Ethics Ruling Number
R5033
Area of Law
Taxation
Category
Conflict of Interest
Ethics Ruling Date
20/02/2025
Ethics Pub Date
18/09/2025
Ethics Background
Law Practice A act for the Company A and Law Practice B act for Company B. Law Practice B submit that Law Practice A have a conflict of interest that arises due to a partner of Law Practice A having previously acted for their Company B. Law Practice A argue that they acted for the sole director of Company B in their personal capacity, and do not hold any confidential information that results in a conflict of interest. Law Practice B also contend that the partner at Law Practice A who previously represented the director is likely to be called as a material witness in the current litigation.
Ruling
In the opinion of the Ethics Committee and on the information presented: 1. Law Practice A may continue to act at present because: a. The two matters appear to be unrelated with no relevant confidential information common to them; and b. No duty of loyalty applies as this does not involve the same or closely related matters. 2. It would be prudent for Law Practice A to advise their client as to the possibility of Rule 27.2 applying if it becomes apparent that the solicitor will be called as a material witness as to the determination of a contested matter.

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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