The multi-national conglomerate is suing Washington DC-based Covington & Burling for breach of fiduciary duty and contract, according to Corporate Counsel magazine. The report states that the suit resulted from a 3M motion to disqualify Covington from representing the state of Minnesota in an 18-month-old natural resources damage suit against the company, with 3M pointing out a conflict of interest.

Highly unusual

The suit alleges that Covington communicated with the state over the possibility of initiating legal action against 3M, while still representing the company.
Dallas-based Bickel & Brewer is representing 3M, with partner William Brewer saying the case is unusual. ‘No end of corporate clients have called me about it,’ he said. ‘You can imagine how disturbing it is for someone like Marschall Smith [3M’s general counsel], who wasn’t there prior to 2007 when Covington was representing the company on these issues, to think that the law firm wouldn’t bring something like this [representing the state] to his attention.’

Disturbing

Mr Brewer added that 3M were not aware of the situation until Covington initiated discovery in the state suit, and began taking statements from in-house counsel it had once represented on the same issues. ‘It’s a very disturbing case for in-house lawyers,’ Mr Brewer said.
The magazine reports that in court papers Covington said the allegations were untrue, describing them as ‘inflammatory and unsubstantiated’. Nonetheless, the firm declined to comment to Corporate Counsel.