Conflicts, Confidentiality and Disclosure Flashcards

1
Q

What are the two types of conflicts of interest you will encounter in practice?

A
  1. Own interest Conflict
  2. Conflict of interest

Relating to the same matter or a related matter

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2
Q

What are the differences between an own interest conflict and a conflict of interest

A

The first is a conflict between the solicitor/firm and the client. The second is a conflict between clients

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3
Q

What is a related matter?

A

A matter related to the same asset or liability

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4
Q

Will there be a conflict if there is a general business interest of the same type of business between two clients?

A

No, as long as the issues are different

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5
Q

Can other solicitors act from the same firm where one solicitor is conflicted?

A

No, conflicts apply to the whole firm

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6
Q

When should a solicitor consider conflicts of interest (i.e conflicts between clients)

A

At the start of the matter before the retainer is created

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7
Q

You act for two people investing in a business (no conflict). Later on, one of the clients wants to increase their investment for greater control - has a conflict now arisen?

A

Yes

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8
Q

What should you do if a conflict arises before the retainer?

A

Decline to act or only act for the client/s who they can best represent

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9
Q

What should you do if a conflict arises after the retainer?

A

Inform all the clients and consider declining to act for all or some clients

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10
Q

Can a client consent to a conflict of interest?

A

No

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11
Q

What is a limited retainer?

A

When there is a conflict but you decide to act only on aspects where there is no conflict and advise the client to take independent advice on the conflicted area

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12
Q

Can a firm decline to act if it thinks it will result in professional embarrassment?

A

Yes

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13
Q

Give examples of an own interest conflict?

A
  1. Financial interest in the client’s business
  2. The client leaves you property in a will they want you to draft
  3. Personal relationships
  4. Commercial Relationship
  5. Employment claim of former employee
  6. Solicitors own conduct is in question
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14
Q

Can you act for a client in drafting a will where the client will leave your brother very expensive jewellery?

A

Yes, if you are happy the client took independent legal advice with regards to the making of the gift

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15
Q

Are there exceptions to own-interest conflicts?

A

Yes, if you are happy the client would not be undermined by the financial interest

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16
Q

Can you advise a client on a matter against your mother?

A

No

17
Q

Can you advise a client on a matter where your commercial interest in a business is adverse to your client’s business

A

No

18
Q

Can you act for a client who was an employee of the firm and wants to bring an employment claim against the firm?

A

No

19
Q

Can you act for a client where you made a mistake in their matter and the client needs advice on how to rectify the losse arising from that mistake?

A

No, if one of the options is for the client to bring a claim against you for professional negligence

20
Q

Are there any exceptions to acting where there is an own-interest conflict?

A

No, it is an absolute bar

21
Q

What is a conflict of interest between clients?

A

When you owe duties to both clients in respect of the same or related matters and those duties conflict

22
Q

If your advice to one client would be different to your advice to another client involving the same matter, is there a conflict?

A

Yes

23
Q

What are the exceptions to the rule that you cannot act where there is a client conflict ?

A
  1. Substantially common interest exception
  2. Competing for the same objective exception
24
Q

What is the substantially common interest exception?

A

Clear common purpose and a strong consensus on how it is to be achieved

25
Q

What is the competing for the same objective exception?

A

Clients are competing for something which, if attained by one client will be unattainable by others. That thing can be an asset, contract, or business opportunity or non-public tender

26
Q

What are the conditions for relying on an exception to the rule that you cannot act where there is a client conflict?

A
  1. Client gives informed written consent
  2. You add safeguards to protect confidential information
  3. It is reasonable for you to act for the clients