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Civil Litigation,
Law Practice,
Ethics/Professional Responsibility

Oct. 25, 2019

Walking the tightrope of representing two-person entities

When representing a two person partnership or corporation, how does a lawyer avoid developing direct fiduciary duties to each equity owner in his or her individual capacity? Significant guidance comes from a recent Court of Appeal decision.

Timothy D. Reuben

Reuben Mediation

Tim Reuben spent more than 40 years handling complex legal disputes in California's state and federal courts. As the founder and managing partner of Reuben Raucher & Blum in Los Angeles, he has worked on a wide range of matters through jury and bench trials, arbitration, mediation, judicial reference, and settlement conferences across multiple areas of civil law, including commercial, real estate, construction, employment, intellectual property, insurance, professional liability, and unfair competition.

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When representing a two person partnership or corporation, how does a lawyer avoid developing direct fiduciary duties to each equity owner in his or her individual capacity? Significant guidance comes from Division 7 of the 2nd District Court of Appeal in Sprengel v. Zbylut, 2019 DJDAR 9643, where Justice Lau...