Tip of the Month

Tip for April 2011

Avoid Acting as "Lawyer for the Deal"

Lawyers should avoid acting as "lawyer for the deal" in a transaction or in connection with the drafting of a document for a group of persons.  When drafting a document when there are parties to the transaction who are unrepresented, lawyers should make it clear to each person involved who the lawyer represents and who the lawyer does not represent.  Without such clarification, one party may later claim that the lawyer represented multiple parties and engaged in a conflict of interest by doing so.  A written non-engagement letter to the non-clients participating in the transaction clarifies who can depend on the lawyer to protect his or her interest in the transaction.