That's My Lawyer
Is it OK to share a lawyer with a close competitor?
You expect your lawyer to represent you zealously, protect your
confidentiality and loyally defend you. So what if your lawyer also
represents a close competitor?
That's not necessarily a bad thing--unless you're suing
that competitor, or vice versa. It's often a plus to hire a
lawyer who specializes in an industry and understands its issues.
But if you want your lawyer to double as a business advisor or
serve on your board of directors, keep in mind you'll have to
expose trade secrets--your business plans, strengths and
weaknesses.
State bar associations require lawyers to abide by a code of
conduct that addresses conflicts of interest and prohibits them
from revealing confidential information to others. Ask yourself:
Does my lawyer know things that I want to keep confidential, which
the lawyer would otherwise disclose for the benefit of another
client?
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When do the drawbacks of having a lawyer who represents your
competitor outweigh the benefits of having a lawyer who understands
your industry? When both companies are bidding for the same
contract, or when the rivalry lands in a courtroom. But the crux is
this: The lawyer is required to review every client relationship
and each business dealing regularly and tell you if there might be
a conflict of interest, so you can judge for yourself whether to
continue.
Jane Easter Bahls is a writer in Rock
Island, Illinois, specializing in business and legal
topics.