Creating a Conflicts Checklist

How do you pursue conflicts analysis? Do you have a preferred method? I have found that Analysts can vary quite a bit in their approach. 

In my opinion, and I believe most will agree with me, that you're best to determine if the exact names exist in your database first by: 

1) Starting with your client 
2) Moving to your adverse parties 
3) Searching for your third-parties 

Then look for outside research, if that's necessary. A checklist can be instrumental in not just making sure that you are checking everything you need (by covering yourself if you are ever questioned or QC'd [checked for quality]), but also to direct you through your critical path. 

I welcome you to share your comments or ask questions in the box provided. 

Thank you.

Ryan Vago
Founder & President
RION Corp.

Conflicts-Centric Highlights from ILTA's 2014 Tech Survey!

In looking at ILTA's 2014 Technology Survey, we noticed some statistics that might be important to conflicts professionals. Note that the respondents to this survey are on the IT side of the house; but because acting as the liaison between IT and legal is part of the job, these results may be interesting to you:

·      A surprising number of firms reported that they do not use any software for conflict-of-interest management (citing the following responses: it is not applicable, we do not track it, or we do it manually). Note that responses from three firms with >700 attorneys are not available.

·      Firms are facing an increasingly competitive market, and leadership is taking note that cutting cost is no longer the most effective measure for increasing profitability – meaning everyone must learn to do more with less. “…the ratio of staff to attorneys continue(s) to fall, which puts pressure on available resources.”

·      A majority of firms with <350 attorneys have no business intake program to speak of.

·      An overwhelming majority of firms with >350 attorneys are MOST concerned with security and risk management. While the IT perspective for risk management is a broad focus, the degree of accuracy and precision related to the processes in conflicts of interest and business intake can contribute to managing risk.

·      Alternatively the overwhelming majority of firms with <350 attorneys are MOST concerned with managing change. This is counterintuitive because most believe the smaller the firm, the more agile and flexible they should be. I think this speaks to the need for centralized IT when a firm reaches a certain size - but it's also encouraging to anyone with ideas related to doing more with less in a larger firm.

The 2014 Technology Survey reports the input of 454 firms representing more than 106,000 attorneys and 217,000 total users.

Here is the link to the report:  http://www.iltanet.org/Downloads/2014-Tech-Survey.pdf

RION Corp. has a survey which is open at this time, and we are looking to include data from the perspective of conflicts analysts. We encourage your participation if your career intersects with this portion of business intake at law firms: https://www.surveymonkey.com/s/D2H2FZV

And a big thank you from me to anyone who has participated in the survey already!!

Cori Blackburn

Executive VP of Marketing & Sales

RION Corp.

cori.blackburn@rioncorp.com

Conflicts Considerations When Updating Matters

There are a few reasons why updates to existing matters are necessary:

1. You have to add a new party to an existing matter.
2. You have to change a matter description.
3. You have to change the name of a party.
4. You have to reopen a closed matter.

Aside from correcting typos, RARELY would you do all of the above to an existing matter.  If you are updating an existing matter and asked to perform all of the above tasks, you most likely need to open a new matter.  

Pay careful attention to the description of a matter.  If you are asked to change the matter description from something like “Plaintiff vs. Defendant” to something like “New IP Matter Description” then this likely is an entirely new matter.  

You will also want to be careful when adding new parties or changing the name of existing parties.  Be sure to confirm that a new party is being added with the correct relationship and / or role, and determine why they were not originally listed on the conflict check form.  More importantly, if you are changing the name of an existing party to a different legal form (from Inc. to LLC, etc.), be sure to run a new search if the previous corporate family was not already searched.

Finally, when reopening matters, be sure that you’re not simply reopening a matter so that time can be billed for the same client but a different matter.  Due diligence is tricky and requires careful attention to every detail.

Please share your thoughts and any questions in the comments section below.

Ryan Vago
Founder & President
RION Corp.

Conflicts Intake vs Conflicts Research vs Conflicts Resolution

There is a clear distinction between intake, research & analysis, and resolution of conflicts.  Determining first if all the information you have is accurate and complete is critical in the conflicts clearance process.  Once you can confirm that all information is clear and complete, you can begin your research and analysis of the parties, practice area, and matter description.  What are some of the questions you should ask yourself when performing an intake of your conflict check request?

• Do I have the complete legal name of this entity or individual?
• Is this party a current / active client?
• Do we have an engagement letter for this client / attorney?
• Are we already adverse to this counterparty?
• If a known conflict exists, do we have consent?
• If this matter is a transaction, who is the opposing party (purchaser, seller, etc.)?
• If this is a dispute, is this a contentious or litigation matter? Do I have the correct description of this matter?
• Is this third party potentially adverse?
• How long will it take to search this party’s corporate family, officers, directors, or individual for sanctions or financial compliance?

Once these questions have been addressed, then you can determine a course of action. When you begin to perform research on an entity or individual, you will come across some more questions.  Depending on your policy and procedures, you may or may not need to run a full search of the entire corporate family tree, or a limited search, or no search at all. You may or may not need to run a credit check, or search sanctions or law enforcement databases.  You may simply be able to clear the matter yourself in minutes, or you may need to run a thorough examination into all of the parties and, if conflicts exist, obtain all the consent you can, and / or move it forward for review by an attorney or committee.

Conflicts resolution can be tricky and requires in some firms an attorney to resolve potential conflicts, and implement ethical walls.  How does your firm approach this process?  We invite you to share in the comments section below.

Ryan Vago
Founder & President
RION Corp.