Clearing up before moving on: conflicts of interest increase complications when switching firms

Article Abstract:

The ABA Standing Committee on Ethics and Professional Responsibility addressed conflict of interest issues arising on lateral employment in Formal Opinion 96-400. When a lawyer is employed by a firm representing an adverse party in a suit the current firm is working on the adverse party should be notified and if there is an objection the lawyer should not work on the party's representation. Another option is to stop employment negotiations with the firm. One reason to beware of conflicts of interest is they are imputed to all lawyers in the firm.

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When doing deals is risky; don't get involved in a client's business unless you're prepared to cover losses

Article Abstract:

Fraud is presumed until proved not to exist when attorneys do business with clients. ABA Code of Professional Responsibility 5-104 covers most of the disciplinary proceedings arising from such business and requires full disclosure and explanation of the benefits of obtaining independent legal help. ABA Model Rule 1.8(a) bars business transactions adverse to clients unless full disclosure is made. Establishing that the transaction was fair to clients when the attorney does better in the end than the client may be the most difficult of all.

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Three-way street: discord between insurers and insureds puts defense lawyers on perilous path

Article Abstract:

Lawyers hired by an insurance company to represent the insured client often face competing duties when the two clients' interests come into conflict. Most courts and ethics bodies have held that such attorneys owe the insurer fiduciary or contractual duties, but that attorney-client privileges extend only to the insured, even when information arises that would cause the insurance to be canceled. In-house attorneys for insurers assigned to represent an insured face the most difficult situations.

Cases, Laws, regulations and rules, Practice, Corporate counsel, Insurance law, Indemnity

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