Can you share the same lawyer?
In most circumstances probably not.
The cost of hiring a lawyer can be into the thousands and some clients may want to share a lawyer to drive down their legal costs. However, lawyers are regulated professionals who have a duty of confidentiality to their clients and must act in their best interests. Advising two clients on the same case gives rise to a conflict of interest and professional conduct issues.
The limited exception to advising both parties in the SRA’s guidance on conflicts of interests is where there is no risk of a conflict of interest.
This could be where a lawyer acts for both the lender and borrower on the purchase of a property however, lawyers are still expected to act in the client’s best interests and uphold confidentiality and disclosure obligations under the SRA’s code of conduct. The next two scenarios look at cases where a conflict of interest could arise.
Divorce proceedings
Assuming the divorce is amicable and both parties have agreed on settlement before instructing a divorce lawyer, the couple will think it is a good idea to share the same lawyer because they have the same goals. However, this puts the couple at a disadvantage as each will need individual advice on the outcome of the settlement and as proceedings continue the negotiations can become litigious.
There may be conflicting views on reaching settlement and it means the lawyer is unable to put both parties in their best interests. Lawyers need to be able to advise their clients individually with appropriate next steps such as advising on the separation of assets, parental rights if there are children and financial assistance.
Mergers & Acquisitions
In this context, where the buyer or the seller will need a lawyer to advise them on their obligations under a share or asset purchase agreement, putting together marketing material for the seller, drafting confidentiality agreements, reviewing and advising on business terms, advising on representations or warranties that are made and advising on the transfer of risk to the buyer.
These type of deals will contain carefully constructed documentation with appropriate legal protections in place that take a number of years to become an expert at with the assistance of a legal team. Additionally, each party will have their own goals and will not necessarily want the same thing therefore individual advice is imperative to ensure that each party understands their commitments and obligations in the deal.
Obtaining independent legal advice will ensure that the parties receive tailored advice that is in their best interests as each case will have its own set of complications that need an experienced lawyer to take them through, so that the parties have the confidence and surety of the steps they are taking.
The information in this article is for informational purposes only and is not intended to be legal advice
