What ethical issue arises when a lawyer represents clients with conflicting interests?

The ethical issue that arises when a lawyer represents clients with conflicting interests is primarily the potential for a conflict of interest. This scenario can compromise the lawyer's ability to serve each client fully and impartially, as the interests of one client may adversely affect the interests of another. The duty of loyalty a lawyer owes to each client demands that their representation is not influenced by competing interests.

When conflicting interests are present, it can lead to challenges in maintaining confidentiality and providing undivided attention to each client's needs, which are fundamental ethical obligations in the legal profession. The potential for a conflict of interest requires careful evaluation and may necessitate withdrawal from representing one of the clients involved to uphold ethical standards and protect the integrity of the legal process.

This understanding is crucial in practicing law responsibly, ensuring that clients receive competent representation free from the influence of divided loyalty.