Can a deputy city attorney who negotiates and monitors the city's insurance carrier contract also sit on that carrier's board of directors?
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This page answers the general question as of 1981. Ezel answers yours: whether it's allowed on your facts, under the current rules of professional conduct in your state, with citations.
Plain-English summary
Opinion E-81-2 considered a deputy city attorney who represents the city in contract negotiations with the municipality's medical insurance carrier and who also participates in a policy-making body that monitors the carrier's performance under the contract. The question was whether the same lawyer could simultaneously sit on the insurance carrier's board of directors.
The committee said it would be improper, stating there was no question that it would result in a conflict of interest and divided loyalties. It grounded the conclusion in SCR 20.23, which provided that a lawyer should exercise independent professional judgment on behalf of the client. The committee quoted SCR 20.23(1): the professional judgment of a lawyer should be exercised, within the bounds of the law, solely for the benefit of the client and free of compromising influences and loyalties, and neither the lawyer's personal interest, the interest of other clients, nor the desires of third persons should be permitted to dilute the lawyer's loyalty to the client. The committee added that other ethical considerations under SCR 20.23 were also relevant.
Currency note
This opinion was issued in 1981, before Wisconsin's July 1, 2007 adoption of the revised Rules of Professional Conduct for Attorneys (the state's Ethics 2000 update), and it applies the former Code provision SCR 20.23 on independent professional judgment. Conflicts of this kind are now analyzed under SCR 20:1.7 / Model Rule 1.7. 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 Treat this page as historical context, not current guidance.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 mentioned here.
Common questions
Q: Can a city attorney who negotiates with the city's insurance carrier serve on the carrier's board?
A: No. The committee concluded that the dual role would be improper because it would result in a conflict of interest and divided loyalties.
Q: What rule did the committee rely on?
A: It relied on SCR 20.23, requiring a lawyer to exercise independent professional judgment solely for the client's benefit, free of compromising influences and loyalties.
Background and rules framework
The opinion applied the former rule on independent professional judgment, SCR 20.23, to a government lawyer whose public duties (negotiating and monitoring the city's insurance contract) would be in tension with a fiduciary seat on the counterparty's board. The current counterpart is SCR 20:1.7 / Model Rule 1.7, governing concurrent conflicts of interest.
Citations and references
Rules of Professional Conduct:
- Wis. SCR 20.23, 20.23(1) (independent professional judgment) (former Code); current SCR 20:1.7 / Model Rule 1.7
See also
- WI Ethics Op. E-80-20: Representation For and Against a County
- WI Ethics Op. E-79-1: Disqualification When a Former Official Joins a Firm
- WI Ethics Op. E-82-9: Municipal Attorney Representing Police Officers
Source
- Landing page: https://www.wisbar.org/formembers/ethics/pages/formal-opinions.aspx
- Original PDF: https://www.wisbar.org/formembers/ethics/Ethics%20Opinions/E-81-2.pdf
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