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Lawyers have lawyer friends all the time. All my friends who are lawyers have introduced me to their lawyer friends many times.
So what.
The issue here isn't conflict of interest. Being friends with opposing counsel should be irrelevant. Not representing your client to the best of your abilities is the issue here.
It sounds to me like you may have a case for malpractice against your attorney. If he screwed you over because he placed his friendship first, then that is definitely malpractice. You need to show some form of loss though.
I'd say from here that these questions are best taken out of the hypothetical and addressed to a real attorney who can answer the real-life questions. I don't think that any of us are really qualified.
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