Credit: stockphoto-graf/Shutterstock.com Follow the (Right) Rules on Lateral Hire Conflicts
A recent Third Circuit precedential opinion discusses the detailed requirements under the ABA's Model Rules of Professional Conduct. But New Jersey's RPCs differ in several important respects. Read with caution.
September 25, 2022 at 10:00 AM
4 minute read
For better or worse, lawyers switch firms with increasing frequency and, when they do, they carry with them various conflicts of interest. In particular, under the New Jersey Rules of Professional Conduct, a lawyer may not represent Client A at the lawyer's new firm if (1) the lawyer's prior firm had represented Client B in the same or a substantially related matter, and (2) Client A's interests are materially adverse to Client B's interests. (NJ RPC 1.9). That prohibition, moreover, applies to the entire new firm unless the lawyer is "screened." (NJ RPC 1.10)
A recent Third Circuit precedential opinion (In re Maxus Energy Corp.) discusses the detailed requirements of that screening process under the ABA's Model Rules of Professional Conduct (as adopted by the U.S. District Court in Delaware). But New Jersey's RPCs differ from the ABA's model rules in several important respects. The Third Circuit's opinion, therefore, should be read with caution.
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