You said:...

"May I reword that to conclude that you feel that they could keep the other client and act on their behalf in a case against EDIG? I just do not understand how that could be permitted. Am I misunderstanding you?"...

The ANSWER is NO YOU MAY NOT...

By rephrasing my statement you are changing it to something totally different, and succeed to confuse yourself to a point of having a headache...

Read my statement and my post carefully and in the context it was made, and understand that conflict of interest can arise in many different situations, and is different than the duty imposed on lawyers regarding representing their clients. There are specific RULES governing that one...

Suffice it to say the RULES governing conflict of interest that (1) a Lawyer shall inform his client of the conflicts of interest in writing and, (2) shall obtain a written document from his client giving him permission to continue with his representation in a conflict of intrest situtation...

Under the rules, as my statement notes, a lawyer can, (theoretically), represent two clients with adverse interest if they giving him written permission to do so. In practce, however, this is rarely done as it leaves the lawyer exposed to some court in the future ruling that what he did was unethical and unlawful...

On the other hand a lawyer cannot sue his client that he reresents that is not conflict of interest issue but a matter on failing to represent your client which is a horse of different color...

Gil...