Conflict of Interest

Our membership of the New Zealand Law Society requires us to have a formal conflict of interest Statement.  This is set out below.

We have file opening procedures in place to identify if there may be a possible conflict of interest and to respond to that if required.

In some circumstances (such as the sale and purchase of a residential property), we may act for both parties.  When this happens you will be fully informed and, we will ask you to sign a consent form allowing us to do so.  In other circumstances, if a conflict of interest arises we will stop acting for both parties and refer both them to other solicitors at another firm.

As solicitors we must be independent and free from compromising influences or loyalties when providing services to you. 

The relationship between a solicitor and client is one of confidence and trust that must never be abused.

The professional judgement of a solicitor must at all times be exercised within the bounds of the law and the professional obligations of the solicitor are solely for the benefit of the client.

A solicitor must at all times exercise independent professional judgement on a client's behalf. A solicitor must give objective advice to the client based on the lawyer's understanding of the law.

What is a conflict of interest?

This is set out for all solicitors in the Client Care Rules set by the New Zealand Law Society.  Briefly, this states:

We must not act, or continue to act for you if there is a conflict of interest or the risk of a conflict between our interests and the interests of you, our client.

Where a solicitor has an interest that touches on the matter in respect of which we act for you on the existence of that interest must be disclosed to you iirrespective of whether a conflict exists.

A solicitor must not act for a client in any transaction in which the solicitor has an interest unless the matter is not contentious and the interests of the solicitor and the client correspond in all respects.

A solicitor must not enter into any financial, business, or property transaction or relationship with a client if there is a possibility of the relationship of confidence and trust between solicitor and client being compromised.

A solicitor who enters into any financial, business, or property transaction or relationship with a client must advise the client of the right to receive independent advice in respect of the matter, and explain to the client that should a conflict of interest arise the solicitor must cease to act for the client on the matter and, without the client's informed consent, on any other matters. This does not apply where:

• the client and the solicitor have a close personal relationship; or
• the transaction is a contract for the supply by the client of goods or services in the normal course of the client's business; or
• a solicitor subscribes for or otherwise acquires shares in a listed company for which the lawyer's practice acts.

Conflicting business interests

We must not engage in a business or professional activity other than the practice of law where the business or professional activity may reasonably be expected to compromise the discharge our professional obligations.

Where a solicitor or the solicitor's practice provides, or intends to provide to clients, services other than regulated services, the services must—

• be associated with the provision of regulated services; and
• be provided by the solicitor or the solicitor's practice or by an entity in which the solicitor or the solicitor's practice has a controlling interest.

Third party conflicts of interest

A solicitor must ensure that the existence of a close personal relationship with a third party does not compromise the discharge of the duties owed to a client.

A solicitor must not act if there is a conflict of interest or an appearance of a conflict of interest between a client and a third party with whom the solicitor has a close personal relationship.

Where a person with whom the solicitor has a close personal relationship has an interest in the matter being dealt with the existence of that close personal relationship, and the nature of the interest must be disclosed to the client or prospective client irrespective of whether an actual conflict of interest exists.

A solicitor is not precluded from acting for a client solely because another solicitor in the solicitor's practice has a close personal relationship with a person whose interests conflict with the interests of the solicitor’s client.

Where solicitors are in a close personal relationship with each other they must not act for different parties in a matter unless the clients of both solicitors give their informed consent to their respective solicitors acting. Where both solicitors are retained by their respective clients before the close personal relationship is established, then, in the absence of both clients' consent to their respective solicitors continuing to act, the solicitor retained later in time must cease to act.

A solicitor is not precluded from acting for a client because another solicitor in his or her practice has a close personal relationship with the solicitor acting for the opposing party.

Personal relationships

A solicitor must not enter into an intimate personal relationship with a client where to do so may be inconsistent with the trust and confidence reposed by the client.
A solicitor must not enter into an intimate personal relationship with a client where the solicitor is representing the client in any domestic relations matter.