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Roudi v. Paydar CA4/1
Plaintiffs, cross-defendants and appellants Alex Roudi and Interwest Capital Corporation (Interwest) appeal from an order vacating an arbitration award in their favor and striking their petition to confirm that award. The arbitration award stemmed from two matters commenced by defendant, cross-complainant and respondent Reza Paydar: a document inspection and accounting dispute against Interwest and a shareholder derivative matter against both Roudi and Interwest. In granting Paydar’s motion to vacate the award, the superior court ruled that plaintiffs’ counsel, Cooley LLP (Cooley), violated California Rules of Professional Conduct, rule 1.7(d)(3), prohibiting lawyers from simultaneously representing two clients if one asserts a claim against the other in the same proceeding, which created an unwaivable conflict of interest.

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