Dueling Allegiances? Ethical Issues for Estate Professionals Involving Former Clients, Concurrent Clients and Dual Representations
Everyone knows that estate professionals must be disinterested and able to represent the debtor free of conflicts. But what happens when the professional represents a related nondebtor party — for example, the private-equity sponsor or the sole member/shareholder? What if the professional has relationships with others in the case? The professional may bring significant experience and value to the table, some being derived from its prior representation of the debtor, creditors or others involved in the case. When do these considerations outweigh the interests of the estate and the integrity of the system? Is disclosure of the potential conflicts and relationships enough? This panel explores these and related issues to help guide professionals and judges alike.