Issue link: https://epubs.iltanet.org/i/45522
ETHICAL WALLS AND CONFIDENTIALITY SCREENS: NOT JUST FOR CONFLICTS provide minimum standards that must be met to safeguard personal information. Massachusetts 201 CMR 17:00 states in part, "Every person that owns or licenses personal information about a resident of the Commonwealth shall develop, implement and maintain a comprehensive information security program that is written in one or more readily accessible parts and contains administrative, technical and physical safeguards." If standards are not met, breaches in security can be costly to a firm. Law firm IT managers need to work with the firm's general counsel and executive management to understand that specific client representations might contain personal information and to know where this information resides within firm systems and applications. Once this information is identified, it must be secured. ITAR CONSIDERATIONS International Traffic in Arms Regulations (ITAR) specifies a list of articles, services and technology in the United States Munitions List (USML) that could be designated as defense related. While it is assumed that most materials on the USML are manufactured by defense contractors, there are other items such as cameras and facsimile equipment that are also on the USML. If your firm has an intellectual property (IP) practice, it is conceivable that those matters contain information that is subject to ITAR regulations. One of the provisions of ITAR is that only United States citizens, as defined in section 120, paragraph 15, are allowed to access restricted information. Firms should take care to know the ITAR requirements and establish screens to avoid disclosure to non-U.S. citizens, including employees of internal and external support staff. CONFLICTS OF BEING A MEMBER OF A BOARD Although many bar associations caution lawyers against performing board service for clients, many lawyers serve on boards of both public and private entities. If the entity for which a lawyer is serving is a client of the firm or becomes a client, there is the possibility for conflicts because the lawyer has a duty to the firm as well as an obligation to the board on which he or she serves. ABA Formal Opinion 98-410: "Lawyer Serving as Director of Client Corporation" was issued to address some of the complex issues that arise when attorneys serve on boards of their clients. For example, let's assume that a lawyer at your firm is serving on the board of a local private university. The university is contemplating constructing a dormitory. However, the designated site for the proposed dormitory will require a zoning variance and an access road to be built. Your firm has expertise in working with municipalities and has had success with obtaining zoning variances on behalf of other clients. If the university hires your firm to handle the zoning issues, the lawyer who serves on the board will benefit. Entities where lawyers are performing board service should disclose their service to the firm and this information should be noted in the firm's conflicts database. Just as it is the responsibility of lawyers to notify their client intake and conflicts system of new parties that may be identified in a matter, it should be a firm policy that lawyers disclose board service opportunities to the firm. In law firms where board service is allowed, there should be www.iltanet.org Risky Business 37