Conflict of Interest
What does "Conflict of Interest" mean in law?
Under Model Rules 1.7 through 1.10, a conflict of interest arises when a lawyer's ability to represent a client is materially limited by the lawyer's responsibilities to another client, a former client, a third person, or the lawyer's own personal interests. Rule 1.7 addresses current-client conflicts and establishes a two-part test: first, whether a concurrent conflict exists, and second, whether it is consentable (meaning a reasonable lawyer would believe competent representation is still possible). Even consentable conflicts require informed consent confirmed in writing from each affected client. Conflicts analysis is foundational to professional responsibility and permeates nearly every area of legal practice.
Definition
Under Model Rules 1.7 through 1.10, a conflict of interest arises when a lawyer's ability to represent a client is materially limited by the lawyer's responsibilities to another client, a former client, a third person, or the lawyer's own personal interests. Rule 1.7 addresses current-client conflicts and establishes a two-part test: first, whether a concurrent conflict exists, and second, whether it is consentable (meaning a reasonable lawyer would believe competent representation is still possible). Even consentable conflicts require informed consent confirmed in writing from each affected client. Conflicts analysis is foundational to professional responsibility and permeates nearly every area of legal practice.
Example
A lawyer representing both the buyer and seller in the same real estate transaction has a concurrent conflict of interest under Rule 1.7 because the clients' interests are directly adverse on price, inspection contingencies, and closing terms.