Certified Legal Professional (CLP) Practice Exam

Was the attorney's agreement to handle real estate negotiations with the company a conflict of interest?

1. No, because there was no direct conflict with the employee's representation

2. No, because the attorney provided disclosure to both parties

3. Yes, because he should have advised the employee to seek separate counsel

4. Yes, because of potential repercussions where confidential information could arise

The correct answer is: Yes, because he should have advised the employee to seek separate counsel

The selected answer identifies a concern that can arise in situations where an attorney represents two parties that may have conflicting interests. In real estate negotiations, there can be sensitive information and varying interests at stake. If the attorney is representing both the company and the employee, it presents a potential conflict because the attorney could encounter circumstances where the interests of one client may compromise the representation of the other. In this case, the attorney has a duty to provide undivided loyalty to their clients. To mitigate against the risk of conflict, it is prudent for the attorney to advise the employee to seek separate counsel. This ensures that the employee’s interests are fully protected and that they receive independent legal advice, which is particularly important in negotiations where personal stakes may differ significantly from those of the company. This answer highlights the ethical responsibilities of attorneys to prevent conflicts of interest and underscores the importance of transparency and protecting clients’ rights in legal practice.