Three equal share members/owners establish multiple new entities, one of the members recommends his existing attorney to formulate and establish the incorporation paperwork, partners agreements, review financial documents and create stock sale agreements. They all agree verbally to use the attorneys' services, based on the existing rates that the member had been paying, but don't have a formal retainer set up for the other two members and for the next two years pay all his fees from the various companies. Then the member that introduced the attorney to the other two members, embezzles all the monies and leaves the company. The attorney then represents the one member that embezzled the monies and sues the other members and the companies he set up.
For the next four years the attorney and embezzler institute multiple lawsuits, in which they perjured themselves several times, to destroy companies and tie up the other partners in court.
1. Is that legal?
2. What is the attorneys responsibility to the companies that he set up?
3. If the attorney agrees to do all the work for the company and then subsequently does work and gets paid by the company and its members does that constitute any attorney-client privilege
for the company or its members?
4. Is it proper legal protocol for an attorney who is hired by a company that has three owners who are members of the LLC is a proper for him to then sue the other owners on behalf of one of the owners
5. If said attorney had created operating agreements to deal with any issues of the partners why was the operating agreement never utilized to resolve these issues?
6. If the lawyer has formally represented the company in a matter shall not there after represent another person in the same or substantially related matter where that person's interests is materially adverse to the interest of the company
7. What specific violations has the attorney committed?
8. Can the attorney be sued for his actions in this situation