Conflicts of Interests cases involving lawyer which laypersons may claim show
a lawyer "switching sides" are sometimes difficult because the
lawyers do not see a conflict and laypersons do. These cases involve
the "delicate and sometimes difficult task of balancing competing
interests: the individual right to be represented by counsel of one's choice,
each party's right to be free from the risk of even inadvertent disclosure of
confidential information, and the public's interest in the scrupulous
administration of justice." Brown v. Eighth Judicial Dist. Court, 14 P.3d
1266, 1269-70 (Nev. 2000).
[¶12] "Loyalty is an essential element in the lawyer's relationship to
a client." Comment, Model Rule Conduct 1.7. "The duty of
confidentiality continues after the client-lawyer relationship has
terminated." Comment, Model Rule Conduct 1.6. "An integral purpose of
the rule of confidentiality is to encourage clients to fully and freely disclose
to their attorneys all facts pertinent to their cause with absolute assurance
that such information will not be used to their disadvantage." Damron v.
Herzog, 67 F.3d 211, 215 (9th Cir. 1995). "'Clients must feel free to share
confidences with their lawyers. This will not occur if we permit lawyers to be
today's confidants and tomorrow's adversaries.'" Clinard v. Blackwood, 46
S.W.3d 177, 188 (Tenn. 2001) (quoting Penn Mut. Life Ins. Co. v. Cleveland Mall
Assocs., 841 F. Supp. 815, 818 (E.D. Tenn. 1993)). As the court said in
Analytica, Inc. v. NPD Research, Inc., 708 F.2d 1263, 1266-67 (7th Cir. 1983)
(citations omitted):
"For rather obvious reasons a lawyer is prohibited from using
confidential information that he has obtained from a client against that client
on behalf of another one. But this prohibition has not seemed enough by itself
to make clients feel secure about reposing confidences in lawyers, so a further
prohibition has evolved: a lawyer may not represent an adversary of his former
client if the subject matter of the two representations is "substantially
related," which means: if the lawyer could have obtained confidential
information in the first representation that would have been relevant in the
second. It is irrelevant whether he actually obtained such information and used
it against his former client, or whether--if the lawyer is a firm rather than an
individual practitioner--different people in the firm handled the two matters
and scrupulously avoided discussing them."
Model Rule Prof. Conduct 1.9 provides a lawyer who has formerly represented a
client in a matter shall not thereafter:
(a) Represent another person in the same matter in which that person's
interests are materially adverse to the interests of the former client; or
(b) Represent another person in a substantially related matter in which that
person's interests are materially adverse to the interests of the former client
unless the former client consents after consultation; or
(c) Use information relating to the representation to the disadvantage of the
former client in the same or a substantially related matter except as Rule 1.6
would require or permit with respect to a client. Thus, without a former
client's consent, a lawyer may not represent another client in the same or a
substantially related matter in which that client's interests are materially
adverse to the interest of the former client.
It is generally said by the courts that in determining whether a law firm is
disqualified, "the firm whose disqualification is sought bears the burden
of proof." E.g., see, Heringer v. Haskell, 536 N.W.2d 362, 365 (N.D. 1995)
"[A]ny doubt must be resolved in favor of disqualification." Heringer,
at 365.
The substantial relationship test presumes a lawyer acquired confidential
information from a former client if the current representation of a client whose
interests are adverse to those of the former client is the same as or
substantially related to the former representation. ABA/BNA, Lawyers' Manual on
Professional Conduct 51:201 (2002). "[W]hen an attorney engages in a
conflict of interest on the same matter, he or she is in a position to act on
the confidential information learned from the relationship with the first
client, whether or not that information is actually disclosed or acted upon in
advising the new client." Damron v. Herzog, 67 F.3d 211, 215 (9th Cir.
1995). "The test does not require a detailing of the confidences allegedly
transmitted, nor must confidences actually have passed between the former client
and the lawyer." Annotated Model Rules of Prof. Conduct Rule 1.9, p. 153
(3d ed. 1996).