Can a solicitor of record be removed because of a conflict of interest?

The leading decision on the removal of a solicitor of record because of a conflict of interest is the case of MacDonald Estate v. Martin, 1990 CanLII 32 (SCC), [1990] 3 S.C.R. 1235. In that decision, the court weighed the underlying policy considerations and reviewed the approach taken in England, the United States, Australia, New Zealand and Canada. On behalf of the minority, Cory J. would have adopted a bright line approach, which would have created an irrebuttable presumption that the knowledge of an incoming lawyer, including confidential information disclosed to him by his former clients, has become the knowledge of the new firm. The underlying rationale for this approach is to preserve public confidence in the administration of justice. The majority rejected this position and took a more nuanced approach to the subject. While recognizing the dangers that exist with respect to the possible use of confidential information and the need to preserve public confidence in the judicial system, the majority held that in certain cases, it would be possible for counsel to continue to act if sufficient safeguards were put in place in a timely fashion to protect the confidential information. The court stated, at p. 1260, “Typically, these cases require two questions to be answered: (1) Did the lawyer receive confidential information attributable to a solicitor and client relationship relevant to the matter at hand? (2) Is there a risk that it will be used to the prejudice of the client?”