Multistate Professional Responsibility Exam Practice Question
Lyle is representing two business associates, Danielle and Tasha, who are forming a new venture. They have begun to disagree on how to allocate ownership shares, and Lyle worries that this difference might create a conflict. Which statement best reflects an appropriate step for Lyle?
Withdraw from representing both clients whenever they have a disagreement
Call the ethics hotline.
Proceed without addressing the disagreement until it becomes a significant problem
Continue representing both associates if he obtains their permission after explaining risks
A lawyer may represent multiple clients in a matter if the lawyer reasonably believes the representation will not be impacted and each client gives consent after receiving adequate explanation. It is not required to withdraw whenever there is a disagreement, but a lawyer should withdraw if the conflict undermines the ability to represent each client. Ignoring the disagreement is not consistent with professional obligations.
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What are the risks involved in representing two clients with conflicting interests?
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What is the purpose of obtaining client consent when representing multiple clients?
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What should a lawyer do if the disagreement between clients escalates?