Conflict Avoidance, Management and Dispute Resolution Procedures (L1M) Flashcards

1
Q

What is a conflict on interest?

A

A situation which an individual/company has competing interests or loyalties

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2
Q

When do conflicts exist?

A
  • Independence and impartiality is materially affected

- Financial / Personal / Commercial / Dual Agency

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3
Q

How can conflicts be managed?

A
  1. Avoidance
  2. Written advice to both parties - nature of conflict and proposals, clear and concise. Request permission (informed consent)
  3. Set up conflict management procedures
  • Firms must have effective checking and handling procedures in place (Mark England?)
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4
Q

What is the difference between a conflict and a dispute?

A
  • Dispute = short-term disagreement that can result in the disputants reaching some sort of resolution; it involves issues that are negotiable.
  • Conflict = long-term with deeply rooted issues that are seen as “non-negotiable”
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5
Q

RICS Conflicts of Interest Professional Statement 2017

A

3 types of conflict:

  1. Party - conflicts party acted for
  2. Own interest - conflicts own personal interests
  3. Confidential information - have to keep confidential information from client (information barriers)
  • Informed consent must be given
  • Must be in interest of all parties
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6
Q

RICS Conflicts of Interest - UK Commercial Property Market Investment Agency Professional Statement 2017

A
  • No dual agency (act for buyer and seller)
  • Multiple introductions allowed if on a ‘non-exclusive basis’ - informed consent from all parties
  • Incremental advice allowed - information barrier in place
  • Personal interests must be declared & remuneration stated
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7
Q

Is there any RICS guidance on Complaints Handling?

A

Yes - RICS Complaints Handling Procedure Guidance Note, 2016

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8
Q

What does the RICS Complaints Handling Procedure Guidance Note (2016) state?

A
  • Keep Terms of Engagement accurate and clear, with CHP outlined
  • CHP should be:
    a. Fit for purpose (size of company)
    b. Available to all staff and potential complainants
    c. Regularly reviewed
    d. Agreed with PII provider
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9
Q

What is your firm’s Complaints Handling Procedure?

A
  1. Written complaint to Mark England (C10) - reports on action taken
  2. Written complaint to Etienne Prongue (Senior Director)
  3. Written complaint to Ombudsman
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10
Q

What are the key principles of Negligence?

A
  • Surveyors have reasonable duty of care to clients and parties
  • Must use ‘reasonable care and skill’
  • Negligence - breach of this where damages arise
  • Limitation Act 1980 - 6 years from date of negligent act - 3 years from knowledge that claim was possible - 15 year longstop date
  • Margin of error can vary
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11
Q

What are the different types of Alternative Dispute Resolution?

A
  1. Negotiation
  2. Mediation - neutral who facilitates discussion between parties
  3. Independent Expert Determination - appointed by two parties, undertakes own investigations both parties bound by decision, can be sued, issues determination.
  4. Arbitration - provide information to, limited right of appeal to High Court - not liable for negligency, powers of disclosure, bound by decision - cannot be sued
  5. Early neutral evaluation - independent, non-binding opinion
  6. Ombudsman - confidentially receives details and instigates resolution of complain
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12
Q

What are the benefits of Alternative Dispute Resolution?

A
  1. Speed
  2. Informality
  3. Greater opportunity for negotiation
  4. Cost
  5. Quality of decision making
  6. Confidentiality
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13
Q

Arbitrator vs Independent Expert

A
Arbitration:
•	Decision based on submissions of the parties 
•	Needs parties to submit evidence
•	Cannot be sued
•	Issues an ‘award’

Independent Expert:
• Does not have to reach compromise – uses own knowledge and expertise
• Can be sued for professional negligence
• Issues a ‘determination’

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14
Q

What RICS document relates to expert witness?

A

RICS Surveyors acting as Expert Witness Practice Statement (2014, amended 2020):

  • Duty to the courts, even if client pays fee - can be sued for negligence (Jones v Kaney 2011)
  • Must not be conflicted - no incentive fees allowed
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15
Q

If you wish to accept an instruction with a conflict, what should your written advice to both parties include?

A

ah

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16
Q

I noticed you mentioned your firm’s complaints handling procedure. Can you outline what that is?

A

a

17
Q

What is your understanding of an ombudsman?

A

a

18
Q

Can you very briefly talk me through the different alternative dispute resolution procedures/methods available?

A

a

19
Q

How does a sole practitioner deal with complaints?

A

a

20
Q

Does the RICS provide any complaints handling facilities? What is it called?

A

a

21
Q

In a dispute, why may it be a good reason to appoint an Expert Witness?

A

a