Mike proposed that instead of altering current rules, the Bar might add commentary that clarifies ethical responsibilities in contractual MDPs. He also proposed that the Bar give tools to lawyers for contract MDP situations. Two examples of this situation were described. George mentioned that insurance companies are essentially 'buying' defense counsel firms. Once this happens, insurance company staff attorneys represent customers of the insurance company.
Clients have counsel who are working for an organization with an inherent conflict.
Cindy mentioned that in her role as counsel within a bank trust department, pressures are mounting for her to provide services directly to clients. It was generally agreed that when a lawyer in one of these organizations provides legal services, they are violating the rules of professional conduct. It was also decided that these activities have been going on for some time now and have not been prosecuted. It was also decided that the vague definition of the practice of law makes any efforts to stop this behavior problematic. Liability and litigation would then become a market check on service standards.