Can a Conflict of Interest Lead to a Legal Malpractice Lawsuit in South Dakota?

When you hire an attorney, you expect them to work solely in your best interests. That trust is at the core of the attorney-client relationship. But what happens if your lawyer’s loyalty is divided — or worse, compromised — by a conflict of interest? In South Dakota, this ethical breach can go beyond poor representation. In some cases, a conflict of interest may open the door to a legal malpractice lawsuit.

Understanding how conflicts of interest arise and when they cross the line into malpractice is key if you believe your attorney’s divided loyalties led to a poor outcome in your case. Here’s what you need to know.

What Is a Conflict of Interest in Legal Representation?

A conflict of interest occurs when an attorney’s obligations to one client are compromised — or potentially compromised — by a competing duty to another client, a third party, or even the attorney’s own personal or financial interests.

Under South Dakota’s Rules of Professional Conduct, attorneys must avoid representing clients when a conflict of interest exists unless the conflict is fully disclosed and the client gives informed consent in writing. If they fail to do so, they risk both ethical sanctions and civil liability.

Examples of Conflicts That Could Lead to Legal Malpractice

Not every conflict of interest rises to the level of malpractice, but certain situations can directly harm a client and lead to a viable lawsuit. Some common examples include:

• Representing Opposing Parties: An attorney represents both the buyer and seller in a real estate transaction or both spouses in a divorce. Even with consent, this is highly risky and often problematic.
• Attorney Has a Financial Interest: The lawyer stands to profit from the outcome of the case (e.g., owning shares in a business involved in litigation).
• Switching Sides: An attorney who previously represented one party later takes on a new client with interests adverse to the former client in a related matter.
• Personal Relationships: A lawyer’s romantic or familial connection to someone involved in the case clouds their professional judgment or creates bias.
• Multiple Clients in a Criminal Case: An attorney represents co-defendants in a criminal matter whose defenses conflict with each other.

If an attorney proceeds with representation despite such conflicts, and you suffer harm as a result, you may have grounds to sue for legal malpractice.

When Does a Conflict of Interest Become Legal Malpractice?

For a conflict of interest to qualify as legal malpractice in South Dakota, the following elements typically must be present:

1. Attorney-Client Relationship: You must have had a formal relationship with the attorney.
2. Breach of Duty: The attorney acted in a way that violated their ethical or fiduciary duty — in this case, failing to avoid or disclose a conflict of interest.
3. Causation: The attorney’s conflict must have directly contributed to a negative outcome in your case, such as a financial loss or legal disadvantage.
4. Damages: You suffered measurable harm due to the attorney’s misconduct — such as losing a lawsuit, receiving a smaller settlement, or incurring extra legal costs.

Simply showing that a conflict existed isn’t enough — you must demonstrate that the conflict had a material effect on your case and that a competent attorney, free of such conflicts, would have achieved a better result.

How Do You Prove a Conflict of Interest Harmed Your Case?

Legal malpractice cases are challenging because they often involve re-litigating parts of the original case to show what “should have happened.” To prove harm from a conflict of interest, your attorney or legal team will gather evidence such as:

• Contracts or engagement letters showing dual representation
• Emails or communications revealing the attorney’s divided interests
• Financial records linking the attorney to parties in your case
• Expert witness testimony on standard legal practices
• Case outcomes that were clearly impacted by the attorney’s inability to act solely on your behalf

In some instances, evidence of a conflict may be subtle — especially if the attorney did not disclose the relationship or financial interest. That’s why working with a skilled legal malpractice attorney is crucial.

What Damages Can You Recover in a Legal Malpractice Claim?

If your case is successful, you may be able to recover:

• Compensatory damages — for the money you lost as a direct result of the attorney’s conflict
• Legal fees — incurred from hiring another attorney to fix or relitigate the case
• Emotional distress — in some cases, if the attorney’s conduct caused severe stress or embarrassment
• Punitive damages — if the attorney acted with gross negligence or willful misconduct

Each case is different, and the amount of recoverable damages depends on the specifics of how the conflict affected your outcome.

How Long Do You Have to File a Legal Malpractice Lawsuit in South Dakota?

In South Dakota, the statute of limitations for filing a legal malpractice claim is typically three years from the date of the alleged malpractice — or from the date you reasonably should have discovered it. However, this timeline can vary depending on the facts of the case.

If you suspect that a conflict of interest may have harmed your case, it’s essential to act quickly. Waiting too long could jeopardize your ability to recover compensation.

Contact Ogborn Mihm Quaintance Today for Legal Representation

If your attorney’s conflict of interest led to a poor outcome in your case, you may be entitled to compensation for your losses. At Ogborn Mihm Quaintance, we help clients across Sioux Falls and South Dakota hold negligent attorneys accountable. Our team understands the complexities of legal malpractice cases — and how to build a strong case based on ethics, evidence, and real-world impact.

Contact us today for a confidential consultation and let us help you determine whether you have a viable legal malpractice claim.