Conflict of Interest at New Jersey College Culminates in Disciplinary Actions
In a striking revelation, two partners at Dilworth Paxson LLP found themselves under the judicial microscope this week, as the New Jersey Supreme Court imposed sanctions over a glaring conflict of interest. The controversy stems from their dual role as investors and legal representatives in a restaurant project at The College of New Jersey.
Dilworth Paxson Attys Disciplined Over NJ Eatery Conflict: Ethical Missteps Lead to Sanctions
The spotlight turned to Michael Gluck and Christopher Walrath, former partners at GluckWalrath LLP—a firm that merged into Dilworth Paxson last year—who failed to properly disclose their conflicting roles. On Wednesday, separate Supreme Court orders resulted in Gluck receiving an admonition, while Walrath faced a sterner reprimand.
Their entanglement began in 2015 when they not only represented a group of investors but also invested in the same project, the Brickwall at Campus Town. However, the pair neglected to provide their clients with written notice of this potential conflict or obtain written consent for their involvement, actions required by state ethics rules.
Dilworth Paxson Attys Disciplined Over NJ Eatery Conflict: Verbal Notifications and Mitigating Factors Considered
Despite the serious nature of their actions, the attorneys maintained that they verbally informed their clients about the potential conflicts. The Supreme Court’s Disciplinary Review Board (DRB) acknowledged this claim, along with other mitigating factors, such as their previously unblemished ethical records and a prior agreement with the DRB regarding the nature of the conflict.
