Adverse Interests

Question 1

What is the adverse interest rule?

Answer 1

You do not act for a client who has an interest adverse to that of another client (current or former) or your business or employer, where there is confidential information that would be material to that matter

Question 2

What is an adverse interest?

Answer 2

Not defined by SRA

Likely though where one party is likely to become the opposing party on a matter, whether in negotiations or some form of dispute resolution.

Question 3

What exceptions are there to the adverse interest rule?

Answer 3

Can only act if:

• effective measures have been taken which result in there being no real risk of disclosure of confidential information

or

• the current or former client whose information you hold, gives informed consent in writing to you acting, including to any measure taken to protect their information

Question 4

What would be effective measures under the exception to the adverse interest rule?

Answer 4

SRA states that test for such measures are high

Measures must protect one client’s information from the other and you as the solicitor

Question 5

What is required for the former client to give consent under exception to the adverse interest rule?

Answer 5

• client must give informed consent, which will require an understanding of any prejudice that might occur