Legal Ethics Opinion No. 1435
Confidences and Secrets: Attorney As A Witness
Following Multiple Real Estate Representation
You have presented a hypothetical situation in which a
lawyer represents both buyer and seller in a real
estate closing. After problems arise related to the
deal, seller sues buyer for breach of contract. Seller
intends to call the attorney who represented both the
buyer and the seller in the closing as a witness on his
behalf and the former attorney intends to testify on
behalf of the seller.
You have asked the committee to opine whether, under
the facts of the inquiry, it is proper for the closing
attorney to testify on behalf of the seller. You have
also inquired as to the committee's opinion regarding
whether, in the event of a conflict of interest, the
real estate attorney can be stopped from testifying
even though he faces ethical violations.
The appropriate and controlling Disciplinary Rule
related to your first inquiry is DR 4-101(B) which
provides that a lawyer shall not reveal or use
confidences or secrets of his client.
Ordinarily, it is not improper for an attorney to
testify on behalf of a former client represented by the
attorney in the same matter when requested to do so by
the former client. See LEO #322. It is also
well-established, however, that if an attorney
undertakes to represent both buyer and seller in a real
estate transaction, it is unethical for him to
subsequently represent either party against the other,
unless the other party consents after full disclosure.
See LEOs #414 and #656. Additionally, when a lawyer
represents both parties to a real estate transaction,
he has a duty to inform his clients at the outset of
the transaction that he will not be able to represent
either party against the other if a dispute should
arise. See LEO #1000.
Thus, the committee opines that it would not be
improper for the closing attorney to testify
voluntarily on behalf of the seller in the breach of
contract action. If, however, he is called upon to
reveal confidences and secrets gained in the former
attorney-client relationship with the buyer, he should
not so answer unless the privilege is waived by the
former clients or unless he is ordered to do so by the
Court.
As regards your second inquiry, the question of whether
an attorney can be stopped from testifying even though
he faces ethical violations raises legal issues which
fall outside the committee's purview and thus cannot be
addressed in the scope of a Legal Ethics Opinion.
Committee Opinion
November 18, 1991
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