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In re Neville | 708 P.2d 1297 (1985)

Lawyers owe a fiduciary duty to their clients, meaning that lawyers must always treat clients with the utmost loyalty and good faith. Lawyers also have additional obligations imposed by the rules of professional conduct. In In re Neville, the Arizona Supreme Court considered whether a lawyer had done right by his client.

Robert Neville was an attorney. He represented Floyd Bly, a licensed real estate broker, in a number of transactions over a decade, including a deal in which Bly acquired a property known as Camp Phoenix.

Subsequently, Bly sold Camp Phoenix for cash and ownership of another property called the Chandler property. Bly kept the cash and simultaneously transferred ownership of the Chandler property to Neville in return for a note. Neville drafted the contract for all the parties to the Camp Phoenix transaction. Some of the contract terms were disadvantageous to Bly, but Bly accepted them without negotiating. Later, Bly filed a complaint against Neville with the state bar.

The State Bar Local Administrative Committee held a hearing at which Neville testified that he’d told all the parties to the Camp Phoenix transaction that he wasn’t representing them in the deal and that they should consult independent counsel. Bly testified, however, that he thought Neville represented him in the deal. Bly hadn’t consulted other counsel, but he testified that he knew Neville’s interests were adverse to his.

The administrative committee found that Neville had violated the code of professional responsibility by transacting business with Bly without full disclosure when their interests were adverse, and imposed a ninety-day suspension. The Disciplinary Board affirmed but reduced the suspension to sixty days. Neville appealed to the Arizona Supreme Court.

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