Duty of Loyalty Flashcards
Define
Duty of Loyalty
A lawyer has a duty of loyalty to his client that requires the lawyer put the client interst above all other interests and avoid any potential conflicts of interests.
Name the types of conflicts of interests
- Between clients
- Between client and a 3rd party
- Between the client and the lawyer’s personal interest
When does a conflict between two or more clients exist?
A COI exists if there is a significant risk that the represtnation will be materially limited by the lawyer’s loyalty or responsiblity to another client or former client.
Conflicts between a client and a 3rd party
Conflicts of Interests
A lawyer has a duty to avoid conlifcts of interst and a lawyer may not represent a client where there is a conflict of intersts.
Exception to
Conflict of Interest
A lawyer may still represent a client despite a concurrent conflict if:
1. The lawyer reasonably believes that the lawyer will be able to provide competent & diligent representation to each affected client, and
2. the represntation is not prohibited by law and
3. The clients are not asserting a claim against each other in the same litigation and
4. Each client gives informed written consent
Corporate Conflicts of Interests
A lawyer employed by an organization represents the orgainization and must act in the best interest of the organization
Reporting Conduct to a Higher Authoirty Within The Org
Corporation/Organizational COI
If a lawyer knows that internal conduct within the organization is in violation of a legal obligation and is likly to result in substantial injury to the organization, the lawyer shall report up within the organization.
Reporting Conduct to a HIgher Authoirty Outside the Org
Corporation/organizational COI
Failure to act by higher authoirty within allows the lawyer to report out and reveal information if such disclosure is necessary to prevent injury
CA: Not allowed to report out > violate confidentiality, must disuade
Conflicts between Lawyer and Client
A lawyer must avoid any COI between themselves and their client.
However, if COI is
1. fully disclosed and
2. the client has an opportunity to consult with outside counsel and
3. client provides written conesnt; may be ok.
Third Party Interference
Compensation from a third party is allowed with client consent.
However 3rd party may not have an intereference with any aspect of representation.
Relationships with Opposing Counsel
May not have a close relationship with opposing counsel without informed written consent.
Gifts
A lawyer may not:
1. Solicit client to make a substantial gift or
2. prepare client instrument giving attorney or relative substantial gift unless related to client or independent lawyer reviews
Remedies for Conflicts of Interests
- Refuse to take the case;
- advsise multiple clients to get seperate counsel; or
- Withdraw
