Could a Vermont lawyer pursue a client's claim against the carrier defending the lawyer in an unrelated lawsuit?
Apply this to your situation
This page answers the general question as of 1995. Ask about yours and see what the current Vermont Rules of Professional Conduct say for your facts, with citations.
Plain-English summary
A lawyer was defending a client's workers' compensation claim against an insurance carrier. The same carrier insured the lawyer for professional liability and had hired counsel to defend the lawyer in an unrelated lawsuit.
The committee applied DR 5-101(A) to the lawyer's personal financial and business interests. As an insured, the lawyer had an interest in premiums and in the carrier's handling of the lawyer's own defense, while the client sought payment from the carrier. The committee saw a small but real potential conflict, heightened by the carrier's current defense of the lawyer.
The lawyer could not continue the client's claim without full disclosure of that relationship and the client's consent. The opinion did not require withdrawal if those conditions were met.
Currency note
This opinion was issued in 1995 under Vermont's former Code of Professional Responsibility. The Vermont Supreme Court's rules history says the Rules of Professional Conduct replaced the Code and applied to lawyer conduct after September 1, 1999; the court later made comprehensive amendments in 2009. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement.
Common questions
Q: Did the lawyer's unrelated insurance policy matter to the client's claim?
A: Yes. The committee found a potential conflict between the lawyer's interests as an insured and the client's interest in recovery from the same carrier.
Q: What was required to continue the client's case?
A: The opinion required full disclosure of the relationship and potential conflict, followed by the client's consent.
Q: Did the carrier's defense of the lawyer affect the analysis?
A: Yes. The committee said it increased the potential for conflicting business interests.
Background and rules framework
The opinion applied former Code DR 5-101(A), which addressed a lawyer's own financial and business interests, and cited Vermont Opinion 77-15 as a contrasting, more direct conflict.
Citations and references
Vermont Code of Professional Responsibility:
- DR 5-101(A)
Other opinions cited:
- Vermont Opinion 77-15
See also
Source
- Landing page: VBA conflict of interest opinions
- Original PDF: Vermont Advisory Opinion 95-21
- Rules history: Vermont Rules of Professional Conduct, “These rules apply to lawyer conduct after September 1, 1999.”
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