LEO: Business Activities - Conflict of  LE Op. 1137

 

Business Activities - Conflict of Interest - Disclosure: Personal

Interest of Partner in Firm Adverse to Client.

 

October 13, 1988

 

Your inquiry sets forth the following facts. Plaintiff (as the next

friend or guardian for his mother) has filed suit against defendant for

negligence and fraud related to the home care provided to the mother, who

is an elderly person. Plaintiff is represented by a law firm, and a member

of the firm is a general partner in a partnership that includes defendant

as a limited partner and has as its sole function the management and

possible sale of a building. The partnership is considering renting its

building to the defendant. The law firm representing plaintiff has a

waiver from plaintiff that covers any potential conflicts that might arise

between the representation of plaintiff and the firm's member also being a

general partner in a partnership that includes the defendant as a limited

partner.

 

Although your inquiry raises two separate questions, they are essentially

the same. Does a conflict arise (that affects the defendant) from the law

firm's representation of the plaintiff while at the same time a member of

the law firm is a general partner in a partnership that includes the

defendant as a limited partner and which is considering leasing

partnership property to the defendant?

 

The Committee is of the opinion that the potential conflict of interest

that exists from your inquiry is one that exists between the plaintiff and

the law firm that represents the plaintiff, and the conflict does not

extend to the defendant. Your inquiry does not raise an attorney client

relationship between defendant and the law firm as a result of their

business relationship, nor does it state that the law firm ever rendered

any legal advice to the defendant. The Committee does not address the

potential conflict question between the law firm and plaintiff since your

inquiry does not ask about this, and you also state that a waiver has been

signed by the plaintiff "for any conflicts that might arise from the

plaintiff's standpoint."

 

Committee Opinion October 13, 1988