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amendments to the Hawaii Rules of Professional Conduct

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epresentation should be fully explained <strong>to</strong> <strong>the</strong> clients at <strong>the</strong><br />

outset <strong>of</strong> <strong>the</strong> representation. See Rule 1.2(c) <strong>of</strong> <strong>the</strong>se <strong>Rules</strong>.<br />

[33] Subject <strong>to</strong> <strong>the</strong> above limitations, each client in <strong>the</strong><br />

common representation has <strong>the</strong> right <strong>to</strong> loyal and diligent<br />

representation and <strong>the</strong> protection <strong>of</strong> Rule 1.9 concerning <strong>the</strong><br />

obligations <strong>to</strong> a former client. The client also has <strong>the</strong> right <strong>to</strong><br />

discharge <strong>the</strong> lawyer as stated in Rule 1.16 <strong>of</strong> <strong>the</strong>se <strong>Rules</strong>.<br />

Organizational Clients<br />

[34] A lawyer who represents a corporation or o<strong>the</strong>r<br />

organization does not, by virtue <strong>of</strong> that representation,<br />

necessarily represent any constituent or affiliated organization,<br />

such as a parent or a subsidiary. See Rule 1.13(a) <strong>of</strong> <strong>the</strong>se<br />

<strong>Rules</strong>. Thus, <strong>the</strong> lawyer for an organization is not barred from<br />

accepting representation adverse <strong>to</strong> an affiliate in an unrelated<br />

matter, unless <strong>the</strong> circumstances are such that <strong>the</strong> affiliate<br />

should also be considered a client <strong>of</strong> <strong>the</strong> lawyer, <strong>the</strong>re is an<br />

understanding between <strong>the</strong> lawyer and <strong>the</strong> organizational client<br />

that <strong>the</strong> lawyer will avoid representation adverse <strong>to</strong> <strong>the</strong> client’s<br />

affiliates, or <strong>the</strong> lawyer’s obligations <strong>to</strong> ei<strong>the</strong>r <strong>the</strong><br />

organizational client or <strong>the</strong> new client are likely <strong>to</strong> limit<br />

materially <strong>the</strong> lawyer’s representation <strong>of</strong> <strong>the</strong> o<strong>the</strong>r client.<br />

[35] A lawyer for a corporation or o<strong>the</strong>r organization<br />

who is also a member <strong>of</strong> its board <strong>of</strong> direc<strong>to</strong>rs should determine<br />

whe<strong>the</strong>r <strong>the</strong> responsibilities <strong>of</strong> <strong>the</strong> two roles may conflict. The<br />

lawyer may be called upon <strong>to</strong> advise <strong>the</strong> corporation in matters<br />

involving actions <strong>of</strong> <strong>the</strong> direc<strong>to</strong>rs. Consideration should be<br />

given <strong>to</strong> <strong>the</strong> frequency with which such situations may arise, <strong>the</strong><br />

potential intensity <strong>of</strong> <strong>the</strong> conflict, <strong>the</strong> effect <strong>of</strong> <strong>the</strong> lawyer’s<br />

resignation from <strong>the</strong> board, and <strong>the</strong> possibility <strong>of</strong> <strong>the</strong><br />

corporation’s obtaining legal advice from ano<strong>the</strong>r lawyer in<br />

such situations. If <strong>the</strong>re is material risk that <strong>the</strong> dual role will<br />

compromise <strong>the</strong> lawyer’s independence <strong>of</strong> pr<strong>of</strong>essional<br />

judgment, <strong>the</strong> lawyer should not serve as a direc<strong>to</strong>r or should<br />

cease <strong>to</strong> act as <strong>the</strong> corporation’s lawyer when conflicts <strong>of</strong><br />

interest arise. The lawyer should advise <strong>the</strong> o<strong>the</strong>r members <strong>of</strong><br />

<strong>the</strong> board that in some circumstances matters discussed at board<br />

meetings while <strong>the</strong> lawyer is present in <strong>the</strong> capacity <strong>of</strong> direc<strong>to</strong>r<br />

might not be protected by <strong>the</strong> client-lawyer privilege and that<br />

conflict <strong>of</strong> interest considerations might require <strong>the</strong> lawyer’s<br />

recusal as a direc<strong>to</strong>r or might require <strong>the</strong> lawyer and <strong>the</strong><br />

lawyer’s firm <strong>to</strong> decline representation <strong>of</strong> <strong>the</strong> corporation in a<br />

matter.<br />

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