mi law, a lawyer with 2 clients whose interests are adverse has a conflict of interest

by Miss Fay Rogahn IV 3 min read

Direct adversity can occur in situations where an attorney is representing, or is considering representing, two separate clients who have directly adverse interests. Such conflicts seem as though they ought to be the easiest to detect. Overwhelmingly, the outcome of such conflicts is going to be that the lawyer will not be able to, or continue to, represent one or either of the clients. Thus the failure to identify and avoid direct adversity conflicts of interest can cause harm to one or more clients, in addition to having serious financial impact on the lawyer. Yet, on occasion, even experienced lawyers miss the obvious.

Full Answer

When does a lawyer have a conflict of interest?

A conflict of interest arises when a lawyer’s loyalty is divided between multiple clients, between the lawyer and his client, or when a law firm places its interests above those of its client. These conflicts of interest can lead to legal malpractice when the lawyer recommends a course of action that damages his client.

What constitutes a concurrent conflict of interest?

ABA Model Rule 1.7 (a) prohibits concurrent conflicts, which it defines as "directly adverse" interests or interests that carry "a significant risk that the representation of one or more clients will be materially limited by the lawyer's responsibilities to another client, a former client or a third person or by a personal interest of the lawyer."

Can a lawyer represent a person in the same matter?

Lawyer may not represent a person in a matter that is the same or substantially related to the representation of a former client in which the interests of the potential client are materially adverse to the former client except with informed written consent of former client. How and why has Canon 9 been applied in cases of successive representation?

What is an example of a conflict of interest?

For example, if a client wishes to sue a business that is owned by the lawyer’s brother-in-law, there is a conflict of interest and the lawyer should decline representation.

What is the rule about simultaneously representing two clients whose interests are adverse?

(a) A lawyer shall not, without informed written consent* from each client and compliance with paragraph (d), represent a client if the representation is directly adverse to another client in the same or a separate matter.

When might a lawyer have a conflict of interest?

[1] As defined in rule 1.1-1, a conflict of interest exists when there is a substantial risk that a lawyer's loyalty to or representation of a client would be materially and adversely affected by the lawyer's own interest or the lawyer's duties to another client, a former client, or a third person.

Can a solicitor act for two or more clients in the same matter?

A solicitor generally cannot act for you if they have previously provided legal advice to a person you are in dispute with. They may also not be able to act for more than one party in the same matter. If you believe that your solicitor may have a conflict you should raise this with them.

What is a disqualifying conflict of interest?

Under the Act, a public official has a disqualifying conflict of interest in a governmental decision if it is foreseeable that the decision will have a financial impact on his or her personal finances or other financial interests.

Can a lawyer represent two opposing clients?

The California Rules generally permit a lawyer to represent multiple clients with conflicting interests so long as all the clients have provided their informed written consent.

How do you prove conflict of interest?

A conflict of interest exists if a legislator has any interest or engages in any business, transaction, or professional activity, or incurs any obligation, which is in substantial conflict with the proper discharge of his or her duties in the public interest.

What is a concurrent client conflict?

11.2 If a solicitor or a law practice seeks to act for two or more clients in the same or related matters where the clients' interests.

Is conflict of interest legal or ethical?

Conflicts of interest are distinguishable from conflicts of commitment, which arise when individuals bear two or more mutually exclusive duties to others. If persons in conflicts of interest favor their self-interest, they may violate binding legal duties such as fiduciary duties.

Do lawyers ever owe a duty of care to a party to a dispute who is not their client?

By way of example, a duty of care has been recognised as being owed by a lawyer to a: non-client in the context of a negligent misstatement made by a lawyer causing loss; a beneficiary of a client's will, in the absence of reliance by the third party beneficiaries; and.

What is an imputed conflict of interest?

Said another way, imputed disqualification occurs when a lawyer's conflict of interest spreads to and “infects” the rest of the firm, rendering all affiliated lawyers infected with the same conflict. However, some conflicts are more contagious than others, while some are unlikely to spread.

What is the code for conflict of interest?

A conflict of interest code lists the position titles of those employees or officials (designated position) in an organization who are required to provide personal financial information, assigns disclosure categories to these positions, and indicates the types of economic interest which must be reported, such as ...

How do you treat conflict of interest?

[2] Resolution of a conflict of interest problem under this Rule requires the lawyer to: 1) clearly identify the client or clients; 2) determine whether a conflict of interest exists; 3) decide whether the representation may be undertaken despite the existence of a conflict, i.e., whether the conflict is consentable; ...

Why was the lawyer's representation of Frisco substantially related to the lawyer's representation of Mangeris?

The trial court found that the lawyer’s representation of Frisco was substantially related to the lawyer’s representation of Mangeris because both representations involved controlled substances and because of the “facts and circumstances” that would be at issue in Frisco’s case. Frisco filed a C.A.R. 21 petition.

Who represented the prosecution witness in the case of Frisco?

In Frisco, the criminal defense lawyer had represented the prosecution witness, Mangeris, against charges of manufacturing and conspiring with a third person over a three-day period to manufacture and distribute methamphetamine.

What is the purpose of the substantive relationship test?

The primary purpose of the “substantial relationship” test is to protect the secrets and confidences of the former client to which the lawyer was privy. In other words, the former client should not be disadvantaged because of his or her lawyer’s new representation. Recent supreme court decisions have also focused on what constitutes ...

What is the Supreme Court's rule in reversing the decision of the district court?

In reversing the decision of the district court, the supreme court made the rule absolute.

What happened to Mangeris' bond?

The lawyer’s representation largely consisted of arranging for Mangeris’s continued release on bond. When Mangeris failed to appear at a hearing, his bond was revoked and he was arrested. At that point, other defense counsel began representing Mangeris and the first lawyer withdrew.

Can a lawyer rescind a contract on behalf of a new client?

Under this Rule, for example, a lawyer could not properly seek to rescind on behalf of a new client a contract drafted on behalf of the former client. So also a lawyer who has prosecuted an accused person could not properly represent the accused in a subsequent civil action against the government concerning the same transaction.

Can a lawyer represent a former client?

Lawyers often encounter potential conflicts of interest with former clients. The general rule is that a lawyer may not represent a new client who is materially adverse to a former client when the subject of the representation is “substantially related” to the lawyer’s prior representation. The primary purpose of the “substantial relationship” test ...

What is a conflict of interest in a lawyer?

A conflict of interest arises when a lawyer’s loyalty is divided between multiple clients, between the lawyer and his client, or when a law firm places its interests above those of its client. These conflicts of interest can lead to legal malpractice when the lawyer recommends a course of action that damages his client.

What is conflict of interest in a criminal case?

Conflict of interest can occur in a criminal case if a lawyer represents someone who has been accused of a crime and previously represented someone who will serve as a witness for the prosecution. The lawyer might possess confidential information that was acquired during his representation of the former client who is now testifying as a witness against the current client. The lawyer would have a difficult time cross-examining the former client because he possesses confidential information that was acquired during his representation of the first client.

How to win a malpractice case?

To win a legal malpractice case, you must prove a case within a case - that the outcome would have been different if your lawyer had not been negligent. A common cause of legal malpractice is a conflict of interest, which occurs when a lawyer cannot fulfill his duties to multiple clients at the same time. A conflict of interest is a violation of ...

What is legal malpractice?

Legal malpractice occurs when a lawyer fails to do what a reasonably prudent lawyer would do in similar circumstances. Lawyers, just like doctors and other professionals, are required to adhere to a professional standard of care. If a lawyer falls below that standard ( i.e. is negligent) and the lawyer’s negligence harms his client, ...

What happens if a lawyer represents a client?

If a lawyer represents a client knowing that there is a conflict of interest, the lawyer may be subject to discipline by the Ohio State Bar Association or the Ohio Supreme Court and, in some cases, may be sued for legal malpractice. Even if the clients’ legal interests are not directly adverse, there is still a conflict ...

What are some examples of conflict of interest?

A conflict of interest can occur if a prospective client has a legal position that is adverse to a lawyer’s current or former client , or if the potential client’s interests are in conflict with the lawyer’s personal or professional relationships. For example, if a client wishes to sue a business ...

What is a lawyer's duty?

A lawyer must be diligent and zealous in his representation of his clients. Anything that could make the lawyer anything less than zealous and dedicated could be considered a conflict of interest and should not be undertaken. If a lawyer represents a client but has a conflict of interest, the lawyer may be subject to a claim for legal malpractice.