People who rely on their attorneys for assistance with business development, investment decisions and other critical matters expect honest advice. They rely on their lawyers to guide them as they make decisions about how they manage their resources or develop their organizations. Lawyers have to meet specific professional standards. They have a duty to put a client’s best interests ahead of their own wishes.
Most of the time, lawyers do their best to uphold their fiduciary duty to their clients. They provide their honest opinion based on their personal knowledge and experience. They make every reasonable effort to help their clients establish protective contracts or to develop a viable business plan.
Unfortunately, sometimes attorneys mislead people. They may let their personal interests outweigh what is best for the client. In such scenarios, their actions could constitute legal malpractice.
Conflicts of interest can negatively affect advice
Perhaps an attorney has invested heavily in a business that requires more capital to actually turn a profit. They might encourage their clients to invest for the protection of their capital, regardless of what the impact might be for their clients. Maybe they deter someone from developing a certain type of business because their spouse runs a company in the same industry or give them questionable guidance about the market and business risks.
When lawyers have pre-existing connections to businesses or investments that relate to a client’s representation needs, they should disclose those details promptly. Their conflict of interest might make it impossible for them to fulfill their duty to their clients. Failing to advise clients of conflicts of interest or to refer them to another professional might lead to a client suffering major financial or operational setbacks.
In some cases, bad advice related to business development or investments could lead to substantial financial and legal setbacks for a client. Transparency and honesty are critical for a healthy attorney-client relationship. Lawyers who cause harm to their clients while failing to adhere to current professional standards may have committed actionable malpractice. A legal malpractice lawsuit can hold them accountable for the impact of their inappropriate advice.
Those harmed by a lawyer’s inappropriate prioritization of their own needs over the client’s best interests may struggle to trust another attorney. However, legal support is typically necessary when pursuing a legal malpractice lawsuit. Obtaining support from someone capable of holding an unprofessional or unethical lawyer accountable can help those who have been wronged to seek compensation for harm caused by legal malpractice.