Ethics Ruling Number
R5004
Area of Law
Trust Accounts
Category
Conflict of Interest
Ethics Ruling Date
26/08/2021
Ethics Pub Date
1/12/2021
Ethics Background
Where material information has been provided and is relevant to a new matter, solicitors may have an obligation of confidentiality to a person who is not a former client. An organisation was governed by a corporate body of trustees (‘corporate trust entity’), which comprised various trusts. A solicitor assisted a trust entity of the organisation (‘trust entity) in relation to a dispute with the organisation and the corporate trust entity. An individual trustee served as both the trustee of the corporate trust entity and the trust entity. The individual trustee had previously sought advice regarding legal responsibilities as a trustee of the corporate trust entity from the solicitor. The organisation claimed that as the individual trustee was a trustee of the corporate trust entity, the individual trustee was instructing the solicitor on the corporate trust entity’s behalf. The solicitor sought an Ethics Committee ruling as the organisation alleged a former client conflict on the basis that the corporate trust entity was a former client of the solicitor and due to a former client conflict of interest, the solicitor must not act for the trust entity in relation to the dispute.
Ruling
In the opinion of the Ethics Committee and on the information presented: 1. The corporate trust entity is not a former client of the solicitor. 2. A solicitor may have an obligation of confidentiality to a person who is not a former client, but in this case there is no material information that is relevant to the matter for the trust entity. 3. The solicitor does not have a conflict of interest that prevents them acting for the trust entity.

Law Institute of Victoria
Ethics Committee of Law Institute of Victoria Ltd
Legal Ethics Manager
Phone: 03 9607 9336
Email: ethics@liv.asn.au

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