Latham & Watkins Disqualified From Defense Logistics Protest

May 27, 2020, 3:30 PM UTC

Latham & Watkins LLP can’t represent Quantico Tactical Inc. in a pre-award protest of a defense logistics procurement because the law firm previously represented another bidder, Atlantic Diving Supply Inc., the U.S. Court of Federal Claims ruled.

If allowed to continue in this case, Latham, which previously prepared an SEC form for Atlantic Diving, would be seeking to hurt Atlantic Diving’s position based on information it learned about the company’s corporate structure, Judge Eric G. Bruggink said in a decision released Tuesday.

“The same attorneys who once had unfettered access to ADS’ proprietary information should not be sitting across the table at deposition inquiring into the same issues,” the court said.

The court issued this opinion under seal May 8. Quantico responded by hiring Crowell & Moring LLP to replace Latham.

Latham’s review of Atlantic Diving’s government contract business, and business generally, is enough to find that it had access to information relevant to Quantico’s protest, the court said.

Latham reviewed risks associated with Atlantic Diving’s affiliated entities as they related to small business contract rules, the same risks that are directly raised in Quantico’s complaint, the court said.

Quantico filed a protest after the Defense Logistics Agency eliminated its bid from the agency’s procurement to support the Special Operations Equipment Tailored Logistics Support program.

Atlantic Diving, one of the contract bidders in the agency’s competitive range, intervened in the protest, and moved to disqualify Latham shortly thereafter.

Quantico’s protest claims that the agency was biased against it in favor of Atlantic Diving, and that Atlantic Diving made fraudulent misrepresentations, the court said.

Crowell & Moring LLP and Latham & Watkins LLP represented Quantico. Wiley Rein LLP represented Atlantic Diving.

The case is Quantico Tactical Inc. v. United States, Fed. Cl., Nos. 20-120C & 20-150C, 5/26/20.

To contact the reporter on this story: Daniel Seiden in Washington at dseiden@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Patrick L. Gregory at pgregory@bloomberglaw.com

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