Richards Butler victory as court sinks conflict ruling

The test for solicitors' firms continuing to work for clients in potential conflict situations has become lighter following a victory in the Court of Appeal last week for City firm Richards Butler.

In Koch Shipping Inc v Richards Butler, the firm appealed against a first-instance decision in which it was ordered off a case - or forced to submit to undertakings - in relation to its continued action for a client bringing an arbitration claim.

The conflict arose because a lawyer left London firm Jackson Parton - which was working for Koch Shipping, the defendant in the arbitration - and started to work for Richards Butler.

Koch wanted Richards Butler to relinquish the case, and a judge at first instance held that the firm should do so or give undertakings that the transferred lawyer would be kept away from the case.

Richards Butler transferred the case to London firm Middleton Potts, but challenged the finding in the Court of Appeal on a point of principle, and won.

Jonathan Clyne, an assistant from Jackson Parton who worked on the case, said: 'The court found that the risk of inadvertent disclosure was so slight as to be non-existent.'

Jeremy Fleming