Bond insurer National Public Finance Guarantee has hired a new law firm to represent it in the California municipal bankruptcy cases of San Bernardino and Stockton after a judge found its original firm had created a conflict for itself, Reuters reported on Friday. National said on Friday that Weil, Gotshal & Manges will replace Winston & Strawn in the cases. The unusual switch in law firms follows a decision last week by Bankruptcy Judge Meredith Jury in the San Bernardino case to disqualify Winston & Strawn at the behest of the California Public Employees' Retirement System. The pension fund, known as CalPERS, had complained that Winston & Strawn had recently hired attorneys away from K&L Gates, the law firm for CalPERS in both bankruptcy cases. The pension fund also demanded Winston & Strawn's disqualification from the Stockton case. A response to that was due last week but will not be filed with the bankruptcy court hearing the city's case as Winston & Strawn is stepping aside.
