How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dwayne B. Your Own Question
Dwayne B.
Dwayne B., Attorney
Category: Legal
Satisfied Customers: 32579
Experience:  Began practicing law in 1992
11068102
Type Your Legal Question Here...
Dwayne B. is online now
A new question is answered every 9 seconds

what is this "Permitted Representation" clause for? Im

This answer was rated:

what is this "Permitted Representation" clause for?

I'm reviewing an engagement letter from a legal counseling firm for my company. There is a term called "Permitted Representation" like the following:

... Accordingly, by signing our engagement letter agreement, you confirm our mutual agreement that we may represent other present or future parties on matters other than those for which we had been or then are engaged by you, whether or not on a basis adverse to you or any of your affiliates, including in any advisory capacity or any business transaction, all of which are referred to here as “Permitted Representation”. In furtherance of this mutual agreement, you agree that you will not for yourself or any other party, and you will not permit an affiliated party to, assert our representation of you, either previously, in our then existing representation, or in any other matter in which you may retain us, as a basis for disqualifying us from representing another party in any Permitted Representation and you agree that any Permitted Representation does not constitute a breach of duty. Permitted Representation would include, without limitation, representing a client over which you or your affiliates might be seeking to acquire influence or control, or from which you or your affiliates may wish to buy assets, or representing a client regarding its interest at the time in acquiring influence or control over an entity in which you or your affiliates have a similar interest. ...

Is this clause a common practice? Is it ok for me to sign the engagement letter?

Thank you,
Huang

JD 1992 :

Hello and thank you for contacting Just Answer. I am an expert here and I look forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification.

JD 1992 :

That type of clause is becoming more common.

JD 1992 :

It is used to prevent a law firm from being disqualified in cases due to a potential conflict of interest because they represented someone on an entirely different matter in the past.

JD 1992 :

It usually isn't an issue because they would still be disqualified if there is a real conflict of interest, regardless of that clause.

Customer:

I got it

Customer:

so it is just in case there is a potential conflict

JD 1992 :

It's used more for business and family lawyers than most others.

JD 1992 :

Correct.

Customer:

ok.

JD 1992 :

And it is actually more for where there isn't really a conflict, just prior representation.

JD 1992 :

The Code of Ethics would still prevent representation if there were a real conflict of interest.

Customer:

ok. if there is a conflict, the federal law still prohibits adverse representation?

Customer:

got it.

Customer:

Thank you

Customer:

thank you for your prompting answer

JD 1992 :

Best wishes to you!

Dwayne B. and 2 other Legal Specialists are ready to help you
Best wishes to you!
Dwayne B. and 2 other Legal Specialists are ready to help you

Related Legal Questions