Commercial conflicts are an area where the firm has the most discretion and external rules have the least impact. Again, the general rule is that, wherever possible, we look to allow a colleague to undertake the prospective matter.
However, in the case of commercial conflicts, we differentiate between contentious and non-contentious instructions. We will act on a new matter where the other side is a client of the firm, so long as the matter is non-contentious (and seems likely to stay that way). We will generally not act on a contentious new matter where the other side is an active client of the firm, unless it is possible to respect both colleagues' separate client relationships and where the Director of Operations and Compliance is satisfied that in accepting the prospective matter, the colleague with the other client relationship will not be materially affected. This is a high test and is only likely to be passed in rare circumstances for example where i) the prospective client advises that it will not reveal to other parties that it has taken advice from Keystone, ii) Keystone's existing client is sufficiently large such that our acting for it in one matter and against it in a separate matter is not unusual, iii) Keystone's existing client is sufficiently large such that the persons who instruct the firm in the existing matters are unlikely to become aware of Keystone's involvement on the other side in the new matter.
There are two other factors that should be mentioned for completeness.
First, sometimes clients with material bargaining power require us to undertake not to act against them. We will resist giving such an undertaking to the fullest extent, but if failing to give it would mean we are disinstructed and so long as at the time of giving such an undertaking it would not damage the practice of a colleague, then the Director of Operations and Compliance may give such an undertaking. Having done so, it may render us unable to accept a prospective matter that would be permitted under our rules.
Second, in a complex situation such as a commercial conflict, we recognise that no single rule book can cater for every conceivable circumstance. So, there may be exceptional cases where the weight of a commercial imperative requires us to turn away work that our rules would otherwise allow us to accept.