I'm kinda baffled myself - the offer may have been made as a kind of "we're gonna cover everyone involved with Axa" blanket. I don't know. In your fact pattern, separate manufacturers are clearly separate, but when it comes to employers and former employees, it's a different story.
Still, TM is a former employee (or at least a former volunteer), but he owes Axa no loyalty whatsoever. When I did depositions regularly (and I often had corporate defendants), we did extend policy protection and, therefore, attorney representation to former employees all the time. And a lot of those former employees were lovely, loyal people. Every now and then, you'd get someone with an axe to grind. But this was years before the Internet. TM has been pretty public about his shifting loyalties or at least that he wouldn't be a guaranteed slam dunk supportive witness for the defense.
Plus W & S has bled enough money and pro bono hours on this one to last them a while. And now they're going to volunteer for more? I'm sorry, but regardless of what you feel about anyone, W & S is a business and they have got to bring in some cash (sorry, pun not intended). Ranahan is a partner which means she is expected to be a rainmaker. I know I've written this before.
There are only so many hours in a day. Shedding time on pro bono work, when you've most likely already gone way above and beyond what the firm requires and what the state requires (50 hours for California, per annum), means you are either neglecting your home life and/or health, or your financial obligations to the firm as a partner. Or you're padding the bills. I am not accusing Ms. Ranahan of the latter.
But at some point, something has got to give. They do not own a time machine.
So, where is this infinite time coming from? And for what? TM is far from being a guaranteed asset for them.
His interests differ. Period.
This is ... weird. And it makes my professional responsibility muscles itch.
I can see why Erin Ranahan did it (made the offer) and in reality while it IS more Pro Bono hours per se - when you figure that she's going to be present at the Depositions anyway; in that sense she's not costing the firm any more actual money then the hours they're commited to in defending Axanar/Alec Peters Pro Bono to begin with.
It's pretty clear whomever is on their Pro Bono board didn't really look into the situation (or Alec Peters background/business history) before agreeing to take the case; and I'm sure the thought was:
"We'll get a decent settlement and look good in the media. There's no way that CBS or Paramount will want to drag this out with a new film and series and the 50th anniversary of the franchise happening in 2016..."
And actually, they guessed right on that aspect because JJ Abrams/Justin Lin actually GOT C/P to go to the settlement table; and I'm sure Alec Peters and W&S got offered a very fair settlement given the situation. What torpedoed that settlement? IMO - Alec Peters ego (the continuing donations and money he still gets hawking unlicensed Star Trek merchandise probably colored his decision too. I'm sure he STILL thinks that somehow he'll be able walk away able to keep a lot of the financial benefit he's gotten; and if asked about why Axanar remained unfinished..."It's all CBS/Paramount's fault - not mine!")
(No I'm not privy to any special info, but that has to be what happened. And the bad thing about being a lawyer is WHEN you see you DID get offered a good/reasonable settlement; BUT you can't get your client to see that; and they WANT everything they asked for in their settlement offer to the other side, OR they want their day in court to 'prove' themselves; and I sure with Alec Peters it's the situation W&S found themselves in; and they'd end up taking a WAY WORSE PR hit in public by backing out as Axanar's/Alec Peters legal representation at this point in the proceedings. I'm also pretty certain that if this case goes as expected, Erin Ranahan will be a part of a very private - and very uncomfortable for her - Partner's meeting at the W&S offices.)
We'll see.