Law practices at risk of losing client money, and their reputation
Warning to law practices to perform proper background checks on the non-legal staff they hire and provide ongoing supervision.
Rule 9.2.6 allows you to disclose confidential information to your professional indemnity insurer. This usually occurs when there is a client claim against you (or a potential circumstance that may give rise to a claim).
Your professional indemnity insurance policies or law firm policies may require you to make a disclosure, but you can only disclose under this exception to the extent required by those policies. To this end, we recommend that you review and consider these policies carefully, when considering whether a disclosure is permitted.
Rule 9.2.5 permits (but does not compel) you to disclose confidential information for the purpose of preventing imminent serious physical harm to your client or to another person.
It is clear from the language of the exception that:
Rule 9.2.4 allows (but does not compel) you to disclose confidential information for the sole purpose of avoiding the probable (i.e. likely) commission of a serious criminal offence.
Rule 9.2.3 allows you to disclose confidential information in a confidential setting, for the sole purpose of obtaining advice in connection with your legal or ethical obligations.
You must be genuinely seeking assistance in the client’s interest, not engaging in ‘frivolous or promiscuous revelation’ of the confidential information or an opportunity to gossip (McKaskell v Benseman [1989] 3 NZLR 75, 88). Mixed purposes (e.g. financial reporting) will not fall under this exception.
Rule 9.2.2 allows you to disclose confidential or privileged information:
Rule 9.2.2 allows you to disclose confidential information when the law permits (but doesn't compel) disclosure.
It is up to you to decide whether disclosure is permitted under law. Some examples where the law permits you to disclose confidential information include:
Rule 9.2.1 provides an exception to the duty of confidentiality where your client has expressly or impliedly authorised a disclosure.
As a lawyer, you owe a duty of confidentiality to your clients not to disclose their confidential information. There are very limited exceptions to this general duty.
The duty of confidentiality is at the heart of the lawyer-client relationship. It is also fundamental to the effective operation of the justice system.
Welcome to the VLSB+C’s Risk Outlook 2023, which highlights five risks for the Victorian profession that will be areas of regulatory focus for us in the coming year. It describes issues and conduct associated with each risk – all of which have the potential to cause consumer harm – and explains our planned response to them. It also contains some useful tips about how to avoid these risks.