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Extract from article by Shari Klevens, Randy Evans, and Lino Lipinsky de Orlov

Virtually all attorneys know that the Rules of Professional Conduct prohibit certain conflicts of interest. Yet, almost daily, the legal media report large settlements or verdicts involving legal malpractice claims premised on conflicts of interest. Why is that?

The economic pressures of the modern legal practice have pushed many attorneys to accept engagements close to the line between permissible and impermissible conflicts of interest. Some law practices assume that, if the anticipated fee is large enough, the conflict must be resolvable. Unfortunately, when such representations turn sour, the law firm or its insurer typically faces a payment to the former client.

For most attorneys, conflict of interest claims arise from unexpected circumstances rather than from situations in which an attorney skirted, or attempted to avoid, the clear application of the rules addressing conflicts. Below are the three most common circumstances from which unexpected conflicts issues materialize.

 

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