I represented both X and Y, and Y (using a power of attorney I drafted) cashed X's settlement check and kept a third. I've withdrawn from representing Y. May I keep representing X?

Plain-English summary

The inquiring attorney represented X in a matter. Y, also a client of the attorney, had referred X to the attorney. Because X could not read or write, the attorney drafted a power of attorney enabling Y to sign documents for X. The attorney later received a settlement check on X's claim and could not reach X, but reached Y, who picked up the check. The attorney then learned that Y had cashed the check using the power of attorney, kept one-third of the funds, and turned the remainder over to X. The attorney withdrew from representing Y and asked whether he could continue to represent X.

The Panel concluded that the attorney was not ethically prohibited from continuing to represent X. It added one limit: if X sought to assert rights against Y for the money Y withheld from the settlement, the attorney could not represent X in that matter.

Currency note

This opinion was issued in 1994 (Opinion 94-3, issued February 23, 1994), after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process, which amended the conflict-of-interest rules governing current and former clients. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule mentioned here.

Common questions

Q: Can a lawyer keep representing one client after withdrawing from a co-client who mishandled funds?

A: On these facts, yes. The Panel concluded the attorney was not ethically prohibited from continuing to represent X after withdrawing from Y.

Q: Is there any limit on the continued representation?

A: Yes. If X sought to assert rights against Y (the former client) for the money Y withheld, the Panel said the attorney could not represent X in that matter.

Background and rules framework

The inquiry raised a conflict between a current client (X) and a former client (Y) after the attorney withdrew from representing Y. The Panel did not cite a numbered Rule of Professional Conduct. It permitted continued representation of X generally, but drew the line at representing X in a direct claim against the former client Y arising from the withheld settlement funds.

Citations and references

Rules of Professional Conduct:

• The opinion cites no specific Rule number; it permits continued representation of the current client except in a matter directly adverse to the former client.

See also

• RI EAP Opinion 93-97: no Rule 1.9 conflict representing a defendant against a former client's daughter
• RI EAP Opinion 93-95: a former real estate co-client and an unrelated matter under Rule 1.9

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2094-03.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

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FINAL

ETHICS ADVISORY PANEL
OPINION #94-3 REQUEST #451
Issued February 23, 1994

The inquiring attorney represents X in a matter. Y, also a client of the inquiring attorney, referred X to the inquiring attorney. The inquiring attorney drafted a power of attorney enabling Y to sign documents for X as X is unable to read or write. Thereafter, the inquiring attorney received a settlement check on X's claim and unsuccessfully attempted to contact X. The inquiring attorney successfully contacted Y, Y picked up the check. The inquiring attorney subsequently learned that Y cashed the check using the power of attorney, kept one-third of the funds for Y and turned the remainder over to X. The inquiring attorney has withdrawn from the representation of Y and asks whether he/she may continue to represent X.

The Panel does not believe that the inquiring attorney is ethically prohibited from continuing to represent X. However, if X seeks to assert rights against Y for the monies Y withheld from the settlement, the inquiring attorney may not represent X in the matter.