Legal Conflicts of Interest

By: Jeffrey Hamilton Geiger. This was posted Thursday, February 23rd, 2012

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A recent post by my colleagues, Faith Alejandro and Doug Rucker, raised the difficulty in representing clients where there may be divergent interests.  generally,  a lawyer cannot represent both sides.  This is not remarkable, and makes perfect sense.  But, of course,  legal fees are not cheap and sometimes parties can agree to a resolution and can agree to use the same lawyer to merely “paper” the transaction.  Such was not the case in In re Lewis Road, LLC, 2011 Bankr. LEXIS 4827 (Dec. 9, 2011), a bankruptcy case, in which the attorneys represented both the debtor and the creditor.  On the one hand, I get it that parties are trying to keep costs down, but on the other hand, it smells bad, looks bad and is bad when the same law firm represents adversaries in a case (unless they have a court-sanctioned and agreed upon waiver).  Take a look at the case note.


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