Does My Lawyer Have A Conflict of Interest?
Does My Lawyer Have A Conflict of Interest?
Does My Lawyer Have A Conflict of Interest?
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FACT SHEET NOVEMBER 2016
Acting for more than one client Clients’ interests conflicting with a lawyer’s/law
Lawyers generally should not represent more than one practice’s interests
client in the same legal matter. This protects both the Lawyers and law practices must not allow their own
lawyer and the clients in the event that the clients’ interests to come into conflict with the interests of their
interests diverge, even if their interests start out the same. clients.
There are circumstances where a lawyer or law practice The rules that regulate the legal profession explicitly
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is permitted to act for both sides in a legal matter . These state lawyers are not permitted to benefit from their
most commonly occur in business and property relationship with their client, other than the usual payment
transactions and conveyancing. Before the lawyer or law for the legal services they have provided. This means
practice commences to act for both sides, they must have that a lawyer must not advise their clients to become
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formally advised all clients of the arrangements, and all involved in their business interests , or the interests of
clients must have given their informed consent. their associates (business partners, friends or relatives).
If a conflict does arise between the clients’ interests, the Lawyers are prohibited from borrowing money from their
lawyer or law practice must cease acting for one or both clients or from a former client of their law practice (save
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of the parties immediately. The lawyer or law practice for very limited circumstances).
may still represent one party provided their duty of
Lending money to clients is not prohibited; however it
confidentiality is not put at risk and the other party has
may create ethical concerns for the lawyer, particularly if
given their informed consent to the new arrangements.
a dispute arises over the repayment of that loan.
Lawyers or law practices who fail to obtain fully informed
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consent from one or all clients before commencing to
Further information
act in a matter risk facing disciplinary action brought by
the Victorian Legal Services Commissioner. Contact the Victorian Legal Services Commissioner
Tel: 1300 796 344 (cost of a local call)
Email: [email protected]
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Rule 11 of the Legal Profession Uniform Law Australian Solicitors’ Rule 12 of the Legal Profession Uniform Law Australian Solicitors’
Conduct Rules 2015 Conduct Rules 2015
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See Victorian Legal Services Commissioner v Christopher Wilson See Legal Services Commissioner v Needham
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See Legal Services Commissioner v Adami
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See Victorian Legal Services Commissioner v Hume
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