Iowa R. Prof'l Conduct 32:2.4

(a) A lawyer serves as a third-party neutral when the lawyer assists two or more persons

who are not clients of the lawyer to reach a resolution of a dispute or other matter that has

arisen between them. Service as a third-party neutral may include service as an arbitrator, a

mediator, or in such other capacity as will enable the lawyer to assist the parties to resolve the

matter.

(b) A lawyer serving as a third-party neutral shall inform unrepresented parties that the

lawyer is not representing them. When the lawyer knows or reasonably should know that

a party does not understand the lawyer’s role in the matter, the lawyer shall explain the

difference between the lawyer’s role as a third-party neutral and a lawyer’s role as one who

represents a client.

Comment

[1] Alternative dispute resolution has become a substantial part of the civil justice system. Aside

from representing clients in dispute-resolution processes, lawyers often serve as third-party neutrals.

A third-party neutral is a person, such as a mediator, arbitrator, conciliator, or evaluator, who assists

the parties, represented or unrepresented, in the resolution of a dispute or in the arrangement of a

transaction. Whether a third-party neutral serves primarily as a facilitator, evaluator, or decision

maker depends on the particular process that is either selected by the parties or mandated by a court.

[2] The role of a third-party neutral is not unique to lawyers, although, in some court-connected

contexts, only lawyers are allowed to serve in this role or to handle certain types of cases. In

performing this role, the lawyer may be subject to court rules or other laws that apply either to

third-party neutrals generally or to lawyers serving as third-party neutrals. Lawyer-neutrals may

also be subject to various codes of ethics, such as the Code of Ethics for Arbitration in Commercial

Disputes prepared by a joint committee of the American Bar Association and the American

Arbitration Association or the Model Standards of Conduct for Mediators jointly prepared by the

American Bar Association, the American Arbitration Association, and the Society of Professionals

in Dispute Resolution. In 1987, the Iowa Supreme Court adopted the Rules Governing Standards

of Practice for Lawyer Mediators in Family Disputes, which is now the Standards of Conduct for

Mediators, chapter 11 of the Iowa Court Rules. Lawyers engaged in mediation should carefully

review these rules because they address matters of special concern and state different and more

restrictive rules on conflicts of interest.

[3] Unlike nonlawyers who serve as third-party neutrals, lawyers serving in this role may

experience unique problems as a result of differences between the role of a third-party neutral and

a lawyer’s service as a client representative. The potential for confusion is significant when the

parties are unrepresented in the process. Thus, paragraph (b) requires a lawyer-neutral to inform

unrepresented parties that the lawyer is not representing them. For some parties, particularly parties

who frequently use dispute-resolution processes, this information will be sufficient. For others,

particularly those who are using the process for the first time, more information will be required.

Where appropriate, the lawyer should inform unrepresented parties of the important differences

between the lawyer’s role as third-party neutral and a lawyer’s role as a client representative,

including the inapplicability of the attorney-client evidentiary privilege. The extent of disclosure

required under this paragraph will depend on the particular parties involved and the subject matter

of the proceeding, as well as the particular features of the dispute-resolution process selected.

[4] A lawyer who serves as a third-party neutral subsequently may be asked to serve as a lawyer

representing a client in the same matter. The conflicts of interest that arise for both the individual

lawyer and the lawyer’s law firm are addressed in rule 32:1.12.

[5] Lawyers who represent clients in alternative dispute-resolution processes are governed by

the Iowa Rules of Professional Conduct. When the dispute-resolution process takes place before a

tribunal, as in binding arbitration (See rule 32:1.0(m)), the lawyer’s duty of candor is governed by

rule 32:3.3. Otherwise, the lawyer’s duty of candor toward both the third-party neutral and other

parties is governed by rule 32:4.1.