LEGAL ETHICS IN THE PRACTICE OF LAW:

Second Edition, Zitrin, Langford

 

Outline by Brian Pedigo

Fall 2005, Whittier Law School

Notes: Spoken by Professor Sall

 

1.       INITIAL REFLECTIONS ON ETHICS, MORALITY, AND JUSTICE IN AN ADVERSARY SYSTEM

a.    Some Initial Reflections from Abe Lincoln: “Discourage litigation.  Persuade your neighbors to compromise whenever you can.  Point out to them how the nominal winner is often the real loser—in fees, expenses and waste of time.  As a peacemaker, the lawyer has a superior opportunity of being a good man.  Never stir up litigation. A worse man can scarcely be found than one who does this.”

b.    The Duty of Advocacy and Defending the Guilty: Problem was that a lawyer had been trying to persuade a jury to acquit a man he knew was guilty.  One has said, “I am simple enough to consider that he who defends the guilty, knowing him to be so, forgets alike honour and honesty, and is false to God and man!”  Others say, “A man is bound to deceive, if it be for the interest of his client.”  Still others, “if an accused person be really guilty, he has no moral right to any defense.” The other side says that “if the evidence is insufficient to convict him, he has a legal right to be acquitted.”  “The truth he [the lawyer] cannot disclose; the law seals his lips as to what has been communicated to him in confidence by his client.”  The bottom-line is therefore to “use all fair arguments arising on the evidence.”

c.    Should Legal Ethics Ignore Social Morality?: most lawyers will say that it is their obligation to provide the best defense possible for someone they know is guilty.  Having a code of ethics means never having to say you’re sorry.  i.e. the shield of ethics is often used to do morally questionable things.

d.    Moral Costs: in the past lawyers were directly involved in the tobacco industry’s attempt to cover up what it knew about the dangers of its product.  Moral costs are those features of one’s action and its consequences toughing on important concerns, interests, and needs of others that, in the absence of specific justification, would provide substantial if not conclusive moral reasons against performing it.  The lawyer is under great temptation to refuse to accept responsibility for his professional actions and their consequences. The lawyer’s integrity is put into question by the mere exercise of the duties of his profession. This moral detachment can cause a deep moral skepticism.  When professional action is estranged form ordinary moral experience, the lawyer’s sensitivity to the moral costs in both ordinary and extraordinary situations tends to atrophy. Moral detachment of a lawyer will adversely affect the quality of the lawyer-client relationship by making it impersonal.
See 55 New York University Law Review 63 (1980).

e.    Further Thoughts on Ethics and Morality: clients retain us to meet their needs, not our own or those of society. “One way to look at “legal ethics” is to integrate, even internalize, it along with one’s own personal morality.”

f.      When the Individual Alone Chooses to Act: one man stopped taking his CA bar exam to give CPR to another test-taker having a seizure. CA said that the test supervisor acted properly by refusing to give the good Samaritan extra time to make up for the minutes lost giving CPR.

THE LAWYER-CLIENT RELATIONSHIP

2.       UNDERTAKING A CASE

a.    Hanging Out Your Shingle:

                                      i.       Competence and the Right Lawyer: any lawyer-seeking law person, unsophisticated and lacking the right connections, has great difficulty in finding the right lawyer.

                                    ii.       Malpractice and the Wrong Client: a skill just as important as being able to attract and take on good clients is the ability to assess which clients are to be avoided.  One should screen clients by filtering out clients with bad expectations, motives (greed, vengeance, etc), communication ability, and controlling tendencies.  It is much easier to walk away from a case or client before committing than after the case starts.  

                                   iii.       Competence and Law School Education:

                                  iv.       Law Firm Mentoring:

                                    v.       Legal Internships and Continuing Education:

                                  vi.       Competence and Negligence:

                                 vii.       Fiduciary Duty:

                               viii.       Referral Fees:

b.    Must We Take This Case?:

                                      i.       Ethical Rules and Their Limited Utility:

                                    ii.       Two Famous Lawyers and an Infamous Client:

                                   iii.       The Courageous Stand of Anthony Griffin:

                                  iv.       How Two Firms Dealt With an Explosive Issue:

                                    v.       Law Firm Associates, Credit Suisse, and the Decision to Take a Case:

                                  vi.       Happy, Healthy, and Ethical?:

                                 vii.       Appointments by the Court:

                               viii.       Requiring Pro Bono Work:

                                  ix.       Mr. Mallard Goes to Washington:

c.    Getting a Client and Getting Paid:

                                      i.       When Does the Attorney-Client Relationship Begin?: neither a retainer nor a formal agreement is required to establish the attorney-client relationship.  The attorney-client relationship may be inferred by the conduct of the lawyer, including casually rendered advice. The following factors may be useful in determining whether there’s a relationship:

1.         Did the client seek advice from the lawyer?

2.         Was it within the lawyer’s area of competence?

3.         Did the lawyer, either directly or implicitly, agree to give the requested advice?

                                    ii.       Getting a Client Online: web solicitation is (in most cases) constitutionally protected speech. Legal advertising, even when it targets specific groups of alleged victims, has been deemed by courts to be protected commercial speech. Lawyers should be safe if they follow the rules in the state in which they are admitted to the bar.

                                   iii.       Consumers or Clients: operating “unbundled services” on the web may be dangerous – turning consumers into clients.  It is also dangerous to ghost-write pleadings.

                                  iv.       Fee Agreements: it is important to put into writing the scope of representation – a clear delineation of which tasks are being performed by the attorney, and which are not.  Set clear expectations as to fees and services.

                                    v.       Contingency Fees:

                                  vi.       Excessive Fees:

                                 vii.       Must Reasonable Fees be Proportional to a Case’s Dollar Value?:

                               viii.       Business Relationships, IPOs, and Lawyer-Client Deals:

3.       COMMUNICATION AND CONFIDENTIALITY:

a.    Roger Earl Receives Some Evidence:

                                      i.       Mr. Garrow, His Lawyers, and Two Buries Bodies – Belge: the lawyer is sometimes under two conflicting obligations: the lawyer must keep the client’s confessions of crime confidential, but also must not hide physical evidence (a weapon or dead body) from the prosecution.  Since a ∆ does not have to incriminate himself, the lawyer is bound to uphold this sacred trust of confidentiality.  At the end of the day, confidentiality wins.

1.         Brian’s Thoughts: a ∆ does not have to incriminate himself, but when the ∆ does in fact incriminate himself, should the truth be given to all parties?  If I am faced with this dilemma, and I blow the whistle & tell it to the court, will I be punished?  Can I draft a contract that defines my own custom attorney-client relationship (e.g. you have a good case now, but if you change your story, I will drop you/tell the court)?  From what I understand now, criminal defense attorneys seem as sick in the mind as the criminals who commit the crimes.

                                    ii.       Future and Continuing Crimes and the ABA Model Rules: total secrecy is the rule; disclosing plans for a life-threatening crime constitutes the only exception, and even then it is considered permissible for a lawyer to keep quiet.

                                   iii.       In re Ryder: there may be a difference between active concealment vs. not disclosing.  In Ryder, the attorney (Ryder) took money and a gun used in a bank robbery and put it in his own box to conceal until after the trial.  Ryder’s conduct was not encompassed by the attorney-client privilege.  Since Ryder took the initiative, this was active concealment.

1.         Note: a lawyer’s job is to advise the client as to what to do, but not to actively participate in the crime. Volunteer the reasonable alternatives.

                                  iv.       The Meredith Case: held, an observation by defense counsel or his investigator, which is the product of a privileged communication, may not be admitted unless the defense by altering or removing physical evidence has precluded the prosecution from making that same observation.  The fundamental purpose of the attorney-client privilege is to encourage full and open communication between client and attorney.

1.         Note: one must distinguish between a (1) communication and a (2) observation. “You can look, but you can’t touch.”  Don’t touch the fruit of the crime, the instrumentality of the crime, or the evidence of the crime.

2.         Brian’s Questions: why is full and open communication so important?  What’s at risk without this openness?  Why doesn’t the client simply assume the risk of withholding information?

3.         Note: the attorney-client relationship starts as soon as the client starts talking.

                                    v.       The Criminal Defense Lawyer’s View: fruits or instrumentalities of a crime should be surrendered by defense counsel.

                                  vi.       Tarasoff and Its Consequences: Privilege only protects an in-court revelation; confidentiality applies at all times and in all circumstances.  CA requires every attorney maintain the confidence, and at every peril to himself or herself, preserve the secrets of his or her client. §6068(e).  A client who uses an attorney’s representation to further a crime or fraud loses the right to claim the privilege.

                                 vii.       Balancing the Duty to Warn – Pulling the Trigger vs. Jumping the Gun: if an attorney jumps the gun and warns before a danger is truly dangerous, he may be liable – as much as a million dollars in liability.

                               viii.       Can a Lawyer have a Client for Purposes of Confidentiality?: a confidential relationship is formed even when the lawyer does not want to take a case but just listens. A communication to a secretary is also confidential, even if the prospective client has yet to see the lawyer.  When the lawyer affirmatively states in advance that he is not willing to represent the prospective client, the client can no longer have an expectation of confidentiality, and the subsequent statements are neither confidential nor privileged.

                                  ix.       Confidentiality and the Moral Imperative: Rule 1.6 says that a lawyer may not reveal information learned during the course of a representation unless the client has consented or unless it is necessary to prevent the client from committing a criminal act that the lawyer believes is likely to result in imminent death or substantial bodily harm.  DE has no duty to warn a potential victim that AIDS may be contracted.  A lawyer can confront, but not disclose.  Moral compulsion to disclose is no exception to 1.6.  CA 3-100 governs this.

1.         Brian’s Questions: what if you can’t drop a rotten client – can you intentionally do a crappy job and lose the case on purpose?

                                    x.       Other Possible Exceptions to Confidentiality: hypotheticals have been proposed as exceptions to the strict confidentiality rule – such as when you could save a life.

b.    When Does a Lawyer Talk Too Much?

                                      i.       Do Loose Lips Sink Ships?: both secrets and confidences must be protected from discourse. Lawyers who reveal confidences and secrets do so at their peril, and if their conduct is closely scrutinized may well suffer penalties as a result.

                                    ii.       Lawyer-to-lawyer Consultations, Client Confidences, and the ABA Opinion: sometimes a lawyer must consult with an attorney more knowledgeable about the subject of representation in order to take on the case. Without express client authorization for the consultation, the consulting attorney has only limited authority to disclose client information. A client’s confidences are protected so long as the consulting attorney seeks advice for the benefit of the client.

                                   iii.       Other Forms of Lawyer-to-Lawyer Consultations: sometimes a lawyer has to consult a replacement lawyer.

                                  iv.       How Far Does Confidentiality Extend?: a lawyer may go to jail if ordered to divulge information which is then refused under confidentiality.  Where an attorney does more than withhold client information, the attorney will likely get into trouble (e.g. fraud).

                                    v.       Is the Client’s Identity Confidential?: the client’s identity may be confidential.

                                  vi.       Death and Taxes: confidentiality and privileged client information survives that client’s death.  Reasons include concerns about reputation, civil liability, or possible harm to friends / family;  same reasons as disclosure during the client’s lifetime.  Sometimes there is a duty to disclose the death of a client. 

1.         Taxes: businesses that receive $10,000 or more in cash must report these transactions to the IRS (form 8300); this applies to attorneys as well – which could possibly incriminate a criminal defense client who paid with drug money.

2.         Brian’s Questions: is there any more to the purpose of the attorney-client privilege than what the courts say? Why is full and frank communication worth more than openly known truth and justice?

c.    Technology + Confidentiality = Trouble

                                      i.       How Safe is E-mail?: an attorney must have some certainty or reasonable expectation that a means of communication will remain confidential. The ABA has accepted e-mail saying it “affords a reasonable expectation of privacy from a technological and legal standpoint.”

                                    ii.       E-Mails and Malpractice: attorneys need not encrypt email in order for their clients to have an expectation of privacy.

                                   iii.       Telephone Tag:

1.         Cordless Phones: where harm clearly would occur [if intercepted], the use of cordless phones to discuss identifiable confidential information should be avoided unless the client consents after being apprised of the attendant risks.

2.         Cell Phones: safer than cordless phones.  Both difficult and a crime to intercept, but still possible.  Bottom-line: be careful what you say on the phone to avoid malpractice.

                                  iv.       Problem with Websites: security is the bottom-line problem here too.

                                    v.       A Few More Internet Issues: website disclaimers must be both complete and accurate.  Customers should have to click “agree” to the disclaimer.

                                  vi.       Inadvertent Disclosure: the professional obligation demands that one utilize his knowledge about the case on his client’s behalf.

                                 vii.       ABA’s View and a Blunt Dissent: When a lawyer receives information which appears confidential and not intended for that lawyer, the recipient should not look at the materials, but rather should notify the sending attorney and abide by that attorney’s further instructions.  “Zeal should be tempered by doing the right thing.”

                               viii.       WPS: opposing counsel sent a package of documents to the plaintiff by accident.  It was privileged strategy reports.  The lawyer not only reviewed the info, but shared it with experts and distributed it.  The lawyer was sanctioned, but the court of appeals reversed because there is no clear rule in CA.  One is required not to read privileged info, as soon as you know it is privileged stop, notify the other side, and then seek court guidance.  

                                  ix.       If the Current Trend Continues:

4.       LOYALTIES AND CONFLICTS OF INTEREST

a.    When are Two Clients Too Many?:

                                      i.       Conflicts of Interest:

                                    ii.       Representing Multiple Clients and Getting Informed Consent:

                                   iii.       Confidentiality and Joint Representation:

                                  iv.       Adequate Disclosure, Reasonable Consent, and Unwaivable Conflicts:

                                    v.       Multiple Conflicts and Billy Joel:

                                  vi.       Prospective Waivers:

                                 vii.       Conflicts and Criminal Defense:

                               viii.       Conflicts, Waivers, and Effective Assistance of Counsel:

b.    Who Is My Client?:

                                      i.       Whom do You Represent?:

                                    ii.       Whom Do You Tell?:

                                   iii.       The Garner Case:

                                  iv.       Upjohn:

                                    v.       Privilege After Upjohn:

                                  vi.       Subsidiaries:

                                 vii.       Who in the Corporation May Keep Confidences:

                               viii.       Side-Switching and Changing Loyalties:

                                  ix.       United Mine Workers Litigation:

                                    x.       Lawyers for Partnerships:

                                  xi.       Miranda Warnings for Corporate Officers:

c.    What Happens When Your Personal Interests Get in the Way?

                                      i.       When Lawyers Have Something to Gain:

                                    ii.       Fee Arrangements and Conflicts of Interest: It has been said that almost any fee arrangement can create a conflict between the interests of the lawyer and those of the client.  Fixed fee lawyers will want to settle too quickly, while hourly lawyers will want to drag the case on and on.  The lawyer must not allow his own interests to influence his professional advice.  A lawyer should evaluate a settlement offer on the basis of his client’s interest, without considering his own interest in obtaining a fee.

                                   iii.       Problem of Determining the Attorney’s Fee Independently of the Client’s Recovery:

1.         In Re Fee: medical malpractice suit on a 40% contingency fee basis.  Fee accepted a settlement, along with Fee’s client’s agreement to additional fees, and kept that secret from the judge.  The defense offered this settlement on purpose to drive a wedge between lawyer and client in negotiations, as it would cause the lawyers to lose money.

                                  iv.       Contingency Fees in Criminal Cases: no contingency fee allowed in criminal cases.

                                    v.       Failure to Pay Fees and Withdrawal: almost every jx allows a lawyer to seek withdrawal if the client fails to meet agreed-upon financial obligations.  However, sometimes actually getting released from a case is very hard to get.

                                  vi.       Don’t Slam the Door Behind You: ABA 1.16 give grounds for withdrawal from a case, such as failure to fulfill a fee agreement, or making the lawyer do something repugnant or imprudent, or when representation become unreasonably difficult. Any reason at all may be good enough so long as that there is no material adverse effect on the client.  In CA, a lawyer cannot withdraw at all even with legitimate grounds until there are reasonable steps to avoid reasonable foreseeable prejudice to the rights of the client.  3-700(A)(2).  Deny to leave usually happens because the lawyer waited to long (eve of trial).  Having a substitute ready makes it easier on the judge.

                                 vii.       Who Owns the Case File: almost all jx agree that if the client has paid the lawyer’s bills, the file belongs to the client. The problem is when the client does not pay the fees, as well as the extent of work product contained in “the file.” Many states say that when fees are owed, the lawyer may not hold the file hostage – even with a retaining lien.  

                               viii.       What Relationships are too close?: spouses representing opposite sides of a case is too close.  The problem today is defining what is an “intimate personal relationship.”

                                  ix.       Sex with Clients: half the states have banned sex with clients.

                                    x.       Lawyers’ Personal and Political Agendas:

d.    Conflicts of Interest and the Business of Being a Profession:

                                      i.       Conflicts and Motions to Disqualify Counsel:

                                    ii.       Law Firm Imputation:

                                   iii.       Substantial Relationship Test:

                                  iv.       Screening History:

                                    v.       Screening Debate:

                                  vi.       Corporate Subsidiaries:

                                 vii.       Shared Space and Non-Lawyer Migration:

                               viii.       Withdrawing From a Case:

e.    A Day in the Life of Lynch, Dahl & Wong:

                                      i.       Loyalty and the Insurance Defense Lawyer: