Conflict Of Interest?

[Darin Rogers]

My partner in a small appraisal firm has a brother who is a divorce attorney. This brother can direct people to our firm to perform divorce appraisals. The appraisals would be ordered by one of the litigants and performed by me. No problem, right?

 

[George Hatch]

If the other side finds out about the familial connection (between the client and the firm's partner) and brings it up in court, it would be no problem for you to explain to the judge why you didn't disclose it in your report, right?

 

[Bob Ipock]

If you have to ask yourself an ethics question.....you most likely already know the answer.

 

[Terrel L. Shields]

If you have to ask yourself an ethics question.....you most likely already know the answer.

Nice answer, Bob. Whether it stinketh a little or stinketh a lot, still smells like a skunk what my granny used to say.

 

[Robert Anderson]

Darin,

There is nothing in USPAP that prevents you from doing the appraisals in question. The precise relationship between you and the client is not clear to me, but I would advise you to err on the side of caution and disclose any relationship that does exist. In this regard, it is important to review the standard certification that provides as follows:

I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved.

The question of what might be made of the relationship in court is a separate issue, and I don't know if this would be a problem or not.

Bob Anderson

 

[Walter Kirk]

Both the attorney who refers the client and the appraiser have ethical standards to follow. As long as those ethical standards are followed (read your certification and limiting conditions) and the client knows that the appraisal firm is part owned by the referring attorney's brother there is no problem.

An attorney representing the other side could argue that there is some sort of conflict but that arguement can be made anytime an expert is paid by a party to a lawsuit.

 

[Otis Key]

Bob - that was my take as well. If you are asking, then you already have a concern!

 

[Larry Lyke]

Darin --

Walkter gave the best right answer.

The attorney discloses to the client and the appraisal firm discloses in their report.

That has another neat advantage: the opposing attorney doesn't have to dig out the fact for himself. You did your appropriate "gotcha."

L- in MN

 

[Darin Rogers]

Thanks all.