LEO: Conflict of Interest - Prior  LE Op. 807

 

Conflict of Interest - Prior Employment.

 

June 25, 1986

 

An attorney is currently employed as general counsel to Corporation A.

Said general counsel previously represented Corporation B and is, at the

present time, involved in litigation against Corporation B for collection

of unpaid fees. One of the functions of the general counsel to Corporation

A is collection of outstanding amounts, one of which happens to be the

account of Corporation B. Said general counsel is also representing

Corporation A in litigation against Corporation B in reference to an

accounts receivable financing agreement which the general counsel prepared

when employed by Corporation B.

 

Under these circumstances, it is not proper for the general counsel or

the other attorneys on his staff to represent Corporation A in litigation

against Corporation B with regards to the accounts receivable agreement.

 

It is not improper for the general counsel to represent Corporation A in

claims against third parties for amounts which were to be paid to

Corporation A, but were erroneously paid to Corporation B.

 

It is not improper for the general counsel to represent Corporation A in

defense of a claim by an individual who wrote his check payable to

Corporation A and Corporation B, jointly, for payment of sums due by

Corporation B to Corporation A pursuant to the accounts receivable

financing agreement. [ DR:5-105(D) and (E), LE Op. 718]

 

Committee Opinion June 25, 1986