Conflict of Interest Flashcards
Conflicts of Interest
refuse to accpet or continue repseranting client if the represeantion creates a concurrent conflict of interest.
- DIRECTLY Adversely effect to another client.
- or, SIGNIFICANT RISK that representation will MATERIAL LIMIT the personal interest or responsibility to current or former client.
Client Lawyer Conflict
A lawyer shall not representation a client i matter limited by the lawyer representation to a 3rd person, or by lawyer own interest.
- Accept a case with a conflict only if all clients have given their informed consent and a reasonably prudent lawyers would have taken:
1) client must agree
2) material risk and alternative
3) reason in writing
Accepting Conflict Cases
1) Client must agree after Lawyer explains
2) Material risk and alternative
3) Reason in writing.
Conflict created by other lawyers in the office
When a lawyer because associated with a firm, the firm may not knowing rep a person in some matter or substantially related in which that Lawyer, r previous firm had previously represented a client with interest materially adverse to that person and about who the lawyer had argued confidential info and was used the info would be used to former client disadvantage the material to the matter.
** also applies to non lawyers.
Lawsuit Between Current and Former Client
You may represent a current client in an action against a former client Except:
1) When the current client wants to sue the former client involving a matter or transaction in which you represented the former client, or
2) When during representation of former client you learned confidential info that is not relevant to the action by current client.
Conflict of Interest
Rule of Imputed Disqualification
When a lawyer is disqualified due to conflict, the firm is also disqualified, unless screening is sufficient.
- NV: applies to Non-lawyer employees as well of attorney’s firm.
When non lawyer employee actively aquired privilege info in the prior employment and accepts employment with a firm or attorney who reps a client with material adverse interest the former client.
Disqualification is required when info relating to the reputation has been disclosed by the non lawyer employee to the new employer or screening would be ineffective.
A firm that has a non lawyer employee has an affirmative duty to determien whether the EE previosly had acess to adversial client files and if so screen the employee from the files.
screening requires notice to adversarial party or their counsel of the employee hiring and the screening Maintains to keep non lawyer employee from the file or matter.
Conflicts
Business Transaction with Client
A lawyer is genrally prohibited from doing business with clients, UNLESS
- it is ORDINARY and FAIR to the client.
A lawyer may enter into business with a Client or obtain an interest advance to his only terms are:
1) FAIR,
2) FULLY DISCLOSED,
3) in WRITING,
4) the client is PROVIDED with WRITTEN ADVICE to consult an OUTSIDE LAWYER and
5) client provides written consent.
Duty To Confidentiality
No Duty Owed
A person who communicates info to a lawyer without reasonable or good faith expectation of forming a client lawyer relationship does not qualify as a potential client under the rule.
Duty to Avoid Fin Assistance to Client
A lawyer must not provide financial assistance to a client in connection with PENDING LITIGATION to avoid a conflict of interest.
Representing a Corporation or Partnership and Scope of Representation
A s lawyer for a Corp. or Partnership you represent the entity, not any of the individuals or directors involved
1) Law can be a director of company, but no attorney client privilege
2) Duty to report illegal activity up the chain of command to CEO
3) If not appropriate response must report to board of directors and may report to outside authorities
Law Firm
Screening Lawyers
Lawyer must be screened by prohibiting access to the file, any decisions about the file, and giving ——- for the matter to be screed lawyer.
- The screed lawyer must not have had substantial role in or primary rep responsibility for the matter raising the issue of disqualification.
- Screening will not be qualified for the lawyer who was in change of the case at the prior firm.
