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Paralegal Power Break
Legal Ethics
History of Ethical Rules
• Formulating ethical principles has been
ongoing task of ABA
– Established Canons of Ethics as early as 1908
• General statements of principle urging proper conduct
• ABA has no disciplinary authority
History of Ethical Rules
• In 1970, principles crystallized in ABA’s Model
Code of Professional Responsibility
– Quickly adopted by nearly all states
• Multistate Bar Examination devised separate
ethics test
– Most states then made part of state bar
examination
History of Ethical Rules
• In 1983, after several years of intense study
and dialogue, ABA reformulated legal ethics in
Model Rules of Professional Conduct
The Model Code and the Model Rules
• Although same issues addressed, comparison
reveals distinct difference
• Canons somewhat resemble Ten
Commandments
– Moral code to live by
• Model Rules reflect more sophisticated,
legislative approach
Codes for Legal Assistants
• Legal assistant organizations also formulated
ethical codes designed specifically for
paralegals
– Although infractions of rules do not invoke any
legal sanctions
Codes for Legal Assistants
• National Association of Legal Assistants (NALA)
drafted Code of Ethics and Professional
Responsibility in 1975
– Most recent revision published in 1995
– Composed of nine canons in ABA tradition
• But concentrates on unauthorized practice of law
Disclosure
• Many ethical problems can be resolved or
mitigated by full disclosure to clients
• Some conflict-of-interest situations may be
eliminated by disclosure of conflict to client
and opposing party and consent by both to
continued representation
• Written documentation of disclosure best
Defining the Practice of Law
• Defined in two ways as it relates to
professional ethics:
1. Addresses question of whether attorney is
rendering legal services
2. Defines practice of law in context of unauthorized
practice of law
Unauthorized Practice of Law
• Although states vary considerably on specific
activities restricted to lawyers, three activities
universally identified:
1. Legal representation before court
2. Preparation of legal documents
3. Giving of legal advice
Confidentiality
• Legal services based on assurance that private
facts of client will not be disclosed to third
parties
• Privilege extends to law firm employees
• Paralegal must be scrupulous in protecting
clients’ confidences
Confidentiality
• Rationale for privilege based on need for client
to make disclosures to attorney so attorney
may effectively represent client’s interests
Exceptions to Confidentiality
• Client may create exception to attorney-client
confidentiality privilege by one of two ways:
1. Client voluntarily disclosing otherwise confidential
information
2. Client consenting to attorney disclosing otherwise
confidential information
• Client’s intention to commit crime in future not
protected by confidentiality privilege
Conflicts of Interest
• Common conflict-of-interest problem arises
when attorney leaves one firm for another and
second firm represents party suing or being
sued by client of former firm
Conflicts of Interest
• Risk can be minimized by erecting “Chinese
wall” between attorney and those dealing with
case
• Because paralegals regularly deal with
confidential material, same problem may arise
Solicitation
• Ethical concerns aim at distinguishing
advertising from solicitation
• Ethics rules prohibit attorney from directly
contacting individual unless attorney
previously had some type of past relationship
with prospective client
Solicitation
• Attorney also prohibited from soliciting
through another person
Fees
• Based on contracts between attorney and
client
– Should be specifically discussed by attorney with
client
• Potential conflict emerges whenever fees not
adequately explained to client
• Recurring issue regarding fees concerns
contingency fees
Fees
• Work performed by paralegal commonly billed
to client
– Usually at rate significantly less than that for
attorney
Reporting Misconduct
• Ethics rules typically require attorney to report
ethics violation of fellow attorney
• If misconduct criminal, legal duty to report
crime falls on paralegal
• If misconduct of professional, noncriminal
nature, duty of paralegal less clear
Trust Accounts
• One of the most common reasons for attorney
discipline:
– Misuse of client funds
• Money held for client must never be
commingled with attorney’s personal accounts
– Nor should separate trust accounts be commingled
in any way
Trust Accounts
• Accurate recordkeeping essential to properly
account for monies received and disbursed
Malpractice
• Usually refers to professional negligence
• People (usually licensed) holding themselves
out as professionals held to professional rather
than ordinary standard of care
– Most provable instance of attorney malpractice:
• Attorney negligently allows statute of limitations to run,
barring further action on client’s lawsuit
Misconduct Outside the Practice of Law
• Attorneys subject to disciplinary action for
conduct unrelated to practice of law
• Violations of law by attorneys may be
scrutinized by bar
– In addition to criminal charges

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Paralegal Power Break: Legal Ethics

  • 2. History of Ethical Rules • Formulating ethical principles has been ongoing task of ABA – Established Canons of Ethics as early as 1908 • General statements of principle urging proper conduct • ABA has no disciplinary authority
  • 3. History of Ethical Rules • In 1970, principles crystallized in ABA’s Model Code of Professional Responsibility – Quickly adopted by nearly all states • Multistate Bar Examination devised separate ethics test – Most states then made part of state bar examination
  • 4. History of Ethical Rules • In 1983, after several years of intense study and dialogue, ABA reformulated legal ethics in Model Rules of Professional Conduct
  • 5. The Model Code and the Model Rules • Although same issues addressed, comparison reveals distinct difference • Canons somewhat resemble Ten Commandments – Moral code to live by • Model Rules reflect more sophisticated, legislative approach
  • 6. Codes for Legal Assistants • Legal assistant organizations also formulated ethical codes designed specifically for paralegals – Although infractions of rules do not invoke any legal sanctions
  • 7. Codes for Legal Assistants • National Association of Legal Assistants (NALA) drafted Code of Ethics and Professional Responsibility in 1975 – Most recent revision published in 1995 – Composed of nine canons in ABA tradition • But concentrates on unauthorized practice of law
  • 8. Disclosure • Many ethical problems can be resolved or mitigated by full disclosure to clients • Some conflict-of-interest situations may be eliminated by disclosure of conflict to client and opposing party and consent by both to continued representation • Written documentation of disclosure best
  • 9. Defining the Practice of Law • Defined in two ways as it relates to professional ethics: 1. Addresses question of whether attorney is rendering legal services 2. Defines practice of law in context of unauthorized practice of law
  • 10. Unauthorized Practice of Law • Although states vary considerably on specific activities restricted to lawyers, three activities universally identified: 1. Legal representation before court 2. Preparation of legal documents 3. Giving of legal advice
  • 11. Confidentiality • Legal services based on assurance that private facts of client will not be disclosed to third parties • Privilege extends to law firm employees • Paralegal must be scrupulous in protecting clients’ confidences
  • 12. Confidentiality • Rationale for privilege based on need for client to make disclosures to attorney so attorney may effectively represent client’s interests
  • 13. Exceptions to Confidentiality • Client may create exception to attorney-client confidentiality privilege by one of two ways: 1. Client voluntarily disclosing otherwise confidential information 2. Client consenting to attorney disclosing otherwise confidential information • Client’s intention to commit crime in future not protected by confidentiality privilege
  • 14. Conflicts of Interest • Common conflict-of-interest problem arises when attorney leaves one firm for another and second firm represents party suing or being sued by client of former firm
  • 15. Conflicts of Interest • Risk can be minimized by erecting “Chinese wall” between attorney and those dealing with case • Because paralegals regularly deal with confidential material, same problem may arise
  • 16. Solicitation • Ethical concerns aim at distinguishing advertising from solicitation • Ethics rules prohibit attorney from directly contacting individual unless attorney previously had some type of past relationship with prospective client
  • 17. Solicitation • Attorney also prohibited from soliciting through another person
  • 18. Fees • Based on contracts between attorney and client – Should be specifically discussed by attorney with client • Potential conflict emerges whenever fees not adequately explained to client • Recurring issue regarding fees concerns contingency fees
  • 19. Fees • Work performed by paralegal commonly billed to client – Usually at rate significantly less than that for attorney
  • 20. Reporting Misconduct • Ethics rules typically require attorney to report ethics violation of fellow attorney • If misconduct criminal, legal duty to report crime falls on paralegal • If misconduct of professional, noncriminal nature, duty of paralegal less clear
  • 21. Trust Accounts • One of the most common reasons for attorney discipline: – Misuse of client funds • Money held for client must never be commingled with attorney’s personal accounts – Nor should separate trust accounts be commingled in any way
  • 22. Trust Accounts • Accurate recordkeeping essential to properly account for monies received and disbursed
  • 23. Malpractice • Usually refers to professional negligence • People (usually licensed) holding themselves out as professionals held to professional rather than ordinary standard of care – Most provable instance of attorney malpractice: • Attorney negligently allows statute of limitations to run, barring further action on client’s lawsuit
  • 24. Misconduct Outside the Practice of Law • Attorneys subject to disciplinary action for conduct unrelated to practice of law • Violations of law by attorneys may be scrutinized by bar – In addition to criminal charges