Entity Rule

California subscribes to the “entity rule,” which provides that when a lawyer or a property manager, acting as a managing agent of an association, represents an organization, the organization is the client, not the organization’s constituents. Therefore, the organization holds the attorney-client privilege or the managing agent –client fiduciary duty, not its constituents or any individual officer or director. The purpose of the rule is to enhance the lawyer’s or managing agent’s ability to represent the best interests of the organization without having the additional and potentially conflicting burden of representing the organization’s constituents.