Beware Of Informal Relationships And Conflicts

Conflicts of interest can be complicated and risky. They can be impediments to taking on new business and can also lead to high verdicts in legal malpractice cases. Virtually all attorneys know to run conflict checks for new matters and to resolve waivable conflicts in a timely manner.

However, some attorneys aren't aware of the risks that can be created outside the traditional attorney-client relationship. Sometimes conflict of interest claims come from unexpected circumstances, not from situations where an attorney skirted the rule or attempted to avoid the clear application of the conflicts rules.

Providing casual advice or creating attorney-client relationships outside the bounds of proper documentation can create conflict issues. Below are the three most common circumstances from which unexpected conflicts materialize.