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.

When CarePoint initially filed its lawsuit in 2022, its counsel was informed that Proskauer had previously worked for CarePoint, and it raised concerns about whether the law firm could have been privy to sensitive information relevant to the case. In response, RWJBarnabas’ antitrust counsel assured CarePoint’s legal team that the antitrust case was entirely unrelated to Proskauer’s previous representation.

However, CarePoint now argues that Proskauer’s current strategy has explicitly involved the use of the very information the law firm obtained from its earlier work for CarePoint. The firm is reportedly attempting to unearth evidence that CarePoint and its founders misused funds, which CarePoint claims amounts to a conflict of interest.

The lawsuit accuses RWJBarnabas of conspiring to monopolize the provision of acute care services in northern New Jersey, allegedly leading to the destruction of competition in the region’s healthcare market. CarePoint's filing argues that the prior representations should bar Proskauer from continuing in the case, as the law firm is using confidential insights to assist in Barnabas’ defense.

In her November 2024 ruling, Judge Waldor dismissed CarePoint’s disqualification request, concluding that CarePoint had failed to demonstrate that the facts from its earlier work with Proskauer were both relevant and material to the current lawsuit. CarePoint, however, insists that the magistrate judge applied the wrong standard of law in assessing the waiver of disqualification and believes the decision was "contrary to law and clearly erroneous."

According to CarePoint, the judge should have applied New Jersey Supreme Court jurisprudence, which dictates that waivers should only occur in "extraordinary circumstances," and even then, the offending firm should be barred from continuing to represent the client without pay.

CarePoint is seeking to have the court reconsider its motion and order the disqualification of Proskauer from the case. In its rejected motion, CarePoint emphasized that Proskauer had full access to its confidential financial information, which is now allegedly being used against it.

RWJBarnabas, in response, dismissed CarePoint’s motion as a mere litigation tactic and nothing more than a delay strategy. The healthcare network has argued that CarePoint’s disqualification bid is baseless and designed to disrupt the litigation process.

Counsel for the parties did not immediately respond to requests for comment on the latest developments.

CarePoint is represented by Lisa J. Rodriguez, Douglas M. Weck, and Ira Richards of Dilworth Paxson LLP. RWJBarnabas is represented by William T. Walsh Jr., David A. Munkittrick, Colin R. Kass, and Erica T. Jones of Proskauer Rose LLP.

The case is CarePoint Health Management Associates LLC et al. v. RWJBarnabas Health Inc., case number 2:22-cv-05421, in the U.S. District Court for the District of New Jersey.