Legal Profession (Professional Conduct) Rules 2015

Conflict, or potential conflict, between interests of client and interests of legal practitioner or law practice, in general

22.—(1) The following principles guide the interpretation of this rule and rules 23, 24 and 25.

Principles

(a)

A legal practitioner owes duties of loyalty and confidentiality to a client of the legal practitioner, and must act prudently to avoid any compromise of the lawyer-client relationship between the legal practitioner and the client by reason of a conflict, or potential conflict, between the interests of the client and the interests of the legal practitioner.

(b)

A law practice owes duties of loyalty and confidentiality to a client of the law practice, and must act prudently to avoid any compromise of the lawyer-client relationship between the law practice and the client by reason of a conflict, or potential conflict, between the interests of the client and the interests of the law practice.

(2) Except as otherwise permitted by this rule, a legal practitioner or law practice must not act for a client, if there is, or may reasonably be expected to be, a conflict between —

(a)	the duty to serve the best interests of the client; and
(b)	the interests of the legal practitioner or law practice.

(3) Where a legal practitioner, any immediate family member of the legal practitioner, or the law practice in which the legal practitioner practises has an interest in any matter entrusted to the legal practitioner by a client of the legal practitioner —

(a)

in any case where the interest is adverse to the client’s interests, the legal practitioner must withdraw from representing the client, unless —

(i)	the legal practitioner makes a full and frank disclosure of the adverse interest to the client;
(ii)	the legal practitioner advises the client to obtain independent legal advice;
(iii)	if the client does not obtain independent legal advice, the legal practitioner ensures that the client is not under an impression that the legal practitioner is protecting the client’s interests; and
(iv)	despite sub-paragraphs (i) and (ii), the client gives the client’s informed consent in writing to the legal practitioner acting, or continuing to act, on the client’s behalf; or

(b)

in any other case, the legal practitioner must withdraw from representing the client, unless —

(i)	the legal practitioner makes a full and frank disclosure of the interest to the client; and
(ii)	despite sub-paragraph (i), the client gives the client’s informed consent in writing to the legal practitioner acting, or continuing to act, on the client’s behalf.

(4) Where a law practice has an interest in any matter entrusted to it by its client —

(a)

in any case where the interest is adverse to the client’s interests, the law practice must withdraw from representing the client, unless —

(i)	the law practice makes a full and frank disclosure of the adverse interest to the client;
(ii)	the law practice advises the client to obtain independent legal advice;
(iii)	if the client does not obtain independent legal advice, the law practice ensures that the client is not under an impression that the law practice is protecting the client’s interests; and
(iv)	despite sub-paragraphs (i) and (ii), the client gives the client’s informed consent in writing to the law practice acting, or continuing to act, on the client’s behalf; or

(b)

in any other case, the law practice must withdraw from representing the client, unless —

(i)	the law practice makes a full and frank disclosure of the interest to the client; and
(ii)	despite sub-paragraph (i), the client gives the client’s informed consent in writing to the law practice acting, or continuing to act, on the client’s behalf.

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