conflict of interest?

[fd0331]

What is the name of your state? NY
Is it proper for a lawyer to represent a husband in a pending (but not currently being pursued) divorce action, then at the same time represent both husband and wife in another matter regarding selling a small business they both own an equal, minority stake in (representing them personally, not on behalf of the business)? Seems like there could be a huge conflict of interest.

 

[JETX]

Seems like there could be a huge conflict of interest.

Where?? As long as the two issues are completely separate without any adverse interests, there is no conflict. Further, presumably both parties are aware of this and that would also preclude a conflict.

conflict of interest
n. a situation in which a person has a duty to more than one person or organization, but cannot do justice to the actual or potentially adverse interests of both parties. This includes when an individual's personal interests or concerns are inconsistent with the best for a customer, or when a public official's personal interests are contrary to his/her loyalty to public business. An attorney, an accountant, a business adviser or realtor cannot represent two parties in a dispute and must avoid even the appearance of conflict.

Also, I don't see where this has ANYTHING to do with 'small claims'.

 

[fd0331]

I realized it was the wrong thread after I posted it. OOps. I just thought the conflict would arise from the business being maritial property, and each person having a separate interest in the divorce - one person's best interest in the disposition of the business wouldnt necessarily be in the other's best interest.

 

[seniorjudge]

I must respectfully disagree with jetx.

It looks like the lawyer is handling the disposition of a joint asset belonging to the husband and wife, while at the same time the lawyer has a lawsuit going to dispose of all the assets of the couple, with the lawyer representing just the husband.

That not only looks bad, but it smells bad too.

That lawyer could be asking for a malpractice claim.

 

[JETX]

I must respectfully disagree with jetx.

It looks like the lawyer is handling the disposition of a joint asset belonging to the husband and wife, while at the same time the lawyer has a lawsuit going to dispose of all the assets of the couple, with the lawyer representing just the husband.

That not only looks bad, but it smells bad too.

That lawyer could be asking for a malpractice claim.

And with all due respect... you need to READ the post.
The attorney is representing:
1) the "husband in a pending (but not currently being pursued) divorce action"
AND
2) "both husband and wife in another matter regarding selling a small business they both own an equal, minority stake in".

As long as both parties are aware of BOTH actions and the attorneys involvement in BOTH, there is nothing in the post that would indicate a conflict in the sale of the business (for the benefit of BOTH) and one party in the pending divorce.
Now, if he failed to represent their interests in the sale.... for the benefit of the divorce representation, THAT could lead to a potential problem. But there is nothing in this post that would even suggest that as a possibility... YET!!

 

[seniorjudge]

Now, if he failed to represent their interests in the sale.... for the benefit of the divorce representation, THAT could lead to a potential problem. But there is nothing in this post that would even suggest that as a possibility... YET!!

This is exactly what worries me. Out of an abundance of caution, a lawyer should decline to represent the wife in the business sell out. Suppose there were an argument between h & w over the proceeds of the sale? As we all know, divorcing couples can go to war over a teapot....

 

[seniorjudge]

Actual Court Testimony:
Q: "Can you describe the individual?"
A: "He was about medium height and had a beard."
Q: "Was this a male or female?"

This might be a valid question these days!