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 lawyers at another firm.
As lawyers we must be independent and free from compromising influences or loyalties when providing services to you.
The relationship between a lawyer and client is one of confidence and trust that must never be abused.
The professional judgement of a lawyer must at all times be exercised within the bounds of the law and the professional obligations of the lawyer are solely for the benefit of the client.
A lawyer must at all times exercise independent professional judgement on a client's behalf. A lawyer 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 lawyers 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 lawyer 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 lawyer must not act for a client in any transaction in which the lawyer has an interest unless the matter is not contentious and the interests of the lawyer and the client correspond in all respects.
A lawyer 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 lawyer and client being compromised.
A lawyer 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 lawyer 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 lawyer 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 lawyer 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 lawyer or the lawyer'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 lawyer or the lawyer's practice or by an entity in which the lawyer or the lawyer's practice has a controlling interest.
Third party conflicts of interest
A lawyer 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 lawyer 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 lawyer has a close personal relationship.
Where a person with whom the lawyer 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 lawyer is not precluded from acting for a client solely because another lawyer in the lawyer's practice has a close personal relationship with a person whose interests conflict with the interests of the lawyer’s client.
Where lawyers are in a close personal relationship with each other they must not act for different parties in a matter unless the clients of both lawyers give their informed consent to their respective lawyers acting. Where both lawyers are retained by their respective clients before the close personal relationship is established, then, in the absence of both clients' consent to their respective lawyers continuing to act, the lawyer retained later in time must cease to act.
A lawyer is not precluded from acting for a client because another lawyer in his or her practice has a close personal relationship with the lawyer acting for the opposing party.
Personal relationships
A lawyer 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 lawyer must not enter into an intimate personal relationship with a client where the lawyer is representing the client in any domestic relations matter.
