Vestin Funds sought compensation on a loan from the guarantors of the loan Frederick Waid and M. Nafees. Waid and Nafees retained Noel Gage as their attorney. Gage, however, had previously represented the CEO of Vestin in previous litigation. Nevada prohibits a lawyer from representing a party that is adverse to the interests the lawyer’s current client if the matters are substantially related. To determine “substantially related” the court adopted a three-part test from the Seventh Circuit and applied it to Gage. The court upheld the decision of the lower court.
Orme, Chris, "Summary of Waid v. Eighth Judicial Dist. Court" (2005). Nevada Supreme Court Summaries. 635.