Conflicts Between Concurrent Clients  under Professional Responsibility

Conflicts Between Concurrent Clients under Professional Responsibility

Overview

In the legal profession, a conflict of interest arises when a lawyer’s duty to one client is materially limited by responsibilities to another client, a former client, or the lawyer’s own interests. When a lawyer represents concurrent clients—meaning multiple clients at the same time—a conflict may arise if the clients’ interests are adverse or if representation for one client adversely affects the other.

The duty of loyalty and confidentiality are fundamental ethical obligations in such situations. Professional responsibility rules seek to prevent situations where a lawyer’s ability to represent a client effectively is compromised by competing obligations to another client.

Types of Conflicts Between Concurrent Clients

Direct Adversity: When two clients have opposing interests in the same matter or related matters.

Material Limitation: Even if clients are not directly opposing each other, the lawyer’s ability to represent one client may be materially limited by responsibilities to another client.

Ethical Rules Governing Conflicts (Generally under ABA Model Rules)

Rule 1.7 (Conflict of Interest: Current Clients):
A lawyer shall not represent a client if the representation involves a concurrent conflict of interest unless:

The lawyer reasonably believes they can provide competent and diligent representation to each affected client.

The representation is not prohibited by law.

Each affected client gives informed consent, confirmed in writing.

Rule 1.9 (Duties to Former Clients): Deals with conflicts involving former clients, but here we focus on concurrent ones.

Key Issues in Conflicts Between Concurrent Clients

Informed Consent: Clients must be fully informed of the risks and potential adverse effects of the conflict.

Confidentiality: The lawyer must avoid sharing confidential information between clients.

Withdrawal: If conflicts arise during representation and cannot be waived, the lawyer may be required to withdraw from representing one or both clients.

Case Law Illustrations

1. In re Snyder, 472 U.S. 634 (1985)

Facts: The case involved a lawyer disciplined for continuing representation despite a conflict.

Issue: The extent of the lawyer's duty to avoid conflicts and the impact on professional conduct.

Outcome: The Supreme Court emphasized the importance of the lawyer’s duty of loyalty and the need to avoid conflicts, upholding disciplinary actions against lawyers who fail to do so.

Significance: Reinforces that lawyers must avoid conflicts between concurrent clients to maintain professional integrity.

2. In re Grand Jury Subpoena Duces Tecum Dated Sept. 15, 1983, 731 F.2d 1032 (2d Cir. 1984)

Facts: A lawyer represented two clients with conflicting interests during a grand jury investigation.

Issue: Whether the lawyer’s representation violated ethical duties due to conflict of interest.

Outcome: The court held that representation of clients with conflicting interests without informed consent violates professional responsibility rules.

Significance: Illustrates how courts scrutinize conflicts in concurrent representation and emphasize informed consent.

3. Haines v. Liggett Group Inc., 975 F.2d 81 (3d Cir. 1992)

Facts: A lawyer represented multiple clients with adverse interests in a class action lawsuit.

Issue: Whether the lawyer breached fiduciary duties by representing clients with conflicting interests.

Outcome: The court found a breach and held the lawyer accountable.

Significance: Demonstrates the legal consequences when conflicts between concurrent clients are ignored or inadequately addressed.

Practical Examples

Multiple Defendants in a Criminal Case: Representing co-defendants may create a direct conflict if their defenses diverge.

Business Transactions: Representing two business partners who later have a dispute.

Class Actions: Lawyers must ensure no conflict exists between individual class members.

Conclusion

Conflicts between concurrent clients present serious ethical challenges for lawyers. Professional responsibility requires lawyers to:

Identify potential conflicts early.

Fully disclose conflicts to all clients.

Obtain informed consent before continuing representation.

Withdraw when conflicts cannot be resolved.

Failure to comply can lead to disciplinary action, loss of client trust, and adverse judicial consequences.

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