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CoStar Fights CREXi Bid To Stay Suit Over Quinn Emanuel DQ

Published
Score
18

Why it matters

CoStar is urging a California federal court to reject CREXi's request to pause their copyright dispute while CREXi appeals the disqualification of Quinn Emanuel Urquhart & Sullivan. Judge Consuelo B. Marshall of the Central District of California ruled on July 14, 2026, that Quinn Emanuel violated its duty of loyalty to CoStar by simultaneously representing CREXi in the same matter without CoStar's consent. CoStar argues the stay request lacks legal merit and should be denied outright.

The underlying dispute traces to a 2020 copyright lawsuit CoStar filed against CREXi, followed by CREXi's antitrust counterclaims in 2021. CREXi switched counsel from Keker, Van Nest & Peters to Quinn Emanuel in December 2025. CoStar moved to disqualify the new firm in January 2026, citing the conflict. The Ninth Circuit will now decide whether to overturn Marshall's disqualification order, but the timing of that appeal and whether the trial-level case should proceed remains unsettled.

Attorneys tracking this matter should monitor whether the appellate court reverses the disqualification—a decision that could reshape the litigation's trajectory. More broadly, the case illustrates how conflicts of interest can derail counsel changes mid-litigation, particularly in complex commercial disputes involving multiple claims. If the stay is denied and trial proceeds without Quinn Emanuel, CREXi will face the practical burden of bringing new counsel up to speed while the Ninth Circuit considers the appeal.

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