Also known as: substantial conflicts of interest · conflict of interest
Written by attorneys · grounded in primary & secondary sources — see below
A circumstance in which a fiduciary's or professional's loyalty or judgment is materially compromised by competing duties or personal stakes.
Select any source to read its text and confirm it supports the definition.
Samantha Stone retained counsel to sue Spencer Silver over a contract dispute. The same firm simultaneously defended Spencer in an unrelated regulatory matter. The firm withdrew from both matters after the conflict surfaced.
Stella Shapiro served as personal representative of her aunt's estate. She sold estate land to a trust in which she held a substantial interest without court approval or disclosure. An heir voided the transaction.
Scott Summers's firm sued Silverline Industries on behalf of one client while defending the same company in a separate action filed by another client. Different offices handled the matters. The court disqualified the firm from both representations.
Sofia Stern's lawyer disclosed a concurrent conflict arising from prior work for an adverse party. Both clients gave written informed consent after the lawyer confirmed competent representation remained possible. The representation proceeded under the exception.
A federal judge served as trustee of a university negotiating a settlement with a litigant whose case was pending before him. The judge lacked actual knowledge of the overlap at the time of judgment. The appellate court vacated the judgment on the objective appearance of conflict.
A state judge continued acquiring bonds issued by a city that was a party in pending litigation. The judge did not participate in the specific rulings affecting the bonds. The judicial conduct commission imposed discipline for the appearance of impropriety.
A lawyer may not represent a client if the representation is directly adverse to another client or if there is a significant risk that the lawyer's responsibilities to another client or a personal interest will materially limit the representation.
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Any sale or encumbrance to the personal representative or to an entity in which the representative holds a substantial beneficial interest is voidable, as is any transaction affected by a substantial conflict of interest, unless the will authorized it, the court approves it after notice, or an interested person consented after fair disclosure.
…allege and have sought to prove that the respondent executors Bernard J. Reis and Theodoros Stamos have each been involved in a conflict of interest and duality of position in the making and performance of the said agreements with the respondents Marlboroughs. The third executor, the respondent Morton Levine, not charged with a conflict…
…does not violate the duty of loyalty to the client or undertake to represent both parties without an appropriate waiver of the conflict of interest
…institute this paternity action against the husband. Because of a clerical error, the firm's computer check did not reveal the conflict of interest inherent in its representation of the mother against the husband. On learning of the
…See "Developments of the Law — Conflicts
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No. Simultaneous representation of one client while opposing that same client in another matter constitutes a per se conflict even when the matters are unrelated and handled by separate offices.
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A lawyer may proceed if the lawyer reasonably believes competent and diligent representation can be provided to each client, the representation is not prohibited by law, and each affected client gives informed consent confirmed in writing.
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Section 455(a) imposes an objective standard. A judge must recuse when a reasonable person would question impartiality, and failure to do so can require vacatur even without actual knowledge if the violation is not harmless.
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Continued acquisition or ownership of municipal bonds issued by a city that is a party in pending litigation creates an appearance of impropriety that can support judicial discipline even if the judge did not participate in the specific decision.
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