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I've been told that our coop board's attorney was chosen by the managing agent and also represents the managing agent/sponsor. (I don't know any details about the retainer agreement, etc.)
This seems to be an inherent conflict of interest. Is this arrangment normal? Any thoughts?
If you don't feel comfortable asking them get a neighbor to ask.
The sponsor always has a separate lawyer. Our coop, unfortunately, has gotten flawed advice from its lawyers so choose wisely.
It's only a conflict of interest if a conflict arises between the 2 parties in which case the attorney would declare it as a conflict. If you have a good working relationship with your MA, then I would not worry about it for the time being and agree with Steven and in the interim shop around. Depending on your contract with your legal, you may not even have to tell them that you have found new legal.
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I am not an attorney, but I would agree with your assessment. This sounds like a dicey situation, especially if a dispute should ever arise between the board and the sponsor/agent. If the sponsor still owns any shares in the co-op, it would be the same as if the board shared an attorney with the shareholder.
It should not be difficult for your board to engage its own attorney. The Council of NY Cooperatives and Condominiums can recommend attorneys who specialize in co-op law. Habitat Magazine may also have a list of co-op attorneys. If the sponsor has representatives on the board it may be more difficult to disengage, but it is something I recommend you do.
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