The Rules of Professional Conduct: A Basis For Civil Action Or Remedy?
The Washington Supreme Court’s recent decision in LK Operating, LLC v. The Collection Group, LLC calls into question the extent that a violation of the Rules of Professional Conduct (“RPCs”) may be used as a basis for civil action. Ultimately, the Washington Supreme Court affirmed the rescission of a contract based on a violation of RPC 1.8(a).
This case involved a joint venture transaction regarding a debt collection business. The parties to the joint venture included LK Operating, LLC (“LKO”) and The Collection Group, LLC (“TCG”). The members of LKO, Leslie Powers and Keith Therrien, are both Washington attorneys who worked for the same law firm (the “Law Firm”). One of the members of TCG, Brian Fair, initially asked Mr. Powers and Mr. Therrien if they, along with their Law Firm, would be interested in investing in TCG and operating a joint venture. The proposal involved each party to the joint venture contributing fifty percent of all required funds, Mr. Fair providing administrative and management services, and the Law Firm and Mr. Powers providing legal services.Continue Reading The Rules of Professional Conduct: A Basis for Civil Action or Remedy?