Conflict of Interest
Key Takeaway
A situation where an attorney's duties to one client are materially adverse to another client or where the attorney's personal interests conflict with a client's interests. Failure to identify and properly address conflicts is one of the most common triggers for both malpractice claims and disciplinary complaints, making robust conflicts-checking systems essential..
Definition
A situation where an attorney's duties to one client are materially adverse to another client or where the attorney's personal interests conflict with a client's interests. Failure to identify and properly address conflicts is one of the most common triggers for both malpractice claims and disciplinary complaints, making robust conflicts-checking systems essential.
Why This Matters for Law Firms
How claims are handled directly impacts your firm financially and reputationally. Understanding the claims process and related terminology helps law firm leadership make informed decisions when a claim or potential claim arises, and ensures you do not inadvertently jeopardize your coverage by failing to comply with policy requirements.
Example Usage in Context
When a partner receives a demand letter from a former client, the firm's risk manager might reference this: "We need to understand the conflict of interest requirements under our policy before taking any action. Let me contact our carrier and broker immediately."
Related terms
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