Advisory Opinion: 1891

Year Issued: 1999

RPC(s): RPC 1.2; 1.3; 1.4; 1.5; 1.6; 1.7; 1.8

Subject: Conflict of interest; lawyer retained by third party acting on behalf of investors who may have additional claims against third party

[The lawyer was retained by a former sales agent for a now bankrupt company to represent a number of former investors in the company for whom he had powers of attorney. The former sales agent had sold the promissory notes in question to the investors.] The committee carefully considered the materials you submitted in addition to your inquiry. The committee has concluded that the fact pattern presented in those materials demonstrates the potential for non-waiveable conflicts of interest. See RPC 1.7 and 1.8.

We further note that unfulfilled obligations may exist regarding your fee agreement under RPC 1.5.

We have serious concerns that based on the facts presented, a lawyer would be able to form a reasonable belief that the language contained in the documents submitted with your inquiry complies with RPC 1.2, 1.3, 1.4, and 1.6.

The "disclosure" authorized by [the former sales agent] contains language which suggests that you have entered into representation of multiple clients who may have claims against [the former sales agent].

We urge you to seek competent legal advice on the question of whether you should continue this representation.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.