Rule 1.07. Conflict of Interest: Intermediary

RULE 1.07. Conflict of Interest: Intermediary

(a) A lawyer shall not act as intermediary between clients unless:

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(1) the lawyer consults with each client concerning the implications of the common

representation, including the advantages and risks involved, and the effect on the

attorney-client privileges, and obtains each client’s written consent to the common

representation;

(2) the lawyer reasonably believes that the matter can be resolved without the

necessity of contested litigation on terms compatible with the client’s best interests,

that each client will be able to make adequately informed decisions in the matter and

that there is little risk of material prejudice to the interests of any of the clients if the

contemplated resolution is unsuccessful; and

(3) the lawyer reasonably believes that the common representation can be undertaken

impartially and without improper effect on other responsibilities the lawyer has to any

of the clients.

(b) While acting as intermediary, the lawyer shall consult with each client concerning the

decision to be made and the considerations relevant in making them, so that each client can

make adequately informed decisions.

(c) A lawyer shall withdraw as intermediary if any of the clients so requests, or if any of the

conditions stated in paragraph (a) is no longer satisfied. Upon withdrawal, the lawyer shall not

continue to represent any of the clients in the matter that was the subject of the intermediation.

(d) Within the meaning of this Rule, a lawyer acts as intermediary if the lawyer represents two

or more parties with potentially conflicting interests.

of the clients so requests, or if any of the

conditions stated in paragraph (a) is no longer satisfied. Upon withdrawal, the lawyer shall not

continue to represent any of the clients in the matter that was the subject of the intermediation.

(d) Within the meaning of this Rule, a lawyer acts as intermediary if the lawyer represents two

or more parties with potentially conflicting interests.

(e) If a lawyer would be prohibited by this Rule from engaging in particular conduct, no other

lawyer while a member of or associated with that lawyer’s firm may engage in that conduct.

Comment:

1. A lawyer acting as intermediary may seek to establish or adjust a relationship between

clients on an amicable and mutually advantageous basis. For example, the lawyer may assist

in organizing a business in which two or more clients are entrepreneurs, in working out the

financial reorganization of an enterprise in which two or more clients have an interest, in

arranging a property distribution in settlement of an estate or in mediating a dispute between

clients. The lawyer seeks to resolve potentially conflicting interests by developing the parties’

mutual interests. The alternative can be that each party may have to obtain separate

representation, with the possibility in some situations of incurring additional cost,

complication or even litigation. Given these and other relevant factors, all the clients may

prefer that the lawyer act as intermediary.

2. Because confusion can arise as to the lawyer’s role where each party is not separately

represented, it is important that the lawyer make clear the relationship; hence, the requirement

of written consent. Moreover, a lawyer should not permit his personal interests to influence

his advice relative to a suggestion by his client that additional counsel be employed. See also