Can a lawyer ethically agree not to represent certain clients?
Attorney Susan is a successful and highly-regarded plaintiff’s attorney with vast experience in complex personal injury matters. She is currently representing one of dozens of plaintiffs in a large, complex mass-tort case against ABC Corporation. Most of the plaintiffs have separate counsel because of the potential of conflicts that could arise during the litigation. Because of Susan’s reputation and experience, she is one of the de facto leaders on the plaintiffs’ side.
ABC Corporation is concerned about Susan’s reputation and experience in this field as well as her ability to successfully guide the litigation. In an effort to remove her from the plaintiffs’ team, ABC makes her client an overly generous settlement offer. Given the facts of the case and her client’s specific injuries, she would ordinarily accept this offer or something close to it. However, ABC’s settlement offer also stipulates that Susan must agree that she will not represent any other parties in this lawsuit. Moreover, she must agree that she will not represent any parties who are adverse to ABC for five years from the date of the settlement.
Susan and her client both want to accept the offer, but Susan is concerned about whether the offer is permitted by the ethics rules.
Rule 5.06 of the Texas Disciplinary Rules of Professional Conduct reads:
A lawyer shall not participate in offering or making:
(a) a partnership or employment agreement that restricts the rights of a lawyer to practice after termination of the relationship, except an agreement concerning benefits upon retirement; or
(b) an agreement in which a restriction on the lawyer's right to practice is part of the settlement of a suit or controversy, except that as part of the settlement of a disciplinary proceeding against a lawyer an agreement may be made placing restrictions on the right of that lawyer to practice.
The comments to Rule 5.06 note that such restrictions on a lawyer’s right to practice are prohibited because it “not only limits [the attorney’s] professional autonomy but also limits the freedom of clients to choose a lawyer.”
Here, because the proposed settlement restricts Susan’s right to practice, it violates Rule 5.06. Not only is Susan prohibited from accepting it, the attorney making the offer on behalf of ABC has also violated the Rule. The correct response is A.
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