2000-2.

• Case Date: March 10, 2000
• Court: Alaska

Alaska Ethics Opinion 2000. 2000-2. OPINION NO. 2000-2The Effect of Confidential Settlement Agreements on Precluding Further Representation for Subsequent ClientsThe Ethics Committee has been asked to determine whether a lawyer who has represented a creditor, settled the claim, and whose creditor-client has signed a confidentiality agreement with the debtor agreeing not to disclose information from the settlement, may subsequently represent another creditor against the same debtor. It is the opinion of the Ethics Committee that a lawyer is not precluded from representing a subsequent client against the debtor in the circumstances outlined below so long as the attorney abides by the confidentiality requirements of Alaska Rule of Professional Conduct 1.6. Additionally, it is the opinion of the Ethics Committee that an attempt to use a settlement agreement to preclude an attorney from representing subsequent creditors might violate Alaska Rule of Professional Conduct 5.6. RELEVANT FACTS The specific fact scenario presented to the Ethics Committee involves an attorney who has represented a creditor against a particular debtor in the past. As a part of the original settlement agreement between the parties, the creditor and debtor "agree not to divulge any information contained in or concerning the terms of this agreement to third parties, except as may be necessary for the execution of this agreement or as required by law." Thereafter, the terms of the settlement are complied with between the parties. Later, the creditor's attorney is retained by another creditor in proceedings against the same debtor. The creditor attorney's demand letter is met with a response that the attorney must withdraw based upon the confidentiality clause of the original settlement agreement. The letter from the debtor's attorney in essence states that this new representation by the creditor's attorney would necessarily require the disclosure, at least implicitly, of the settlement negotiations with the debtor. This disclosure, the letter continues, breaches the confidentiality provisions of the settlement agreement, subjecting the first creditor to legal action. The debtor's attorney also alleges that this representation would violate Rules of Professional Conduct 1.7 and/or 1.9. ANALYSIS 1. Rule of Professional Conduct 1.6 Precludes the Creditor's...