Acting for clients competing for the same objective (SRA Code 6.2)
Two long-standing clients of a commercial property firm, Harbour Coffee Ltd and Kiln Bakery Ltd, separately ask the firm to act for them in bidding for the lease of the same high-street unit. The landlord's agent is running a sealed-bid process and only one lease will be granted. Both clients want to keep using the firm.
Which of the following best describes whether the firm may act for both clients?
Choose one answer to see the reasoning.
Worked answer
Correct answer B: The firm may act if both give informed consent, given or evidenced in writing, it is reasonable to act for both, and any necessary confidentiality safeguards are in place.
THE RULE TO REMEMBER
A solicitor may act for clients competing for the same objective only with all clients' informed written consent, appropriate confidentiality safeguards, and where it is reasonable to act.
Acting for clients competing for the same objective (SRA Code 6.2)
Paragraph 6.2 of the SRA Code of Conduct for Solicitors prohibits acting where there is a conflict, or significant risk of conflict, unless an exception applies. One exception is where the clients are 'competing for the same objective', as two bidders for the same lease are. Even then, all clients must give informed consent, given or evidenced in writing; effective safeguards must be put in place to protect confidential information where appropriate; and the solicitor must be satisfied it is reasonable to act for all of them.
Why A is wrong: Paragraph 6.2 allows two exceptions (substantially common interest and competing for the same objective), so a conflict is not an absolute bar.
Why C is wrong: The consent must be given or evidenced in writing, whatever the type of matter.
Why D is wrong: A conflict exists because the clients' interests in the same lease are adverse; a dispute between them is not needed.
Why E is wrong: The Code contains no 'first come, first served' rule.
That's today's practice done. Another featured question tomorrow.
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