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LSDefine
Simple English definitions for legal terms
Chinese Wall
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A quick definition of Chinese Wall:
A Chinese Wall, also known as an Ethical Wall, is a way to protect a client from a conflict of interest. It works by preventing certain lawyers or employees within an organization from working on a matter involving that client. This helps to ensure that the client's interests are protected and that there is no bias or unfair advantage. To create an ethical wall, certain individuals are prohibited from having any connection with the matter, discussions or document transfers are banned, access to files is restricted, and everyone in the organization is educated about the separation of the lawyers and paralegals from the pending matter.
A more thorough explanation:
A Chinese Wall is a screening mechanism that prevents a conflict of interest by stopping one or more lawyers within an organization from participating in any matter involving a client. This mechanism is designed to allow a lawyer to move to a new job without the fear of disqualifying the new employer from representing certain clients.
Creating an ethical wall involves:
- Prohibiting certain lawyers and paralegals from having any connection with the matter
- Banning discussions with or the transfer of documents to those individuals
- Restricting access to files
- Educating all members of the firm, corporation, or entity about the separation of the lawyers and paralegals (both organizationally and physically) from the pending matter
For example, if a law firm represents a company in a lawsuit, but one of the lawyers in the firm previously worked for the opposing party, the firm can create a Chinese Wall to prevent that lawyer from participating in the case. This ensures that the firm can continue to represent the client without any conflicts of interest.