Ethical Dilemmas in Law Firms: How to Address Unclear Situations

For example, a lawyer may face pressure to keep a high-value client happy by stretching billing practices just enough to remain technically compliant. Another might struggle with how much information to disclose when representing clients with potentially conflicting interests. These situations don’t always have a right answer but require a thoughtful, principled response.

One of the strategies to address the issue promptly is guidance from outside ethics counsel, especially when the ethical issue is nuanced or involves firm-wide risk. Firms like O’Rielly & Roche specialize in helping legal teams assess complex dilemmas and revise existing policies to better align with ethical standards. Such support is beneficial when navigating new practice areas, evolving technology, or multi-jurisdictional challenges. You can also do the following:

Use External Ethics Resources

Bar associations, state ethics committees, and legal ethics codes provide a structured foundation for evaluating difficult situations. These resources clarify everything from client confidentiality to conflicts of interest, often including formal advisory opinions and interpretive guidance that can help lawyers stay within the boundaries of professional responsibility.

Create Internal Systems to Handle Ethical Concerns

Every law firm needs clear, functional systems for addressing ethical concerns. Hence, start with a defined reporting structure that allows staff at all levels to raise issues without confusion about where to go or whom to speak with. That structure must include people with the authority and training to respond appropriately, not just pass concerns along.

Confidentiality is essential. Staff must feel confident that raising an issue will not result in retaliation or damage to their position. Further, provide written procedures, regular reminders, and accessible contacts to keep the system visible and easy to use. Follow-up on every report consistently. A system only works if the firm responds quickly, takes concerns seriously, and communicates the outcome where appropriate.

Lead by Example

Leadership determines whether ethical standards are applied consistently in practice, not just written into policy. Therefore, senior lawyers must show consistency between what they say and what they do, especially when facing pressure or setbacks.

When leaders address questionable behavior openly and reinforce ethical standards in meetings, reviews, and case discussions, they make it easier for others to speak up. Regular training keeps expectations current and ensures everyone, from new hires to partners, understands how to handle uncertainty before it becomes a problem.

Conclusion

Ethical dilemmas are not rare exceptions in legal practice—they are part of the daily reality of law firm life. What sets firms apart is not the absence of these challenges but the clarity and consistency with which they respond. By setting a clear tone from the top, preparing lawyers to recognize gray areas, and putting internal systems in place, firms create a structure that supports sound judgment.