PI Agency Conflicts of Interest: When an Agency Should Say No
When you hire a PI agency, you share facts, fears and strategy you would never want the other side to see. Conflicts of interest are the situations where that trust could be compromised, and a careful agency checks for them before it learns anything sensitive.
- Why agencies run conflict checks first
- Where the line between sides falls
- What disclosure should look like
What is your concern?
Pick the closest match and we will point you to the right next step.
Can a PI agency work for both sides of the same case?
A responsible PI agency will not investigate for both sides of the same dispute. Once it holds one client's confidential information and strategy, working against that client creates an obvious risk. Agencies should run a conflict check using party names before accepting a case and decline or disclose when a conflict appears.
What a conflict of interest looks like in PI work
A conflict exists when an agency's duty to you could be weakened by a duty or interest it owes someone else. The clearest example is being hired by both spouses in the same divorce. Less obvious examples include investigating a business that is a current client of the agency, or a subject who is a personal relative of the PI assigned.
Conflicts are not always about bad intent. A PI who once interviewed your opponent as a witness in an unrelated matter may still remember details, or feel awkward approaching them again. The point of a conflict check is to find these situations early, while the fix is simple.
How a proper conflict check works
A well-run agency asks for the names of the parties, related businesses and known attorneys before it hears the substance of your concern. Those names are compared against its records of current and past matters. Only after that comparison comes back clear should you tell the agency what you suspect and why.
That order protects you and the other party alike. If the check reveals a problem, the agency has learned nothing it needs to forget. At Birds Eye, this is the first thing we do on a call about a contested matter, which is why we may ask for names before letting you explain.
- Your full name and any former names
- The other party's name and known aliases
- Businesses either party owns or manages
- Attorneys already involved on either side
- The county where any case is filed
Situations where Tennessee clients run into conflicts
Family matters produce the most. In a mid-sized community like Cleveland or Columbia, both spouses may call the same well-known agency within days of each other. The first to retain it typically becomes the client, and the second should be told only that the agency cannot help, without any detail that reveals why.
Business disputes are next. A company that uses an agency for routine background checks may later find itself on the opposite side of a partner dispute brought by another client. Insurance work creates its own overlaps, since an agency serving a carrier may be approached by a claimant. Each scenario needs a decision, recorded in writing.
Talk it through with a licensed PI
Tell us what is happening. We will explain what the work involves and put scope, timeline and cost in writing before anything starts.
Confidentiality walls and why they have limits
Larger firms sometimes use a screen, keeping different staff and files completely separate when two related matters exist. A screen can be appropriate when the overlap is remote, such as two unrelated claims involving the same employer years apart, and when both clients are told and agree.
A wall is not a cure for working both sides of one live dispute. Small teams share offices, supervisors and case discussions, and a client cannot easily verify that nothing crossed over. Birds Eye's approach is simple: if we are working for one side of a dispute, we do not work for the other side of it.
Conflicts when your attorney hires the agency
When a law firm retains a PI agency, the firm's own conflict rules come into play alongside the agency's. Whether a PI's work is protected as attorney work product under TRCP 26.02(3) is a question for counsel, but the way the engagement is set up often matters, so many attorneys prefer to hire the agency directly.
If your lawyer already works with a particular agency, ask whether that agency has been cleared for your matter. It is a reasonable question, and a good firm will be glad you asked. Our for-attorneys page explains how we handle intake for firms.
What to do if you suspect a conflict after hiring
Warning signs include a PI who seems to know things about your opponent you never shared, reluctance to put engagement terms in writing, or a sudden change in the tone of reports. Ask directly whether the agency has any relationship with the other party. A legitimate agency will answer plainly.
If the answer is unsatisfying, pause the work, request your file and media, and speak with your attorney. Licensing complaints can be directed to the Tennessee Private Investigation and Polygraph Commission. Most conflicts, though, are prevented by the one question you can ask on the first call: have you checked the other party's name?
What a sound conflicts policy covers
Names before facts
Party names are checked before the client explains the situation.
Current and past matters
The check covers closed files, not only active cases.
Personal relationships
PIs disclose family or social ties to anyone involved.
Business clients
Existing corporate relationships are flagged against new matters.
Written decisions
Declines and consents are recorded so they can be shown later.
Quiet declines
A declined caller is told only that the agency cannot assist.
How Birds Eye handles conflicts at intake
Collect names
We ask for party, business and attorney names before details.
Run the check
Those names are compared against our current and closed matters.
Clear or decline
If clear, intake continues; if not, we decline without explanation of the other matter.
Record the result
The outcome is documented in the engagement file.
Conflict situations and typical agency responses
| Situation | Risk to you | Typical response |
|---|---|---|
| Both spouses call about the same divorce | Strategy exposed to the other side | First retained client only; second is declined |
| Agency does routine work for the opposing company | Divided loyalty | Decline or written consent from both, if appropriate |
| Assigned PI is related to the subject | Bias or leaks | Reassign the case to another PI |
| Agency once interviewed your opponent as a witness | Prior knowledge | Disclose and let you decide |
| Unrelated claims against the same employer years apart | Low, but not zero | Screen staff and files with disclosure |
Conflict questions to ask any agency
These take two minutes on the first call and can prevent serious problems later.
Statewide coverage from Nashville
Conflicts come up everywhere, but they are most common in close-knit Tennessee communities where a handful of agencies serve an entire county, from Greeneville and Kingsport in East Tennessee to Lebanon and Gallatin in Middle Tennessee and Jackson in the west. Birds Eye runs the same conflict check whether a call comes from Nashville or from a rural county, and our statewide reach means we can often step in when a local agency has had to decline.
All service areasNashvilleMemphisKnoxvilleChattanoogaProcess serving
Frequently Asked Questions
Can the private investigator my spouse hired also work for me?
It should not happen in the same dispute. Once an agency has taken one spouse's confidential information, working for the other creates an unacceptable risk. If the agency agrees to it, treat that as a red flag and consider another option.
Will an agency tell me who the other client is?
No, and that protects you too. If an agency declines because of a conflict, it should simply say it cannot assist, without naming the other client or revealing anything about their matter. It may suggest you contact another licensed agency.
Why does the PI want names before I explain my situation?
So the agency can check for conflicts before learning anything confidential. If a conflict exists, neither you nor the other party is harmed, because no sensitive details were shared. It is a sign of a careful agency.
Is a PI agency bound by attorney ethics rules?
Not directly, though attorneys who hire PIs are responsible for supervising work done on their behalf. PI agencies follow Tennessee licensing law and their own policies. Ask any agency how it handles conflicts and confidentiality, and get the answer in writing.
What if the conflict only comes up in the middle of my case?
The agency should tell you promptly and explain your options, which may include reassigning staff or ending the engagement and returning your file. You and your attorney should decide how to proceed. Work should not continue quietly while the issue is unresolved.
Where can I report a PI agency I believe acted improperly?
Complaints about licensed PIs and agencies can be directed to the Tennessee Private Investigation and Polygraph Commission within the Department of Commerce and Insurance. If you have an attorney, involve them as well.
Related pages
Want to confirm we are clear to help?
Call or text (629) 310-8667 with the other party's name. We will run a conflict check before you tell us anything else.
Photography: Jan Antonin Kolar · Sartori Holdings LLC (Unsplash License). Last reviewed . General information, not legal advice.
