Confidentiality and Compliance issues in Malaysian Legal Practice

By Jean Paul


Confidentiality has become a common term in legal practice. This is due to the growing concern over the manner in which client information is handled within law firms. The need to maintain confidentiality when handling client information has become more crucial than ever before; a situation escalated by the rapid growth of modern information technology and a general deterioration in professional conduct of legal practitioners. Modern information processing techniques have simplifies routine tasks such as data entry, document processing, time scheduling, data analysis and report generation. Using such techniques, it has become not only possible to access data with ease but also to manipulate data belonging to other people.

Malaysia law upholds confidentiality of client information and only provides exceptions where applicable. Malaysian law requires lawyers to disclose to their client all circumstances surrounding their case together with any information that is material to their case regardless of the source. This duty applies to all legal practitioners including a fee earner and case supervisor. The disclosure rule is subject to the rules of confidentiality which usually overrides it. In this respect, the duty to disclosure is not applicable where it is explicitly prohibited by the law, where both the client and the lawyer have agreed that there is no duty to disclose or where both parties are willing to explore an alternative way of addressing disclosure. Disclosure may also be unnecessary where it is believed that such information may interfere with the physical or mental well being of the client.

A law firm or any individual practitioner who has confidential information about a case surrounding a current or former client is required by Malaysian Law to maintain confidentiality by avoiding other cases where the information might prove material or where the two clients are adversaries with ulterior motives. The firm can only stand in where arrangements have been made to safeguard such information or where there is consent between the two parties (current and former client).

However, since confidentiality overrides disclosure according to Malaysian law, disclosure is not applicable where it is explicitly prohibited by law or where the client and the lawyer have both agreed that it is unnecessary. There are also instances where both parties may opt for an alternative way of addressing disclosure, in such instances there is actually no need for it. Disclosure should also be avoided in cases where it is believed that such information may adversely affect a client's physical and mental health.

The challenge of confidentiality also arises where an independent lawyer or the law firm has been acting for more than one client and can no longer accomplish the task as required. In such a case it is recommended that the firm resorts to acting for a single client with the consent of the other, are not adversaries and share are in agreement that the information cannot be disclosed as earlier indicated.

There is also a need for law firms to take extra caution when acting for more than one client. This is more so where a firm is no longer in a position to handle both cases and chooses to retract from one of them. In such instances, it is advisable for the lawyer or firm to continue with one with the full consent of the other whose case is dropped. The two parties must agree that no information shall be leaked. Confidentiality is an important aspect of law practice. It is important for legal practitioners to uphold it as they carry on with their duties.




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