Dave Deedan has recently gained majority ownership to Shoe Leonard’s when previous business owner passed away. Dave retains Andrew Haynus to draft a will for him. Before Haynus is finished drafting the will he thinks of a great way to help Shoe Leonard’s make even more money. Haynus decides he is going to present Dave with a deal and offer $50,000.00 and would like some say in the decision making process of the business. Haynus also remembers while he is there doing the work he needs a new pair of loafers, so he plans on buying a new pair of shoes also.
Haynus practices in a state that has adopted the Model Rule 1.8. How does this rule apply to the two business transactions Haynus wants to enter in with his client?
Entering into
The client has to be given the chance to seek the advice of independent counsel, and the client has to consent in writing to the transaction.
Haynus may not use confidential information to get a better deal on either business transactions, unless the client consents.
According to the Prof. Cond R. 1.8 a conflict between Haynus and the client does not exist with the sale of the shoes. This would be considered a standard commercial transaction for products that the client generally markets to others. The lawyer does not have an advantage in dealing with the client in this transaction.
Therefore, according to the Prof. Cond R. 1.8 a conflict will not exist in either transaction as long as the rules are followed and the proper steps are taken to ensure the