Conflicts of Interest Flashcards
Conflicts of Interest
A lawyer may not represent a client if (1) doing so would be directly adverse to another client or (2) if the lawyer’s independent judgment would be materially limited by his responsibility to another client. Unless the lawyer reasonably believes the representation will not be adversely affected and the client gives informed consent in writing, or clearly stated at a hearing
Business Transaction
A lawyer may not enter a business transaction or take a financial interest adverse to a client unless (1) the transaction is fair and reasonable, (2) there’s full written disclosure, and (3) the client consents in writing after a reasonable opportunity to have independent counsel.
Proprietary Interest
A lawyer cannot take a proprietary interest in the case but he may take a lien on the cause of action to secure fees.
Former Client
A lawyer who represented a client must not thereafter represent another client in the same or substantially related matter which that clients interests are materially averse to the former client. Unless, the former client gives informed consent.
Imputed Disqualification
If the lawyer has a conflict of interest with a current or former client, that conflict is generally imputed to the rest of the lawyer’s in the firm. If the lawyer leaves the firm, then the firm itself may represent a client whose interests are adverse to the former attorney’s client unless it is the same or substantially related matter and the remaining lawyer in the firm has confidential information on the former client.
Multiple clients - Same lawyer
If multiple clients want to be represented by the same lawyer, they must be made aware of the potential conflicts that could arise.
Government Employee
A lawyer serving as a current government employee must not participate in a matter in which the lawyer participated personally and substantially while in private practice, unless the appropriate government agency gives informed consent.
Definition of Substantially Related
(1) involves the same transaction or legal dispute or (2) the current matter would involve the lawyer attacking work that the lawyer performed for the former client.
