contract-law professional-ethics
Can a Lawyer represent a client in a business deal where he knows that his client is being screwed over?
<p>Two people are partnering to purchase a business deal. A lawyer is representing Partner A. The lawyer knows that Partner A is being screwed over by Partner B, i.e. Partner B has no money to contribute, etc. Is the lawyer ethically allowed to represent Partner A?</p>

<p><a href="/questions/tagged/british-columbia" class="post-tag" title="show questions tagged &#39;british-columbia&#39;" aria-label="show questions tagged &#39;british-columbia&#39;" rel="tag" aria-labelledby="british-columbia-container">british-columbia</a></p>
<p>The lawyer must give &quot;<a href="https://www.lawsociety.bc.ca/support-and-resources-for-lawyers/act-rules-and-code/code-of-professional-conduct-for-british-columbia/chapter-3-%E2%80%93-relationship-to-clients/#3.7-7" rel="nofollow noreferrer">an open and undisguised opinion of the merits and probable results of the client’s cause</a>.&quot;</p>
<p>&quot;<a href="https://www.lawsociety.bc.ca/support-and-resources-for-lawyers/act-rules-and-code/code-of-professional-conduct-for-british-columbia/chapter-3-%E2%80%93-relationship-to-clients/#3.2-2" rel="nofollow noreferrer">When advising a client, a lawyer must be honest and candid and must inform the client of all information known to the lawyer that may affect the interests of the client in the matter</a>.&quot;</p>
<p>As long as the lawyer is satisfied that &quot;<a href="https://www.lawsociety.bc.ca/support-and-resources-for-lawyers/act-rules-and-code/code-of-professional-conduct-for-british-columbia/chapter-3-%E2%80%93-relationship-to-clients/#3.2-9" rel="nofollow noreferrer">the client has the ability to understand the information relative to the decision that has to be made and is able to appreciate the reasonably foreseeable consequences of the decision or lack of decision</a>,&quot; the lawyer can take instructions from that client.</p>
<p>The lawyer would only be <em>required</em> to withdraw if the client <a href="https://www.lawsociety.bc.ca/support-and-resources-for-lawyers/act-rules-and-code/code-of-professional-conduct-for-british-columbia/chapter-3-%E2%80%93-relationship-to-clients/#3.7-7" rel="nofollow noreferrer">persists in instructing the lawyer to act contrary to professional ethics</a>.</p>

<h2>there's only few rules against representation</h2>
<h3>What means representing a client?</h3>
<p>The lawyer is retained to represent <strong>only the interests Partner A</strong>. His obligation is <strong>to do that to the best of his capacity.</strong> That's exactly what he is paid for.</p>
<p>If he notices that Partner B tries to screw Partner A over, he should tell his client, Partner A, about this based on ethical reasons, and suggest a way to deal with that, and also propose solutions.</p>
<p>When Partner B conducts illegal or at least very shady business in the transaction, Parter A's lawyer is obligated to do the best to protect the interest of his client, partner A, and thus shield Partner A by the necessary steps. For example, the lawyer could make sure to include a passus that makes it possible to either exclude Partner B for nonpayment (&quot;If B doesn't pay his share until X, all his rights in the transaction are extinguished&quot;) or to make the deal contingent on Partner B's payment (&quot;A only agrees to the transaction on the condition that B has paid his share by X&quot;). Partner A of course has to be informed of this by his lawyer, but <strong>unless the lawyer is specifically instructed by his client not to take such steps, he has to protect his client's interests.</strong></p>
<h3>What does ending representation mean?</h3>
<p>The moment he drops representation, the Lawyer is no longer obligated to do anything in the pending matter. There are many reasons a lawyer can end his representation of A, but most of them are about what transpires between A and his lawyer.</p>
<h3>What prevents representation by a lawyer?</h3>
<p>The most common reason that would bar a lawyer from representing A is, if B had retained the very lawyer for the same or a very related matter, posing a conflict of interest. For example, if B had retained the lawyer last year for a similar deal, and knowledge of that deal's happenings would unduly influence this new deal, then the lawyer is barred to represent A.</p>
<blockquote>
<p>What's the law if he can't tell Partner A ...</p>
</blockquote>
<p>This idea is absolute idiocy. The ethical rules are worded in such a way that it is the lawyer's duty that he <strong>has</strong> to tell his client.</p>
<blockquote>
<p>what's the law even if he tells Partner A but the Partner doesn't seem to understand the situation</p>
</blockquote>
<p>The lawyer has to do his best to protect the interest of the client, as long as he represents his client. If instructed by Partner A to still go through with the deal in the way that it damages Partner A, the lawyer can either drop the representation or go through with it.</p>
