01 September 2008, by Shyamala Manoharan and Wong Li Chin
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:
-
No file can be opened until a conflict check is made and results documented,
-
The designated senior partner provides his approval,
-
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!