LEO: Conflict of Interests/Discontinuing LE Op. 475
Conflict of Interests/Discontinuing Multiple Representation.
September 20, 1982
Under the particular circumstances involved, there was no impropriety in
a law firm's continued representation of one corporate client (a
contractor) although another corporate client (a subcontractor) had
alleged a conflict of interests.
Originally, the law firm had represented both clients against a third
party. Disagreements arose, however, between the two clients before any
suit was actually filed against the third party. Also before suit, the
third party itself brought suit against the contractor. Although the law
firm withdrew from representing either client in any suit against the
third party because of the dispute between the two clients themselves, the
firm did agree to continue representing the contractor on a counterclaim
in the suit filed by the third party.
In view of the requirements of DR:5-105(B), this was not improper, as
the firm had withdrawn from any matters which would relate directly to
both corporate clients or which would require that the law firm use any
information obtained from one corporate client against that client.
Committee Opinion September 20, 1982