factors to consider by an attorney who is called to represent an organization and also its members

by Dr. Tobin Beatty 5 min read

Can a lawyer represent any member of an organization?

Standard 4-5.2 Control and Direction of the Case. Standard 4-5.3 Obligations of Stand-By Counsel. Standard 4-5.4 Consideration of Collateral Consequences. Standard 4-5.5 Special Attention to Immigration Status and Consequences.

What factors determine whether a lawyer will represent both parties?

May 28, 2018 · If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.

When does a lawyer undertakes to represent the client on an ongoing basis?

Apr 07, 2016 · Selecting the right attorney to represent your business is a big commitment. Many factors differentiate one attorney from the next, from …

Can a lawyer's own interests affect the representation of a client?

1. Loyalty is an essential element in the lawyer's relationship to a client. An impermissible conflict of interest may exist before representation is undertaken, in which event the representation should be declined.

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When an attorney represents an entity the attorney's client is?

An attorney who represents an entity generally has only one client, the entity itself. This is true when an attorney represents a private corporation, which acts through its directors, officers, and others.

Which of the following are requirements for attorneys based on the model rules?

Model Rules of Professional ResponsibilityConfidentiality. A lawyer should preserve the confidences of a client. ... Professional Judgement. A lawyer should exercise independent professional judgment on behalf of a client. ... Competence. A lawyer must represent a client competently. ... Zealous Representation.Apr 12, 2018

What are the functions of a lawyer when representing a client?

As advisor, a lawyer provides a client with an informed understanding of the client's legal rights and obligations and explains their practical implications. As advocate, a lawyer zealously asserts the client's position under the rules of the adversary system.

What are the duties of lawyer to his clients as provided by the legal code of ethics?

CANON 1 - A LAWYER SHALL UPHOLD THE CONSTITUTION, OBEY THE LAWS OF THE LAND AND PROMOTE RESPECT FOR LAW OF AND LEGAL PROCESSES. Rule 1.01 - A lawyer shall not engage in unlawful, dishonest, immoral or deceitful conduct.

What is an attorney called?

A lawyer (also called attorney, counsel, or counselor) is a licensed professional who advises and represents others in legal matters. Today's lawyer can be young or old, male or female.Sep 10, 2019

Which of the following are requirements for attorneys based on the model rules quizlet?

Model Rules of Professional Conduct Relative complexity and specialized nature of the matter. General Experience (newly admitted still may be competent) Specialized training/experience. Preparation and study the lawyer is able to give the matter. Feasible to make a referral to someone who is competent.

What are the four fold duties of a lawyer?

CommentsLegal Profession (Reviewer with cases) ... Atty. ... FOUR FOLD DUTIES OF A LAWYER. ... - Should not violate his responsibility to society, exemplar for. ... guardian of due process, aware of special role in the solution. ... the study and solution of social problems. ... - Candor, fairness, courtesy and truthfulness, avoid.More items...

What are the four responsibilities of lawyers?

DutiesAdvise and represent clients in courts, before government agencies, and in private legal matters.Communicate with their clients, colleagues, judges, and others involved in the case.Conduct research and analysis of legal problems.Interpret laws, rulings, and regulations for individuals and businesses.More items...•Sep 8, 2021

What are the 5 responsibilities of a lawyer?

Responsibilities for LawyerDraft, review, and negotiate contracts, leases, and other legal documents.Strategically counsel clients and potential clients on legal matters.Identify legal or contractual issues and develop new approaches to resolve complex issues.More items...

What is an attorney's purpose?

An attorney provides legal advice to individuals who require proper representation in legal proceedings. As an attorney, they make sure that they clients (organization or individuals) receive maximum representation offered by the law.

What is an organization's code of conduct?

A well-written code of conduct clarifies an organization's mission, values and principles, linking them with standards of professional conduct. The code articulates the values the organization wishes to foster in leaders and employees and, in doing so, defines desired behavior.Oct 25, 2021

What are the duties and responsibilities of the members of the legal team?

Legal Counsel responsibilities include:Giving accurate and timely counsel to executives in a variety of legal topics.Collaborating with management to devise efficient defense strategies.Specifying internal governance policies and regularly monitor compliance.

What is a flat rate for attorneys?

Some attorneys are willing to offer alternative billing structures, such as flat rates or a cap on the amount they charge for a project. For example, if they typically take three to five hours to set up a corporation, they might agree to a cap of not more than fives times their hourly rate. Having a flat rate or a cost cap can be key in helping you prevent surprise legal bills. – Doug Bend , Bend Law Group, PC

Do attorneys know the law?

So often, attorneys are singular in that they know the law, but not much else. Attorneys tend to hedge their advice towards risk aversion. However, many times, the cost to prevent certain risks is actually too high from a business perspective. Find an attorney that can and will present both sides of that equation.

What are the principles of a lawyer?

General Principles. [1] Loyalty and independent judgment are essential elements in the lawyer's relationship to a client. Concurrent conflicts of interest can arise from the lawyer's responsibilities to another client, a former client or a third person or from the lawyer's own interests. For specific Rules regarding certain concurrent conflicts ...

Why is a lawyer asked to represent several individuals seeking to form a joint venture likely to be materially limited in

For example, a lawyer asked to represent several individuals seeking to form a joint venture is likely to be materially limited in the lawyer's ability to recommend or advocate all possible positions that each might take because of the lawyer's duty of loyalty to the others.

What is a conflict of interest in a lawyer?

[8] Even where there is no direct adverseness, a conflict of interest exists if there is a significant risk that a lawyer's ability to consider, recommend or carry out an appropriate course of action for the client will be materially limited as a result of the lawyer's other responsibilities or interests. For example, a lawyer asked to represent several individuals seeking to form a joint venture is likely to be materially limited in the lawyer's ability to recommend or advocate all possible positions that each might take because of the lawyer's duty of loyalty to the others. The conflict in effect forecloses alternatives that would otherwise be available to the client. The mere possibility of subsequent harm does not itself require disclosure and consent. The critical questions are the likelihood that a difference in interests will eventuate and, if it does, whether it will materially interfere with the lawyer's independent professional judgment in considering alternatives or foreclose courses of action that reasonably should be pursued on behalf of the client.

Can a client terminate a lawyer's representation?

[21] A client who has given consent to a conflict may revoke the consent and, like any other client, may terminate the lawyer's representation at any time. Whether revoking consent to the client's own representation precludes the lawyer from continuing to represent other clients depends on the circumstances, including the nature of the conflict, whether the client revoked consent because of a material change in circumstances, the reasonable expectations of the other client and whether material detriment to the other clients or the lawyer would result.

What is informed consent?

[18] Informed consent requires that each affected client be aware of the relevant circumstances and of the material and reasonably foreseeable ways that the conflict could have adverse effects on the interests of that client . See Rule 1.0 (e) (informed consent). The information required depends on the nature of the conflict and the nature of the risks involved. When representation of multiple clients in a single matter is undertaken, the information must include the implications of the common representation, including possible effects on loyalty, confidentiality and the attorney-client privilege and the advantages and risks involved. See Comments [30] and [31] (effect of common representation on confidentiality).

Can a lawyer represent another person?

Thus, a lawyer related to another lawyer, e.g., as parent, child, sibling or spouse, ordinarily may not represent a client in a matter where that lawyer is representing another party, unless each client gives informed consent.

Can a lawyer represent a parent or subsidiary?

[34] A lawyer who represents a corporation or other organization does not, by virtue of that representation, necessarily represent any constituent or affiliated organization, such as a parent or subsidiary. See Rule 1.13 (a). Thus, the lawyer for an organization is not barred from accepting representation adverse to an affiliate in an unrelated matter, unless the circumstances are such that the affiliate should also be considered a client of the lawyer, there is an understanding between the lawyer and the organizational client that the lawyer will avoid representation adverse to the client's affiliates, or the lawyer's obligations to either the organizational client or the new client are likely to limit materially the lawyer's representation of the other client.

Who should determine whether the responsibilities of the two roles may conflict?

16. A lawyer for a corporation or other organization who is also a member of its board of directors should determine whether the responsibilities of the two roles may conflict. The lawyer may be called on to advise the corporation in matters involving actions of the directors.

What is loyalty to a client?

Loyalty to a Client. 1. Loyalty is an essential element in the lawyer's relationship to a client. An impermissible conflict of interest may exist before representation is undertaken, in which event the representation should be declined. If such a conflict arises after representation has been undertaken, the lawyer must take effective action ...

What is conflict of interest?

1.06 Conflict of Interest: General Rule. (a) A lawyer shall not represent opposing parties to the same litigation. (1) involves a substantially related matter in which that person's interests are materially and directly adverse to the interests of another client of the lawyer or the lawyer's firm; or. (2) reasonably appears to be ...

Can a lawyer represent multiple parties?

14. For example, a lawyer may not represent multiple parties to a negotiation whose interests are fundamentally antagonistic to each other, but common representation may be permissible where the clients are generally aligned in interest even though there is some difference of interest among them. 15.

Can a law firm represent a client?

A law firm is not prohibi ted from representing a client under paragraph (f) merely because a nonlawyer employee of the firm, such as a paralegal or legal secretary, has a conflict of interest arising from prior employment or some other source.

What is the principle of paragraph A?

2. A fundamental principle recognized by paragraph (a) is that a lawyer may not represent opposing parties in litigation. The term opposing parties as used in this Rule contemplates a situation where a judgment favorable to one of the parties will directly impact unfavorably upon the other party. Moreover, as a general proposition loyalty ...

Can a lawyer be paid from a source other than the client?

Interest of Person Paying for a Lawyer's Service. 12. A lawyer may be paid from a source other than the client, if the client is informed of that fact and consents and the arrangement does not compromise the lawyer's duty of loyalty to the client. See Rule 1.08 (e).

What is the board of directors of a corporation?

The board of directors of a corporation are charged with its management, BOC § 21.401, but the board's authority must be exercised as a group—individual directors have no authority apart from the board. When a shareholder fight involves two directors, the corporation's lawyer is faced with a real dilemma.

Who is the plaintiff in a derivative suit?

In derivative suit, the corporation is the real plaintiff. Whether this is a matter of form over substance or not, simultaneously suing and representing the same party is an ethical issue that the law takes very seriously.

What is vested in a corporation?

of a corporation or for impairment or destruction of its business is vested in the corporation, as distinguished from its shareholders, even though the harm may result indirectly in the loss of earnings to the shareholders. The individual shareholders have no separate and independent right of action for wrongs to the corporation that merely results in depreciation in the value of their stock. As a result, to recover for wrongs done to the corporation, the shareholder must bring the suit derivatively in the name of the corporation so that each shareholder will be made whole if the corporation obtains compensation from the wrongdoer.

What is shareholder derivative suit?

The usual situation in a shareholder derivative suit is that the shareholder is bringing a claim against those in control of the corporation (officers, directors and/or controlling shareholders) for damage done to the corporation through a breach of their fiduciary duties, such as looting the corporation's assets through excessive compensation.

Can the same attorney represent a corporation in Texas?

Although no Texas court has addressed the issue, a many decisions in other jurisdictions have held that, in general, the same attorney may not represent both the corporation and the individual defendants accused of serious breach of fiduciary duties to that corporation.

What is the court decision based on?

The court reached its decision based upon both the conflict of interest between the corporation and its directors, and the possibility that confidences obtained from one client during the course of representation might be used to the detriment of the other. Many other courts have reached the same result.

What is the conflict rule?

Most courts have applied the conflict rule only in cases involving allegations of serious misconduct by the individual defendants. The Third Circuit held that where the claims against the individuals were merely negligence or mismanagement, that is breaches of the duty of care rather than the duty of loyalty, then disqualification was not required. Also courts do not apply the rule in derivative cases that are "patently frivolous."

Why does a power of attorney end?

A power of attorney can end for a number of reasons, such as when the principal dies, the principal revokes it, a court invalidates it, the principal divorces their spouse, who happens to be the agent, or the agent can no longer carry out the outlined responsibilities. Conventional POAs lapse when the creator becomes incapacitated.

What is Durable POA?

A “durable” POA remains in force to enable the agent to manage the creator’s affairs, and a “springing” POA comes into effect only if and when the creator of the POA becomes incapacitated. A medical or healthcare POA enables an agent to make medical decisions on behalf of an incapacitated person.

How to start a power of attorney?

A better way to start the process of establishing a power of attorney is by locating an attorney who specializes in family law in your state. If attorney's fees are more than you can afford, legal services offices staffed with credentialed attorneys exist in virtually every part of the United States.

When should a power of attorney be considered?

A power of attorney should be considered when planning for long-term care. There are different types of POAs that fall under either a general power of attorney or limited power of attorney . A general power of attorney acts on behalf of the principal in any and all matters, as allowed by the state.

Who is Julia Kagan?

Julia Kagan has written about personal finance for more than 25 years and for Investopedia since 2014. The former editor of Consumer Reports, she is an expert in credit and debt, retirement planning, home ownership, employment issues, and insurance.

Can you use verbal instruction to get a POA?

While some regions of the country accept oral POA grants, verbal instruction is not a reliable substitute for getting each of the powers of attorney granted to your agent spelled out word-for-word on paper. Written clarity helps to avoid arguments and confusion.

Why do parents need POAs?

Ask parents to create POAs for the sake of everyone in the family—including the children and grandchildren— who may be harmed by the complications and costs that result if a parent is incapacitated without a durable POA in place to manage the parent’s affairs.

Who informs the appropriate professional authority of a lawyer who has committed a violation of the Rules of Professional Conduct?

A lawyer who knows that another lawyer has committed a violation of the Rules of Professional Conduct that raises a substantial question as to that lawyer’s honesty, trustworthiness or fitness as a lawyer in other respects, shall inform the appropriate professional authority.

What is a group of lawyers?

A group of lawyers could be regarded as a firm for purposes of a rule that the same lawyer should not represent opposing parties in litigation, e.g., Rules 1.7 (a), 1.10 (a), while it might not be so regarded for purposes of a rule that information acquired by one lawyer is attributed to another, e.g., Rule 1.10 (b).

Why are lawyers important?

Lawyers play a vital role in the preservation of society. The fulfillment of this role requires an understanding by lawyers of their relationship to our legal system. The Rules of Professional Conduct, when properly applied, serve to define that relationship.

What is the role of a lawyer in the adversary system?

As advocate, a lawyer zealously asserts the client’s position under the rules of the adversary system. As negotiator, a lawyer seeks a result advantageous to the client but consistent with requirements of honest dealings with others.

How long does a seller have to give notice of a sale in Pennsylvania?

Once an agreement is reached between the seller and the purchaser, the client must be given written notice of the contemplated sale and file transfer including the identity of the purchaser, and must be told that the decision to consent or make other arrangements must be made within 60 days. If notice is given, and the client makes no response within the 60 day period, client consent to the sale will be presumed. The Rule provides the minimum notice to the seller’s clients necessary to make the sale effective under the Rules of Professional Conduct. The seller is encouraged to give sufficient information concerning the purchasing law firm or lawyer who will handle the matter so as to provide the client adequate information to make an informed decision concerning ongoing representation by the purchaser. Such information may include without limitation the purchaser’s background, education, experience with similar matters, length of practice, and whether the purchaser is currently licensed in Pennsylvania.

When a client's capacity to make adequately considered decisions in connection with a representation is diminished, whether because of

When a client's capacity to make adequately considered decisions in connection with a representation is diminished, whether because of minority, mental impairment or for some other reason, the lawyer shall, as far as reasonably possible, maintain a normal client-lawyer relationship with the client.#N#When the lawyer reasonably believes that the client has diminished capacity, is at risk of substantial physical, financial or other harm unless action is taken and cannot adequately act in the client's own interest, the lawyer may take reasonably necessary protective action, including consulting with individuals or entities that have the ability to take action to protect the client and, in appropriate cases, seeking the appointment of a guardian ad litem, conservator or guardian.#N#Information relating to the representation of a client with diminished capacity is protected by Rule 1.6. When taking protective action pursuant to paragraph (b), the lawyer is impliedly authorized under Rule 1.6 (a) to reveal information about the client, but only to the extent reasonably necessary to protect the client's interests.

Why do lawyers delay information?

In some circumstances, a lawyer may be justified in delaying transmission of information when the client would be likely to react imprudently to an immediate communication. Thus, a lawyer might withhold a psychiatric diagnosis of a client when the examining psychiatrist indicates that disclosure would harm the client. A lawyer may not withhold information to serve the lawyer's own interests or convenience or the interests or convenience of another person. Rules or court orders governing litigation may provide that information supplied to a lawyer may not be disclosed to the client.

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General Principles

  • Loyalty and independent judgment are essential elements in the lawyer's relationship to a client. Concurrent conflicts of interest can arise from the lawyer's responsibilities to another client, a former client or a third person or from the lawyer's own interests. For specific Rules regarding certain concurrent conflicts of interest, see Rule 1.8. For former client conflicts of interest, see R…
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Identifying Conflicts of Interest: Directly Adverse

  • Loyalty to a current client prohibits undertaking representation directly adverse to that client without that client's informed consent. Thus, absent consent, a lawyer may not act as an advocate in one matter against a person the lawyer represents in some other matter, even when the matters are wholly unrelated. The client as to whom the representation is directly adverse is likely to feel …
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Identifying Conflicts of Interest: Material Limitation

  • Even where there is no direct adverseness, a conflict of interest exists if there is a significant risk that a lawyer's ability to consider, recommend or carry out an appropriate course of action for the client will be materially limited as a result of the lawyer's other responsibilities or interests. For example, a lawyer asked to represent several individuals seeking to form a joint venture is likely t…
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Lawyer's Responsibilities to Former Clients and Other Third Persons

  • In addition to conflicts with other current clients, a lawyer's duties of loyalty and independence may be materially limited by responsibilities to former clients under Rule 1.9 or by the lawyer's responsibilities to other persons, such as fiduciary duties arising from a lawyer's service as a trustee, executor or corporate director.
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Personal Interest Conflicts

  • The lawyer's own interests should not be permitted to have an adverse effect on representation of a client. For example, if the probity of a lawyer's own conduct in a transaction is in serious question, it may be difficult or impossible for the lawyer to give a client detached advice. Similarly, when a lawyer has discussions concerning possible employment with an opponent of the lawyer…
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Interest of Person Paying For A Lawyer's Service

  • A lawyer may be paid from a source other than the client, including a co-client, if the client is informed of that fact and consents and the arrangement does not compromise the lawyer's duty of loyalty or independent judgment to the client. See Rule 1.8(f). If acceptance of the payment from any other source presents a significant risk that the lawyer's representation of the client wil…
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Prohibited Representations

  • Ordinarily, clients may consent to representation notwithstanding a conflict. However, as indicated in paragraph (b), some conflicts are nonconsentable, meaning that the lawyer involved cannot properly ask for such agreement or provide representation on the basis of the client's consent. When the lawyer is representing more than one client, the question of consentability m…
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Informed Consent

  • Informed consent requires that each affected client be aware of the relevant circumstances and of the material and reasonably foreseeable ways that the conflict could have adverse effects on the interests of that client. See Rule 1.0(e) (informed consent). The information required depends on the nature of the conflict and the nature of the risks involved. When representation of multipl…
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Consent Confirmed in Writing

  • Paragraph (b) requires the lawyer to obtain the informed consent of the client, confirmed in writing. Such a writing may consist of a document executed by the client or one that the lawyer promptly records and transmits to the client following an oral consent. See Rule 1.0(b). See also Rule 1.0(n) (writing includes electronic transmission). If it is not feasible to obtain or transmit th…
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Revoking Consent

  • A client who has given consent to a conflict may revoke the consent and, like any other client, may terminate the lawyer's representation at any time. Whether revoking consent to the client's own representation precludes the lawyer from continuing to represent other clients depends on the circumstances, including the nature of the conflict, whether the client revoked consent because …
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