenaed records from Tucker, Triple Nine, Nanda and Nanda Entities. Triple Nine and Nanda sent a letter to Friedman in May 2013, directing him not to produce documents in response to the subpoena and not to disclose any information to Tucker, directions Friedman followed, the lawsuit claims.

In December 2013, Rutan terminated its representation of Tucker and denied having ever represented Triple Nine, Nanda or Nanda Entities, the complaint states. Tucker didn't find out about Rutan's relationship with Triple Nine until 2018 and discovered "for the first time Sybesma was aware of and likely assisted Triple Nine in fraudulently assisting Triple Nine's [transfer of] assets into Nanda Entities," the complaint states.

Rutan failed to disclose to Tucker the presence or a potential conflict with Triple Nine or Nanda while at the same time representing Tucker in multiple direct negotiations with Triple Nine, Nanda and the Nanda Entities, the complaint states.