Conflict of interest
Disputes & Litigation

A conflict of interest is an incompatibility between someone’s personal interests and either a public duty or a fiduciary duty. The conflict may be real or perceived.

By way of example, a conflict of interest would commonly arise where a solicitor acts for the both the claimant and the defendant in a particular dispute - the solicitor would not be able to discharge their duties to both clients simultaineously - ie maintain the confidentiality of both clients and discharge their fiduciary duty to both clients. As a result, the solicitor must cease to act for one of the parties, and perhaps both, depending on the solicitor’s knowledge of either party’s affairs in the dispute.

A more common example of a conflict of interest may be where a director of company has a personal interest in an asset owned or intended to be dealt with by the company. The director cannot be said (or at least be perceived) to act in the best interests of the company (a fiduciary duty) in such a transaction and he would have a conflict of interest.