Legal Question in Business Law in Massachusetts

Re: Chinese Walls

When dealing with multiple clients with potentialy conflicting interests, it is wise to institute set procedures which your key employees will acknowlege and sign. These procedures should include confidentiality provisions and a check and balance system which prevents documents prepared for one client from being inadvertently released to other clients. Also, you may want to prepare a disclosure statement to potential clients which informs them that you may represent their competitors, that you have institued certain safety precautions and that they hold you harmless for any disclosures beyond your control or the wrongdoing of third parties. If you use boilerplate documents, you may want to have client's sign an acknowledgement that these documents are the exclusive property of your company and that the use of such documents for multiple clients is at your sole discretion.

While it may seem cumbersome to institute such extensive written internal controls, the peace of mind it will give you is reward enough. Above all, create a clear set of rules which are unambiguous and easy for your employees to understand. If you wish to discuss this matter further, our office provides free initial consultations.

Re: Chinese Walls

For the present, depending upon what you do, try to be sure to inform each client that you work with clients that they may or do compete with and that you (get this in writing?) can not be responsible for ... etc. And refuse to sign NDAs that could get you into trouble.

As for the Chinese Wall procedures, it depends entirely upon the nature of your business and the nature of the information disclosed to your employees. What business are you in, precisely?

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Stuart J. Williams, Esq.