Sunday, August 17, 2008

Conflicts of Interest

In what is probably the most important action taken during the ongoing CBA Council meeting in Quebec City the Council considered and unanimously passed a resolution on Conflicts of Interest in legal practice.



The resolution provides practical tools to allow lawyers to determine when, and when not, they can act. Tactical conflict challenges will likely diminish or even disappear because the resolution makes clear where to draw the line on conflict.



The Taskforce considered conflicts around the common law world. The basis of the resolution is the 'substantial risk' of an adverse effect on a client because of a conflict. This excludes theoretical conflicts that may arise from unrelated matters.



The resolution considers that a lawyer's duty of confidentiality continues forever but the duty of loyalty ends with the retainer. So long as a retainer exists the lawyer may not act against a client's position or interest but once the retainer is over a lawyer may so act except where acting goes to the heart of the work contained in the prior retainer.



The practical result of this resolution is to clarify a lawyer's role with clients and makes the transfer of staff between firms less complex.



As a result clients will be less likely to have to change lawyers to ensure there is no conflict and legal services will be made easier to obtain.



See report here:



http://www.cba.org/CBA/groups/pdf/conflicts_finalreport.pdf

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