Informal Opinion Number: 960165

QUESTION: Attorney represents businesses in a particular field that compete with each other. The businesses are aware of Attorney´s representation of the competitors. Attorney is considering investing in a business in that field that will compete with some of Attorney´s clients. Must Attorney disclose this investment to Attorney´s clients who are competitors? ANSWER: Attorney´s status as an investor in a competitor of Attorney´s clients would create a conflict of interest under Rule 4-1.7(b). Therefore, Attorney should disclose this information to the clients and obtain their consent for continued representation if Attorney makes the investment.

Informal Opinions are ethics advisory opinions issued by the Office of Legal Ethics Counsel to members of the Bar about Rule 4 (Rules of Professional Conduct), Rule 5 (Complaints and Proceedings Thereon), and Rule 6 (Fees to Practice Law) pursuant to Missouri Supreme Court Rule 5.30(c). Written summaries of select Informal Opinions are published for informational purposes as determined by the Advisory Committee of the Supreme Court of Missouri pursuant to Rule 5.30(c). Informal opinion summaries are advisory in nature and are not binding. These opinions are published as an educational service and do not constitute legal advice.

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