Duty of Confidentiality Flashcards
DOC
A lawyer must not reveal information relating to the representation of the client
Applies after relationship is terminated
Use of Information against former client
A lawyer may not use information about a former client to his disadvantage unless it becomes generally known OR
reveal information relating to the representation
DOC Exceptions–Financial Loss
ABA: allows a lawyer to disclose confidential information to prevent the client from committing a crime or fraud that is likely to cause substantial financial loss to a person if the client is using or has used lawyer’s services
NO CA rule
DOC Exception–Ethical Rules
ABA and CA: The ethical rules might permit or require a lawyer to disclose confidential information
Ex. Reporting Corporation’s violations
Corporation Disclosure
RS: a lawyer who represents an organization must act in the best interest of the organization. If the lawyer learns of facts that would cause a reasonable lawyer to conclude that someone associated with the org is engaged in action in a matter related to the representation that is a violation of a legal obligation/law, that might be reasonably imputed to the organization, the lawyer must proceed as necessary in the best interests.
- Learns of facts
- cause a reasonable lawyer to conclude
- someone in the org is engaged in action/non-action
- Matter related to representation
- Action is violation of legal obligation or law
- That could be reasonably imputed to the org
- then the lawyer must proceed as reasonably necessary for the best interests of the corporation
ABA–ladder
Rule: the lawyer should report the violation to the higher authority, and if necessary, to the highest authority (outside directors)
Rule: If the highest authority fails to take timely, appropriate, action, the lawyer may report the relevant information to appropriate persons outside the org
Only to the extent that the lawyer reasonably believes that the reporting is necessary to prevent substantial injury to the organization.
CA–ladder rule
CA: prohibit a lawyer from disclosing confidential information about the violation to an outsider, unless disclosure is necessary to prevent a criminal act that will cause death or substantial bodily injury.
IN certain instances, SOX, federal law will preempt this rule and outside reporting is permitted.
