In re Conduct of Baer
Oregon Supreme Court
688 P.2d 1324 (Or. 1984)
Baer (defendant), an Oregon attorney, handled the legal work and served as escrow agent for his wife's purchase of the Petersons' house, telling the Petersons only that they could hire another attorney to review his work rather than disclosing that his wife's interests were adverse to theirs; when Mrs. Baer failed to pay the remaining balance on time, Baer first told the Petersons they would get the house back, then reversed course and claimed his wife held a part interest requiring the Petersons to sell and reimburse her, ultimately suing the Petersons in state and federal court after they sought their own counsel. The Oregon State Bar (plaintiff) brought disciplinary proceedings, and its Trial Board found Baer guilty of multiple ethics violations, recommending a public reprimand and ethics exam, while the Disciplinary Review Board recommended a 30-day suspension; Baer appealed.
Whether a lawyer representing a client with interests conflicting with his own, or representing two clients with conflicting interests, must explain the conflict to his clients in sufficient detail for them to understand why independent counsel is desirable.