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Posted By: inselpeter Chinese Wall - 04/21/05 09:15 PM
Overheard at work, "This always happens with New York attorneys when they want to do a Chinese wall or something--there's no Chinese wall in New Jersey..."

I know we are over-taxing our legal experts, lately, but could someone explain the what, the why, and (if possible) the ethical issues (somewhere in that ellipsis it was suggested that there might be some).

Thanks

Posted By: inselpeter Re: Chinese Wall - 04/21/05 09:55 PM
This from Dr. Bill:

http://www.startribune.com/stories/153/5333970.html

But the wall in question, I believe, is a strategy in a negotiation or dispute. I'm not sure what negative ethical implications there would be for curtailing the flow of information within a firm or company to prevent conflicts of interest and preserve valid confidences.

Posted By: Father Steve Re: Chinese Wall - 04/22/05 12:22 AM
There are times when the Rules of Professional Conduct which govern attorneys would force a firm to decline representation of a party because the lawyer working on the particular case might come across information which would be deterimental or helpful to another client represented by the firm. A "way around" this ethical dilemna is the erection of a Chinese Wall within the firm, such that the lawyer, associates and even staff working on the one case share no information with those in the firm who might be working for another client whose interests would conflict with the first. It is a risky business and hard to accomplish in fact, but various ethical authorities have approved of it, when it works.


Posted By: TEd Remington when it works - 04/22/05 10:33 AM
And when it doesn't work, everyone grabs new lawyers and sues the hell out of all the others, inclucding and especially the law firm (which has deeper pockets usually.)

Posted By: inselpeter Re: Chinese Wall - 04/22/05 11:25 AM
Thanks, Father Steve. Then there are some states, e.g., New Jersey, which do not permit Chinese Walls?

Posted By: belMarduk Re: Chinese Wall - 04/23/05 12:22 AM
This is an interesting concept guys.

Posted By: Father Steve when it doesn't work - 04/23/05 02:45 AM
There are law firms and specialized lawyers who represent those who have suffered losses due to the ethical violations of other lawyers. They are about as popular at bar association meetings as a barracuda in a hot tub.


Posted By: Father Steve Re: Chinese Wall - 04/23/05 02:48 AM
Then there are some states, e.g., New Jersey, which do not permit Chinese Walls?

While the American Bar Association publishes a model code of lawyer ethics, it is up to the bar associations and supreme courts of the several states to adopt and enforce local versions of such codes. This creates a sort of ethical federalism. Some states have decided that the Chinese Wall arabesque is too potentially porous to avoid the appearance of a conflict of interest.



Posted By: inselpeter Re: "Ethical Federalism" - 04/23/05 12:24 PM
Wonderful term! May I use it?

cross-reference: concision in metaphor, "Chinese Wall Arabesque" -- After we gave my birthday verdict, recently, the judge said, the judge advised us that he couldn't say what he thought of it, but that any of us would be welcome to serve as juror in his court anytime. It was an invitation no one hopped to accept. In your case, though, Father Steve, I think I might.

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