Business Law

Business Law News ISSUE 2, 2024

DETERMINING WHETHER A REPRESENTATION AGAINST A CLIENT’S SUBSIDIARY CONSTITUTES A CONFLICTED REPRESENTATION

Written by Elizabeth L. Bradley*

Does the representation of a client against a subsidiary of a current client constitute a conflicted representation? Not surprisingly, the answer to this question is … it depends. As with so many ethics questions, there is no bright line rule.

DUTY OF LOYALTY IS PARAMOUNT IN CONCURRENT REPRESENTATIONS

"A lawyer shall not, without informed written consent from each client … represent a client if the representation is directly adverse to another client in the same or a separate matter," even where the two matters are entirely unrelated.01 "The primary value at stake in cases of simultaneous or dual representation is the attorney’s duty—and the client’s legitimate expectation—of loyalty, rather than confidentiality."02 The test for disqualification due to simultaneous representation is stringent.03 A client who learns that their lawyer is also representing a litigation adversary, even in a wholly unrelated matter, cannot be expected to sustain the level of confidence and trust in counsel that is one of the foundations of the professional relationship.04

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