checklist to identify conflicts involving lawyer's personal interest

Lawyers who act for one or more clients in the face of a personal interest, financial or otherwise, are really fooling themselves. The exposure to a malpractice claim is inevitable if the client becomes unhappy about any aspect of the transaction. Even with a written waiver from the client in hand, the burden of proof regarding adequacy of disclosure and demonstrating exercise of good judgment will be most challenging.

Therefore, you should not act! If in doubt, consult with a colleague, your firm management, or outside counsel, or contact the Law Society's Practice Advisory Service at (416) 947-3369 or 1-800-668-7380.

Questions to help identify a personal interest conflict

	What is the client's interest?
	What is the lawyer's interest?
	Will maximizing the lawyer's interest negatively affect the client's interest? If so, you should not act.
	Will the lawyer always be able to place the interests of the client first? If not, you should not act.
	Is there potential for a falling out between the client and the lawyer in connection with the matter? If so, you should not act.

Examples of personal interest situations to avoid at all costs

	participating in a business transaction with a client
	having a personal or business relationship with another party interested in the representation or transaction
	acquiring an ownership or other interest in a matter adverse to a client
	purchasing real estate from a client
	taking a financial interest in a client matter other than reasonable fees
	creating a legal document wherein the lawyer is entitled to a beneficial interest e.g. being a beneficiary under a client's will which you have drafted
	having a personal, social or political interest in a client matter
	borrowing money from a client at the same time as providing legal advice and drafting documentation evidencing the loan and security therefrom.

Last update: Oct. 7, 2002