Ethics/Professional Responsibility
Jul. 1, 2026
Appeals court voids law firm's arbitration clauses over undisclosed client conflicts
The 2nd District Court of Appeal ruled that a law firm's failure to obtain informed written consent to foreseeable conflicts among hundreds of sexual abuse clients rendered its engagement agreements -- including arbitration provisions -- unenforceable, expanding the reach of the California Supreme Court's Sheppard decision.
Extending a landmark California Supreme Court precedent, a state appeals court held Monday that a law firm's failure to obtain informed written consent to a foreseeable conflict created by representing hundreds of sexual abuse plaintiffs rendered its engagement agreements -- including their arbitration provisions -- unenforceable.
The 2nd District Court of Appeal said the decision in Sheppard, Mullin, Richter & Hampton LLP v. J-M Manufacturing Co., Inc. applies no...
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