Keep Your Sterling Reputation by Doing Comprehensive Conflict of Interest Checks

by Bruce Policky / October 26, 2023

Keep Your Sterling Reputation by Doing Comprehensive Conflict of Interest Checks

As a lawyer, you know that you have a duty to “zealously protect and pursue a client’s legitimate interests.” But what happens when those interests collide with another client’s, or even your own?

Understanding and managing conflicts of interest is essential for managing an ethical legal practice and maintaining client trust.

Let’s explore what constitutes a conflict of interest, why it’s a pivotal issue, and how you can effectively navigate conflict checks at intake by using the latest technological tools.

Understanding the concept of conflict of interest

Conflicts of interest in the legal field are an issue that can have real-world repercussions for both lawyers and their clients. That’s why attorneys usually begin an initial consultation with a conflict of interest check to see if a prospective client’s matters are at odds with those of an existing client.

The American Bar Association’s (ABA) Model Rules of Professional Conduct contain extensive rules on conflicts of interest, both for current and prospective clients.

According to Rule 1.7, a conflict of interest exists when there is a significant risk that a lawyer’s ability to represent a client will be materially limited by the lawyer’s responsibilities to another client, a former client, or a third person, or by a personal interest of the lawyer.

In simpler terms, a conflict arises when:

  • your duty to one client could adversely affect another, OR
  • your personal interests are at odds with your professional responsibilities

It’s a situation that demands immediate attention and resolution because failing to address it can lead to ethical violations and penalties.

The importance of loyalty and independent judgment

At the core of the attorney-client relationship is the principle of loyalty and independent judgment.

Clients entrust lawyers with all manner of highly sensitive data, including financial and personal information, and rely on them for legal advice and representation. Any form of conflict can erode this trust and compromise the quality of legal services provided.

For instance, if you’re representing two clients in a business transaction, can you truly advocate for both parties equally? The answer is often no, and this is where conflict of interest checks come into play.

Conflict of interest checks are not just a formality. They’re a crucial step in maintaining the integrity of the legal profession.

Common types of conflicts in legal practice

There are always nuances to legal practice, and conflicts of interest are no different. Understanding these types of conflicts is about adhering to legal guidelines and maintaining the trust and integrity that are the bedrock of the legal profession.

Opposing client interests

This type of conflict arises when you represent clients whose interests could potentially clash in the future, even if they aren’t directly opposed at the moment.

For example, you might represent two different clients in separate but similar business negotiations. If one client’s successful deal could negatively impact the market conditions for the other client, you are in a situation of opposing client interests.

Limited abilities due to other responsibilities

Sometimes, your ability to fully represent a client is hindered by obligations to another party. This could be another client, a former client, or even a personal matter. When this situation arises, it becomes difficult to give both parties your best effort.

Exposure to the opposing party’s information

If you’ve had access to sensitive information from an opposing party in a previous case, taking on a new case against that party is fraught with ethical pitfalls.

Business transactions with clients

It’s widely known that, as the ABA’s ethical guidance states, a “lawyer’s own interests should not be permitted to have an adverse effect on representation of a client.”

Entering into business deals with a client can muddy the professional relationship. Your interests could easily become misaligned, leading to a conflict that is hard to resolve.

The traditional way of conducting conflict checks

Before the advent of specialized legal software, conflict checks were often a manual, time-consuming process. Lawyers would rely on:

  • Centralized databases: Manually searching through databases for names and entities related to potential new clients.
  • Team consultations: Discussing potential conflicts with other lawyers and paralegals in the firm.
  • Manual legal obligation review: Examining legal documents like confidentiality agreements or noncompete clauses that could cause conflicts.

These methods are prone to human error and can be incredibly time-consuming. These days, there are much more efficient ways to keep yourself in the clear.

The role of informed consent

Keep in mind that in some scenarios, conflicts can be managed through informed consent. This means all affected parties agree to proceed after full disclosure of the potential conflict. However, not all conflicts can be resolved this way, and in some cases, you may need to decline representation altogether.

The modern solution: Specialized legal software

In contrast with manual conflict checks, which are cumbersome and error-prone, specialized legal software has features designed to automate and streamline the conflict identification process, boosting speed and accuracy.

A software solution helps you conduct more accurate and efficient checks by allowing you to:

  • Search through a comprehensive database of clients, matters, and related parties.
  • Generate detailed conflict reports for review.
  • Maintain a record of all conflict checks for compliance and auditing purposes.

By integrating advanced software solutions into your conflict check procedures, you save time and enhance the reliability and integrity of the process.

Simplify conflict checks with Tabs3’s specialized tools

As an attorney, your reputation is one of your most valuable assets. Upholding ethical standards is a cornerstone of a successful practice. By staying informed about the nuances of what constitutes a conflict of interest and employing effective management strategies, you can safeguard your reputation and build stronger, more trusting relationships with your clients.

Tabs3 offers a range of features that make conflict checks more reliable and efficient:

  • Comprehensive database searches. Quickly search through a centralized database that includes current clients, past clients, and opposing parties, as well as any associated information for these clients.
  • Team collaboration features. Easily consult with team members within the platform, ensuring everyone is on the same page.
  • Search inside and outside of the database. PracticeMaster enable you to search outside documents and emails to ensure as comprehensive a search as possible.

By adopting PracticeMaster, you can significantly reduce the time and effort required for conflict checks, allowing you to focus more on your clients and less on administrative tasks.

Tabs3 is a comprehensive software solution designed to streamline your legal practice and enhance compliance. From legal billing to a financial suite, Tabs3 provides the tools you need to maintain airtight ethical integrity.

Don’t leave your reputation to chance. Invest in a solution that supports your commitment to ethical practice. Schedule a demo or begin your free trial today.