In MacDonald Estate v. Martin, 1990 CanLII 32 (SCC),  3 S.C.R. 1235, the conflict arose in the context of a counsel from one firm to another, and the risk of misuse of confidential information. Sopinka J. concluded that, in this context a “probability of mischief” threshold was insufficiently stringent, and held at para. 47: ...the test must be such that the public, represented by the reasonably-informed person, would be satisfied that no use of confidential information would occur. That, in my opinion, is the overriding policy that applies and must inform the court in answering the question: is there a disqualifying conflict of interest?
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