Navigating through the Various Rules of Professional Conduct

To catch potential conflicts of interest, firms can easily keep track of the clients, adverse parties, and third parties involved in each matter, in a database that can be searched for a record of the parties involved in new matters, and for new parties involved in existing matters.

Here is a summary of some of the American Bar Assiciation Model Rules of Professional Conduct that govern conflicts in the legal industry.

Rule 1.7 - Conflict of Interest: Current Clients

The typical client-lawyer conflict of interest in a U.S. law firm involves the representation of a client who is directly adverse to another client, or if there is a risk that the representation will be limited by the lawyer / law firm's responsibilities to another client, a former client or a third person, or by a personal interest of the lawyer.

Rule 1.8 - Conflict of Interest: Current Clients: Specific Rules

The specific rules forbid a lawyer from entering into a business transaction with a client. What happens if a business contact asks to retain a firm lawyer for a legal matter, does your firm keep a record of business relationships to catch potential conflicts?

Rule 1.9 - Duties to Former Clients

How does your firm treat former clients? If a lawyer has formerly represented a client in a matter, the rules prohibit the representation of another person in the same or a substantially related matter in which that person's interest are materially adverse to the interest of the former client, unless the former client gives informed consent confirmed in writing. 

Rule 1.10 - Imputation of Conflicts of Interest: General Rule

What about new lawyers joining the firm? Generally, while lawyers are associated in a firm, none of them are allowed to knowingly represent a client when any of them practicing alone would be prohibited from doing so.  How does your firm handle potential conflicts when lawyers are bringing in business that has not yet been screened?

All of the above rules are important reasons why it is critical to keep, in addition to the parties, a record of the description of each matter, the practice area, and the roles and relationships of each party involved in your matters. 

Further, corporate affiliations and relationships between the many parties involved in legal matters at law firms are complex and also important to know when running conflict checks. 

For more details on the ABA Model Rules of Professional Conduct, see: http://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/model_rules_of_professional_conduct_table_of_contents.html

For a list of states that have adopted the ABA Model Rules of Professional Conduct, see:
http://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/alpha_list_state_adopting_model_rules.html

I invite you to share your thoughts or questions in the comments section below.

Thank you,
Ryan Vago
Founder & President
RION Corp.