QUESTION
When does a lawyer''s multiple family, friend and business relationships with other parties to an agreement constitute conflict of interest?
Asked on Jun 14th, 2012 on Business Law - New York
More details to this question:
A lawyer representing a business I co-founded has relationships with my two other partners such that I don''t believe he can fairly represent my interests as we move to incorporate and file for IP protection. At law, can he be held to be in conflict of interest in order for me to void earlier Agreements (whose conditions were not met in any case)? The Agreements are construed under NY state law.
2 ANSWERS
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The answer to your question will be very fact specific. You need to have a meeting with the attorney to express your concerns. If the lawyer represents the business but agrees never to represent one shareholder against another, one director against another, then probably no conflict exists. If you remain in doubt, you will need to have a NY lawyer review the factual background, the retainer agreement, and other corporate documents to give you a more definitive response.
Answered on Jun 16th, 2012 at 4:30 PM
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Both the nature of the "relationships" and the role he played in the "earlier agreements" are insufficiently clear from your inquiry. As a general matter, only certain types of "conflicts" are actual barriers in these kinds of relationships -- for example, mere acquaintanceships, being co-stockholders of an unrelated business, etc., may not be disqualifying. Moreover, the misconduct of your own attorney will rarely, if ever, constitute a ground for avoiding your own contractual obligations to a third party.
Answered on Jun 14th, 2012 at 1:45 PM