Oro Negro Drilling Pte. Ltd. has requested that Quinn Emanuel Urquhart & Sullivan LLP produce confidential information in a discovery effort aimed at disqualifying the firm’s attorneys from ongoing legal proceedings in Mexico. According to a filing in the U.S. District Court for the Southern District of Florida, Oro Negro argued that even though Quinn Emanuel admitted to representing the company in past bankruptcy litigation, they cannot overcome the “irrefutable presumption” that confidential information was disclosed during their attorney-client relationship.

Irrefutable Presumption of Confidential Information

Oro Negro emphasized that under Florida law, once an attorney-client relationship is established, there is an irrefutable presumption that confidential information was shared. The company dismissed Quinn Emanuel’s assurances that it would not use or disclose such information, stating that these promises are irrelevant. The law firm, according to Oro Negro, is not required to offer further proof since the presumption is enough to establish the disclosure of confidential information.

Discovery Sought by Oro Negro

The discovery request stems from a Section 1782 application filed in May 2024, in which Oro Negro and related entities sought information from Quinn Emanuel for use in criminal and bankruptcy cases in Mexico. The company is gathering evidence relating to the alleged misappropriation of at least $27 million. The petitioners claim that Gonzalo Gil White, former CEO of Oro Negro’s parent company, improperly filed for bankruptcy and diverted these funds. A portion of the misappropriated funds—$8.4 million—was allegedly used to fund litigation by Quinn Emanuel against Oro Negro’s bondholders.

Motion to Expedite Discovery and Disqualify Quinn Emanuel

In addition to seeking discovery, Oro Negro filed a motion in July to expedite the process and disqualify Quinn Emanuel from representing itself in the ongoing legal battle. The company argued that Quinn Emanuel’s continued involvement violated the firm’s duty to its former client. The documents requested include testimony, communications, bank statements, and billing records related to the alleged misappropriation.

Quinn Emanuel’s Response

Quinn Emanuel opposed the motion, arguing that the discovery requests overlapped with the original Section 1782 petition and violated the individual respondents’ rights against self-incrimination under Mexican law. Despite these objections, Oro Negro maintains that the law firm must disclose the requested information as it pertains to matters substantially related to their previous representation .

Legal Representation and Case Information

Oro Negro Drilling is represented by Anel Isabel Viamontes and Daniel Scott Fridman of Fridman Fels & Soto PLLC. Quinn Emanuel’s legal team includes John F. O’Sullivan, Juan Pablo Morillo, Daniel L. Humphrey, and David H. Needham.

The case, Oro Negro Primus Pte. Ltd. et al. v. Quinn Emanuel Urquhart & Sullivan LLP et al., is being heard in the U.S. District Court for the Southern District of Florida, case number 1:24-cv-21926.

Cited source: Law360, Oro Negro Drilling Seeks Confidential Information in Bid to Disqualify Quinn Emanuel, October 2, 2024. Available at: https://www.law360.com