Lawyer conflict of interest

The Madrid Bar Association, Icam, in proceedings against two of its members, has decided to impose a serious sanction with suspension from the practice of the profession for a period of fifteen days. 

The cause lies in the fact that years ago the firm was in charge of defending and advising a company in a bankruptcy proceeding which, after the appropriate proceedings, ended in the liquidation of the company.

Subsequently, a liability assessment was opened against the administrators of the company, who were two of the company's partners. One of them was defended by the same law firm that had handled the insolvency proceedings, while the other chose another law firm. 

In order to avoid a possible conflict of interest, the administrator was defended by another lawyer from the same law firm that had participated in the insolvency proceedings. After the appropriate handling of the liability proceedings, the result was favourable for his client and the other partner was convicted.

As a consequence of this court decision, the convicted administrator lodged a complaint with the court accusing the two lawyers of having disclosed confidential information they had obtained in the course of the bankruptcy proceedings. 

After the appropriate proceedings, the Bar Association has issued a decision in which it considers that there has been a serious breach of the Code of Ethics as there has been a conflict of interest as they had access to confidential information in order to incriminate one of the parties. 

Icam further argues that professional secrecy remains in force even after the end of the professional assignment without any limitation in time. 

The decision can be appealed against before the Bar Council of the Community of Madrid, formed by the Bar Councils of Madrid and Alcalá de Henares. The decision may also be appealed to the administrative courts.