PR PRACTICE QUESTIONS

You are a partner in a 5-member law firm. You own 1000 shares of stock in a mid-sized corporation which are worth $50/share. There are 10,000 shares of issued & outstanding stock. A prospective client has asked you to represent her in an employment discrimination suit against the corporation in which she is seeking $500,000. She suggests a 30% contingent fee, which you may assume is reasonable under the circumstances. • Do you have a conflict of interest? • If you do have a conflict, is it of the sort the client can consent to? • If you have a consentable conflict, what must be disclosed in order to ensure informed consent? • If you have a conflict, can one of your partners handle the case? •If one of your partners handles the case, are you still required to inform the client about your interest in the defendant-company?

$50,000 interest in defendant-corp creates personal-financial interest conflict However, since you would have a $150,000 interest in potential fee from suing defendant-corp, it is not unreasonable to think you could diligently represent notwithstanding conflict. Accordingly, client could give informed consent Yes, one of your partners could handle the case—personal interests generally not imputed. Probably not technically required to disclose, but it's better practice.

Come up with two scenarios where lawyer would have to decline representation under Rule 1.16(a)(1)

(1) client wants to go to trial but to do so, lawyer would have to doctor tax documents

Client Carter may be 90 years old and frail but he is overjoyed with the result Lawyer Ford has achieved for him in his breach of contract case against his former business partern. When he first went to see Ford, his expectations were low. To him, however, Ford's abilities were miraculous under the circumstances. Carter is so delighted with Ford that he wants to give him a special gift of a new car of Ford's choice when automakers introduce new models next year. When Carter mentions the idea, Ford thanks him and tells him it is unnecessary. Nevertheless, Carter intends to follow through. Which of the following describes Ford's ethical situation? (A) Ford cannot accept a substantial gift that is not directly tied to her rendering of legal services (B) Ford cannot accept a substantial gift from a client if the client asks Ford to prepare a will in which the client bequeaths to her sufficient funds to pay for a new car of her choice (C) Ford can accept a substantial gift from client regardless of who had the idea of the gift (D) Ford can accept a substantial gift from client regardless of who drafts any documents relating to the gift

(B) Ford cannot accept a substantial gift from a client if the client asks Ford to prepare a will in which the client bequeaths to her sufficient funds to pay for a new car of her choice

Lawyer Lee represents Client Cardio in her divorce case. Before he began representing her, they had dated for six months after she separated from her husband. Before and after the lawyer-client relationship began, their relationship had included sexual relations. After he filed a petition seeking a dissolution of her marriage, in order to prepare for the custody hearings in her case, they spent even more hours together looking at medical and school records for Cardio's two children. As the time for the custody hearing approaches, what should Lee do? (A) Lee is subject to discipline for having sexual relations with a client (B) Lawyer lee is subject to discipline unless client cardio signed a consent form at the beginning of their lawyer-client relationship (C) Lee should consider withdrawing from representation from Cardio because it is materially limited by their ongoing relationship (D) Lee is not subject to discipline because his sexual relationship with Cardio predated his representation

(C) Lee should consider withdrawing from representation from Cardio because it is materially limited by their ongoing relationship

Having negotiated a settlement on behalf of 22 airplane accident victims, Lawyer Joe reasonably believes that the settlement is beneficial to all of the plaintiffs who each will receive between $350k and 2.25 Mill in damages. Defendants have stated clearly that all 22 plaintiffs must settle in order for the settlement to be effective with any of the plaintiffs. Joe is worried that by revealing the details of the settlements with each of the 22 plaintiffs, the entire settlement will be upset. If Joe discloses the settlement details to each of the 22 participants in writing, can he be disciplined? (A) No, but he would be violating his ethical aspirations for the 22 plaintiffs (B) Yes, because to do so might upset the entire settlement (C) No, because unless he advises each of the individuals of the participation of each person in the settlements, they cannot provide informed consent (D) yes, because he would reveal confidential information

(C) No, because unless he advises each of the individuals of the participation of each person in the settlements, they cannot provide informed consent

Lawyer Lonnie has been appointed the represent Taylor who is accused of killing her husband after a long period of spousal abuse by him. Because Taylor is a lifelong local resident, the court released her on her own recognizance rather than setting a large monetary amount for her to post in order to obtain pretrial release. However, Client Taylor, who is a stay at home mother is quickly running our of money. Lonnie has some discretionary funds available to him and he wants to give Taylor some cash to use for living expenses. What is the ethical course for Lonnie to pursue? (A) give her reasonable amount of money to live on but only while her case is pending (B) give her a free place to live until her criminal case is over (C) Not advance her any money for expenses (D) not represent her because he feels sorry for her

(C) Not advance her any money for expenses

Lawyer Tony practices corporate law with a concentration in securities regulation. Client Chloe retained the services of Tony about a securities issue related to her ownership of stock in a publicly traded company, but their relationship quickly grew beyond a normal client-lawyer relationship Tony and Chloe began dating which soon became sexual. At the time they decided to live together, Chloe's case became more complex as she faced charges of insider trading. Which of the following best describes Tony's ethical situation? (A) Tony may continue to represent Chloe if she consents (B) Tony may continue to represent Chloe if she consents after consulting with another lawyer (C) Tony must withdraw from representing Chloe but his law partner may represent her (D) Tony may continue to represent Chloe because her case does not raise potential for prejudice to her as a result of their relationship

(C) Tony must withdraw from representing Chloe but his law partner may represent her

Alex is a computer programming whiz and his friend Betty is a marketing genius. They believe Alex has come up with the biggest new app ever to hit the itunes store & they want to form a corporation to market the app. They have asked you to perform the necessary legal work and help them find venture capital. Because they have almost no start-up money, they asked if you will do the work in exchange for 6% of the capital stock of the new corporation. The remaining stock will be divided equally between Alex and Betty. May you agree to this proposal? (A) No, because a lawyer may not acquire personal interest in the subject matter of the representation (B) No, because a lawyer must not enter into a business transaction with clients (C) Yes, but only if the 6% interest does not amount to a clearly excessive fee and the requirements of Rule 1.8(a) are met (D) Yes, but only if Alex & Betty give informed consent and you promise never to vote your stock or otherwise influence the governance of the corporation

(C) Yes, but only if the 6% interest does not amount to a clearly excessive fee and the requirements of Rule 1.8(a) are met

Which of the following is a potential risk when making a disbursement from the trust account? (A) A recent deposit may not have cleared the bank (b) If recent disbursements have not been properly recorded on client ledgers, there might not be enough money in trust for the client to make the disbursement (C) the client may not have authorized the use of his or her entrusted funds for the disbursement (D) All of the above

(D) all of the above

Lawyer Lane represented Client Calvin in a divorce. Under the divorce decree, Client Calvin's former spouse is obligated to pay Client Calvin $50k a year in maintenance. Client Calvin's former spouse has paid nothing. Client Calvin contacts Lane and asks Lane to sue former spouse. Lane agrees and suggests if he collects, Lane's fee will be one half the interest in Calvin's mail order business. Is the fee agreement permissible? (A) No, contingent fees are never proper in domestic relations cases (B) No, because Lawyer can never enter into business transaction with a client (C) No, because a lawyer cannot acquire a property interest in the cause of action or the subject matter of the litigation (D) None of the above

(D) none of the above

You represent a wealthy client who is also a personal friend and who gives regularly and generously to worthy causes. Your mother, a renowned physician, is retiring from practice after a long and illustrious career. May you ask your client to endow a scholarship in your mother's name at her alma mater's medical school? That same client asks you to prepare a will for him, naming your son, who your client has known and loved since your son was a baby, as a beneficiary under the will. May you prepare the will as instructed by your client?

(a) No -- lawyer's may not solicit substantial gifts from clients Because of the fiduciary relationship, such gifts are presumed to be fraudulent or the product of undue influence (b) No -- a lawyer may not prepare an instrument for a client that gives the lawyer or a person related to the lawyer any substantial gift unless the lawyer or other recipient of the gift is related to the client

You represent the owner of an upscale office building in employment matters. You want to move your slum-like office uptown and are considering leasing space from your client. Can you? If so, can your client be separately represented in the lease negotiations? Must you make any disclosures to the client or obtain any consents from your client before entering into the leases?

(a) yes (b) no (c) Yes But you must do all of the things in 1.8(a) to make it OK

Husband & Wife ask you to represent both of them in an amicable divorce. They are a young couple and do not have children. Wife co-founded and is CEO of a very successful videogame company. Husband is an unemployed CPA. They say they want one lawyer to represent them because separate lawyers will cost more and stir up antagonism, and they hope you can help them reach a property and support agreement that is mutually acceptable. Which of the following is most nearly correct? (a)If you represent both, you will be subject to discipline for advising both sides in an adversarial proceeding. (b)You may represent both, so long as you obtain separate agreements from each not to later sue you for malpractice. (c)If you represent both, you will be subject to discipline because Wife & Husband's interests are in present, actual conflict. (d)You should not represent both, because it is unlikely that you can serve both effectively.

(d)You should not represent both, because it is unlikely that you can serve both effectively. BEST Answer

Name 3 ways the State Bar exercises oversight over lawyer's trust account

1. State Bar is notified when IOLTA account is opened 2. State Bar is notified when trust account check is presented against insufficient funds 3. Audits (random and for cause)

Under what 3 circumstances is a lawyer required to provide a written accounting of entrusted funds to a client?

1. When all the client's entrusted funds have been disbursed 2. at other times when reasonably requested by the client 3. at least annually if funds are held for more than a year

What are six major categories of trust account records you are required to maintain?

1. record of deposits identifying source, client and date of receipt 2. all canceled items drawn on the account or digital images thereof 3. all instructions/authorizations to transfer, disburse, or withdraw funds from the account showing the amount, date, recipient, and the client to whom the disbursed funds belonged. 4. all bank statements or documents received from the bank regarding the account 5. Client Ledgers: for a general trust account, a ledger for each person or entity from whom or for whom funds were received, which accurately reflects the current balance of funds held for that person/entity 6. all records of quarterly and monthly reconciliations of the trust account

How many years are you REQUIRED to maintain trust account records?

6

What is a client ledger?

A listing of every receipt and disbursement of entrusted money for a particular client, which allows lawyer to generate an accurate accounting for the client and to immediately see how much money remains in the trust account for that client

Attorney, with client's approval, settled a claim against Defendant for $90,000. The settlement agreement provided that one-half would be paid by Insco, Defendant's primary insurance company, and the other half by Sureco, a co-insurer. Attorney's agreed upon fee is one-third the amount of the settlement. Attorney received Insco's check for $45,000 and a letter from Sureco advising that its check would be sent in two weeks. Attorney promptly advised client and deposited the $45,000 into her trust account. Client demanded that Attorney send him the entire $45,000 and take her fee our of the funds that would be received by Sureco. Which of the following would now be proper for the attorney? I. Send Client $45,000 II. Send Client $30,000 and retain $15,000 in her trust account III. Send Client $30,000 and transfer $15,000 into her own personal account? (A) I only (B) I & II, but NOT III (C) I & III, but NOT II (D) I,II, and III

B. I & II, but NOT III

During your initial meeting with a client who operates the only Michelin-rated restaurant in town, she tells you that one of her investors has asked to see their accounting records. She acknowledges that she and one of her managers have "supplemented" their income with money received by the restaurant in the form of cash. To avoid unpleasantness, she is planning to destroy receipts for cash transactions and lightly modify the accounting records to match. The restaurant is doing so well that the change would probably go unnoticed. She is also planning to trade in her personal phone, which contains potentially problematic messages with the manager who also "supplemented." She wants your advice on what else she should do to protect herself. What, if anything, do you tell the client?

Cannot counsel as to the destruction of evidence

Individual X calls firm seeking representation in a traffic matter. Based on X's description, paralegal determines it is a routine case that Lawyer will be able to handle. Paralegal sends X a representation agreement, which he signs and returns. Several weeks later, Lawyer sees the agreement and realizes she has a conflict and cannot represent X. Lawyer and X never met or communicated directly about the representation. Client, Potential Client, or neither?

Client - Relationship exists because the paralegal, acting as an agent of the lawyer, signaled to X that a lawyer was willing to form ACR

Lawyer prepared a client's will and acted as one of the two subscribing witnesses to its execution. The will gave 10% of the client's estate to the client's housekeeper, 10% to the client's son and sole heir, and the residue to charity. Upon the client's death, the executor asked Lawyer to represent him in probating the will and administering the estate. The executor informed Lawyer that the son intended to contest the will on the grounds that the client lacked mental capacity when the will was executed. Lawyer believes the client was fully competent and would testify accordingly if called as a witness. The other witness to the client's will predeceased the client. Is it proper for the attorney to represent the executor in the probate of the will? A.Yes, because the attorney is the sole surviving witness to the execution of the will. B. Yes, because the attorney's testimony will support the validity of the will. C. No, because the attorney will be called to testify on a contested issue of fact. D. No, because the attorney will be representing an interest adverse to the interests of the client's heir.

D. No, because the attorney will be representing an interest adverse to the interests of the client's heir.

You are a new associate in a law firm and are working on a matter assigned to you by a senior partner. It is a case for one of the firm's wealthiest clients in which the client claims her gardener negligently over-fertilized her roses and made them unfit for a neighborhood flower show. She claims $5,000 in damages. The gardener is indigent and has been unable to obtain work since being "blacklisted" by your client. The gardener is being represented pro bono by a lawyer who is extremely busy and is unlikely to spend much time on the matter. You have just deposed the gardener, who apparently has very limited assets and was distraught about the whole matter. You are confident that your client will never be able to collect judgment, even if she were to prevail on what appear to be very weak claims. In general, you find the litigation to be petty and spiteful. But, this is your first case and you are anxious to make a good impression on your employer. You are excited about the opportunity to take a case to trial. If you though proceeding to trial is wrong, but partner tells you to do so, what would you do?

Discuss my concerns with client and see if she will not go to trial

Which of the following is NOT one of the purposes of attorney discipline? (1) protecting the public (2) establishing civil liability (3) maintaining the integrity of the legal profession (4) safeguarding the administration of justice

Establishing civil liability

Janet Dean is a PhD biologist whose law degree has given her the opportunity over time to represent many clients in environmental litigation. Five clients have consulted with her during the past month about representing them in conjuction with the release and threatened release of hazardous substances at the tri-county disposal site near Hartford. The possible corrective action by the EOA may be taken under the provisions of CERCLA, which makes current and past owners, operators, and other associated with real property responsible for removing harzardous substances from the site. Each of the five clients has been notified that it is a potentially responsible party (PRP) for the total cost of cleaning the disposal site. The five are current and former owners and operators of the disposal site, produces of hazardous substances disposed, and transporters of the substances to the site. Can Janet Dean ethically represent the five PRPs? If she can represent all of the them, what is the nature of the consent which must be acquired? Millennial Industrial Services is the largest and wealthiest of the 5 PRPS. AS such it is interested in paying its own legal fees to Janet Dean as well as the fees of the other four PRPs. Under what circumstances can MIS pay all of those fees?

Janet could potentially represent all of the PRPs but the potential for joint liability means there may be significant conflict that arise between them. If Janet decided to go forward despite the substantial risk of a conflict arising, she would have to obtain informed consent from all five PRPs to the possibility that their interests would become adverse & necessitate Janet's withdrawal. Janet would also have to obtain a waiver of confidentiality from each client with other clients in the course of presenting a unified defense. MIS may pay the fees so long as doesn't interfere with representation of other parties (1.8(f))

What is entrusted property?

Money that does not belong to the lawyer that comes into the lawyer's possession or control in connection with legal services the lawyer is providing

Can lawyer make donations to a charitable organization for which you serve on the BOD?

No

Can you make a cash withdrawal of funds to which a client is entitled, when the client doesn't have a bank account and therefore couldn't deposit a trust account check?

No

A prospective client consulted with an attorney about the possibility of securing legal representation in a matter. During the conversation, the client shared openly with the attorney about the strengths and weaknesses of her legal claims, including some personal information that would be embarrassing if it became public. Some of the information indicated the prospective client may have already waived some of her legal claims, and she may have been partly at fault on other points. The attorney considered it for a few minutes and then declined representation, because he felt he could not devote adequate time to the case, and he thought the case was too problematic. In addition, he was skeptical that the prospective client would be able to pay his fees. A few weeks later, some of the attorney's other matters settled sooner than expected, freeing up his schedule, and another prospective client came for a consultation, who turned out to be the opposing party in the legal matter that the attorney recently declined. This new prospective client had already gathered some convincing evidence supporting his side, and was wealthy, so paying the attorney's fees was not an issue. Would it be proper for the attorney to proceed with representing the new prospective client?

No - because the information learned from the consultation with the other party would be so helpful to the new client and so harmful to the individual the attorney declined to represent

Lawyer provides itemized billing to her clients: hours worked by partners and associates, expert fees, international call charges, court costs, stenographers for depositions, and so forth. She also includes some itemized prorated charges for overhead costs: her cell phone, which she uses exclusively for work, has a plan with a fixed monthly charge and unlimited minutes and data, so she divides her monthly phone bill into hourly increments for each day of the month, and for each hour of time she works on a client's matter, she bills the client for an hourly increment on her phone bill, even if she did not use the phone during that hour. She reasons that she is paying to have a phone available during that time in case clients needed to reach her, so the client can share the costs. She takes similar approach with other fixed overhead costs, like salaries of her support staff -- each client bill has a ten-dollar charge for "general staffing costs." A nominal charge on each bill is for the administrative costs of billing clients. Could the attorney be subject to discipline for charging clients a share of her overhead costs and operating expenses?

No - lawyer may seek reimbursement for the cost of services performed in-house such as copying or telephone costs, either by charging a reasonable amount to which the client has agreed in advance or by charging an amount that reasonably reflects the costs incurred by the lawyer (?? check)

A lawyer has handled only 1 criminal case, in which she was appointed to represent a client accused of criminal contempt of court for violating a protective order to stay away from his ex-girlfriend. After the ex failed to appear at 2 hearings, the case was dismissed with prejudice. Can the lawyer now advertise that she has never lost a criminal case?

No - misleading

An elderly retiree was reading the newspaper one morning, and he noticed an advertisement by a local attorney offering to write simple wills for $500. The attorney's name was unfamiliar, but the retiree called the phone number in the ad and asked the attorney to write a simple will for him, and the attorney agreed. Neither party, however, mentioned the advertisement or discussed the attorney's fees. The lawyer drafted the will, met with the client for signing, and then sent a bill for $1500. Under these circumstances, is the client entitled to pay only $500?

No - not in writing

A family attorney represented a client in a divorce proceeding. Early in the representation, before the client's spouse had retained counsel, the attorney advised her client to meet with other lawyers in the area for the sole purpose of creating a conflict of interest - so that the client's spouse would be unable to retain the other lawyers for representation in the divorce. The client did so, and scheduled consultations with several other divorce attorneys in a "taint shopping" campaign, but he never intended to retain any of their services. Could one of the other lawyers be subject to discipline for representing the spouse anyway, if they were lucky enough to have evidence to show that the original consultation was merely taint-shopping?

No - the person was not genuinely seeking legal representation, so the lawyer would have no duty to protect the confidentiality of the information disclosed and no conflict of interest

You represent a client in a personal injury claim. You expect a substantial settlement within the month, and the client comes to you with a plea for a short-term loan to prevent foreclosure of the loan on his home. Can you loan him the amount of the mortgage payment for one month to tide him over until the settlement funds arrive?

No -- a lawyer may not make a loan to a client for livign expenses in effect subsidizing the litigation. A lawyer may, however, advance litigation expenses, such as the cost of a necessary medical examination or the cost of bus fare to the doctor's office

Can you write a check payable to the lawyer for $1,000 in legal fees when the client has indicated that she believes the lawyer is only entitled to $500 if the $1,000 remaining in the trust?

No -- no checks payable & disputed funds which must remain until dispute is resolved

Can you make a payment via debit card to a printing company for a large trial exhibit, assuming the client has sufficient money in trust and has agreed to pay for this expense?

No -- no debit cards

Can you write a check payable to the lawyer with a memo line that reads "legal fees"

No -- not allowed to use checks payable

Another client comes to your office wanting to sue for serious injuries she sustained in an auto accident. She explains that she was very depressed during her long recovery so she is only seeking legal advice now -- the week before the SOL runs. She is desperate and you want to help her, but you know it is risky to try to pull the case together in less than a week. Can you ask her to waive liability for any errors you might make on this unreasonable timetable?

No -- not unless she is independently represented by another lawyer in signing the waiver of liability.

Can a lawyer make a deposit using a $500 flat fee from a client for a traffic ticket you just got resolved this morning?

No -- this is lawyer's money

You have been asked to represent the seller of a business in negotiations with a buyer that you represent in a wholly unrelated matter. Can you do so?

No, not without the informed consent of both parties. Direct adversity arises in transactional matters, not just in litigation.

You have represented a developer of a proposed multi-use development for some time. A resident of an adjacent historic, tree lined neighborhood, whom your firm represents in an unrelated matter, wants you to represent him at the zoning hearing to oppose the mixed-use development. Can you represent the neighbor at the hearing?

No, you cannot represent the neighbor at the zoning hearing opposing the development. You probably cannot represent the developer at the hearing either.

Can you cure the conflict of interest by discharging the developer as a client so that you can represent the neighbor at the zoning hearing?

No. Per the "hot potato rule," if conflict develops between two clients & both do not consent, lawyer cannot resolve conflict by dropping less lucrative/less appealing client. Must w/draw from both. See also Rule 1.7, cmt 5.

You have been asked to represent a seller of commercial real estate, a real estate developer and a commercial lender in the development of a residential development. Can you?

No. Your representation is likely to be materially limited in your ability to recommend or advocate all possible positions that each client might take because of your duty of loyalty to the other clients.

Lawyer had a sexual relationship with a domestic client &—while their relationship & her case were ongoing—gave her $8k to buy a car. Lawyer later receives a grievance from the State Bar asking him to respond to allegations that he had sex w/Client, provided financial assistance to a Client, & failed to act with diligence in Client's domestic case. Lawyer wants Opposing Counsel in the domestic case to provide a statement supporting Lawyer's grievance response by vouching for the fact that Lawyer diligently represented Client. In conjunction w/this request for a supporting statement, Lawyer provides Opposing Counsel with the complete summary of allegations he received from the State Bar. Opposing counsel uses the info re: the $8k payment in support of a motion to decrease spousal support on the grounds that Client failed to disclose all her assets. Was Lawyer's disclosure of the summary of allegations to Opposing Counsel permissible "to respond to allegations in any proceeding concerning the lawyer's representation of the client" under Rule 1.6(b)(6)?

Paragraph (b) permits disclosure only to the extent the lawyer reasonably believes the disclosure is necessary to accomplish one of the purposes specified. Where practicable, the lawyer should first seek to persuade the client to take suitable action to obviate the need for disclosure. In any case, a disclosure adverse to the client's interest should be no greater than the lawyer reasonably believes necessary to accomplish the purpose.

A man named Peter arrives at Lawyer's office and introduces himself as the "boyfriend" of Cindy, a young woman who was recently arrested on a prostitution charge. Peter asks Lawyer to agree to represent Cindy and pays L's standard fee for a misdemeanor case in advance. Although Peter is not a lawyer, he is familiar with the DA's policies on prostitution cases, and lets L know that a guilty plea usually results in a fine, but no jail time, but when a defendant is found guilty after a trial, the judge usually imposes a jail sentence. Peter explains that naturally Cindy does not want to go to jail, and he is willing to pay any fine imposed, so Lawyer should advise her to plead guilty. When Lawyer finally gets around to meeting Cindy -- at the courthouse just before the case was called -- she tells L that Peter is her pimp, not her boyfriend, and she desperately wants to get away from him and escape life on the street. She says she'd rather risk a jail sentence than be further indebted to Peter. What is Lawyer's proper course of action?

Peter is not the client, so Lawyer owes no duty of loyalty to Peter. If Cindy does not want lawyer to represent her because she will then be indebted to Peter for the legal fees he paid, Lawyer must withdraw and return Peter's money. Lawyer cannot accept compensation from Peter unless Cindy gives informed consent (1.8(f)). If, after giving informed consent to the payment arrangement, Cindy wishes to go forward with representation but try her luck at trial, L must comply with her wishes. As a third-party payer, Peter is not entitled to direct or interfere with L's professional judgment representing Cindy

Using Rule 8.3(a): One of your first cases is a domestic matter where you represent the wife in seeking a divorce from her husband, who is a lawyer. During the representation, your client reveals to you that her Husband had sexual relationships with several of his clients, including instances in which he accepted sexual favors as fees. Husband is willing to enter into a settlement that is very favorable to your client to avoid having this information go public. The final version of the settlement agreement prepared by Husband's counsel contains the following clause: "the parties and their counsel agree not to disclose any law enforcement personnel, the North Carolina State Bar, or any other regulatory body, any conduct by either Husband or Wife of which the parties and their counsel currently aware." Must you report Husband's conduct?

Possibly - If true, the husband's conduct is definitely in violation of the rules of PR. However, whether you actually KNOW this information is in question. Even if you do KNOW this information, you would still need your client's consent to disclose it which she might not give you since the settlement is beneficial to her as it.

An attorney undertook the representation of a client in a breach of contract claim and began working on the matter. A few weeks later, the opposing party in the litigation consulted with another lawyer in the attorney's firm about the same matter, but during the consultation, disclosed no confidential information except the identity of the other party and the nature of the claim. The other lawyer did a routine conflict check, quickly discovered the conflict with this new potential client, and immediately declined to represent the party. The lawyer and the attorney already representing the first client discussed the situation. Would it be proper for the attorney to disclose to his client that the opposing party had come in for a consultation with another lawyer in his firm?

The attorney may not disclose to the client that the opposing party consulted with another lawyer in the firm but may continue to represent the client if the attorney does not use any information gleaned from the other party's consultation against the other party

Three years ago, Mr. Johnson retained you to set up a closely-held corporation under which he would operate his business and which would hold title to certain personal investments. You have not performed any legal services for him since. Mrs. Johnson now wants you to represent her in divorce proceedings against Mr. Johnson. The Johnsons are not likely to agree about alimony, child support, or property distribution, so you would have to take Mr. Johnson's deposition. Under what circumstances, if any, may you represent Mrs. Johnson?

There is a conflict: The prior representation is substantially related to the domestic representation b/c former client's assets/income are at issue. If a representation requires cross-examination of a former client using confidential information gained in the prior representation, then the lawyer has a disqualifying conflict of interest. (2003 FEO 14)

Client is charged with assault. He confesses to lawyer that he beat up the victim without provocation. Nonetheless, lawyer manages to get Client acquitted. When Client refuses to pay Lawyer's bill, Lawyer writes "your victim may still have a civil claim against you, and if I have to sue to collect my fee I will have to tell the whole truth to explain why this case required so much work. Think this over carefully. I hope to receive payment soon." Is this okay?

To an extent - if the lawyer sues, he can reveal information only to the extent necessary to establish claim

What is commingling?

When money belonging to the lawyer is either deposited into the trust account or left in the trust account after the lawyer earns it. Result is that entrusted funds are not properly segregated from lawyer's personal funds.

Lawyer worked for 8 years at A&B law firm doing primarily insurance defense. While employed at A&B, L worked on numerous cases for Insurance Co. Several years ago, L left A&B to work at another firm -- C & Associates -- also doing insurance defense. C & Associates is currently representing Real Estate Developer in defending a suit by homebuyers for alleged construction defects. Developer has various policies with Insurance Co., which Developer contends cover the defect claims. Insurance Co contests coverage and has sued Developer for a declaration that it is not liable for the homebuyer's claims. A&B represents Insurance Co and C& Associates represents Developer. Insurance Co has moved to disqualify C & Associates based on lawyer's former association with A&B. Should lawyer be personally disqualified from representing Developer in this case? Should entire firm of C & Associates also be disqualified from representing developer? Are there any steps C & Associates could have taken to avoid imputed disqualification?

Whether or not lawyer is disqualified depends on whether the current representation of Developer is "substantially related" to the matters in which Lawyer previously represented Insurance Co. (Rule 1.9). The question doesn't provide enough information to make that determination, but assuming L is disqualified under Rule 1.9, the other lawyers at C & Associates would also be disqualified under Rule 1.10. C&Associates could have avoided this imputed disqualification by "timely screening" lawyer from any participation in its representation of Developer and promptly giving written notice to Insurance Co of the steps that were taken to screen L from participation

Individual Y is looking for representation in challenging the validity of her recently-deceased mother's will. Lawyer's website indicates that he concentrates on estate matters. Y gets lawyer's email address from the site and sends lawyer an email explaining her basis for seeking to challenge the will and attaching relevant documents. Lawyer reads the email and attachments and responds by saying that due to his caseload, he is unable to take on Y's case at this time. Client, potential client, or neither?

Y is likely not even a potential client - responding to advertisement and communicating unilaterally

Can a lawyer deposit a cashier's check from their client to be used as a down payment on her new home in a real estate closing lawyer is conducting?

Yes

Can a lawyer make a deposit from the lawyer's personal funds to replenish the trust account after a staff member accidentally wrote a check our of the trust account instead of the operating account?

Yes

Can a lawyer make a deposit with cash received from a client to recover the filing fee for a motion you will file next week?

Yes

Can a lawyer make an electronic transfer from the operating account to the trust account to cover bank service charges on the trust account?

Yes

Can lawyer make a $20,000 deposit for future legal fees from a client she is billing on an hourly basis?

Yes

Can you make an electronic transfer from the trust account to the operating account with a notation in the electronic record that reflects which client balance the disbursement was from?

Yes

Can you write a cashier's check payable to the client disbursing funds to which the client is entitled, with a notation on the check indicating the purpose of the disbursement?

Yes

If a lawyer borrows money from the trust account very briefly, but replenishes the account within 24 hours, can they be disciplined?

Yes

Husband and Wife both faces drug trafficking charges. Lawyer represents both spouses, & signed an agreement waiving any potential conflicts that may arise. Prior to trial, Prosecutor offers the following plea deal (which no defense attorney would have reasonably foreseen): (1) Both spouses accept responsibility for half of the drugs and serve 8 years each; or (2) One spouse accepts full responsibility for the drugs and serves the 25-year minimum term while the other spouse would go free. Both clients have confessed the crime to Lawyer. Does Lawyer have a conflict of interest under Rule 1.7(A)(2)? Is so, why? Could the waive still be effective?

Yes - Lawyer's ability to represent these co-defendants is materially limited in light of the plea offer. It is objectively in each client's best interest to have the other accept full responsibility, so any course of action recommended by the lawyer would necessarily be detrimental to at least one of the client's interests. the client's original agreement to waive any potential conflicts is unlikely to be effective because they could only give consent to potential conflicts about which they were informed, and lawyer could not have informed them about a circumstance (such as thus unusual plea offer) that was unforeseeable

Attorney's radio advertisement stated "for a fee of $700 attorney will represent a party to a divorce that does not result in a court trial of a contest issue of fact." Attorney had the ad approved by the State Bar before it aired. Client, who had already agreed with her husband to an uncontested dissolution of their marriage heard the ad and called attorney. Client told attorney that she heard the radio ad and asked attorney to represent her. Attorney agreed. Because of the nature of the parties' property, Attorney spent more time on the tax aspects of the case than she had anticipated. The time expended by attorney, billed at a reasonable hourly rate would have resulted in a $2,200 fee. After the divorce decree was entered the attorney billed client for $2200. Is attorney subject to discipline?

Yes - because fee charged higher than advertised fee

A family attorney represented a client in a divorce proceeding. Early in the representation, before the client's spouse had retained counsel, the attorney advised her client to meet with other lawyers in the area for the sole purpose of creating a conflict of interest - so that the client's spouse would be unable to retain the other lawyers for representation in the divorce. The client did so, and scheduled consultations with several other divorce attorneys in a "taint shopping" campaign, but he never intended to retain any of their services. Could the attorney be subject to discipline for instructing client to do this?

Yes - because this is dishonest, interferes with the administration of justice, and has no purpose other than to interfere with the opposing party's ability to for a client-lawyer relationship

Legal Aid represents a class of female inmates who are suing the state for failure to house female prisoners in a facility with programs and services equivalent to those provided to male prisoners. ("the inmate case") In unrelated litigation, Legal Aid represents a class of developmentally disabled citizens who reside at Smith State School (SSS), the state's lone institution for care and treatment of people with severe developmental disabilities. The class is suing the state to challenge the overcrowded conditions at SSS. ("the SSS case") The state offers to settle the inmate case by establishing a women's correctional facility at one of the buildings on SSS campus. If this building were converted to this use, it would displace 28 class members in the SSS case, potentially further crowding SSS. Does Legal Aid have a conflict of interest? If so, how should it be resolved?

Yes - conflicts can arise as litigation continues. Legal Aid would need to determine if they can effectively represent both and if not will have to make other arrangements

Attorney entered into a written retainer agreement with client who was the defendant in a criminal case. Client agreed in writing to transfer title to his car to Attorney if Attorney successfully prevented Client from going to prison. Later, the charges against Client were dismissed. Is attorney subject to discipline for entering into retainer agreement

Yes - lawyer agreed to contingent fee on outcome of a criminal case

Using rule 8.3(a): A classmate with large student debt, after asking if you can keep a secret, tells you that she had to borrow $200 from the firm trust account to pay the rent but put the money back two days later. She had been selected by the bar for a random trust account audit and is worried that the auditor might notice this short term loan. Must you report?

Yes - misappropriation of client $$ is ALWAYS going to "raise a substantial question as to the lawyers trustworthiness, honest, or fitness as a lawyer." You could ask that she self-report so that you don't have to, but would need to confirm that she actually did so.

You are flying to an out-of-town deposition in client A's case. On the plane, you work on drafting a motion for Client B. Must you deduct the time you bill to client B from the travel time you will bill to client A?

Yes - must bill one or the other

Using Rule 8.3(a): You are at a bar after work and you see a new lawyer that you recently met at a deposition. He is talking very loudly in a booth next to yours about a case and he appears to be under the influence of alcohol. He is bragging about the case and what he and his firm, are doing to champion that cause of his down trodden client. Is this misconduct that you must report?

Yes - the lawyer is disclosing confidential information about his client in violation of the rules and you KNOW he is doing it

Lawyer Smith represents Lettley, a criminal defendant charged with 1st degree murder. Lawyer Smith also happens to represent another criminal defendant in an unrelated matter. The other client confesses to smith in confidence that he actually committed the murder of which Lettley is accused. Is there a conflict of interest under Rule 1.7(A)(2) and if so why?

Yes -- Lawyer's ability to represent Lettley is materially limited by his obligation to the other client who confessed that he committed the murder. Lawyer's duty of confidentiality to the other client prohibits him from using or disclosing this critically important information to Lettley's defense and thus impairs his ability to zealously represent Lettley.

Attorney regularly represented RockStar. When RockStar planned to leave on a world tour, RS delivered to Attorney sufficient money to pay RS's property taxes when they became due. Attorney placed the money in his trust account. When the tax payment date arrives, Attorney was in need of a temprorary loan to close the purchase of his new home. Because the penalty for late payment of taxes was only 2% while the rate of a personal loan was 6%, Attorney withdrew RS's funds from the trust account to cover Attorney's personal check for the closing. Attorney was confident that RS would not object. Ten days later, after the receipt of a large fee previously earned, Attorney paid RS's property taxes and the 2% penalty, fully satisfying RS's tax obligation. After RS returned, Attorney told RS what Attorney had done, and RS approved of Attorney's conduct. Is attorney subject to discipline?

Yes -- attorney used client funds for personal purpose

You represent a client in a personal injury claim and you allow the statute of limitations to expire on the claim without filing suit. May you offer to settle your client's potential claim against you for an agreed upon amount?

Yes -- but only after advising the client, in writing, of the desirability of seeking independent counsel concerning the settlement and providing the client a reasonable opportunity to do so.

Under Rule 8.3(a), if you suspect that another lawyer has engaged in misconduct that raises questions about his/her honesty, trustworthiness, or fitness to practice, must you report it?

Yes IF you know of that conduct meaning that a reasonable lawyer under the circumstances would have formed a firm opinion that conduct had more than likely occurred

You represent the owner of a specialty food store in your town. A newcomer wants to open a similar store just down the road from your client's store and, of course, this may negatively impact your client's business. Can you represent the newcomer in opening his competing store?

Yes. Simultaneous representation in unrelated matters of clients whose interests are only economically adverse, such as representation of competing economic enterprises, does not ordinarily constitute a conflict of interest and thus may not require consent of the respective clients.

You represent the Buckstons, a very affluent family, on miscellaneous matters. Papa Buckston asks you to prepare a will that disinherits one of his grandchildren, Monica Buckston, who you are currently representing in a copyright dispute over one of her TikTok videos. Can you prepare the will as requested?

Yes. (Probably) In a 2004 ethics opinion, the ABA explained that because a will beneficiary normally has only an expectancy in receiving money from the testator, a lawyer representing a potential beneficiary in unrelated matters generally may assist a testator in disinheriting a beneficiary.

You represent a large accounting firm in your town on employment matters. You know all of the partners, but deal primarily with one partner. You are told that the wife of one of the partners wants you to represent her in her domestic case against her husband. Can you?

Yes. You represent the entity, not its members. ...but, you'd want to consider whether it's worth potentially alienating a regular client (the accounting firm) just to take on one domestic client.

Client Kevin has sought the advice of Lawyer Will on several occasions in the past, but he sometimes believes that Lawyer will's Style of practicing law is somewhat eccentric. For example, lawyer Will has an aversion to conflict and disagreements with others. As a result, Lawyer Will tries to avoid litigation situations, even on behalf of his past clients who are in need of his services. Last month, Client Kevin asked Lawyer Will to represent him in a dispute with his cable television provider about billing practices. Lawyer Will agreed to represent Client Kevin about the matter but if the dispute had to be litigated, Client Kevin knew he would have to find another lawyer. Is lawyer Will subject to discipline for agreeing to represent Kevin under that? Assuming lawyer will and kevin memorializes their agreement regarding limited representation in writing, can the agreement include the following: "client understand that Lawyer is only providing limited services in this matter and therefore knowingly and voluntarily waives any potential claims Client may have against Lawyer related to representation"

Yes; that is up to the client No: would need 3rd attorney to advise Kevin

Continental Towing Company is the nation's largest operator of towboats. It also has a small manufacturing plant. A large Spanish corporation has been trying to acquire Continental. Very few people at continental know about the acquisition possibility and the corporate CEO has instructed those few (including Maris, the general counsel) not the tell anyone about it. The takeover almost certainly would result in the Spanish company selling off most of the Continental's operations business with nothing remaining of the current Continental business but the small manufacturing entity. Jordan is the Associate General Counsel for Continental and seeks your advice. Last week, Continental's outside counsel told her that Maris and he were promoting the takeover by the Spanish corporation so that they could begin their own towing operation. Does Jordan have an ethical obligation to disclose her knowledge about the GC's conduct and intent, and if so, to whom?

Yes; up the chain of command

Which of the following criminal offenses do you believe relfects adversely on one's honesty, trustworthiness, or fitness as a lawyer? (1) DWI (2) failure to file tax returns (3) simple assault (4) misdemeanor marijuana possession (5) all of the above (6) none of the above

failure to file tax returns for reflecting poorly on lawyer's honesty, trustworthiness, etc. (rule 8.4)

Assuming no exceptions apply and there is neither implied nor express client consent, which of the following types of disclosure of confidential information would definitely not constitute a violation or Rule 1.6? 1. knowing 2. Intentional 3. reckless 4. inadvertent 5. none of the above

none of the above

A new federal regulation provides that attorneys who prevail in tax cases on behalf of their clients against the IRS may only receive attorneys' fees at the fixed rate of $100 per hour, not to exceed $100,000. A certain attorney lives in a state that allows "reasonable" fees, and he makes a written fee agreement with the client for an additional $100 fee per hour, on top of whatever fees federal regulations allow in their case . If the client provides written informed consent, could the attorney be subject to discipline for this fee agreement.

yes - fees are subject to law