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CCCA_V2No4_ConflictMgmt-FIN.qxd:CCCA_V1No1_DriversSeat-FIN.qxd 11/24/08 2:51 PM Page 27 Feature Conflicts management ver the last several years, conflicts of interest corporate counsel he’d rather go to the people he knows best — between corporate clients and their outside coun- his long-standing, preferred relationships. sel have cropped up with increasing frequency. As counsel at a large corporation that hires many outside firms, OClients, and in particular in-house counsel, Currie doesn’t often have trouble finding another lawyer if there’s accordingly find themselves at the center of the controversy over a conflict. But it can be dramatically different for counsel in a which clients law firms may take on, which firms clients can smaller community where there isn’t a wide choice of lawyers retain, and what rules govern both decisions. available, or for someone who requires help in a specialized area, In fact,the confusion and inconsistent application of conflict of such as competition or sophisticated tax law.“In those situations, interest rules has caused so much concern that the Canadian Bar the conflicts rules may bite even harder,” he says. Association released a landmark report this past summer on the Although the consolidation of law firms into national firms topic, Conflicts of Interest: Final Report, Recommendations andToolkit has led to an increased number of conflicts, Keith Perrett, (available free of charge at www.cba.org/conflicts). managing director of litigation at the Bank of Montreal in “Conflicts issues arise all the time,” says Gordon Currie, chief Toronto, doesn’t normally have much trouble retaining good legal officer at George Weston Ltd. in Toronto who was a mem- counsel for litigation. ber of the CBA report’s task force.He recently had four conflicts But he has seen difficulties arise when there’s a large,multi-party issues cross his desk in one week — two were with law firms, piece of litigation. He cites the Bre-X matter, which involved one with an accounting firm, and one with a management con- numerous potential interested parties. “Everybody was lining up sulting firm. early to get their particular counsel, and knowledgeable securities “As a lawyer, I certainly understand that some conflicts are litigation counsel were getting a little thin on the ground.” unavoidable and I should have to go somewhere else,” says Diversify your selection PAUL EEKHOFF Currie.“I don’t phone a lawyer usually with a whole lot of lead Perrett’s advice for in-house counsel needing a good lawyer in a time. I call them when I need them, and I need them now.”And specialty area?“As soon as you get an inkling that there’s something although he always has fallback lawyers available, like other HIVER 2008 CCCA Canadian Corporate Counsel Association 27