Opinion ID: 1948333
Heading Depth: 2
Heading Rank: 2

Heading: Full Disclosure and Consent

Text: Comment [12] to Rule 1.7 describes the required disclosure: Adequate disclosure requires such disclosure of the parties and their interests and positions as to enable each potential client to make a fully informed decision as to whether to proceed with the contemplated representation. If a lawyer's obligation to one or another client ... precludes making such full disclosure to all affected parties, that fact alone precludes undertaking the representation at issue. Full disclosure also requires that clients be made aware of the possible extra expense, inconvenience, and other disadvantages that may arise if an actual conflict of position should later arise and the lawyer be required to terminate the representation. D.C. RULES OF PROFESSIONAL CONDUCT Rule 1.7 cmt. [12]. Comment [13] adds that disclosure does not have to be in writing. Similarly, this court has defined full disclosure for purposes of the Code. In In re James, 452 A.2d 163, 167 (D.C.1982), cert. denied, 460 U.S. 1038, 103 S.Ct. 1429, 75 L.Ed.2d 789 (1983), we said, referring to DR 5-104(A): Full disclosure includes a clear explanation of the differing interests involved in the transaction and the advantages of seeking independent legal advice. It also requires a detailed explanation of the risks and disadvantages to the client entailed in the agreement, including any liabilities that will or may forseeably accrue to him. After full disclosure of the differing interests, all potentially affected clients must consent to the representation. The Terminology section of the Rules defines consent as a client's uncoerced assent to a proposed course of action, following consultation with the lawyer regarding the matter in question. D.C.App.R.X, app. A, Terminology at 1531 (1993). The Code did not contain a definition of consent, but we believe the definition of consent we have quoted from the Rules reflects a commonly understood meaning that is properly applicable to conduct occurring before January 1, 1991, and thus governed by the Code. David & Hagner argues that Griva's undisputed discussion with her attorney regarding her concerns about David & Hagner representing the partnership constituted an acceptable form of disclosure. They further argue that her acknowledgement in her deposition that she anticipated that David & Hagner would represent the [MFLP], and thus that she didn't bother to do anything about it, constituted implied consent from the beginning of MFLP, which satisfied the requirement of Rule 1.7(c). Finally, David & Hagner contends that Griva could not effectively withdraw her implied consent to their continued representation of MFLP and the Maiaticos because the partnership agreement required unanimous partner consent to change general counsel and the Maiaticos would not agree. Thus, the lawyers say, there is no genuine issue of material fact as to whether Griva gave her fully informed consent to the dual representation. We cannot agree that Griva's independent consultation with her own attorney regarding David & Hagner's representation of the partnership is sufficient to satisfy David & Hagner's duty to supply full disclosure. Where dual representation creates a potential conflict of interest, the burden is on the attorney involved in the dual representation to approach both clients with an affirmative disclosure so that each can evaluate the potential conflict and decide whether or not to consent to continued dual employment. See International Business Machs. Corp. v. Levin, 579 F.2d 271, 280 (3d Cir.1978) (to adhere to high standards of professional responsibility, attorney must resolve all doubts in favor of full disclosure to client of facts of dual representation under DR 5-105); Florida Ins. Guar. Ass'n v. Carey Canada, Inc., 749 F.Supp. 255, 258-60 (S.D.Fla.1990) (letter by insured's law firm to inform claims adjuster for Florida Insurance Guaranty Association of potential conflict of interest was inadequate disclosure under Rule 1.7); In re Hansen, 586 P.2d 413, 415 (Utah 1978) (under DR 5-105, burden is on attorney to show he or she made full disclosure and obtained client's consent). The record to date does not reflect that this was done here. Furthermore, the fact that Griva did not contest her siblings' decision to have David & Hagner organize the partnership and represent MFLP thereafter in transactions with outside parties cannot constitute consent to whatever dual representation eventually occurred. See Kearns v. Chrysler Corp., 771 F.Supp. 190, 192 (E.D.Mich.1991) (plaintiff's failure to seek to disqualify defendant's counsel did not show plaintiff's consent to defendant's counsel where plaintiff never specifically approved of agreement allowing defense counsel's representation). Although Griva's inaction may have satisfied MFLP's unanimous consent requirement (if there was one) for retaining a general counsel [19] an issue we do not decideher inaction was not necessarily sufficient to constitute consent to David & Hagner's dual representation of MFLP and the Maiaticos if it came to present a serious conflict of interest. See Avianca, Inc. v. Corriea, 705 F.Supp. 666, 679-80 (D.D.C.1989) (attorney providing dual representation violated Disciplinary Rules by not seeking informed consent of clients involved). There is a genuine issue of material fact, therefore, as to whether David & Hagner (including Davison) sought and obtained Griva's affirmative consent to its dual representation of MFLP and the Maiaticos pursuant to Rules 1.7(a) and (b). Finally, even if Griva did consent at some point to David & Hagner's dual representation of MFLP and of the Maiaticos, we cannot agree with David & Hagner, as a matter of law, that Griva could not later withdraw that consent. When the partners formed MFLP, there were no actual conflicts between MFLP and its individual partners. However, we are aware of no authority that would compel us to hold that, upon one partner's consent to a lawyer's dual representation of the partnership and of several other individual partners, all consenting parties are bound to their agreement even when actual conflicts arise. [20]