Conflict of interest checks for law firms: a practical guide

Quick answer: A conflict check means searching your firm's records for every name in a new matter (the client, the other side, related companies and directors) before you hear confidential details, and recording a decision. The Bar Council of India's rules stop an advocate acting for the opposite party in a matter where they advised the other side.

An advocate owes loyalty and confidentiality to every client. The Bar Council of India's rules on professional conduct say an advocate should not act or plead for the opposite party in a matter in which they have advised or acted for the other side. A conflict check is the simple habit that keeps you on the right side of that rule.

When to run a check

• Before the first detailed meeting with a new client.
• When a new party joins an existing matter (a co-defendant, a guarantor, a new company in a group).
• When a lawyer joins your firm, for the matters they bring and the ones they worked on before.

What to search for

Search your records for every name connected to the matter:

• The client, and for companies, its group companies and directors.
• The other side, and their companies and directors.
• Key witnesses and guarantors, where known.
• Earlier names (a company that changed its name, a person known by two names).

Search for partial matches too. "Sharma Traders" and "Sharma Trading Co." might be the same business.

What counts as a possible conflict

• You act, or acted, for the other side in this or a related matter.
• You hold confidential information from the other side that could be used against them.
• Two clients of yours want opposite things in the same deal or dispute.
• A lawyer in your firm has a personal or financial interest in the outcome.

Not every match is a conflict. A company you once helped with a lease may be unrelated to a contract dispute today. But every match deserves a written decision.

What to do when you find one

1. Stop collecting confidential facts from the new person.
2. Decide whether it is a real conflict. When in doubt, a senior lawyer decides.
3. Record the decision and the reason in the matter file.
4. Tell the person politely that you can't act, without revealing anything about the other client.

Keeping records in a small firm

You don't need an expensive system. You do need one place where every client and every opposing party is written down, and a habit of searching it. A spreadsheet works for a while; it breaks when two people keep two copies.

In April's [clients and cases](/features/clients-and-cases), every case records the opposing parties and opposing counsel, and every client sits in one list the whole firm can search. Before you add a client, search both.

A short checklist

• Search every name: client, other side, related companies, directors.
• Check before the long meeting, not after.
• Record each decision, even "no conflict".
• Re-check when the parties change.

Frequently asked questions

When should a law firm run a conflict check?

Before the first detailed meeting with a new client, whenever a new party joins an existing matter, and when a lawyer joins the firm.

Is every name match a conflict of interest?

No. A match is a signal to look closer. It is a conflict when you act or acted for the other side in a related matter, hold their confidential information, or two clients want opposite outcomes. Record the decision either way.

What should I tell a client when there is a conflict?

Tell them politely that you are unable to act, without revealing anything about the other client, and suggest they take advice elsewhere promptly if a time limit is close.

This article is general information for legal professionals, not legal advice. Check the current Bar Council of India rules for your situation.