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HomeMy WebLinkAbout20250321_Conflict Waiver_Brownstien repping SLO Creek LLC Christopher R. Guillen Attorney at Law 805.882.1452 direct cguillen@bhfs.com www.bhfs.com Brownstein Hyatt Farber Schreck, LLP 805.963.7000 main 1021 Anacapa Street, 2nd Floor Santa Barbara, California 93101 March 20, 2025 City of San Luis Obispo Attn: Christine Dietrick, City Attorney 990 Palm Street San Luis Obispo, CA 93401 RE: Waiver of Conflict of Interest - Consultation, Disclosure, Informed Consent Dear Ms. Dietrick: This letter requests a waiver from the City of San Luis Obispo (the “City”) with regard to a potential conflict of interest involving Brownstein Hyatt Farber Schreck, LLP’s (“Brownstein”) representation of SLO Creek LLC (“SLO Creek”), as described below. As you know, Brownstein has, for many years, represented the City in a variety of legal and water rights and water supply matters (collectively, the “City Matters”). SLO Creek desires to engage us as counsel in connection with land use advise for an infill development located at 300 Higuera Street in San Luis Obispo, which includes assisting SLO Creek with obtaining permits from the City (the “Land Use Matter”). The Land Use Matter is not related to our work for the City. However, our representation of SLO Creek in the Land Use Matter while we represent the City in other unrelated matters arguably constitutes a conflict of interest under the applicable Rules of Professional Conduct. Under the Rules of Professional Conduct, we may not represent a client in a manner that is adverse to another client unless both clients agree to the proposed representation after being adequately informed, in writing, of the relevant circumstances and the material, reasonably foreseeable ways that the conflict could have adverse effects on their interests. The City should consider whether there is any material risk that Brownstein will be less zealous or eager on its behalf due to Brownstein’s representation of SLO Creek in the Land Use Matter, or whether the professional judgment of Brownstein attorneys working on the City’s matters could be affected by the interests of SLO Creek. We do not believe that there is a material risk of any of the foregoing in our concurrent but separate representation of SLO Creek in the Land Use Matter and the City in unrelated matters. While we represent SLO Creek in the Land Use Matter, all attorneys representing the City in the City Matters will be denied access to all files, attorney work product, and materials concerning the Land Use Matter and will not represent SLO Creek in any manner. City of San Luis Obispo Conflict Waiver March 20, 2025 Page 2 There is also a possibility that a dispute or litigation could develop between SLO Creek and the City regarding the Land Use Matter. In the event of a dispute or litigation between SLO Creek and the City related to the Land Use Matter, Brownstein will not represent SLO Creek and further, SLO Creek consents to our continuing to act for the City in any manner whatsoever, including in negotiation or litigation against SLO Creek related to the Land Use Matter. SLO Creek will obtain other legal counsel and waives any right to contest Brownstein’s continued representation of the City or to seek disqualification or recusal of Brownstein from its representation of the City, even if Brownstein is representing the City in matters that are adverse to SLO Creek. However, the City agrees the City will not seek for us to withdraw from representing SLO Creek in unrelated matters. If you have any questions or concerns about the circumstances described herein, please contact me. We recommend that the City seek independent counsel regarding the effect of this letter. If the City determines, based on the advice of its independent counsel or otherwise, that our representation as described herein will be detrimental to its interests, the City should not consent to it. If the City wishes to consent to this waiver after such review as you believe appropriate, please sign a copy of it in the space provided and return it to the undersigned. Your execution of this letter will confirm that we have provided you with adequate information and explanation about the material risks of our proposed representation. Sincerely, Christopher R. Guillen READ AND AGREED TO THIS _____ DAY OF ___________, 2025. CITY OF SAN LUIS OBISPO By: _________________________ Its: _________________________ City Attorney March21st