13.8.3 Multiple Representation Issues.

• Jurisdiction: Arizona

Multiple representation issues are among the more difficult ethics issues that arise in foreclosure representation. One variation on the theme is the representation of multiple defendants in a judicial foreclosure action. The defendants might be trustors, guarantors, or accommodation parties. They may all oppose the lender, but their interests may also be mutually adverse. For example, a defendant-guarantor might be anxious to pursue indemnity or fraud claims against co-defendants. Before undertaking representation of multiple defendants, lawyers should pay particular attention to the provisions of ER 1.7. The lawyer, in such an instance, must determine that the quality of the client representation will not be materially limited by the multiple representation and obtain the consent of all clients to the multiple representation after undertaking the necessary consultation. If it appears that the legal interests of the co-defendants would be materially compromised as a result of simultaneous representation by a single lawyer, the lawyer ought not to undertake the multiple representation.

Creditor’s lawyers may also encounter multiple representation problems. Sometimes, after initiating remedial activities on behalf of one creditor against a debtor, lawyers are approached to undertake remedial activities on behalf of another creditor against the same debtor. The issue in such a situation is whether the creditors...