QUESTION

If a lawyer sents up you''re llc can he the represnt a lesser member of the llc or is that a conflict of intrest that can be brought up on ethics

Asked on Aug 17th, 2011 on Business Law - Florida
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  It depends. For example: if the lawyer set up the LLC and then undertakes litigation against the LLC on behalf of the minority interest holder, the lawyer may have violated the Florida Bar Rules of Professional Conduct, Rule 4-1.7(a): (a) Representing Adverse Interests. Except as provided in subdivision (b), a lawyer shall not represent a client if:   the representation of 1 client will be directly adverse to another client; or there is a substantial risk that the representation of 1 or more clients will be materially limited by the lawyer's responsibilities to another client, a former client or a third person or by a personal interest of the lawyer.   However, there are exceptions to this rule, including consent of the client, contained in Rule 4-1.7(b) that would permit the representation: (b) Notwithstanding the existence of a conflict of interest under subdivision (a), a lawyer may represent a client if:   the lawyer reasonably believes that the lawyer will be able to provide competent and diligent representation to each affected client; the representation is not prohibited by law; the representation does not involve the assertion of a position adverse to another client when the lawyer represents both clients in the same proceeding before a tribunal; and each affected client gives informed consent, confirmed in writing or clearly stated on the record at a hearing.   Nonetheless, the lawyer who represents the LLC subsequently may represent a minority interest holder in a matter that is completely unrelated to his or her work for the LLC without any conflict whatsoever. Talk with your attorney if you believe that his or her representation of another party poses a conflict of interest. Very often you can resolve the conflict without having to resort to measures such as filing a complaint with the Florida Bar.    
Answered on Aug 26th, 2011 at 3:09 PM

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