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You may encounter a prospective client whose interests conflict with your personal interest. For example, a conflict would exist if you've invested in a business that the potential client would like to sue. A conflict would also likely exist if your client would like assistance divorcing a family member of yours.
This could occur, for example, if an attorney is representing both parties in a divorce case. Another scenario: A party seeks representation from an attorney to sue a neighbor in a civil claims case. If the attorney also represents the neighbor's business, there would be a potential conflict of interest.
A conflict of interest occurs when an individual's personal interests ? family, friendships, financial, or social factors ? could compromise his or her judgment, decisions, or actions in the workplace.
A conflict of interest exists, however, if there is a significant risk that a lawyer's action on behalf of one client will materially limit the lawyer's effectiveness in representing another client in a different case; for example, when a decision favoring one client will create a precedent likely to seriously weaken ...
The Restatement states that a conflict of interest arises when: . . . there is a substantial risk that the lawyer's representation of the client would be materially and adversely affected by the lawyer's own interests or by the lawyer's duties to another current client, a former client, or a third person.