Initially, a trial judge disqualified the lawyer, ruling it could be presumed that the attorney had knowledge constituting a conflict. But the court of appeal reversed, with Callahan writing that there had to be a detailed review of the facts before an attorney was disqualified in such a situation. The California Supreme Court declined review, thus upholding Callahan.
The same year, Callahan was part of a three-judge panel that unanimously rejected the claim of Catholic Charities of Sacramento that it should be exempt from a California law requiring employers to provide contraceptive coverage to employees. The group contended that the law violates religious freedom because Catholicism views contraception to be "intrinsically evil and a grave sin."
