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The Commerce Department building in Washington, file. REUTERS File

Chemical company loses bid to bar Foley & Lardner from case

2/13/2013 COMMENTS (0)

By Anna Louie Sussman

Feb 13 (Reuters) - A Washington district court judge has ruled that Foley & Lardner may continue representing two Chinese chemical companies in a trade case in front of the Department of Commerce, in spite of objections from a competing U.S. chemical business also involved in the case that formerly retained an attorney now with Foley.

Judge Richard J. Leon on Monday said that GEO Specialty Chemicals, the largest producer of glycine in the United States, had failed to establish that Foley's representation of two competitors based in Hebei, China, would likely cause GEO "irreparable harm."

GEO had sought to bar Foley from representing Hebei Donghua Jiheng Fine Chemical Co and Hebei Donghua Jiheng Chemical Co in front of the Department of Commerce in a case involving duties levied on makers of glycine. GEO argued that Foley should be disqualified from the case because its lawyer Gregory Husisian previously represented GEO when he had worked at the law firm Thompson Hine.

Tom Feher, a partner at Thompson Fine, argued in a memorandum that Husisian's "switching sides" violated the District of Columbia's Rules of Professional Conduct that prohibit a lawyer from representing a party "if that representation will be directly adverse to a former client on the same or a related matter in which the lawyer represented the former client."

While Husisian worked at Thompson Hine, he spent over 1,400 hours on glycine-related matters for GEO, of which more than 300 hours focused on the Department of Commerce trade case, according to GEO's memorandum.

The glycine trade case in front of the Department of Commerce's International Trade Administration is ongoing.

On Tuesday, Thompson Hine opposed a motion by Foley to stay discovery and a ruling date has not yet been set. A Foley spokeswoman said the firm does not comment on ongoing client matters.

Feher said the firm is still examining its options.

The case is GEO Specialty Chemicals, Inc v. Gregory Husisian, U.S. District Court for the District of Columbia, No. 12-01819.

For the plaintiff: Thomas Feher of Thompson Hines.

For the defendant: Arthur D. Berger of Jackson & Campbell.

(This story has been altered to correct the misspelling of the name Arthur Burger.)

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