Holding Orange County Attorneys Accountable For Conflicts Of Interest

Attorneys in California owe their clients a duty of undivided loyalty. That duty means a lawyer must place the client’s interests above all others, including their own. Conflicts of interest arise when an attorney’s obligations to another client, a third party or a personal interest interfere with that loyalty.

Too often, lawyers overlook these conflicts or fail to make the full written disclosures required by law, depriving clients of the chance to make an informed decision about their representation. If you believe your legal case involves a conflict of interest, the skilled attorneys at Klein & Wilson LLP® can help.

What Constitutes A Conflict Of Interest For A Lawyer In California?

According to California law, every attorney owes their client a duty of undivided loyalty. This means a lawyer must act solely in the client’s best interests, without being influenced by personal gain, outside relationships or other clients. A conflict of interest occurs when that loyalty is divided, even if the lawyer believes they can remain fair.

For example, a conflict exists when an attorney represents clients with competing interests, has a personal or financial stake in the case or fails to fully disclose connections that could affect their judgment. California’s professional conduct rules require lawyers to recognize these conflicts, disclose them in writing and obtain informed consent from every client involved. When a lawyer hides or mishandles a conflict, they violate one of the most fundamental principles of the legal profession: the client’s right to complete, loyal advocacy.

Common Examples Of Attorney Conflicts Of Interest

Conflicts of interest can appear in many forms, with some obvious, others harder to detect. In every instance, the lawyer’s professional judgment or loyalty is compromised by competing obligations or personal interests. Below are common scenarios that can lead to a serious ethics violation or malpractice claim in California:

• Representing two clients with opposing interests in the same matter. For example, representing both a business and one of its former employees in a related dispute.
• Entering into a business transaction with a client without full written disclosure and consent. This creates a direct financial conflict between the lawyer and the client.
• Representing a new client against a former client. Even after representation ends, lawyers must protect the former client’s confidential information.
• Having a personal or financial interest in the outcome of a case. A lawyer who stands to gain or lose personally cannot give impartial advice.
• Allowing personal relationships to influence professional decisions. A close friendship or family tie to someone on the opposing side may affect objectivity.
• Accepting compensation from a third party without the client’s consent. This can divide loyalty and create doubt about who the lawyer truly represents.

At Klein & Wilson LLP®, we focus exclusively on holding attorneys accountable for these kinds of professional lapses. With decades of courtroom experience and one of California’s few certified specialists in legal malpractice law, our firm has built a reputation for uncovering hidden conflicts and delivering results.

Consequences Of A Conflict Of Interest

When an attorney puts personal or competing interests ahead of a client’s, the legal consequences can be severe. California law treats conflicts of interest as a serious breach of professional duty, which is one that can result in financial penalties, professional discipline and lasting damage to the lawyer’s reputation.

• Disgorgement of fees: Attorneys who represent clients with undisclosed conflicts may be forced to return all fees collected during the conflicted representation, even if the client received some benefit from their work.
• State Bar discipline: The California State Bar can impose sanctions ranging from public reproval to suspension or disbarment for lawyers who violate their duty of loyalty or fail to obtain proper conflict waivers.
• Malpractice liability: When a client suffers financial harm because of divided loyalty, the attorney may face a malpractice lawsuit seeking compensation for damages.
• Loss of credibility and reputation: Beyond legal penalties, a proven conflict of interest can erode a lawyer’s credibility with courts, clients and peers, often ending their professional career.

These consequences reflect the seriousness of a lawyer’s duty of loyalty and the high ethical standard the profession demands.

How We Prove Your Case Was Harmed By A Conflict Of Interest

Conflict Of Interest Attorneys In Orange County

When lawyers fail to recognize conflicts of interest or fail to obtain proper waivers of conflicts, they may be subject to malpractice claims and required to disgorge fees.

Generally, an attorney should not represent clients whose interests conflict. When attorneys represent clients with adverse interests without a proper waiver, they can be held liable for malpractice and may be forced to return any fees they collected.

Clients need a skilled legal malpractice attorney to identify conflicts of interest and analyze whether the attorney obtained proper conflict waivers.

Common Questions About Legal Conflicts Of Interest

When you suspect your lawyer mishandled your case due to a conflict of interest, it’s natural to have questions about your rights and next steps. The following answers address some of the most common concerns clients have when they begin exploring a potential malpractice claim.

Can I sue my lawyer if they represented both me and the other party?

Yes. When an attorney represents two clients whose interests are directly opposed, that situation creates a conflict of interest. Unless the lawyer fully disclosed the conflict in writing and obtained informed consent from both clients, they may have violated their duty of loyalty. If this divided representation caused financial harm, then you may have grounds to sue for legal malpractice.

What is an “ethical wall,” and does it prevent a conflict of interest?

An ethical wall (also called a screen) is a safeguard law firms use to isolate attorneys who have a conflict of interest from those working on a related case. While this can sometimes prevent a conflict, it only works when strict procedures are followed. This may include barring access to client files and confidential information. If the wall is inadequate or not properly enforced, a conflict may still exist. Ethical walls are not a substitute for a written conflict waivers.

How long do I have to file a malpractice claim for a conflict of interest in California?

Under California law, the statute of limitations for legal malpractice is generally one year from the date you discovered (or should have discovered) the malpractice, or four years from the date of the wrongful act, whichever occurs first (Cal. Code Civ. Proc. § 340.6). The one-year statute of limitations is complex.

There are various tolling provisions, such as when the attorney continues representing you in the same matter. Because the deadline to sue attorneys is strict, you should seek counsel to evaluate your claim immediately upon discovery of the potential claim to ensure you file your claim timely.

If you believe your attorney’s divided loyalty harmed your case, understanding your options is the first step. Speaking with a legal malpractice specialist can help confirm whether a conflict existed and what remedies may be available under state law.

Contact The Orange County Conflict Of Interest Attorneys At Klein & Wilson LLP®

A skilled lawyer should be able to recognize a conflict of interest. If you are concerned that a conflict of interest exists, the best step you can take is to contact a qualified malpractice lawyer to evaluate the situation.

To reach our experienced attorneys about conflicts of interest and other legal malpractice matters, call 949-239-0907, or contact the firm by email.