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Question

Please answer in two or three paragraphs. John Lawyer and Adam client form a partnership to purchase an ice cream establishment. Each of them holds a 50 percent interest in the partnership. John puts up 90 percent of the purchase price, and Adam puts up 10 percent. Adam will manage the establishment. Five-year-old Sara slips on ice cream spilled in front of John and Adam's store. Chelsea, Sara's mother, sues the establishment. John tells Adam that he'll handle it and requests that Adam sign an agreement limiting John's liability for malpractice. Explain what action John should have taken prior to the litigation. Will the agreement limiting John's liability for malpractice be enforced? Why?

Submitted: 17 days and 5 hours ago.
Category: Legal
Value: $15
Status: CLOSED
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Posted by Lawdoctor 17 days and 4 hours ago.

Answer

Dear XXXXXXXX:
The answer depends upon the state. However, most state bar associations have ethical rules which prohibit an attorney from obtaining an agreement from a client prior to representation limiting malpractice liablity. John should not be representing the business in this case due to the conflict of interest for his financial interest as an owner and his ethical duty as a lawyer. They should hire an outside, disinterested attorney to represent the business. Also, most businesses have premises liablity coverage and thus it should be reported to the insurance company who would provide an attorney to defend under policy coverage.

I hope this answers your question.

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DISCLAIMER: Please understand that the complexities of most legal problems cannot be adequately addressed in this setting, and that I am only licensed to practice law in the states of Florida and Mississippi. Accordingly, you acknowledge (1) that we have not formed an attorney-client relationship, and (2) that my post is general information only and not specific legal advice.

Please remember that we have not created an attorney-client relationship, and that my post is not intended to be specific legal advice. The answers given are limited to the information you have provided in your post. For specific legal advice, please consult with an attorney licensed in your state.

17 days and 4 hours ago.

Reply

Thank you.

But the answer needs to be in two to three paragraphs (approximately 10 sentences)

It doesn't matter which state it is in. It's a general question.

 



Edited by XXXXXXXX on 11/4/2009 at 11:43 PM

Accepted Answer

In this case, the State Bar Association's Rules of Ethics prohibit an attorney from obtaining an agreement from a client prior to representation limiting malpractice liablity. This is to prevent an attorney from using undue influence on a client to sign a waiver for malpractice. Johns is further prohibited because his business partner is also a client, which it is clearly unethical to engage in business with a current client. The Rules of Ethics prohibit the 'appearance of impropriety".

Also, John should not be representing the business in this case due to the conflict of interest for his financial interest as an owner and his ethical duty as a lawyer. They should hire an outside, disinterested attorney to represent the business. Also, most businesses have premises liablity coverage and thus it should be reported to the insurance company who would provide an attorney to defend under policy coverage.

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Expert: Lawdoctor
Pos. Feedback: 100.0 %
Accepts: 
Answered: 11/5/2009

Lawyer

20+ years legal practice including corporate, business, criminal, entertainment and litigation

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