Ethics/Professional Responsibility
Jul. 9, 2026
McGrath: Potential conflicts can void engagement agreements
McGrath underscores the importance of identifying and disclosing potential conflicts of interest at the outset of a representation to preserve the enforceability of engagement agreements.
Brandon L. Winchel
Associate
Klein & Wilson LLP
Legal malpractice, business litigation, and appellate litigation
In Sheppard, Mullin, Richter & Hampton, LLP v. J-M Manufacturing Co., Inc. (2018) 6 Cal.5th 59 ("Sheppard"), the California Supreme Court held that a law firm's failure to disclose an actual conflict of interest rendered its engagement agreement--including the arbitration clause--unenforceable as against public policy. That decision left open a question: does the same rule apply when the undisclosed conflict is merely potential? In Doe 1 v. McGrath Ka...
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