CarePoint Seeks to Reopen Disqualification Bid Against Proskauer

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CarePoint Health-Christ Hospital in Jersey City on Friday, Jan. 12, 2024. (Reena Rose Sibayan | The Jersey Journal)

CarePoint Health is once again pushing for Proskauer Rose LLP to be disqualified as counsel for healthcare network RWJBarnabas Health Inc. in an antitrust lawsuit filed in New Jersey federal court. CarePoint argues that U.S. Magistrate Judge Cathy L. Waldor made an error in November by denying its request for disqualification, urging the court to reverse the decision and grant its motion.

In its Friday filing, CarePoint claims the magistrate judge overlooked critical facts relating to Proskauer’s prior representation of CarePoint in 2020, during the early stages of the COVID-19 pandemic. At that time, CarePoint consulted Proskauer for legal guidance on a range of issues, including eligibility for and usage of federal funds from the CARES Act, as well as various rental and lending arrangements. According to CarePoint, Proskauer was granted access to confidential financial information about those transactions.

CarePoint asserts that by defending RWJBarnabas in the antitrust case, Proskauer has essentially used privileged information from its prior representation to advance Barnabas’ litigation strategy. The hospital operator contends that Proskauer is now focusing on issues like related-party transactions—central to CarePoint’s confidential discussions with the firm—which CarePoint believes could undermine its case.

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