Q: Dear Ethics Lawyer, I represented a closely-held LLC in the sale of real estate. A story broke yesterday that the LLC’s principal is being investigated for various alleged frauds and tax evasion. Now, an IRS agent has made an unannounced visit wanting to talk to me about the transaction I was involved in, and asking to review at least the non-privileged information in our file. What should I do? What if, instead, I was served with a confidential grand jury subpoena that instructs me not to inform anyone about it?
Continue Reading February 15 Issue – Confidentiality of Closed FilesThe twice-monthly “Dear Ethics Lawyer” column is part of a training regimen of the Legal Ethics Project, authored by Mark Hinderks, former managing partner and counsel to an AmLaw 200 firm. Read More
2024
February 1 Issue – Aggregate Settlement Issues in Joint Representation
Q: Dear Ethics Lawyer, A lawyer is representing the plaintiffs, six people injured to various extents in an industrial accident. Is it unethical for a defendant’s lawyer to extend an aggregate settlement offer to settle all the cases on an all or nothing basis? Must the plaintiffs’ lawyer withdraw from representing the multiple plaintiffs when an aggregate settlement offer is received if it would be difficult to obtain agreement of the amounts that each should receive?
Continue Reading February 1 Issue – Aggregate Settlement Issues in Joint RepresentationJanuary 16 Issue – Waiver of Conflict When Matter is Highly Confidential
Q: Dear Ethics Lawyer, Our firm is currently advising Client A on whether a product it is developing would infringe a patent held by Competitor B. B has now asked a lawyer with the firm to represent it in an unrelated breach of contract lawsuit brought by one of its distributors. Can this conflict be waived?
Continue Reading January 16 Issue – Waiver of Conflict When Matter is Highly ConfidentialJanuary 2 Issue – Case Settled Based on Client Hiding Documents
Q: Dear Ethics Lawyer, We recently mediated a litigation matter for a demanding and difficult client whom I was happy to put in the rearview mirror. This morning, a couple of days after the settlement agreement was signed, and the client’s check conveyed, I ran into the client at a coffee shop. He pulled me aside and said he was really happy to have settled the case so easily, because (looking sheepish) it could have gone so much worse for him had the other side learned about some bad documents that he had kept in his drawer and not produced.
Shocked, I told the client we’d never work for him again, and that I’d have to consider what to do about his disclosure. He immediately said that I should do nothing because what he told me about the documents being withheld was privileged and confidential, and besides the matter was over now. Back at my office, I checked the status of the Order of Dismissal agreed to as part of the settlement. I learned that it has been submitted to the Court for signature, but has not yet been signed or filed. Do I have any obligation to do anything? Does the attorney-client privilege or Rule 1.6 mean I cannot reveal the client’s admission? Can I or should I tell anyone?