Duty of Loyalty to Client

Question 1

General

Answer 1

Can’t (i) if rep would be directly adverse to other client or (ii) sig. risk rep will be materially limited by another relationship

*Imputed = firm, other than personal interests

Must disclose in writing any relationship with parties, witnesses or attorneys (good idea to get consent if risk of mat. limitation)

Question 2

Loyalty - Adversity Among Clients

Answer 2

Directly oppose in same matter: never
–CA carves out insurance indemnitors

Rep in other matter: need reas. informed consent of all

Question 3

Loyalty - Adversity + Former Gov’t

Answer 3

Former Gov’t lawyer can’t work on same matter w/out gov’t consent; others at firm can if (i) ethical screen, (ii) no fees, and (iii) gov’t informed

3rd party neutral: can’t work on same matter w/out consent of all parties

Question 4

Loyalty - Adversity w/ Multiple Clients

Answer 4

Need informed consent (explain privilege issues) but can ripen into material limitation and need to w/d

Question 5

Loyalty - Informed Consent

Answer 5

1. Lawyer reas. believes can rep. adq.
2. Not illegal
3. Not adverse in same matter
4. Each affected client consents, confirmed in writing [CA: consent in writing]

Question 6

Loyalty - Atty vs Client

Answer 6

No gifts or will drafting for self (family exception)

No limit malpractice w/out separate writing and ind. counsel [CA: never]

Question 7

Loyalty - Business Transactions or Pecuniary Interests with Client

Answer 7

First Discuss Over Coffee
Fair to client
Disclosed in understandable writing
Outside lawyer involved
Consent signed in writing

Question 8

Loyalty - Publication Rights

Answer 8

Never during rep. [CA: okay with informed consent + judge approval]

Question 9

Loyalty - Loans to Clients

Answer 9

None except advancement of lit costs and expenses [CA: all ok with written agreement, except for promise to pay potential clients debts]

Question 10

Loyalty - Sex w Clients

Answer 10

Not unless predated the rep [CA: cured w/ marriage]

Question 11

Loyalty - Corp

Answer 11

Must report to GC and then if necessary to board

May report to external authority if necessary [CA: no, but preempted w/r/t securities laws and SEC]