Can a lawyer who represents a cooperative housing corporation buy a unit from that same corporation?
Apply this to your situation
This page answers the general question as of 1991. Ask about yours and see what the current Washington Rules of Professional Conduct say for your facts, with citations.
Plain-English summary
The lawyer represented a cooperative corporation and intended to purchase a unit in the housing project the corporation was constructing. She had made full disclosure to the client and obtained consent in writing.
The committee was of the opinion that a lawyer in this situation could reasonably conclude she could represent the corporation, and that no facts presented indicated that conclusion was unreasonable. The only exception the committee identified was that the lawyer could not represent the corporation in her own transaction with it.
Currency note
This opinion was issued in 1991, before the Washington State Bar Association's adoption of the 2006 revisions to the Washington Rules of Professional Conduct. 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 Treat this page as historical context, not current guidance.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 lawyer for a co-op corporation buy a unit from that corporation?
A: Under this 1991 opinion, the committee was of the opinion she could reasonably conclude she could keep representing the corporation, with full disclosure and written consent.
Q: Can she represent the corporation in her own purchase?
A: No. The committee's only stated exception was that she could not represent the corporation in her own transaction with it.
Background and rules framework
At the time of this opinion, Washington's RPC 1.7 governed conflicts of interest and RPC 1.8 governed business transactions with a client, the subjects the Model Rules place in Rules 1.7 and 1.8. The committee separated the general representation, permissible with disclosure and consent, from the specific deal in which the lawyer and the client-corporation were on opposite sides.
Citations and references
Rules of Professional Conduct:
- ABA Model Rule 1.7 (conflicts of interest)
- ABA Model Rule 1.8 (business transactions with a client)
- Washington RPC 1.7, 1.8
See also
- WA Ethics Op. 1368: Partnership Suing Its Partner
- WA Ethics Op. 1355: Hold Harmless Agreement on Medical Bills
Source
- Landing page: https://ao.wsba.org/print.aspx?ID=481
Original opinion text
Reproduced from the official source for research purposes. The linked source is authoritative.
The Committee reviewed your inquiry concerning your representation of a cooperative corporation from which you intend to purchase a unit in the housing project being constructed by the corporation. [The lawyer made full disclosure to the client and obtained consent in writing.] The Committee was of the opinion that a lawyer in your situation could reasonably conclude that she could represent the corporation, and no facts presented by you indicate that such a conclusion is not reasonable. The only exception was that the Committee was of the opinion that you could not represent the corporation in your own transaction with it.
What do the rules say today, for your facts?
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