Ethics Ruling Number
R5030
Area of Law
Commercial
Category
Conflict of Interest
Ethics Ruling Date
21/11/2024
Ethics Pub Date
18/09/2025
Ethics Background
Law Practice A represents Director A in a commercial dispute between two directors of the company. Director B is represented by Law Practice B. The dispute concerns liabilities of the company and their appropriation between the two directors. Law practice A allege that Law Practice B is conflicted, as they act on behalf of the debtor (the company) and a subcontractor in the dispute (the creditor).
Ruling
In the opinion of the Ethics Committee and on the information presented: 1. It is unclear whether Law Practice B acts for the company. 2. If Law Practice B acts for the company, then representing the company and the creditor concurrently constitutes a conflict of interest. 3. Even if Law Practice B does not act for the company, acting for the creditor of the company is contrary to the interests of the company and thus contrary to the fiduciary/statutory obligations of Director B to the company as a director and is also contrary to the interests of the administration of justice. 4. Law Practice B should cease acting concurrently for Director B and the creditor.

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

Back to Search