Bankruptcy Ruling Reminds Corp. Counsel To Mind Rule 1.13

Law360 (February 12, 2019, 2:24 PM EST) -- Under the Model Rules of Professional Conduct 1.13(a), “A lawyer employed or retained by an organization represents the organization acting through its duly authorized constituents.” The ethics issues arise, however, when the individuals running the organization seek to take steps that benefit themselves and not necessarily the entity. While the rules make clear that the lawyer for the organization must act in the best interest of the organization, from whom does the lawyer obtain direction when a conflict arises between the organization and the “duly authorized constituents” tasked with running it?

A recent decision of the U.S. Bankruptcy Court for the...

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