NSV May Cover - Association of Corporate Counsel

2014 CLE Seminar Series:
July 9, 2014
How Well Do You Know
Ethics?
Seminar Agenda
Lunch & Registration
CLE Seminar
12:00 p.m.-12:30 p.m.
12:30 p.m.-1:30 p.m.
WHITE
Charlotte
The
office of Bradley Arant Boult Cummings LLP
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WHITE “B”
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ALABAMA
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DISTRICT OF COLUMBIA
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MISSISSIPPI
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NORTH CAROLINA
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TENNESSEE
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. Contact: Beau
Grenier, Esq., 205.521.8355, [email protected], One Federal Place, 1819 Fifth Avenue North, Birmingham, AL 35203
WHITE
WHITE
Bradley Arant Boult Cummings LLP serves individuals, emerging businesses, and established regional, national, and
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Attorneys with Bradley Arant Bout Cummings LLP frequently serve as national coordinating counsel, regional counsel, and
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3M National—Litigation Counsel
American Home Shield—Class Action Co-Counsel
Bayer-Thimerosal Litigation—Co-National Counsel
Bayer-Baycol—National Counsel Team Member
Bayer-Magnevist—National Counsel Team Member
Bayer-Yasmin/Yaz—National Counsel Team Member
Bayer-Trasylol—National Counsel Team Member
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National Counsel
Carothers Construction, Inc.—National Counsel
Conseco, Inc.—National Counsel
Cooper Tire—Regional Counsel
Fort Dearborn Life Insurance Company—
Regional Counsel
Harrell Contracting Group—National Counsel
Hoar Construction—National Counsel
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Louisiana-Pacific Corporation—National Counsel
Medtronic-Model 4004, Pacemaker Lead—Southeastern
Regional Counsel
Merck-Vioxx—National Counsel Team Member
Metropolitan Life Insurance Company—Regional Counsel
Ocwen Financial Corporation – National Counsel
Pfizer-Chantix MDL—Co-Lead Defense Counsel
Pfizer-Gelfoam Litigation—National Counsel
Pfizer-HRT—National Counsel Team Member
Pfizer-Neurontin—National Counsel Team Member
Pfizer-Reglan—National Counsel Team Member
ResCap Estate – National Counsel
Roy Anderson Corp.—National Counsel
Trustmark—Regional Counsel
Yates Construction—National Counsel
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CT
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OH
WV
VA
KY
MD
NC
TN
AR
SC
MS
TX
IN
MO
OK
NM
MA
PA
IA
NE
NV
NY
MI
WY
NH
AL
GA
LA
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SERVICES
As a full-service law firm, we can assemble a team of seasoned legal professionals specific to our client’s needs and industry. We
provide legal counsel in many diverse areas to handle business and individual needs including, but not limited to, the following:
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Affordable Housing and Community Development
Antitrust and Competition
Appellate
Banking and Financial Services
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ALABAMA
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DISTRICT OF COLUMBIA
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International Arbitration
Labor and Employment
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Litigation
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Trusts and Estates
White Collar Defense, Internal Investigations, and Corporate Compliance •
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MISSISSIPPI
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NORTH CAROLINA
|
TENNESSEE
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. Contact: Beau
Grenier, Esq., 205.521.8355, [email protected], One Federal Place, 1819 Fifth Avenue North, Birmingham, AL 35203
WHITE
HOWWELLDOYOUKNOW
HOW
WELL DO YOU KNOW
ETHICS?
AssociationofCorporateCounsel
July9,2014
Presentedby
DavidHymer
babc.comALABAMAIDISTRICTOFCOLUMBIAIMISSISSIPPIINORTHCAROLINAITENNESSEE
HowWellDoYouKnowEthics?
 Youareabouttotakeanethicsquizthatwilltestyour
knowledgeoftheRulesofProfessionalConductandhowthey
would apply to particular fact scenarios often faced by in‐
wouldapplytoparticularfactscenariosoftenfacedbyin
housecounsel.
 JaneLawyer,anin‐houselawyerforACMECorporationwho
reportstoACME’sVicePresidentandGeneralCounsel,must
decidehowtoproceedineachparticularscenario.
 YouwillhelpJanedecidehowsheshouldproceedusingthe
pJ
p
g
ABA’sModelRulesofProfessionalConductasyourguide.
PleasenotethattheRulesofProfessionalConductinyour
jurisdictionmayvaryfromtheModelRulesreferencedinthis
exercise.
©2014BradleyArantBoultCummingsLLP
Takingthetest
 22333 isthephonenumberyouwillusetoanswerall
questionsbytextingyouranswerstothisnumber.
 Youwillbepresentedwithseveralscenariosandwillbeaskedto
decidehowJaneshouldproceed.
 Questionswillappearonthescreenwithmultiplechoiceanswers.
 Whenitistimeforyoutoansweraquestion,youwillsendatext
to22333 andtypetheletterfortheansweryouchoose.
 Press
Presssendonceyou
send once you’ve
vetypedtheletterandyourresponsewillbe
typed the letter and your response will be
recorded.
 Yourindividualanswerwillnotbedisplayed—onlythevotetotals
foreachofthepossibleanswerswillbedisplayed.
Let’stryitout!
©2014BradleyArantBoultCummingsLLP
Testquestion
Whatdayoftheweekisit?
A. Monday
B. Tuesday
C. Wednesday
D. Thursday
©2014BradleyArantBoultCummingsLLP
CaseScenario#1
ACMEissuedforpatentinfringement.Janeisassignedbyher
GCtooverseethecase.Shortlybeforetrial,Janeconcludes
there’ssasubstantiallikelihoodthattheclaimwillresultinan
there
a substantial likelihood that the claim will result in an
adverseverdictthatwouldbankruptthecompany.Plaintiff’s
counselhasmadealargesettlementdemand,butonethatthe
companycouldpaywithoutsufferingsubstantialdamage.Jane
believesitisinthecompany’sbestintereststosettlethecase
evenifitmustbesettledintherangeoftheplaintiff’sdemand.
JanereportsallofthistoherGC.HerGCinstructshertotell
outsidecounselnottorespondtothesettlementdemand.The
t id
l tt
d t th
ttl
td
d Th
GCalsotellsJanehewantsthecasetobetriedbecausetheCEO
willexplodeifherecommendsasettlementintherangeof
plaintiff’sdemandandhewouldratherletoutsidecounsel
dealwiththefalloutifthereisadisastrousverdict.
©2014BradleyArantBoultCummingsLLP
Question#1
DoesJanehaveadutytoreportthesettlementdemandand
herrelatedadvicetoanyoneotherthantheGC?
A
A.
Y if h
Yes,ifshereasonablybelievesitisinACME’sbest
bl b li
it i i ACME’ b t
intereststonegotiateasettlementandtheGC
continuestoinsistthathewillnotengageinany
settlementnegotiations.
B.
Yes,butonlyifthereisacompanypolicyrequiring
hertoreporttosomeoneotherthantheGC.
C.
C
No,becauseshereportsdirectlytotheGCand
o, because s e epo ts d ect y to t e GC a d
satisfiesherdutytothecompanybyreportingthe
settlementofferandprovidingheradvicetohim.
D.
No,unlessshehasreasontobelievetheGCisnot
authorizedtomakethedecisionhe’smade.
©2014BradleyArantBoultCummingsLLP
Question#1:
DoesJanehaveadutytoreportthesettlementdemand
andherrelatedadvicetoanyoneotherthantheGC?
CorrectAnswer:A
Rule1.13oftheRulesofProfessionalConductaddresses
thesituationwhereanorganizationistheclientandis
thestartingpointfortheanalysis.
1.13(a)provides:“Alawyeremployedorretainedbyan
organizationrepresentstheorganizationthroughitsduly
authorizedconstituents.”
©2014BradleyArantBoultCummingsLLP
Question#1(cont.)
Alawyerrepresentingalegalentitysuchasacorporation
orpartnership,includingin‐housecounselandoutside
counsel,representstheentityandoweshis/herdutiesto
l
t th
tit
d
hi /h d ti t
theentity,asopposedtoitsconstituents.
In‐housecounselissometimesputinadifficultsituation
becausehe/sheisbothanemployeeoftheorganiza‐
tion—takingdirectionfromitsconstituentswhoalso
determinejobsecurity,promotions,andcompensation—
j
y, p
,
p
andalawyerfortheorganization.Therefore,in‐house
counsel’sethicalresponsibilitiesmaysometimesbeat
oddswiththedirectiongivenbyhis/hersuperiors.
©2014BradleyArantBoultCummingsLLP
Question#1(cont.)
Rule1.13(b)provides:“Ifalawyerforanorganizationknowsthat
anofficer,employeeorotherpersonassociatedwiththe
organization isengagedinaction,intendstoactorrefusestoact
is engaged in action intends to act or refuses to act
inamatterrelatedtotherepresentationthatisaviolationof
alegalobligationtotheorganization,oraviolationoflawthat
reasonablymightbeimputedtotheorganization,andthatis
likelytoresultinsubstantialinjurytotheorganization,then
thelawyershallproceedasisreasonablynecessaryinthe
bestinterestoftheorganization.Unlessthelawyerreasonably
y
believesthatitisnotnecessaryinthebestinterestofthe
organizationtodoso,thelawyershallreferthemattertohigher
authorityintheorganization,including,ifwarrantedbythe
circumstancestothehighestauthoritythatcanactonbehalfof
theorganizationasdeterminedbyapplicablelaw.”
©2014BradleyArantBoultCummingsLLP
Question#1(cont.)
ThecommentstoRule1.13(b)statethat“Indetermining
howtoproceedunderparagraph(b),thelawyershouldgive
due consideration to the seriousness of the violation and
dueconsiderationtotheseriousnessoftheviolationand
itsconsequences,theresponsibilityintheorganization
andtheapparentmotivationofthepersoninvolved,the
policiesoftheorganizationconcerningsuchmatters,
andanyotherrelevantconsiderations.”
Thecommentsgoontosaythatinsomecircumstances“it
maybeappropriateforthelawyertoasktheconstituent
b
i t f th l
t
k th
tit
t
toreconsider thematter,”but“[i]faconstituentpersistsin
conductcontrarytothelawyer'sadvice,itwillbenecessary
forthelawyertotakestepstohavethematterreviewedby
ahigherauthorityintheorganization.”
©2014BradleyArantBoultCummingsLLP
Question#1(cont.)
Theeffectoftheserulesissummarizedinsection96(2)
oftheRestatementofTheLawGoverningLawyers.The
R t t
Restatementexplainsthatalawyerwhoisawareofa
t
l i th t l
h i
f
potentialbreachofduty,whichcouldcausesubstantial
harmtotheorganization,mustactinthebestinterestof
theorganization.Attimes,thiscouldmeanconfrontingor
contraveningtheverypeoplewhohavehired,
compensated,orconfidedincounsel.
©2014BradleyArantBoultCummingsLLP
Question#1(cont.)
Jane’sGCowesACMEafiduciarydutyofcarethat
requireshimtoexercisethecarethatareasonably
prudentpersoninalikepositionwouldexerciseunder
d t
i lik
iti
ld
i
d
similarcircumstances.TheGC’srefusaltotrytosettlethe
caseunderthecircumstancespresentedbreacheshis
dutyofcare.Hisbreachislikelytocausesubstantial
harmtoACMEandhismotivesfornotengagingin
settlementdiscussionsarenotreasonable.IfJanecannot
convince her GC to reconsider his decision she has an
convinceherGCtoreconsiderhisdecision,shehasan
obligationtoreferthemattertoahigherauthorityinthe
organization.
©2014BradleyArantBoultCummingsLLP
Question#2
MustJanewithdrawascounselinconnectionwiththematter
if,afterreferringthemattertothehighestauthorityinthe
company ACME decides to proceed contrary to her advice?
company,ACMEdecidestoproceedcontrarytoheradvice?
A. Yes,becausethehighestauthorityatACMErefusesto
actinwhatJanereasonablybelievestobethebest
interestsofthecompany.
B. Yes,becauseJanehasadutytorepresentherclient
zealouslyandcan’tdothatifsheandtheclient
disagree.
C. No,becauseitislefttoJane’sdiscretionwhetherto
withdrawunderthesecircumstances.
D. No,becauseshemusttakedirectionfromtheclient
andultimatelymustabidebytheclient’sdecisions.
©2014BradleyArantBoultCummingsLLP
Question#2
MustJanewithdrawascounselinconnectionwiththe
matterif,afterreferringthemattertothehighest
authorityinthecompany,ACMEdecidestoproceed
th it i th
ACME d id t
d
contrarytoheradvice?
CorrectAnswer: C
Rule1.16(b)(3)providesthatalawyermay withdraw
fromrepresentingaclientiftheclientinsistsupontaking
actionthatthelawyerconsidersrepugnantorwithwhich
ti th t th l
id
t
ith hi h
thelawyerhasafundamentaldisagreement.
Therulewouldbedifferentiftheclientwasinsistingon
takinganactionthatwouldbeaviolationoflaw.
©2014BradleyArantBoultCummingsLLP
CaseScenario#2
ACMEissuedinaproductliabilitylawsuit.Janeknowsthat
ACME’schiefengineer,whodiedyearsearlier,sentamemo
to ACME’ssCEObeforetheproductwasreleasedfor
toACME
CEO before the product was released for
productionwarningthattheproducthadnotundergone
adequatesafetytesting.JaneknowsthatACME’s document
retentionpolicycallsforthememotobedestroyedwithin
thenormalcourseshortlyafterthelawsuitisfiled.
Plaintiff’scounselhasnotservedarequestforproduction
ofdocumentsandhasnotgiventhecompanyanynotice
thatheexpectsthecompanytopreservedocuments.
©2014BradleyArantBoultCummingsLLP
Question#3
DoesJanehaveanethicalobligationtotakestepsto
preservethechiefengineer’smemo?
A.
Yes,becauseJaneknowsthatthememoisevidence
relatingtotheclaimsassertedinapendinglawsuit
andthatitwillbedestroyedifshedoesn’tact.
B.
No,becausetheethicalrulesdonotrequirea
lawyertoalteracompany’spre‐existingdocument
retention policy when there is no outstanding
retentionpolicywhenthereisnooutstanding
requestfortheproductionofthedocumentandthe
lawyerhasnottakenaffirmativestepstodestroy
thedocument.
©2014BradleyArantBoultCummingsLLP
Question#3
DoesJanehaveanethicalobligationtotakestepsto
preservethechiefengineer’smemo?
CorrectAnswer: A
Rule3.4(a)providesthatalawyershallnot:
“Unlawfullyobstructanotherparty’saccessto
evidenceorunlawfullyalter,destroyorconceala
documentorothermaterialhavingpotential
evidentiaryvalue.Alawyershallnotcounselorassist
anotherpersontodoanysuchact."
©2014BradleyArantBoultCummingsLLP
Question#3(cont.)
ThecommentstoRule3.4makeclearthattheprocedureofthe
adversarysystemprohibitsdestructionorconcealmentof
evidence A failuretopreserveevidenceisnodifferentthan
evidence.A
failure to preserve evidence is no different than
thedestructionofevidence.Therightofanopposingpartyto
obtainevidencethroughdiscoveryisanimportantprocedural
right.Theexerciseofthatrightcanbefrustratedifrelevant
materialisaltered,concealedordestroyed.
Janecannotknowinglypermitacriticalpieceofevidencetobe
destroyed.Evenifshedoesnotengageintheactual
destroyed.
Even if she does not engage in the actual
destructionofevidence,ifshepermitsittooccurshewillbein
violationoftheRulesofProfessionalConduct.
©2014BradleyArantBoultCummingsLLP
CaseScenario#3
AssumeJanepreservedthememoandthattheword
“WARNING”appearsacrossthetopofthememoinared
b
banner.JanehassomeoneatACMEmakeblackandwhite
J
h
t ACME
k bl k d hit
copiesofallofthedocumentssheintendstoproduce,
includingthememo.Theblackandwhitecopieswillbe
forwardedtooutsidecounselforproduction.Copyingthe
documentsinblackandwhitewillrenderthebanner
blacksothatthered“WARNING”wasnotvisible.Janeis
not aware the copying process will blackout the
notawarethecopyingprocesswillblackoutthe
“WARNING”banner.
©2014BradleyArantBoultCummingsLLP
Question#4
IsJanerequiredtotakesomeactionbeforethe
documentsareproducedtoensurethatthedocuments
areproducedintheiroriginalcondition?
d d i th i
i i l
diti ?
A.
Yes,becauseJanehasadutytomakesure
companydocumentsareproducedinan
unalteredform.
B.
No,aslongasthereisnointentionalalterationof
thedocuments,sheisnotawareofany
th
d
t h i
t
f
alteration,andshefollowsacommonpractice
suchasproducingproduceblackandwhite
copiesinsteadofcolorcopies.
©2014BradleyArantBoultCummingsLLP
Question#4
IsJanerequiredtotakesomeactionbeforethedocumentsare
producedtoensurethatthedocumentsareproducedintheir
original condition?
originalcondition?
CorrectAnswer: A
Rule3.4providesthatalawyershallnotunlawfullyaltera
documenthavingpotentialevidentiaryvalue.Thememo
clearlyhasbeenaltered—thecopyproducedisdifferentthan
theoriginal—althoughthealterationwasapparently
inadvertent.Thequestionsinthisscenarioarewhetherthe
productionofdocumentsinblackandwhiteconstitutesan
“unlawful”alterationofthedocumentandifsowasJane
requiredtodosomethingtoavoidtheproductionofanaltered
document.
©2014BradleyArantBoultCummingsLLP
Question#4(cont.)
TheModernLitigationandProfessionalResponsibility
Handbookdiscussesthemeaningof“unlawful”inthecontext
of Rule 3 4 It states:
ofRule3.4.Itstates:
“Doesthetermunlawfulmeanmorethan‘illegal’?Hazardand
Hodes statethatthetermincludes‘noncriminalconductthat
constitutesfraud,andtheviolationofanoncriminallegal
obligationtoproduceadocumentorothermaterial.’...These
authoritiesbelievethatitisunethicalforalawyertodestroyor
y
altermaterialswhenthelawyerknowsthatthematerialsare
relevanttopendingorcontemplatedlitigation.”
So“unlawful”inthecontextofthisethicalruledoesnot
necessarilymean“criminal.”
©2014BradleyArantBoultCummingsLLP
Question#4(cont.)
InCoquinaInvestmentsv.Rothstein,2012WL3202273(S.D.
Fla.Aug.3,2012),outsidecounselwasgivenanelectronic
copy of the client’ssdocuments.Theelectroniccopyofa
copyoftheclient
documents The electronic copy of a
particulardocumentshowedaredbanneratthetopofthe
documentthatsaid“HIGHRISK,”buttheblackandwhitecopy
producedtoplaintiff’scounselrenderedthebanner
completelyblackandunreadable.Thecourtheldthatoutside
counselwasnegligentinfailingtoproducethedocumentina
mannerthatpreservedthedocument’soriginalqualities.
S ti
Sanctionswereimposedagainsttheoutsidelawfirmandthe
i
d
i t th
t id l fi
d th
company—forintentionallyfailingtoprovideanunaltered
versionofthedocumentafterthealteredversionhadbeen
showntowitnessesattrial—eventhoughtherewasno
evidencethatthethedocumenthadbeenintentionallyaltered.
©2014BradleyArantBoultCummingsLLP
Question#4(cont.)
Themessagetoin‐housecounselisthathe/sheshouldmakesure
thoseinthecompanyresponsibleforgatheringandproducing
documents are aware of the need to provide the documents to
documentsareawareoftheneedtoprovidethedocumentsto
outsidecounsel(ortotheopposingpartyifthecompanyis
producingdocumentsdirectly)intheiroriginalcondition.Ifthe
documentswillbeproducedtotheopposingpartybyoutside
counsel,in‐housecounselalsoshouldunderstandhowoutside
counselintendstoproducethedocumentstomakesurethatthey
willbeproducedtotheopposingpartyintheiroriginalcondition.
Relyingonoutsidecounseltohandlethedocumentproduction
y g
p
doesnotsatisfyin‐housecounsel’sethicalobligations.Best
practicewouldbetoproducedigitalimagesoftheoriginal
documentssothatanythingthatmightbeobscuredbythe
copyingprocesswillbevisible.
©2014BradleyArantBoultCummingsLLP
CaseScenario#4
ACMEisrequiredtotestitswastewaterdischargeona
quarterlybasisandreporttheresultstotheStateregulatory
agency.JanelearnsfromanACMEemployeethatthe
g y J
p y
company’swastewaterdischargehasfailedanon‐quarterly
toxicitytestperformedbythecompany’slab.Thereisno
legalrequirementforthecompanytoreportnon‐quarterly
testresultstoanyoneoutsidethecompany,butthe
employeetoldafellowengineeroutsidethecompanyabout
thetestresultandaskedhimforadviceabouthowtoadjust
the wastewater treatment process to eliminate the toxicity
thewastewatertreatmentprocesstoeliminatethetoxicity
inadvanceoftheupcomingquarterlytest.Janebelievesitis
inthecompany’sbestintereststokeeptheresultsofthe
non‐quarterlytoxicitytestconfidential.
©2014BradleyArantBoultCummingsLLP
Question#5
DoesJanehaveanethicalobligationtoreportthefailedtoxicitytest
totheStateregulatoryagency?
A. Yes,becauseitwouldviolatethedutyoffairnessforJanenot
todisclosethefailedtestwhilethecompanyonlydiscloses
theresultsofthequarterlytests,otherwisetheStateagency
mayneverknowthattherehavebeenfailedtoxicitytests.
B. Yes,becauseitwouldviolatethedutyofcandorforJanenot
todisclosethecompletetruthaboutthetoxicitytestresults.
C No,becauseJaneisrequiredtomaintaintheconfidentiality
C.
b
i
i d
i
i h
fid
i li
ofcompanyinformationunlessACMEconsentstothe
disclosure.
D. No,becausetheinformationisprotectedbytheattorney‐
clientprivilege.
©2014BradleyArantBoultCummingsLLP
Question#5
DoesJanehaveanethicalobligationtoreportthefailed
toxicitytesttotheStateregulatoryagency?
CorrectAnswer: C
ThereisnoethicaldutyrequiringJanetoadvisetheState
regulatoryagency.Rule1.6regardingconfidentialityof
informationstatesthat“Alawyershallnotreveal
informationrelatingtotherepresentationofaclient
unlesstheclientgivesinformedconsent….”Inthis
l
th li t i
i f
d
t ” I thi
scenario,absentACME’sconsentJanemustmaintainthe
confidentialityoftheinformation.
©2014BradleyArantBoultCummingsLLP
Question#6
CanJaneethicallyrequesttheACMEemployeeandtheoutsideengineer
nottodisclosetheresultsofthefailedtoxicitytesttoathirdparty?
A Yes
A.
YesastobothbecauseJaneisrequiredtomakereasonable
as to both because Jane is required to make reasonable
effortstopreventtheunauthorizeddisclosureofconfidential
clientinformation.
B. Yesastotheemployeebutnoastotheengineerbecausea
lawyerisnotpermittedtorequestsomeoneotherthanher
clientnottodiscloseconfidentialinformation.
C.
YesastotheengineerbutnoastotheemployeebecauseACME
“owns”
owns theinformationandshecannotdirecttheclientnotto
the information and she cannot direct the client not to
discloseitsownconfidentialinformation.
D. Noastobothbecausealawyerispermittedtorequestnon‐
disclosureonlyiftheinformationisprotectedbyworkproduct
orattorney‐clientcommunications.
©2014BradleyArantBoultCummingsLLP
Question#6
CanJaneethicallyrequesttheACMEemployeeandthe
outsideengineernottodisclosetheresultsofthefailed
t i it t t t thi d
toxicitytesttoathirdparty?
t ?
CorrectAnswer:B
Rule3.4(f)providesthatalawyershallnot:
Requestapersonotherthanaclienttorefrainfromvoluntarily
givingrelevantinformationtoanotherparty,unless:
(1) the
thepersonisarelativeoranemployeeorotheragentofa
person is a relative or an employee or other agent of a
client;and
(2)thelawyerreasonablybelievesthattheperson'sinterestswill
notbeadverselyaffectedbyrefrainingfromgivingsuch
information.
©2014BradleyArantBoultCummingsLLP
Question#6(cont.)
AlthoughRule1.6(c) statesthat“Alawyershallmake
reasonableeffortstopreventtheinadvertentor
unauthorizeddisclosureof,orunauthorizedaccessto,
th i d di l
f
th i d
t
informationrelatingtotherepresentationofaclient,”this
doesnotoverrideRule3.4(f).
©2014BradleyArantBoultCummingsLLP
CaseScenario#5
Whilegoingthroughcompanyrecordsinpreparationfora
meetingwithmanagementatACME,Janediscovers
information that causes her to believe that a document
informationthatcauseshertobelievethatadocument
ACME’sCFOispreparingforhertofilewithagovernmental
entityonbehalfofthecompanycontainsamaterial
misstatement.JaneadvisestheCFOofherbeliefthatthe
documentcontainsamaterialmisstatementandthatfiling
thedocumentwiththegovernmentalagencycouldsubject
thecompanyandthosesigningthedocumenttocriminal
prosecution.TheCFO,andlaterboththeCEOandthe
Board,tellJanethattheydisagreewithherassessmentand
directhertofilethedocumentonbehalfofthecompany
withoutanychanges.
©2014BradleyArantBoultCummingsLLP
Question#7
CanJaneethicallyfilethedocumentasdirectedbythe
Board?
A.
Yes,becauseJanehasanethicalobligationto
abidebyherclient’sdecisions.
B.
Yes,aslongastheBoardhasalegitimatebasis
fordisagreeingwithJane’sadvice.
C.
No,becauseJanecannotassistaclientinmaking
No,
because Jane cannot assist a client in making
falseorfraudulentstatements.
D.
No,becauseJanedisagreeswiththedecisionof
theBoard.
©2014BradleyArantBoultCummingsLLP
Question#7
CanJaneethicallyfilethedocumentasdirectedbytheBoard?
CorrectAnswer: C
Rule1.2generallyrequiresalawyertoabidebytheclient’sdecisions
concerningtheobjectivesoftherepresentationandtoconsultwith
theclientastothemeanstowhichtheyaretobepursued.
ButRule1.2(d)providesthat“Alawyershallnotcounselaclientto
engage,orassistaclient,inconductthatthelawyerknowsiscriminal
orfraudulent….”
TheCommenttoRule1.2recognizesthat“Thelawyerisrequiredto
avoidassistingtheclient,forexample,bydraftingordelivering
documentsthatthelawyerknowsarefraudulent….”
©2014BradleyArantBoultCummingsLLP
Question#7(cont.)
Rule4.1alsoprovides:
Inthecourseofrepresentingaclientalawyershallnot
the course of representing a client a lawyer shall not
“In
knowingly:
(a) Makeafalsestatementofmaterialfactorlawtoa
thirdperson;or
(b) Failtodiscloseamaterialfacttoathirdpartywhen
disclosure is necessary to avoid assisting a criminal
disclosureisnecessarytoavoidassistingacriminal
orfraudulentactbyaclient,unlessdisclosureis
prohibitedbyRule1.6.”
©2014BradleyArantBoultCummingsLLP
Question#7(cont.)
InthisscenarioJanehasbeendirectedtofileadocument
whichJaneknowscontainsfalseinformation.WhileJane
h
hasageneralethicalobligationtoabidebythedecisions
l thi l bli ti t bid b th d i i
madebyACME,thatobligationisexcusedwhenthe
client’sdecisionwouldrequireJanetoassistitinthe
submissionofafalseand/ormisleadingdocument.
©2014BradleyArantBoultCummingsLLP
CaseScenario#6
JanegetsalongverywellwithherCEOandconsidershim
afriend.Inthepast,JanehasrepresentedtheCEOin
multiplelawsuitsthatwerefiledagainstbothhim
lti l l
it th t
fil d
i t b th hi
individuallyandthecompany.Ineachofthose
representations,thecompanygaveitsconsenttothedual
representation.UnbeknownsttotheCEO,theBoardof
DirectorsisinvestigatingpaymentsmadetotheCEOby
anindependentcontractorwithwhomthecorporation
has been doing business After Jane becomes aware of
hasbeendoingbusiness.AfterJanebecomesawareof
theinvestigation,theCEOconfessestoJanethatheneeds
heradvicewithrespectto“gifts”hehasreceivedfromthe
independentcontractorinexchangeforhimgivingthe
contractorbusinessfromthecorporation.
©2014BradleyArantBoultCummingsLLP
Question#8
IsJaneethicallyobligatedtodiscloseherdiscussionswith
theCEOtotheBoard?
A. Yes,becausewhenalawyerrepresentsclientsjointly
andlearnsinformationfromonesheisrequiredto
disclosethatinformationtotheother.
B. Yes,becausetheCorporationisJane’sclientandsheis
requiredtoactinthebestinterestsofthecorporation.
C. No,becausethecommunicationsbetweenJaneandthe
CEO are protected by the attorney client privilege since
CEOareprotectedbytheattorney‐clientprivilegesince
shehasrepresentedhiminthepast.
D. No,becauseJaneisprohibitedfromrevealing
confidentialinformationprovidedbytheCEOwithout
hisconsent.
©2014BradleyArantBoultCummingsLLP
Question#8
IsJaneethicallyobligatedtodiscloseherdiscussionswith
theCEOtotheBoard?
CorrectAnswer:B
Asnotedpreviously,Rule1.13providesthatalawyer
employedorretainedbyacorporationrepresentsthe
corporation,notitsconstituents.Thelawyermustactinthe
corporation’sbestinterestsevenifthoseinterestsconflict
with the interests of one of the constituents of the
withtheinterestsofoneoftheconstituentsofthe
corporation.AlthoughtheCEOisaformerclientasaresult
ofJane’srepresentationofhiminthepreviouslawsuits,he
isnotJane’sclientwithrespecttothekickback
investigation.
©2014BradleyArantBoultCummingsLLP
Question#8(cont.)
IntheMatterofDanielSilva,636A.2d316(RI1994)
involvedasimilarfactualscenario.Silvawasalongtime
personalfriendoftheownerofamortgagecompanyand
l f i d f th
f
t
d
thenbecamecounselforthemortgagecompany.As
closingattorneyforthecompany,heturnedproceeds
overtotheownerfordisbursement.Helearned,however,
thattheownerhaddivertedfundsintendedtopayoffa
pre‐existingloanontheproperty. Headvisedtheowner
that it was criminal conduct but did not notify the
thatitwascriminalconductbutdidnotnotifythe
mortgagecompanyorthetitlecompany.
©2014BradleyArantBoultCummingsLLP
Question#8(cont.)
Hetestifiedathisdisciplinaryhearingthattheowner
forbadehimfrominformingothersbasedonassertionof
anattorney‐clientprivilege.Theattorneywascensured
tt
li t i il
Th tt
d
bothforfailingtoreportthediversionoffundsandfor
failingtowithdrawascounsel.Thecourtrecognizedthat
Silvasincerelybelievedtheattorney‐clientprivilege
prohibiteddisclosure. However,thecourtheldthatthe
clientwasthecompany,nottheowner,andthatthe
lawyer’ssdutytohisclientrequiredthedisclosure.
lawyer
duty to his client required the disclosure
©2014BradleyArantBoultCummingsLLP
Question#8(cont.)
Similarly,inInnesv.HowellCorp.,76F.3d702(6thCir.
1996)thecorporation’scounselinvestigatedpayments
madetothepresidentbyoneofitsindependent
d t th
id t b
f it i d
d t
contractorsandafterreceivingconfirmationbythe
presidentofthesepaymentsreportedthemattertothe
ownerwhopromptlyfiredthepresident.Thepresident
suedcorporatecounselformalpracticeclaimingthat
counselwashispersonalcounsel(basingthatclaimona
prior environmental suit in which corporate counsel had
priorenvironmentalsuitinwhichcorporatecounselhad
defendedboththecompanyandthepresident)andhad
improperlyrevealedattorney‐clientcommunications.
©2014BradleyArantBoultCummingsLLP
Question#8(cont.)
Thecourtstatedthat“Thelawisgenerallysettledthatan
attorneyforacorporationdoesnotautomatically
representthecorporation’sconstituentsintheir
t th
ti ’
tit
t i th i
individualcapacities,evenonthesamematters.”76F.3d
at 712.Thecourtthereforeheldthattherewasno
attorney‐clientrelationshipbetweencounselandthe
presidentandthuscounseldidnotneedtorefrainfrom
reportingwhathisinvestigationrevealed.
©2014BradleyArantBoultCummingsLLP
Question#9
IsJaneethicallypermittedtodiscloseherknowledgeof
theinvestigationtotheCEO?
A. Yes,becauseshehashadanattorney‐client
relationshipwiththeCEOaswellaswithACME.
B. Yes,becauseshereportstotheCEOandis
obligatedtoprovidehimwithinformation
concerningthelegalaffairsofthecompany.
C. No,becauseshebecameawareoftheinvestigation
throughherroleasanattorneywithACME.
D.No,becauseJaneowesadutytomaintainthe
confidencesofherclient.
©2014BradleyArantBoultCummingsLLP
Question#9
IsJaneethicallypermittedtodiscloseherknowledgeof
theinvestigationtotheCEO?
CorrectAnswer:D
Asdiscussed,JanedoesnotrepresenttheCEO.Herclient
isACME.UnderRule1.6(a)Jane’sobligationnottoreveal
herknowledgeoftheBoard’sinvestigationtotheCEOis
absolute.
©2014BradleyArantBoultCummingsLLP
CaseScenario#7
AnemployeeofACMEhasfiledaclaimallegingahostile
workenvironmentbasedonasuperior’sinappropriate
i t
internalcommunications.JanedirectstheITdepartment
l
i ti
J
di t th IT d
t
t
todownloadthecommunicationsfromboththe
supervisor’sandtheemployee’scompanycomputers.
DuringJane’sreviewofthecommunicationsshe
discoversemailsbetweentheemployeeandherattorney
whorepresentsherintheharassmentlawsuit.
©2014BradleyArantBoultCummingsLLP
Question#10
IsJaneethicallyrequiredtonotifytheemployeeorher
attorneythatshehasobtainedtheiremailcommunications
from the employee’sscomputer?
fromtheemployee
computer?
A. Yes,becausethee‐mailscontainattorney‐client
privilegedcommunications.
B. Yes,becausethedisclosureofthecommunicationswas
notmadeknowinglyandvoluntarily.
C. No,becausethecomputeristhepropertyofthe
companyandthereisnoexpectationofprivacyin
emailssenttoorfromtheemployee’semailaddress.
D. No,becausethedisclosureoftheemailswasnot
inadvertent.
©2014BradleyArantBoultCummingsLLP
Question#10
IsJaneethicallyrequiredtonotifytheemployeeorher
attorneythatshehasobtainedtheiremailcommunications
from the employee’sscomputer?
fromtheemployee
computer?
CorrectAnswer:D
Rule4.4(b)setsforththegeneralruleregardingalawyer’s
obligationwhenaprivilegeddocumentisinadvertently
disclosedtoherbytheopposinglawyerorhisclient:
Alawyerwhoreceivesadocumentorelectronicallystored
lawyer who receives a document or electronically stored
“A
informationrelatingtotherepresentationofthelawyer's
clientandknowsorreasonablyshouldknowthatthe
documentorelectronicallystoredinformationwas
inadvertentlysentshallpromptlynotifythesender.”
©2014BradleyArantBoultCummingsLLP
Question#10(cont.)
Theanswertothequestioninthisscenariohingeson
whetherthedisclosurewasinadvertentbecausetherule
requiresJanetonotifythesenderonlyiftheprivileged
i
J
t
tif th
d
l if th
i il d
documentwasinadvertentlydisclosed.TheCommentsto
Rule4.4(b)recognize“thatlawyerssometimesreceivea
documentorelectronicallystoredinformationthatwas
mistakenlysentorproducedbyopposingpartiesortheir
lawyers.Adocumentorelectronicallystoredinformation
is inadvertently sent when it is accidentally transmitted
isinadvertentlysentwhenitisaccidentallytransmitted,
suchaswhenanemailorletterismisaddressedora
documentorelectronicallystoredinformationis
accidentallyincludedwithinformationthatwas
intentionallytransmitted.”
©2014BradleyArantBoultCummingsLLP
Question#10(cont.)
Underthisscenario,thedocumentwasnotinadvertently
senttoJaneortoACME.Theemployeeandherlawyer
i t d dt
intendedtosendandreceiveemailsusingtheemployee’s
d d
i
il
i th
l
’
computerandhercompanyemailaddress.Theemails
senttoandfromtheemployee’scomputerwerenotsent
bymistake.Theywerenotaccidentallytransmitted.
Theywerenotmisaddressed.Theywerenotaccidentally
includedwithinformationthatwasintentionally
transmitted
transmitted.
©2014BradleyArantBoultCummingsLLP
Question#10(cont.)
FormalABAOpinion11‐460(August2011)addresseda
situationwheretheemployer’slawyerobtainedcopiesof
anemployee’sprivatecommunicationswithhislawyer
l
’
i t
i ti
ith hi l
fromtheemployee’sworkplacecomputer.Itwasthe
OpinionoftheABAthattheemployer’sattorneywasnot
requiredbyRule4.4oranyoftheotherrulestomakeany
disclosuretotheemployee’slawyer.TheABA’srationale
wasthatdisclosureisrequiredonlywhentherehasbeen
an inadvertent disclosure and in the scenario presented
aninadvertentdisclosureandinthescenariopresented
thedocumentswerenotinadvertently“sent”tothe
employer’sattorneysotheinadvertentdisclosurerule
wasinapplicable.
©2014BradleyArantBoultCummingsLLP
Question#11
IfJanefindsinappropriatematerialsonthesupervisor’s
computerthatviolatecompanypolicy,butaretotally
i l
irrelevanttoPlaintiff’sclaim,whatethicalobligations
t t Pl i tiff’ l i
h t thi l bli ti
doesJaneowetothesupervisor?
A. Todisregardallnon‐relevantdocumentsand
deleteordestroyanycopiesthathavebeenmade.
B. Ifthedocumentsarenotprivilegedthereisno
ethicalobligationowedtothesupervisor.
g
p
©2014BradleyArantBoultCummingsLLP
Question#11
IfJanefindsinappropriatematerialsonthesupervisor’scomputerthat
violatecompanypolicy,butaretotallyirrelevanttoPlaintiff’sclaim,what
ethicalobligationsdoesJaneowetothesupervisor?
CorrectAnswer:B
Here,Janehasdiscoveredmaterialthatisnotwithintheconfinesofan
attorney‐clientprivilegedcommunication sothereisnoissueofprivilege
orinadvertentdisclosureandRule4.4(b)hasnoapplication.Rule4.4(a)
prohibitsalawyerfromusing methodsofobtainingevidencethatviolate
thelegalrightsofthirdparties,butherethematerialswereobtained
from the employee’ssworkplacecomputerthatisthepropertyofthe
fromtheemployee
workplace computer that is the property of the
companyandinwhichtheemployeehasnoexpectationofprivacy.Jane
owesnoethicalobligationtotheemployee.Heronlyethicalobligations
aretoherclient,ACME,andshemustactinthebestinterestsofthe
companyindecidingwhattodowiththematerials.
©2014BradleyArantBoultCummingsLLP
CaseScenario#8
YearsagoACMEpurchasedXYZCorporationand
operateditasasubsidiary.Overtheensuingyears,Jane
andotherin‐houselawyersatACMEprovidedlegal
d th i h
l
t ACME
id d l l
servicestobothACMEandXYZ.XYZbecamedeepindebt
andACMEdecidedtodivorceXYZandstopfundingthe
company.XYZsoonthereafterwentintobankruptcy.The
bankruptcytrusteesuesACMEandseekstheproduction
ofvariousACMEinternaldocumentsthatwereprepared
during the time that XYZ was an ACME subsidiary by or at
duringthetimethatXYZwasanACMEsubsidiarybyorat
thedirectionofattorneyswhorepresentedbothACME
andXYZ.ACMEseekstoavoidproductionofthe
documentsonthebasisthatthedocumentsare
privilegedattorney‐clientcommunications.
©2014BradleyArantBoultCummingsLLP
Question#12
Assumingthedocumentsareotherwiseprivileged,mayACMEassertthe
attorney‐clientprivilegeagainstXYZ?
A.
Yes,withrespecttoalldocumentsexceptthosewherethesubject
p
p
j
matterofthedocumentsrelatetoamatterofcommonintereston
whichin‐houselawyerswererepresentingbothACMEandXYZ.
B.
Yes,withrespecttoalldocumentsduringtheperiodwhenin‐
houselawyersrepresentedbothACMEandXYZtotheextentthe
documentsinanywayreferorpertaintoXYZ.
C.
No,becausetheadverselitigationexceptiontotheA/Cprivilege
holdsthatwhenformerco‐clientsareinvolvedinlitigation
adversetoeachother,neitherpartycanasserttheprivilege
d
t
h th
ith
t
t th
i il
againsttheother.
D.
No,becauseunderthecommoninterestprivilege,
communicationsmadeatatimewhenlawyersrepresentmultiple
clientswithcommoninterestsarenotprivilegedastoanyofthe
clients.
©2014BradleyArantBoultCummingsLLP
Question#12
Assumingthedocumentsareotherwiseprivileged,mayACMEassert
theattorney‐clientprivilegeagainstXYZ?
Correct Ans er A
CorrectAnswer:A
InInreTeleglobeCommunicationsCorp.,2007WL2034156(3rdCir.
July17,2007),thecourtheldrepresentationbyanattorneyofbotha
parentandasubsidiaryconstitutesaco‐clientrepresentation.Ina
co‐clientrepresentation,documentslosetheirprivilegedstatusonly
whentheparentandsubsidiaryarejointlyrepresentedbythesame
attorneysonamatterofcommoninterestthatisthesubjectmatter
of those documents Afindingofjointrepresentationaloneisnot
ofthosedocuments.
A finding of joint representation alone is not
enoughtoovercometheprivilege. Whatmattersisthescopeofthe
jointrepresentation:documentswithinthescopearediscoverable
anddocumentsoutsideitarenot.
©2014BradleyArantBoultCummingsLLP
CaseScenario#9
ACMEprovidedJanewithalaptopcomputerforheruse
onworkrelatedmatters.Janehasherlaptopwithher
whenshestopsatStarbucksforacupofcoffeeonthe
h
h t
t St b k f
f ff
th
waytowork.StarbuckshasapublicwirelessInternet
connection.Janeneedstosendanemailcontaining
sensitivecompanyinformationtoexecutivesatACME.
©2014BradleyArantBoultCummingsLLP
Question#13
CanJaneethicallytransmitsensitiveclientinformationusing
technologythatmaybesusceptibletobeinginterceptedbythird
p
parties?
A.
Yes,becausealawyerisnotrequiredtoanticipatethat
someonewillunlawfullyinterceptemails.
B.
Yes,becausealawyerisonlyrequiredtotakereasonable
stepstosafeguardinformationandit’snotreasonableto
requirehertoinvestigatethesecurityofaparticular
Internetconnection.
C.
No,becausewaitinguntilshegetstoherofficetotransmit
sensitiveinformationisnotasignificantinconvenience.
D.
No,becausebyusingsuchtechnologyshewouldnotbe
makingreasonableeffortstopreventunauthorizedaccess
toconfidentialclientinformation.
©2014BradleyArantBoultCummingsLLP
Question#13
CanJaneethicallytransmitsensitiveclientinformationusing
technologythatmaybesusceptibletobeinginterceptedby
third parties?
thirdparties?
CorrectAnswer:D
Rule1.6(c) statesthat“Alawyershallmakereasonableefforts
topreventtheinadvertentorunauthorizeddisclosureof,or
unauthorizedaccessto,informationrelatingtothe
representationofaclient.”TheCommentstoRule1.6state
that“Whentransmittingacommunicationthatincludes
informationrelatingtotherepresentationofaclient,the
lawyermusttakereasonableprecautionstopreventthe
informationfromcomingintothehandsofunintended
recipients.”
©2014BradleyArantBoultCummingsLLP
Question#13(cont.)
ThisissuewasaddressedbytheCaliforniaStateBarinFormal
OpinionNo.2010‐179:
“Beforeusingaparticulartechnologyinthecourseof
representingaclient,anattorneymusttakeappropriatestepsto
evaluate:1)thelevelofsecurityattendanttotheuseofthat
technology,includingwhetherreasonableprecautionsmaybe
takenwhenusingthetechnologytoincreasethelevelofsecurity;
2)thelegalramificationstoathirdpartywhointercepts,accesses
orexceedsauthorizeduseoftheelectronicinformation;3)the
degreeofsensitivityoftheinformation;4)thepossibleimpacton
theclientofaninadvertentdisclosureofprivilegedorconfidential
informationorworkproduct;5)theurgencyofthesituation;and
6)theclient’sinstructionsandcircumstances,suchasaccessby
otherstotheclient’sdevicesandcommunications.”
©2014BradleyArantBoultCummingsLLP
Question#13(cont.)
Alawyermustmakereasonableeffortstoprotecta
client’sconfidencesfromunauthorizedaccessbythird
parties.
ti
U i
Usingunsecuredtechnologytotransmitsensitive
dt h l
t t
it
iti
clientinformationthatissusceptibletobeingintercepted
bythirdpartieswouldlikelyviolateJane’sethical
obligations.
©2014BradleyArantBoultCummingsLLP
CaseScenario#10
JanehasbeenpromotedtothepositionofSecretaryand
GeneralCounselofACME.Thereisavacancyonthe
B d f Di t
BoardofDirectorsofACMEandtheCEOhasaskedJaneto
f ACME d th CEO h
k dJ
t
becomeaDirectorwhilecontinuingtoservethecompany
asSecretaryandGeneralCounsel.
©2014BradleyArantBoultCummingsLLP
Question#14
CanJaneethicallyholdpositionsasbothGeneralCounsel
andamemberoftheBoardofDirectors?
A Yes,becauseshecanrecuseherselffromanyBoard
A.
Y b
h
h
lf f
B
d
decisionsthataremadebasedonherlegaladvice.
B. Yes,ifshemakestheproperdisclosuresand
believesthedualrolewillnotcompromiseher
independence.
C. No,becauseitisimpossibletoserveinthisdual
capacit
capacitywithoutcompromisingherindependence.
itho t compromising her independence
D. No,becauseitisaninherentconflictofinterestfor
anin‐houselawyertoserveontheBoardof
Directors.
©2014BradleyArantBoultCummingsLLP
Question#14
CanJaneethicallyholdpositionsasbothGeneralCounsel
andamemberoftheBoardofDirectors?
CorrectAnswer:B
Rule1.7(b)provides:
“Alawyershallnotrepresentaclientiftherepresentation
ofthatclientmaybemateriallylimitedbythelawyer’s
responsibilities to another client or a third person, or by
responsibilitiestoanotherclientorathirdperson,orby
thelawyer’sowninterests,unless:(1)Thelawyer
reasonablybelievestherepresentationwillnotbe
adverselyaffected;and(2)Theclientconsentsafter
consultation.”
©2014BradleyArantBoultCummingsLLP
Question#14(cont.)
TheCommenttoRule1.7states:
“Alawyerforacorporationorotherorganizationwhoisalsoa
memberofitsboardofdirectorsshoulddeterminewhether
theresponsibilitiesofthetworolesmayconflict.Thelawyer
maybecalledontoadvisethecorporationinmattersinvolving
actionsofthedirectors.Considerationshouldbegiventothe
frequencywithwhichsuchsituationsmayarise,thepotential
intensityoftheconflict,theeffectofthelawyer’sresignation
p
y
p
fromtheboard,andthepossibilityofthecorporation’s
obtaininglegaladvicefromanotherlawyerinsuchsituations.
Ifthereismaterialriskthatthedualrolewillcompromisethe
lawyer’sindependenceofprofessionaljudgment,thelawyer
shouldnotserveasadirector.”
©2014BradleyArantBoultCummingsLLP
Question#14(cont.)
InthiscaseJaneevaluatethefrequencywithwhichher
roleascounselfortheorganizationandtheBoard’s
actionsmayconflictandtheeffectherserviceasa
ti
fli t d th ff t h
i
directorcouldhaveonherabilitytoactastruly
independentcounsel.IfJanebelievesthereisa
possibilityofasubstantialconflict,sheshouldconsider
decliningthepositionasadirectoroftheorganization.
©2014BradleyArantBoultCummingsLLP
CaseScenario#11
Janewantstofindinformationaboutanadversewitness
forheroutsidelawyerstouseinneutralizingthe
witness’stestimony.Sheisconsideringwhethertohave
it
’ t ti
Sh i
id i
h th t h
anACMEparalegalinvitethewitnesstobeher“friend”on
FacebooksoJanecanaccessthewitness’sFacebookpage,
includingthenon‐publicportionsofhispage,tosee
whetheritcontainsanyinformationthatmightbe
beneficialtoACMEinthelitigation.
©2014BradleyArantBoultCummingsLLP
Question#15
CanJaneethicallyproceedinthefashionthatsheis
contemplating?
A. Yes,becausethewitnessvoluntarilypostedthe
informationontheinternetsoitwasfair‐game.
B. Yes,becausethewitnesshadtheoptionnotto
confirmtheparalegalasafriend.
C. No,becauseitisimproperforalawyertohave
someonecommunicatewithawitnesswithout
i t
ith
it
ith t
firstexplainingtothewitnessthathehasthe
rightnottotalk.
D. No,becauseshewasbeingdeceitful.
©2014BradleyArantBoultCummingsLLP
Question#15
CanJaneethicallyproceedinthefashionthatsheis
contemplating?
CorrectAnswer:D
Rule8.4providesthatitisprofessionalmisconductfora
lawyerto:
(a) ViolateorattempttoviolatetheRulesofProfessional
Conduct,knowinglyassistorinduceanothertodoso,or
dosothroughtheactsofanother;
* * *
(c) Engageinconductinvolvingdishonesty,fraud,deceitor
misrepresentation
©2014BradleyArantBoultCummingsLLP
Question#15(cont.)
Ethicsopinionsfromseveralstateshaveopinedthata
lawyerviolateshisethicalobligationsunderRule8.4by
engagingintheconductJaneiscontemplating.
i i th
d tJ
i
t
l ti
Underthisscenario,Janewouldcommitanethical
violationifshehasherparalegalengageinconductwhich
shecouldnotengageinherselfbecauseitwasdeceitful
conduct.Sendinga“friend”requesttoawitnessinorder
toobtaininformationtouseagainstthewitnessin
litigationisdeceitful.
©2014BradleyArantBoultCummingsLLP
Question#16
Anin‐houselawyerforACMEis“friends”withtheadverse
witnessonFacebookandofferstogiveJaneaccesstohis
Facebook account to investigate the witness Would it be an
Facebookaccounttoinvestigatethewitness.Woulditbean
ethicalviolationforJanetoaccepttheoffer?
A.
Yes,becauseJanewouldbegainingaccesstoprivate
informationofthewitnesswithouthisknowledgefor
thepurposeofusingitagainsthim.
B.
Yes,becauseJaneisbeingdeceitful.
C.
No,becausethein‐houselawyerwasalreadya
“friend”ofthewitnessandthereforewasauthorized
toviewthewitness’sFacebook pageswithout
violatinganyRuleofProfessionalConduct.
©2014BradleyArantBoultCummingsLLP
Question#16
Oneofthein‐housecounselforACMEtellsJanethatheis
“friends”withtheadversewitnessonFacebookandofferstogive
her access to his Facebook account to investigate the witness
heraccesstohisFacebookaccounttoinvestigatethewitness.
WoulditbeanethicalviolationforJanetoaccepttheoffer?
CorrectAnswer:C
Theconducthereisdifferentthantheconductatissueinthe
previousquestion.Herethein‐houselawyerdidnotusedeceitto
“friend”thewitness.Sincehisaccesstothewitness’sFacebook
account was not the result of an ethical violation he was free to
accountwasnottheresultofanethicalviolation,hewasfreeto
accesstheaccountandtosharetheaccountwithanyonehechose.
©2014BradleyArantBoultCummingsLLP
CaseScenario#12
AmemberoftheboardofdirectorsofACMEhasobjected
toJane’scontinuedrepresentationofthecompany
b
becauseshealsorepresentssomeoftheindividualboard
h l
t
f th i di id l b d
membersintheirprivatetransactionsthatarecompletely
unrelatedtothecompanyoritsbusiness.The
disgruntledboardmembercontendsthatJanehasa
conflictofinterestinrepresentingbothACMEand
individualBoardmembers.
©2014BradleyArantBoultCummingsLLP
Question#17
IsJaneethicallypermittedtorepresentACMEaswellasindividual
boardmembersonmattersunrelatedtothecompany?
A. Yes,becausethereisnoconflictofinterestbetweenher
representationofthecompanyandherrepresentationof
individualBoardmembers.
B. Yes,becauseshehasneverrepresentedanyoftheminority
shareholders.
C. No,becauseJanenowhasaconflictofinterestsincethe
Board members are now adverse to each other
Boardmembersarenowadversetoeachother.
D. No,becausehersimultaneousrepresentationofthe
companyandindividualboardmemberswasaconflictof
interestthatpreventsherfromcontinuingtorepresentthe
company.
©2014BradleyArantBoultCummingsLLP
Question#17
IsJaneethicallypermittedtorepresentACMEaswellas
individualboardmembersonmattersunrelatedtothe
company??
CorrectAnswer:A
Jane’sclientsinthisscenarioarethecorporation,asa
legalentity,andtheindividualdirectorsinseparate
unrelatedmatters.TheCommenttoRule1.7,theconflict
ofinterestrule,recognizesthattheproprietyof
fi t
t l
i
th t th
i t f
concurrentrepresentationcandependonthenatureof
thelitigationandtherepresentation.
©2014BradleyArantBoultCummingsLLP
Question#17(cont.)
EthicsOpinion2007‐04fromtheOfficeofGeneral
CounseloftheAlabamaStateBarstatesthatalawyerfor
acorporationmayethicallyrepresentdirectorsand
ti
thi ll
t di t
d
stockholdersofthecorporationintheirindividual
capacitiesinmattersthatareunconnectedwiththe
affairsofthecorporationandwhichwouldnotinterfere
withtheexerciseofthelawyer’sindependentjudgment.
Jane’srepresentationofthecorporationattherequestof
amajorityoftheboardofdirectorsandhersimultaneous
representationofindividualdirectorsonmatters
unrelatedtothecorporationisethicallypermissible.
©2014BradleyArantBoultCummingsLLP

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