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The Dreaded C - Conflict of Interest: The Essentials

In this final instalment of The Dreaded C - Conflict of Interest' series, focus will shift to the essentials of a conflict system, they are applicable whether you maintain a record book or a computerised system. 

Essentials Of A Conflict System

  • The right attitude!  Train ALL partners, lawyers and staff that a conflict check is a MUST and they should be alert.
  • Create and implement a standard questionnaire/client intake procedure for acceptance of new clients.   Train everyone in the firm to use this document.
  • A designated senior partner must approve ALL new clients before they are taken on.
  • A strong office policy must be implemented and there should be zero tolerance for opting out.  Example:
  1. No file can be opened until a conflict check is made and results documented,
  2. The designated senior partner provides his approval,
  3. The policy is required reading for every new hire.
  • Integrate your conflict system with your office systems, especially where your firm has moved to using computerised systems.
  • Communication.  Lawyers must communicate within the firm regarding clients and potential clients.   Example: Circulate a list of new clients and matters amongst lawyers and staff to ask if they know of the existence of any conflict.
  • Document.  The person who conducts the conflict check must document the search providing specifics of how they went about it.
  • Records.  All conflict searches must be maintained in one record book/document opened for this purpose.   This record book/ document then becomes the firm's 'bible'.
  • Alternative spelling options.  Try alternative spelling options when conducting any conflict check.
  • Back-up your conflict system!
 
Did You Know? Little Known Fact
EVERY consultation should be recorded. PRELIMINARY DISCUSSIONS with clients may lead to conflict problems later.
Obtain MINIMAL info during consultations - info need only be sufficient to make an initial conflict check. Conflicts are MOST COMMON where a firm acts for more than one person in a single matter and/or the lawyer has a personal interest eg monetary interest.
The fact that you can take on a case DOES NOT necessarily mean you should! An AUTOMATED RECORD SYSTEM reduces conflict risks in the long run.
Manual record systems are MORE LIKELY to lead to conflict situations. DISCIPLINARY ACTION and/or risk of civil liability may result if you are acting in conflict.
Conflict risks exist when lawyers MOVE from one firm to another.  

In summary, a successful conflict system is one that is:
  • Accessible to everyone in the firm.
  • Assigned to a designated staff and partner.
  • Updated each time a new client is taken on.
  • Integrated with the firm’s office systems.
  • Reviewed annually with all staff.
Whilst your law practice will never be completely free of conflicts – it is unfortunately inherent in the practice of law – we nonetheless hope that through The Dreaded C series, you are well on your way to developing your own successful conflict system!