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What Is Considered a Conflict of Interest in Legal Malpractice Cases?

September 12, 2025

Legal Malpractice

When you hire an attorney, you expect their loyalty and attention to be focused entirely on your case. A conflict of interest occurs when a lawyer’s obligations to you clash with obligations to another client, a former client, or even with their own personal interests. This clash can weaken the representation you receive and, in some cases, form the basis of a legal malpractice claim.

In Colorado, attorneys are required to avoid situations that compromise their ability to provide independent and loyal advice. If a lawyer knows or should know that divided interests exist, they must either decline the case or obtain informed consent from the client. When this does not happen and the client suffers financial or legal harm as a result, the situation may rise to the level of malpractice.

It is not always easy to spot these problems on your own. Many conflicts are subtle, and clients may only discover them after a case has been resolved. That is why understanding what counts as a conflict of interest is essential if you suspect your attorney’s divided loyalties harmed your outcome.

Examples of Conflicts That Can Lead to Legal Malpractice

Conflicts of interest appear in many ways. Some are obvious, while others are hidden until key moments in a case. Below are some common situations that can create divided loyalties.

  • Representing opposing parties: A lawyer cannot represent both sides in a dispute, such as a buyer and seller in a contested transaction. Doing so directly pits one client’s interests against another’s.
  • Multiple clients with diverging interests: Co-defendants or co-plaintiffs may start with aligned goals but later clash over settlement terms, liability, or testimony.
  • Personal or financial interests: A lawyer with an ownership interest in a company connected to the case, or with family ties to a key party, may not provide impartial advice.
  • Conflicts with former clients: Attorneys must not use confidential information from a prior client against them in a related matter.
  • Third-party payment arrangements: If someone else pays your legal bills, their influence may affect your lawyer’s recommendations or strategy.

Each of these situations can cause serious harm if not disclosed and addressed properly. For example, if your lawyer represents both you and another party in negotiations, you may end up with a settlement that favors the other client. If your lawyer’s financial stake in a business influences how they advise you, your case may be compromised without you realizing it.

Conflicts do not always involve outright dishonesty. Sometimes, lawyers simply fail to recognize how their responsibilities to different parties overlap. Still, when those divided interests affect your case, the impact is real and it may entitle you to bring a malpractice claim.

How Conflicts Turn Into Legal Malpractice Claims

Not every conflict automatically amounts to malpractice. To pursue a claim, you must show four elements: duty, breach, causation, and damages. In this context, the lawyer owed you a duty of loyalty, breached that duty by acting under a conflict, caused harm through that breach, and left you with measurable losses.

Consider a lawyer who drafts partnership agreements for two business partners. Later, a dispute arises between the partners. The lawyer continues to advise both sides but steers a resolution that protects one partner’s outside business, where the lawyer also holds a financial interest. If the other partner receives less favorable terms as a result, that conflict could form the basis of a malpractice lawsuit.

Another example involves a lawyer who once defended a corporation and learned its sensitive pricing strategies. Years later, the same lawyer sues that corporation on behalf of a competitor in a related case. Using or relying on confidential knowledge from the earlier matter undermines fairness and breaches the duty to the former client. If this conflict harms the new client’s case as well, malpractice may be established.

Courts take conflicts seriously because they strike at the core of the attorney-client relationship: trust. When that trust is compromised, clients not only suffer losses but also lose faith in the fairness of the legal system itself.

What to Do If You Suspect a Conflict

If you believe your lawyer’s divided loyalties affected your case, start gathering information. Look for engagement agreements, billing records, and any communications that reference disclosures about potential conflicts. Make a timeline of decisions in your case, including settlement discussions, missed filings, or unexpected strategy shifts. These details can provide important context when another attorney evaluates your claim.

Next, seek out a law firm with experience in handling legal malpractice cases. Independent counsel can assess whether the conflict was consentable, whether proper disclosure was made, and whether you suffered damages as a direct result. Having an experienced team review your situation is often the only way to uncover issues that may have been hidden during your original case.

At Cimino Law Office in Denver, we know how damaging conflicts of interest can be. If your lawyer placed other priorities ahead of your rights, you deserve accountability and the chance to recover what you lost. We carefully review case records, consult experts when necessary, and build strong claims designed to protect your interests. If you have concerns about a past case, we are ready to listen and help. To get started, please contact us today.

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At the Cimino Law Office, we have been dedicated to providing top-tier legal representation in Denver, Colorado, for nearly four decades. Our expertise spans across bankruptcy, family law, personal injury, and legal malpractice, ensuring that our clients receive knowledgeable, compassionate, and personalized legal support. Led by John Cimino, our firm is committed to protecting your rights and guiding you through complex legal challenges. We believe in a tailored approach for every case, offering clear communication and unwavering advocacy from start to finish. Trust the Cimino Law Office to be your reliable legal partner in times of need.

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