Conflict Checks Tips

January 3, 2023

Reading time: 2 minutes

As lawyers, we often look forward to the next client and the next case.  However, in our rush to entertain a new business opportunity, a proper conflicts check may be neglected.

Rule 1.7 of the ABA Model Rules of Professional Conduct states that “a lawyer shall not represent a client if the representation involves a concurrent conflict of interest.  A concurrent conflict of interest exists if:

  1. the representation of one client will be directly adverse to another client; or
  2. there is a significant risk that the representation of one or more clients will be materially limited by the lawyer’s responsibilities to another client, a former client or a third person or by the personal interest of the lawyer.”

The key to properly avoiding conflicts is to have a robust conflicts check policy and consistently apply it.  Today’s sophisticated billing software allows you to run party names to reveal any conflict or prior representation of the parties.  Now that nearly all case filings are done electronically, you can confirm your conflicts check by checking case filings in your local jurisdiction.  (This may even help you avoid an unsavory client!)  Finally, circulate a conflicts check around your firm with a twenty-four hour response deadline.  You may not know who your partners have represented in the past.  Or, perhaps they have already spoken to the opposing party in your potential case. 

Make sure your staff is able to implement the policy to properly screen potential clients before you speak to them.  This saves you time, and more importantly, may protect an existing client relationship.  By not taking a call or meeting with a potential client in which you learn confidential information about the case, you could still represent your current client without being conflicted out. 

Though it may seem tedious, the obligation to perform a proper conflicts will save you time, money, and client relationships. 


Additional Administration content

Administration

While you may initially think these practices will be too time consuming to add in your already busy schedule, thoughtfully managing your calendar can also serve as an opportunity to update (and appropriately bill) your clients.

Administration

The United States Supreme Court recently decided Connelly v. United States, No. 23-146, holding that a corporation’s obligation to redeem shares upon the death of a shareholder is not a liability that reduces the corporation’s value for purposes of the federal estate tax. What does this mean for practitioners counseling their business clients?

Administration

Insurance defense lawyers learn about the importance of the tripartite relationship with the insurer and its insured as soon as they start practicing law. After all, it is critical to offering the effective legal services for which you were hired. In this triad, a lawyer is tasked with maintaining their duty of loyalty to the client while upholding their fiduciary duty to the insurance company. This form of dual loyalty can lead to tension, real or perceived.

Information provided by AttPro Ally is not intended as legal advice. This publication provides best practices for use in connection with general circumstances and ordinarily does not address specific situations. Specific situations should be discussed with legal counsel licensed in the appropriate jurisdiction. By publishing practice and risk prevention tips, Attorney Protective neither implies nor provides any guarantee that claims can be prevented by the use of the suggested practices. Though the contents of AttPro Ally have been carefully researched, Attorney Protective makes no warranty as to its accuracy, applicability, or timeliness. Anyone wishing to reproduce any part of the AttPro Ally content must request permission from Attorney Protective by calling 877-728-8776 or sending an email to [email protected].

© 2024 AttPro Ally. All rights reserved.