Conflicts

Question 1

what are the situations a conflict of interest may arise?

Answer 1

• conflict between clients interest and solicitors interest
• conflict between 2 or more clients - limited circumstances where solicitor can act

Question 2

When should a solicitor not act when there is a conflict of interest between clients?

Answer 2

• clients have a substantially common interest in relation to the matter
• clients are competing for same objective

Question 3

Is it necessary for there to be an actual conflict of interest?

Answer 3

No, if there is a significant risk that a solicitors duties to act in the best interests of each client may conflict will be enough

Question 4

When is a solicitor able to act for both party?

Answer 4

• Substantially common interest
  e.g starting a business
• Competing for the same objective
  e.g asset, contract or business opportunity which 2 or more clients are seeking to acquire or recover through liquidation

Question 5

What are conditions that need to be meet if the solicitor is going to be acting for 2 or more client under the expections?

Answer 5

• all clients must give consent to the solicitor
• where appropriate, effective safeguards are put in place to protect the clients confidential info
• solicitor is satisfied it is reasonable to act for all the clients

Question 6

Can a solicitor act for both the buyer and seller of a property transaction?

Answer 6

Yes, the solicitor will have to decide on the individual facts of the case. The SRA does not specifically prohibit it but there is a potential of conflict arising

Question 7

Can there be a conflict of interest where the parties are represented by different solicitors within the same firm?

Answer 7

Yes, as it applies to the firm as a whole and not just to individual solicitors or employees