Conflict of Interest (MR 1.7)
Definition
Model Rule 1.7 governs concurrent conflicts of interest — situations where a lawyer simultaneously represents clients whose interests conflict. A concurrent conflict exists when: (1) representation of one client is directly adverse to another current client, or (2) there is a significant risk that representation of one or more clients will be materially limited by the lawyer’s responsibilities to another client, former client, third person, or the lawyer’s own personal interests.
Elements
Two types of concurrent conflicts (MR 1.7(a)):
- Direct adversity: Lawyer represents Client A against Client B, while also representing Client B in another matter (even unrelated).
- Material limitation: Significant risk that the lawyer’s ability to represent a client will be materially limited by duties to another client, former client, third party, or personal interests.
Consentable conflicts (MR 1.7(b)) — all four conditions must be met:
- Lawyer reasonably believes competent and diligent representation is possible for each client;
- Representation is not prohibited by law;
- Representation does not involve assertion of a claim by one client against another client in the same litigation or proceeding; and
- Each affected client gives informed, written consent.
Key Concepts
- Hot potato rule: A lawyer cannot drop an existing client mid-representation merely to take on a more lucrative adverse client. The dropped client retains former-client status under MR 1.9.
- Personal interest conflicts: Lawyer’s financial interests, family relationships, or personal beliefs can create material limitation conflicts.
- Business transactions with clients: Governed by MR 1.8, which imposes additional procedural requirements.
Policy / Rationale
- Loyalty: clients are entitled to their lawyer’s undivided loyalty.
- Confidentiality: conflicts create risk that confidential information from one representation could be used against another client.
- Competence: divided loyalties may impair the quality of representation each client receives.