Law Firms' Deals with Trump Raise Ethics Concerns Over Conflict of Interest

Strategic Insights -

Law firms that made deals with President Trump to ward off punitive executive orders may need to get waivers from clients with opposing interests, according to the ethics committee of the District of Columbia Bar. The committee's opinion stated that firms that make deals with the government may need to drop or obtain waivers from clients who have interests at odds with the government. This warning could bring new scrutiny to several prominent law firms that struck deals with Mr. Trump instead of challenging his executive orders targeting them.

Key Takeaways:

  • The District of Columbia Bar's ethics committee issued an opinion stating that law firms that make deals with the government may need to drop or obtain waivers from clients with opposing interests.
  • The opinion applies to firms that need to limit or shape their practices to comply with the government's conditions.
  • Firms that accept a representation burdened by a conflict of interest may be subject to bar disciplinary proceedings and civil liability to clients for breach of fiduciary duty.
  • Law firms that struck deals with President Trump may be required to get waivers from clients with opposing interests, according to the ethics committee's opinion.
  • The committee's opinion is based on three potential problems raised by deals with any government and rules of professional conduct, including improper restrictions on lawyers' right to practice and professional independence.
  • Firms must obtain a conflict-of-interest waiver from the client to avoid an ethics problem, but the client must be fully informed of all the ways in which a firm's deal with the government might create a conflict and the potential consequences.

Statistics:

  • At least nine law firms struck deals with President Trump to provide millions of dollars in free legal services to causes he favors.
  • The exact details of the arrangements are murky, with some firms agreeing to provide services for the Commerce Department.
  • At least two law firms, Paul, Weiss, Rifkind, Wharton & Garrison and Kirkland & Ellis, are now working on a range of matters for the Commerce Department.
  • A personal lawyer to President Trump has connected a third firm, Skadden Arps, with the Commerce Department about working on trade deals for the Trump administration.
  • Federal judges have blocked Mr. Trump's orders against specific firms as unconstitutional in several cases.

Sources:

  • The New York Times
  • May 2020 Justice Department memo
  • Paul, Weiss, Rifkind, Wharton & Garrison
  • Kirkland & Ellis
  • Skadden Arps
  • Perkins Coie
  • Legal ethics professors' friend-of-the-court brief
  • District of Columbia Bar
  • District of Columbia Court of Appeals
  • The Commerce Department
  • Getty Images
  • Michael M. Santiago
  • The District of Columbia Bar's ethics committee