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ARTICLE · 24 NOVEMBER 2015

Whose Attorney?

A lawyer for a business organization needs to be careful in identifying both who they serve and to make express who they do not serve.

United StatesCorporate/Commercial Law

A lawyer for a business organization needs to be careful in identifying both who they serve and to make express who they do not serve.  Confusion as to these points has important implications in a variety of contexts including the related (albeit not co-extensive) realms of the attorney-client privilege and an attorneys obligation of confidentiality and who has standing to assert a malpractice claim against the attorney.

These issues can be especially fraught in the area of small businesses, and the outcome of the analysis can turn on questions of organizational form.  Historically, the attorney for a corporation and the consequent obligations are owed to the corporation, that "person that exist in the mind of the law," itself and not to any of the constituents thereof such as directors, officers, employees and shareholders.  While it is possible for an attorney to enter into an attorney-client relationship with both the corporation and a constituent thereof, proper

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