Quote:
Posted By AnitaM6 on 01/15/2024 6:41 AM
HOA has filed suit against homeowner who opened an Unapproved Business in community where Declaration says NO Business allowed. The homeowners attorney is the same attorney who wrote the HOA Declaration 15+ years ago. Does this pose a conflict of interest for their attorney?
Short answer: By my reading of the Georgia Rules of Professional Conduct (for attorneys, and which have the force of statute), yes, it is a conflict of interest. But I tend to think the HOA board should not pursue this.
Long answer:
In my opinion, the Georgia Rules of Professional Conduct require (or IMO strongly urge that) the owner's attorney to obtain the "informed consent" "in writing" of the HOA before representing the owner. See Rule 1.9 at https://www.gabar.org/barrules/georgia-rules-of-professional-conduct.cfm . See also Rule 1.7 and Rule 1.8.
Count on it: The owner's attorney will make an argument that there is no conflict of interest. It is indeed a matter of interpretation of several phrases in the Rules of Professional Conduct.
Options:
The HOA can object; inform the owner's attorney that he/she must withdraw from representing the client, or he/she will face a complaint with the bar (which is taxing); et cetera. But the most this will yield is more billable hours for the HOA attorney and that the owner gets a new attorney.
The Board should ask the HOA attorney whether to raise this issue. Ten bucks says the HOA attorney will say something like, "I will bring it to the owner's attorney's attention. But otherwise, I advise not pursuing this. It will cost the HOA money; delay things; and without changing the arguments that ultimately will happen in court. Pursuing this might also annoy the judge."