Maritrans GP, Inc. v. Pepper, Hamilton & Scheetz
Supreme Court of Pennsylvania
602 A.2d 1277 (1992)
Law firm Pepper (defendant), through attorney Messina (defendant), represented Maritrans (plaintiff) in labor and corporate matters for over a decade, gaining intimate knowledge of Maritrans's competitive business plans, then began representing Maritrans's direct competitors; when Maritrans objected, Pepper agreed not to add additional competitor clients but soon arranged for an outside attorney (already negotiating to join Pepper as partner) to represent those additional competitors, all while Maritrans continued disclosing sensitive plans to Pepper unaware of this arrangement. Pepper eventually terminated Maritrans entirely, and the outside attorney joined Pepper as partner, bringing Maritrans's remaining competitors as clients; the trial court enjoined Pepper and Messina from representing Maritrans's competitors, and they appealed.
Whether an attorney's fiduciary duty of loyalty to his clients prohibits the attorney from engaging in conflicts of interest.