RIS2: Conflicts Management– Art or ScienceRIS2: Conflicts Management Art or Science

Shawn R. KnightVinson & Elkins LLP

Steve KrementzEase Technologies Inc.

Derick ArthurDerick ArthurProskauer Rose LLP

John EsveltF Mil C i LLPFrazer Milner Casgrain LLP

Ivo NikolovDavies Ward Phillips & Vineberg LLP

Question 1: Number of full time lawyers in your firm: Question 1: Number of full-time lawyers in your firm:

This survey was completed by 219 firms members of ILTA. The results are presented infour main categories representing firm size based on number of lawyers – Small (< 50; 45 firms), Medium (50 -100; 59 firms), Large (100 – 500; 90 firms) and Very Large (> 500; 25 firms).( ) g ( ) y g ( )

45 59 90 25

< 50 50 100 100 500 > 500< 50 50 - 100 100 - 500 > 500

Question 2: Number of offices:Question 2: Number of offices:

< 50 50 - 100 100 - 500 > 500

1 31 20 82 to 5 13 30 48 36 to 10 1 7 29 611 or more 2 4 16N/A 1

Question 3: In what department or group is your conflicts function located?group is your conflicts function located?

< 50 50 - 100 100 - 500 > 500

FinancialFinancial Services 18 29 29 4

IT 1 1 2 1

Library 1 2

Separate Dept. 3 3 9 9

Records 7 21 36 7Risk Management 2 11 4

No Group 14 4

N/A 1

Question 4: Number of staff members devoted full-time (or at least 80%) to the NBI function, including conflict checking,

hi ti li t / tt i l f researching prospective clients/matters, processing approval forms, assisting with conflicts clearance and setting up new clients/matters:

< 50 50 - 100 100 - 500 > 500

1-5 24 51 74 9

6-10 2 10 7

11-15 1 3

16-20 1

20+ 1 1 5

None 20 6 3

N/A 1N/A 1

Question 5: Is conflict checking provided as a service by a group or is conflict checking done in a self service by a group or is conflict checking done in a self service manner by using a computer program?

< 50 50 - 100 100 - 500 > 500

Provided asProvided as Service 26 46 74 22

Self Service 18 13 14 3Se Se ce 8 3 3

N/A 1 2

Question 6: Is conflict checking centralized in one office? Question 6: Is conflict checking centralized in one office?

< 50 50 - 100 100 - 500 > 500

Y 34 56 76 18Yes 34 56 76 18

No 10 3 13 7

N/A 1 1

Question 7: Do you provide 24/7 conflict checks? Question 7: Do you provide 24/7 conflict checks?

< 50 50 - 100 100 - 500 > 500

Yes 4 1 2 4

No 39 57 87 19

N/A 1 1 1 2

Question 8: Do you provide some sort of after hours conflict checks but not 24/7? after-hours conflict checks, but not 24/7?

< 50 50 - 100 100 - 500 > 500

Yes 6 8 30 18

No 39 49 59 6

N/A 2 1 1

Question 9: Does the conflict check result provide the raw data for lawyers?

< 50 50 - 100 100 - 500 > 500

Yes 38 42 76 17Yes 38 42 76 17

No 6 14 12 6

N/A 1 3 2 2

Question 10: Do conflicts staff members prepare any additional sort of formal summaries of raw conflict data for lawyers to yreview (identifying problematic hits, grouping like hits, etc.)?

< 50 50 - 100 100 - 500 > 500

Yes 21 31 51 20

No 24 28 36 5

N/A 3

Question 11: Does the conflict summary identify y ylegal or business conflicts?

< 50 50 - 100 100 - 500 > 500< 50 50 100 100 500 > 500

Both Legal and Business conflicts 26 39 63 25conflicts 26 39 63 25

Business Conflicts only 4 2 5

L l C fli t l 15 17 21Legal Conflicts only 15 17 21

N/A 1 1

Question 12: Do conflicts and intake staff members draft engagement letters?

< 50 50 - 100 100 - 500 > 500

Yes 4 3 3

No 41 55 88 22

N/A 1 2

Question 13: Are engagement letters required for all new clients? for all new clients?

< 50 50 - 100 100 - 500 > 500

Yes 36 48 76 24

No 8 9 14 0

N/A 1 2 1

Question 14: Are engagement letters required for all new matters?

< 50 50 - 100 100 - 500 > 500

Yes 13 16 17 6

No 32 43 71 19

N/A 2

Question 15: Do you consistently update the conflict checks as new parties are added to pthe matter after the matter is initially opened?

< 50 50 - 100 100 - 500 > 500

Y 25 41 68 21Yes 25 41 68 21

No 19 17 21 4

N/A 1 1 1

Question 16: Do you search corporate record, marketing or client relationship management g p gsystems when performing the conflict check?

< 50 50 - 100 100 - 500 > 500

Yes 19 18 42 16

No 24 40 47 9

N/A 2 1 1

Question 17: What conflicts software do you use?Q y

< 50 50 - 100 100 - 500 > 500

CMS 11 21 2CMS 11 21 2Elite 12 23 35 6Interwoven 1 1Interwoven 1 1Legal Key 2 1 16 7MDY 1 5 3MDY 1 5 3Other 29 20 11 6N/A 2 2 1 1N/A 2 2 1 1Note : Other = Abacus, Accutrac, Acumin, Access, TABs, Flosuite, In house, Javelan,Juris, LawBase, Law Manager, Legal Insight, Lighthouse, LMS, Maximizer, Omega Legal, Outlook

Question 18: What outside service do you use to check corporate family trees? to check corporate family trees?

< 50 50 - 100 100 - 500 > 500

Dun & Bradstreet 2 12 19 19

Equifax 1

Lexis/Nexis 1 8 11 2

None 38 32 34 1

OneSource 3

Other 2 5 18 2

N/A 2 2 5Note: Other = ASIC, AtVantage, Complinent, Corporate Affiliations, Edgar, Hoovers, Internet, New Mexico Public Regulation Commission, Orbis, Reference USA, Secretary of State Website, Westlaw

Question 19: Do you perform corporate family tree searches on all prospective clients when the affiliation p pis not obvious from the name or otherwise known?

< 50 50 100 100 500 > 500< 50 50 - 100 100 - 500 > 500

Yes 4 10 35 21Yes 4 10 35 21

No 40 48 51 4

N/A 1 1 4N/A 1 1 4

Question 20: Do you perform corporate family tree searches on all adverse parties when the affiliation is not obvious from the name or otherwise known?

< 50 50 - 100 100 - 500 > 500

Y 7 6 27 11Yes 7 6 27 11

No 37 53 59 4

N/A 1 4

Question 21: What external databases/services do you check when researching prospective clients?

< 50 50 - 100 100 - 500 > 500

Dun & Bradstreet 2 18 35 23

Factiva 1 1 1 3

OneSource 0 1 4 3

Hoover 1 4 24 15

CapitalIQ 0 0 2 2CapitalIQ 0 0 2 2

Data Monitor 0 0 0 1

Bureau Van Dijk 0 0 0 1

I t t 9 22 40 16Internet 9 22 40 16

None 31 28 25 1

Other 2 5 9 7Note: Other = Accurint Accurint LexisNexis Accurint ChoicePoint Check internal billing & records database Note: Other Accurint, Accurint, LexisNexis, Accurint, ChoicePoint, Check internal billing & records database, Complinet, Complinet; Court Alert, Compliment, LexisNexis, Edgar, LexisNexis, Equifax, New Mexico Public Regulation Commission,Secretary of St, Dept of Rev, Dept of Licen, BBB,Secretary of State, Utah Division of

Corporations,WestLaw, Worldcheck, 192.com

Question 22: Do you check all prospective clients on the U.S. Treasury Department& (OFAC) Specially y p ( ) p yDesignated Nationals and Blocked Persons list?

< 50 50 - 100 100 - 500 > 500

Yes 2 38 45 22

No 43 21 44 3

N/A 1

Question 23: Do you check all prospective clients for compliance with European and Canadian p panti-money laundering laws?

< 50 50 - 100 100 - 500 > 500

Yes 2 3 7 11

No 42 56 81 14

N/A 1 2

Question 24: How often do you provide a list f li t d tt t th tt ? of new clients and matters to the attorneys?

< 50 50 - 100 100 - 500 > 500

Daily 10 22 54 13yMonthly 5 5 3 1Never 6 7 5 1Other 7 9 10 1

Weekly 7 16 18 9yN/A 2

Note: Other = Semi Monthly =1; Quarterly=1; Annually=1; Bi-Weekly=1; Continuous – as clients/matters are added = 2; Twice a month=1; 3 times per week=1; When requested=1; Bi-monthly=2; Twice weekly=1; 2x daily ; ; p ; q ; y ; y ; ylists of COI checks submitted=1; Bi-weekly=1; Every couple of days or so=1; Quarterly=1; Bi-monthly=1; Upon request =1; Twice a week=1; Twice Daily=2;Posted daily on intranet; emailed weekly to attorneys=1;Hourly=1; Daily Conflict Bulletin and Weekly New Business When requested=1; Self Produced

Question 25: Do you perform conflict checks on junior to intermediate lawyers who arrive at your firm separate from checks performed on the work they are bringing (that is do checks performed on the work they are bringing (that is, do you check if lawyers are bringing conflict knowledge with them)?

< 50 50 100 100 500 > 500< 50 50 - 100 100 - 500 > 500

No 10 19 12 3Yes, after they

arrive 7 5 9 3Yes before theyYes, before they

arrive 28 33 69 19

N/A 2

Question 26: Do you perform conflict checks billi t ff hi ?on non-billing staff hires?

< 50 50 - 100 100 - 500 > 500

Yes 10 15 23 10

No 34 44 66 14

N/A 1 1 1

Question 27: Do you require attorneys to sign confidentiality or non-disclosure agreements when hired?confidentiality or non-disclosure agreements when hired?

< 50 50 - 100 100 - 500 > 500

Yes 21 38 66 20

No 21 16 19 2

N/A 3 5 5 3

Question 28: Do you require non-attorneys to sign confidentiality or non-disclosure agreements when hired?confidentiality or non-disclosure agreements when hired?

< 50 50 - 100 100 - 500 > 500

Yes 22 35 62 19

No 21 19 24 3No 21 19 24 3

N/A 2 5 4 3