In response to the serious and growing problem of conflicts of interest in Canadian law firms, the CBA has launched an expert task force that will develop practical guidelines, advice and solutions to help lawyers and law firms serve their clients better.

“Canadian law on conflicts of interest is so uncertain at the present time that it is placing a tremendous burden on our legal system,” says J. Parker MacCarthy, Q.C. of Duncan, B.C., President of the CBA. “It is affecting clients whose choice of counsel is narrowed, courts that must handle a growing volume of conflicts claims, and law firms that must grapple with it in attempting to fulfill their professional obligations while serving the best interests of their clients.”

The whole area of conflicts of interest is a serious and increasingly troubling one for Canadian lawyers and their clients. On June 1, 2007, the rules became even more complex when the Supreme Court of Canada decided the case of Strother v. 3464920 Canada Inc.  To help lawyers, law firms and the public face the new and ongoing challenges presented by conflicts, the Canadian Bar Association has created an expert Task Force on Conflicts of Interest.

The Task Force will develop detailed and practical assistance for the Canadian legal profession.  It is committed to developing a consensus on reform of the rules concerning conflicts of interest, and to preparing guidelines for the profession in applying the duty of loyalty, and in implementing appropriate modifications or waivers of this duty. The Task Force also intends to develop clearer guidelines for the application of the duty of confidentiality, particularly in the areas of deemed knowledge and relevance of information. It will do so in full consultation with law societies (through the Federation of Law Societies of Canada), recognizing their essential role as regulators.  

• Task Force Mandate >

Current Situation

There is concern that the duty of confidentiality as expressed in recent case law has been applied in a manner that is impractical in day-to-day practice, requiring significant firm resources to identify and manage conflicts and creating impractical restrictions in small communities. This is particularly true with the increased mobility and concentration of the profession and in the context of the size and concentration of the market for legal services in Canada.

Although there is no disagreement with the existence of an unqualified duty of confidentiality of client information, a more practical approach and guidance in situations involving, for example, deemed knowledge and relevance of information, would be of assistance to the profession and the public.regulators.  

• Background >