There must be a real conflict and not a theoretical conflict, before a solicitor can be restrained from acting in a matter against a former client. In order to give fully informed consent, the person entitled to the benefit of the rule must: ‘fully understand . . not only what he is doing but also what his legal rights are, and that he is in part surrendering them.’ As to company directors, a company is entitled ‘to the undivided loyalty of its directors.’ The principle recognises the primacy of the interests of the company which he is trusted not to betray.
Judges:
Upjohn LJ
Citations:
[1963] 2 QB 606
Jurisdiction:
England and Wales
Cited by:
Cited – Marks and Spencer Group Plc and Another v Freshfields Bruckhaus Deringer CA 3-Jun-2004
The defendant firm of solicitors sought leave to appeal against an injunction requiring them not to act for a client in making a bid to take over the business of the claimant, a former client of the firm.
Held: Leave was refused. The appeal . .
Cited – Ratiu, Karmel, Regent House Properties Ltd v Conway CA 22-Nov-2005
The claimant sought damages for defamation. The defendant through their company had accused him acting in such a way as to allow a conflict of interest to arise. They said that he had been invited to act on a proposed purchase but had used the . .
Cited – Towers v Premier Waste Management Ltd CA 28-Jul-2011
The defendant appealed against a finding that as a director of the claimant company he had accepted personal benefits from a customer without disclosing this to the company.
Held: The appeal failed. . .
Lists of cited by and citing cases may be incomplete.
Legal Professions, Company
Updated: 23 March 2022; Ref: scu.200432
