DER Disputes' Ethical Code

Our Ethical Code

DER Disputes' Ethical Code is based on the Swedish Bar Association's Code of Professional Conduct. This is because DER's lawyers should, to a large extent, be guided by the same ethical principles as the country's attorneys. However, DER has chosen to deviate from the Bar Association's rules in certain respects, primarily to allow individuals other than lawyers to own shares in the firm, to enable lawyers to be compensated through commissions when appropriate, to allow lawyers to hold other positions (e.g., as academics), and to represent close relatives. We do not aspire to be a law firm in the traditional sense, but we want our lawyers to uphold an ethical standard that, in several respects, exceeds that of attorneys’ of the Bar Association. This includes, for instance, a prohibition on baseless accusations, a focus on amicable settlements, and a commitment to supporting human rights. The ethical code will be revised and developed based on experiences and lessons learned.

DER Disputes specializes in commercial law, and the lawyers working within the firm also take economic, technical, and practical perspectives into account.
 

THE LAWYER'S ROLE AND FUNDAMENTAL DUTIES

• The lawyer is part of the legal system and bears a special responsibility for the rights and freedoms of individuals. The lawyer must not allow itself to be influenced by political trends, peer pressure, financial incentives, or similar factors if such influence undermines its role as a representative of the legal system.
• The lawyer's primary duty is to show fidelity and loyalty to the client. The lawyer must represent and safeguard the client's interests within the framework of applicable law. The lawyer must not allow its actions to be influenced by thoughts of personal gain or inconvenience, or by any other irrelevant circumstances.
• The lawyer shall practice its profession with integrity, in a manner that benefits a just legal system and does not promote injustice. The lawyer must act objectively and appropriately, ensuring that confidence in DER remains strong.
• The lawyer shall perform its duties with care, accuracy, and due timeliness. The lawyer must ensure that the client does not incur unnecessary costs.
• Legal advice shall be based on necessary examinations of applicable law.
• The advice given should be tailored to the situation and thus consider, among other things, commercial, financial, technical, and practical perspectives.
• The lawyer has a duty of confidentiality in respect of what has been entrusted to the lawyer within the scope of its legal practice or which it has learned  in connection therewith, and is obligated to exercise discretion regarding the client's affairs. Exemptions from the duty of confidentiality applies in cases of consent or where there is a legal obligation to provide information. Exemptions also apply when disclosure is necessary for the lawyer to defend against complaints by the client or to pursue a justified claim for compensation. Within the firm, the duty of confidentiality applies only to the extent that the client can be presumed to have a right to it.
• The lawyer may not, without reason, inform itself about other cases within the firm than its own. Anyone wishing to use documents from other cases as templates or similar should consult with the person responsible for the other case.
• The lawyer shall, as a general rule, treat all clients equally in its legal work.

INFORMATION AND FINANCIAL RELATIONS WITH THE CLIENT

• The client shall be kept informed about the progress of the assignment. Questions from the client regarding the assignment must be answered promptly.
• Unless there are special reasons, the lawyer is not obligated to verify that the information provided by the client is accurate.
• The lawyer shall maintain and develop its professional competence, keeping up with legal developments in the areas in which the lawyer is active.
• Financial transactions between the lawyer and its client shall, as a general rule, be a result of the assignment. If the client operates a business, normal transactions within the scope of that business are allowed.
• It is allowed for the lawyer to own shares or interests in client companies.
• The lawyer's acquisition or holding of shares or participating right in a client company must not cause, or be expected to cause, a conflict of interest.
• Money, securities, and other property that the lawyer receives from the client or from someone else on the client's behalf must have a connection to the assignment. An assignment must not, except for special cause, entail only the management and brokering of funds or safekeeping of property.
• The lawyer must not, in its practice, give advice or otherwise act in a manner intended to undermine or circumvent the human rights and fundamental freedoms covered by the European Convention. The lawyer should, in its practice of law, also otherwise work to uphold human rights and freedoms.

DECLINING AND WITHDRAWING FROM ASSIGNMENTS

• The lawyer may not accept an assignment if there is a conflict of interest or a significant risk of a conflict of interest. A conflict of interest exists if:
  • the lawyer assists or has previously assisted the opposing party in the matter,
  • the lawyer assists another client in the same matter or a related matter, and the clients have conflicting interests,
  • the lawyer possesses knowledge that is subject to the lawyer's duty of confidentiality and may be relevant to the matter,
  • the lawyer itself or someone closely related to the lawyer has an interest related to the matter that conflicts with the client's, or
  • there is otherwise any other circumstance which prevents the lawyer from fully protecting the client's best interests in respect of the assignment.
• A conflict of interest may be at hand if the lawyer is assisting or has previously assisted the opposing party.
• The lawyer is obligated to assess as soon as possible whether there is a conflict of interest which precludes the lawyer from accepting an assignment. If the lawyer finds that no obstacle is at hand, nevertheless, there is a circumstance which may lead the client to a different assessment, the lawyer is obliged to notify the client immediately. If such information cannot be provided without breaching the lawyer’s duty of confidentiality, the lawyer must decline the assignment.
• If express consent can be obtained without setting aside the lawyer's duty of confidentiality, the lawyer, as an exception and after having obtained such consent, may accept an assignment even if a conflict of interest is deemed to exist. However, this requires that the circumstances are not such as to give cause to doubt the lawyer's ability to fully safeguard the client's interests
• The lawyer shall withdraw from an assignment if:
  • the lawyer is prevented from carrying out the assignment because of a legally valid reason or similar circumstances,
  • the client requests that the lawyer act criminally and, despite having been aware thereof maintains its request,
  • the client suppresses or distorts evidence or acts deceitfully and cannot be induced to rectify, or
  • the lawyer, in order to avoid violation of anti-money laundering legislation, reports a client to the police.
• The lawyer may withdraw from an assignment if there is a valid reason. A valid reason for withdrawing from an assignment may be, for example, that:
  • the client, when turning over the assignment, intentionally withheld facts which would have been material for the lawyer's decision to accept the assignment,
  • the client unreasonably burdens or harasses the lawyer and cannot be persuaded to correct its behavior,
  • the client instructs the lawyer to handle the assignment in a manner which is futile or contrary to the best interests of the client and, despite being made aware of this, maintains these instructions,
  • the client in material respects, acts against the lawyer’s advice or otherwise clearly makes it known that it has lost confidence in the lawyer, or
  • despite reminders, the client fails to effect an advance payment or compensation to which the lawyer is entitled as a consequence of the assignment.
• If the lawyer wishes to withdraw from an assignment, the client must be informed of the reasons for this. Before withdrawing, the lawyer should, if possible, allow the client reasonable time to retain another lawyer. When the lawyer withdraws from an assignment, the lawyer must, in accordance with the provisions of Chapter 12, section 18 of the Swedish Code of Judicial Procedure, safeguard the client's rights until the client has been able to take measures for legal representation.

FEES AND ACCOUNTING, ETC.

• The fee charged by the lawyer must be reasonable.
• In assessing what constitutes a reasonable fee for an assignment, consideration may be given to what has been agreed with the client, as well as the scope, nature, the degree of complexity, and importance. Additionally, the lawyer's expertise, the outcome of the work, and other such circumstances may be taken into account.
• The lawyer may only receive compensation in the usual means of payment, unless there are special reasons for accepting compensation in another form. The charged fee should, as a general rule, be itemized. Upon the client's request, the lawyer is obligated to provide a written statement detailing the work performed. If the lawyer charges the client for expenses, these should be clearly specified.
• In connection with accepting the assignment, the lawyer must state the charging principles and inform the client regarding the invoicing routines which the lawyer intends to apply. Fees may be invoiced as partial invoicing, invoicing on account, or invoicing after completion of the assignment.
• The lawyer may exceptionally enter into a fee agreement with the client that grants a share of the assignment's outcome. This may occur after careful consideration, including factors such as the client's financial situation, the client's other interests, the conditions for success, and other relevant reasons.
• An agreement that involves DER taking a financial risk in the outcome of the matter must not entail that DER's financial self-interest in the matter becomes disproportionate or otherwise has an adverse effect on the lawyer's carrying out of the assignment.
• A fee charged as a consequence of a legal proceeding may not exceed the fee for which the lawyer claims, on behalf of the client, that the opposing party be ordered to pay, unless special cause exists.
• The lawyer must inform the client of available options to finance the assignment through insurance coverage or, if appropriate, other means, and inform the client of the terms and conditions for this. The lawyer must assist in ensuring that the client's rights in this regard are protected. In connection with the lawyer accepting an assignment covered by legal cost insurance, the lawyer must clarify for the client whether the lawyer intends to deviate from the norms for compensation specified in the terms and conditions of the insurance policy.
• The lawyer may request an advance to cover disbursements on behalf of the client. The lawyer may also, if reasonable, request an advance on the professional fee. An advance payment constitutes client funds. When a professional fee is paid out from a client funds account, an invoice showing the payment is sent to the client at the same time.

RELATIONS WITH THE OPPOSING PARTY

• The lawyer must not seek to promote the client's cause by taking improper measures in relation to the opposing party. Improper measures are, inter alia,
  • reporting to an authority about a crime or other matter which lacks foundation or a connection to the assignment, or threatening to file such a report,
  • applying for a summary payment order, filing an application for bankruptcy, or making a payment demand before applying for bankruptcy in cases where the member knows that the claim for payment is contested on a basis which is not clearly unfounded,
  • disgracing the opposing party or threatening to do so,
  • spreading unfounded accusations against the opposing party, legal representatives, or witnesses, or
  • making unwarranted contact with a third party or threatening of such conduct.
• The lawyer must not mislead the opposing party by making any statement about a factual circumstance or the content of a legal rule which the lawyer knows to be inaccurate.
• If the opposing party retains counsel, all negotiations in the matter shall be carried out with the counsel and all communications sent to them. In such case, it is not permitted for the counsel to make direct contact with the opposing party unless this involves a measure that must be brought directly against the opposing party or, for special reasons, it is otherwise clearly necessary. In such cases, the counsel representing the opposing party must be notified.
• The lawyer may not, without the opposing party's consent, disclose a settlement offer made by the opposing party during legal proceedings. However, this may be permitted in exceptional circumstances, such as if the opposing party has acted dishonestly.

RELATIONS WITH COURTS, PUBLIC AUTHORITIES AND OTHER PARTIES

• When acting as counsel or as a representative in a trial, the lawyer is obliged to observe the requirements of the Code of Judicial Procedure and other statutory instruments in respect of litigation. The lawyer must ensure that it is well-acquainted with the matter and pursue the matter with such care and in such manner as required by the proper administration of justice.
• The lawyer shall endeavour to ensure that there is compliance with court orders and that enquiries from the court are answered without delay.
• The lawyer must not provide information to the court which the lawyer knows to be false and must not dispute information that the lawyer knows to be true.
• The lawyer may not be complicit in the suppression or distortion of evidence. However, the lawyer is not obliged to produce or invoke evidence or adduce facts detrimental to the client unless the lawyer has a legal obligation to do so.
• The lawyer must not exercise undue influence upon a witness or any other person called to testify in a trial. The lawyer may contact the person to obtain information about what he or she can testify to.
• The lawyer must not give demeaning information or make offensive or disparaging statements about a witness or another person unless this appears to be justified in the situation at hand in order to safeguard the interests of the client.
• Communications addressed to the lawyer in the course of its legal practice must be answered without delay unless it is evident from the circumstances that a response is not needed. If a response cannot be given without delay, receipt of the communication must be acknowledged and a response sent as soon as possible.

ACQUISITION, LIABILITY FOR COSTS, AND ARCHIVING

• The lawyer may not acquire assignments in a way which entails exploitation of anyone's emergency or vulnerable situation.
• The lawyer may not surrender part of the fee to another person because such person has brought assignments to the lawyer or has undertaken work to do so.
• If the lawyer, on behalf of a client, retains an expert to conduct an investigation, provide an opinion, or perform other tasks, the lawyer must clarify, before the assignment begins, if they do not intend to be responsible for the expert's fees and expenses.
• Upon completion or other termination of an assignment, the lawyer must, without delay, hand over to the client any documents belonging to the client, unless the client explicitly requests that the lawyer continue to store the documents and the lawyer agrees to do so.
• The lawyer may not condition the surrender of such documents on the client approving the fee charged or a statement of account rendered by the lawyer.