PR

Question 1

Duty of Loyalty

Answer 1

A lawyer has a duty of loyalty to his client that requires him to put the interest of his client above all other interests and to avoid any conflicts of interests.

Question 2

Conflict of Interest: General Rule

Answer 2

A lawyer may not represent a client where there is a conflict of interest.

Question 3

Conflict of Interest between current client and another

Answer 3

COI exists when there is 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 personal interest of the lawyer.

Question 4

Exception to Conflict of Interest

Answer 4

A lawyer may still represent the client despite a conflict of interest if:
1. The lawyer reasonably believes that the lawyer will be able to provide competent and diligent representation to each affected client without an adverse effect; and
2. The representation 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

Question 5

CA Rule: Special Types of conflicts: Insurance

Answer 5

Lawyers are permitted to represent both insurers and insureds whereby the insurer has the contractual right to unilaterally select counsel for the insured, resulting in no conflict of interest.

Question 6

Organizational Client

Answer 6

• L must act in the best interest of the organization. L owes the duty of loyalty and confidentiality to the organization
• L employed by an organization may also represents the organization’s officers, directors, employees, shareholders, or other constituents if the requirements fr the exception to requirements for the exceptions in representing those with conflicts of interests are met.

Question 7

Organization client: reporting misconduct

Answer 7

• If the lawyer knows of a member’s planned or actual conduct that is a violation of a legal obligation or a violation of the law and that will cause substantial injury to the entity, he must report it to the highest authority within the entity if that would be in the best interests of the organization
• If the highest authority fails to take action and L reasonably believes the violation will result in substantial injury to the organization:
• MR: L may report out and reveal information, even if confidential, if such disclosure is necessary to prevent the injury.
• CA: L may not report out and disclose information outside the org if it will violate the duty of confidentiality. Instead, L should urge reconsideration, resign from representation, or withdraw from representation.

CA death/substantial bodily harm exception: L may report out if necessary to prevent a criminal act likely to result in death or substantial bodily harm.