Everyone knows that oil drilling is a cutthroat buisness. Here is an interesting story.  Did the law firm capitilize on inside knoweldge?  Plaintiff’s story is that it is in the niche business of developing old oil wells, and was in the process of buying from another business in bankruptcy.  They had to hire a W.Va. law firm to complete the transaction.  They charge that the law firm simply saw an opportunity, set up a rival purchaser, dragged their feet and inserted the rival into the deal.

"Between May 25 and June 2, Hinkle says it learned that Elk River Energy was formed only two weeks before the May 25 meeting and that Dollison, a partner at Bowles Rice, "was not only the organizing attorney," but "he also had a financial stake in Elk River Energy."

Had Hinkle known of what it called this "absolutely inexcusable conflict of interest," it never would have retained Bowles Rice nor would it have disclosed confidential and proprietary information consisting of the terms of the agreement with Buffalo.

On June 2, 2006, Chincheck informed Hinkle – "in a transparent attempt to excuse her culpability," according to the complaint – that she would no longer being representing the company.

Three days later — through current counsel Hugo N. Gerstl of Monterey, Calif. – spoke with Buffalo’s bankruptcy trustee, who said Elk River was trying to back out of its contract with Buffalo and trying to dissolve. Meanwhile, the trustee also moved to sell the subject property in bankruptcy court. The "Objection or Upset Bid" date was set for June 14, 2006. "