Holding Lawyers Accountable for Compromising Their Clients´ Interests
In their zeal to get and keep good clients, lawyers and law firms sometimes skirt the rules for avoiding conflicts of interest. When they do so and their clients are harmed as a result, they can be held accountable for the consequences of their actions. At Schachter Harris, LLP, our Texas legal malpractice lawyers help clients recover compensation from attorneys and law firms that have harmed their interests in the process of advancing the interests of others.
When a client hires a law firm, he or she is entitled to the undivided and unquestioned loyalty of the firm and its attorneys. There are a variety of circumstances in which a conflict of interest may arise in the course of legal representation, including the following:
- Conflicts between clients: A lawyer cannot accept employment from two clients whose interests are materially and directly adverse unless he or she reasonably believes that the representation of each client would not be materially affected by the dual representation. Even if this is the case, both clients must consent to the arrangement upon full disclosure of the implications and possible adverse consequences.
- Conflicts between entities and managers: When a lawyer is hired to represent a corporation or other entity, the actual hiring is typically done by managers within that entity. When those individuals have interests that are adverse to the interests of the entity — for instance, when a manager stands to earn a commission on a transaction that is not in the entity´s interests — the attorney´s duty is to the entity. If the attorney instead acts on behalf of management, he or she may be liable for malpractice.
- Conflicts between attorneys and clients: Lawyers serve as valued advisers to their clients. Often, as a result of these relationships, attorneys become directly involved in their clients´ businesses and profit from that involvement. Once an attorney-client relationship exists, however, any business deal between a lawyer and his or her client is subject to strict scrutiny by the law. If an attorney profits unreasonably at the expense of his or her client, the client may have a remedy for malpractice.
All of the rules for avoiding conflicts of interest apply to firms as well as individual attorneys. If you believe your lawyer, or another lawyer at the same firm, has acted against your interests, we encourage you to contact us at our Dallas-area offices to discuss your options.
