Here is a story on the Delaware Grapevine site about Delaware’s Department of Justice, through its Attorney General, withdrawing from representation in order to avoid a conflict of interest while it investigates the Delaware Psychiatric Center. Thus, the DPC needs to hire a private lawyer.
A little background for readers outside of Delaware: Unlike other states, the AG’s office in Delaware also serves as a local prosecutor as there is no "district attorney" for counties or cities in Delaware as there is in many other states, to investigate and prosecute local crimes. The AG serves that role. (Delaware only has 3 counties). The AG, an elected office in Delaware, serves as the lawyer for most state agencies as well. So, where, as here, the AG is investigating a state agency or entity, that entity needs to find another lawyer to represent it.