legal ethics - st. louis paralegals association - june 2017

LegalEthics

MichaelDowneyDowneyLawGroupLLC

BasicsofProfessionalLiability

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Negligence Breach ofFiduciaryDuty LegalMalpractice

Duty Fiduciaryrelationship Attorney-clientrelationship

Breach Breach(offiduciaryduty)

Breach(of dutyowedclient)

Causation Causation Causation

Damages Damages Damages

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5/10/17

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LegalInnovations

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BreachofFiduciaryDuty

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ElementsofBreachofFiduciaryDuty

Whethercharacterizedasbreachoffiduciarydutyorconstructivefraud,theelementsofsuchaclaimare:(1) anattorney-clientrelationship(2) breachofafiduciaryobligationbytheattorney(3) proximatecausation(4) damages totheclient(5) nootherrecognizedtortencompassesthefacts

alleged

Klemmev.Best,941S.W.2d493,496(Mo.1997)”

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LawyerasFiduciary

Principal(Client)

Agent(Lawyer)

FiduciaryDutiesOwedtoClientsLoyalty

Confidentiality

SafekeepingPropertyIndependentJudgment

Communication

Candor

LegalMalpractice

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ElementsofLegalMalpracticeThefouressential elements ofa legalmalpractice actionare:’(1) thatanattorney-clientrelationshipexisted;(2) that[theattorney]actednegligentlyorinbreach ofcontract;(3) thatsuchactsweretheproximatecauseofthe[client's]

damages;(4) thatbutfor[theattorney's]conductthe[client]wouldhave

beensuccessful intheprosecutionof[the][underlying]claim.'"

Boatrightv.Shaw,804S.W.2d795,796(Mo.App.E.D.1990)

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FormationofClient-LawyerRelationship

Arelationshipofclientandlawyerariseswhen:1. apersonmanifeststoalawyertheperson’sintent

thatthelawyerprovidelegalservices fortheperson;andeither(a) thelawyermanifeststothepersonconsenttodoso;or(b) thelawyerfailstomanifestlackofconsenttodoso,and

thelawyerknowsorreasonablyshouldknowthatthepersonreasonablyreliesonthelawyertoprovidetheservices;or

2. atribunalwithpowertodosoappointsthelawyertoprovidetheservices.

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“TrialWithinaTrial”

• Not “Didthelawyerdosomethingwrong?”but

• “Didlawyerdosomethingwrongthatcausedyoutolose?”

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11.3

8.9

8.8

8.6

6.7

6.6

5.9

5.4

5.3

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0 2 4 6 8 10 12

FailuretoKnow/ApplyLaw

PlanningError

InadequateDisc/Investigation

FailuretoFileDocuments/NoDeadline

FailuretoCalendar

FailuretoKnowDeadline

Procrastination

FailuretoObtainClientConsent

ConflictofInterest

Fraud

10MostCommonLegalMalpracticeErrorAllegations

Source:ABAStandingCommitteeonLawyers’ProfessionalLiability

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Duty=EthicsRules(?)

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Missouri Supreme Court

Board of LawExaminers The Missouri Bar Attorney Discipline

SystemJudicial

Commission

MissouriOrganizationalChart

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EthicsRulesinMalpracticeCasesMissouriRule4Scope[7]–

ViolationofaRuleshouldnot itselfgiverisetoacauseofactionagainstalawyernorshoulditcreateanypresumptioninsuchacasethatalegaldutyhasbeenbreached....TheRulesaredesignedtoprovideguidancetolawyersandtoprovideastructureforregulatingconductthroughdisciplinaryagencies.Theyarenotdesignedtobeabasisforcivilliability.…ThefactthataRuleisajustbasisforalawyer'sself-assessment,orforsanctioningalawyerundertheadministrationofadisciplinaryauthority,doesnotimplythatanantagonistinacollateralproceedingortransactionhasstandingtoseekenforcementoftheRule.Accordingly,nothingintheRulesshouldbedeemedtoaugmentanysubstantivelegaldutyoflawyersortheextra-disciplinaryconsequences ofviolatingsuchaduty.

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StructureoftheEthicsRules4-1.X Client-lawyerrelationship(18rules)4-2.XCounselor(3rules)4-3.XAdvocate(9rules)4-4.XTransactionswithPersonsOtherthanClients(4rules)4-5.X LawFirmsandAssociations(7rules)4-6.XPublicService(5rules)4-7.X InformationaboutLegalServices(6rules)4-8.X MaintainingtheIntegrityoftheProfession(5rules)

EthicalObligationstoClients

4-1.1– competence4-1.3– diligence4-1.4– communication4-1.6– confidentiality4-1.7to4-1.12– loyalty(noconflicts)4-1.15– safeguardpropertyandmoney

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LegalMalpracticev.BreachofFiduciaryDuty

• Legalmalpractice– breachofdutyofcompetence(4-1.3)ordiligence(4-1.3)

• Breachoffiduciaryduty– breachofanotherfiduciaryobligation(suchasthoseinRules4-1.2and4-1.4through4-1.18)

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Competence– Rule4-1.1

“Alawyershallprovidecompetentrepresentationtoaclient.Competentrepresentationrequiresthelegalknowledge,skill,thoroughness andpreparationreasonablynecessaryfortherepresentation.”

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KeepingClientInformed– Rule4-1.4(a)

Alawyershall:(1) keeptheclientreasonablyinformedaboutthe

statusofthematter;(2) promptlycomplywithreasonablerequestsfor

information;and(3) consultwiththeclientaboutanyrelevantlimitation

onthelawyer’sconductwhenthelawyerknowstheclientexpectsassistancenotpermittedbytheRulesofProfessionalConductorotherlaw.

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Confidentiality– Rule4-1.6(a)

Alawyershallnotrevealinformationrelatingtotherepresentationofaclient unlesstheclientgivesinformedconsent,thedisclosureisimpliedlyauthorizedinordertocarryouttherepresentationorthedisclosureispermittedbyparagraph(b).

“Informationrelatingtotherepresentationofaclient...” Rule4-1.6

Client

Court Filings

Real Estate Records

Newspaper

Depositions

Pleadings

Opposing Party

Lawyer

(Anticipated)Rule4-1.6(c)

ProtectionofConfidences.

Model Rule1.6(c):"Alawyershallmakereasonableeffortstopreventtheinadvertentorunauthorizeddisclosureof,orunauthorizedaccessto,informationrelatingtotherepresentationofaclient."

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WhatAre"Reasonable"Precautions

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EvaluationofSafeguardsFactorstobeconsideredindeterminingthereasonablenessofthelawyer’seffortsinclude,butarenotlimitedto,

– thesensitivityoftheinformation– thelikelihoodofdisclosureifadditionalsafeguardsarenot

employed– thecostofemployingadditionalsafeguards– thedifficultyofimplementingthesafeguards (and)– theextenttowhichthesafeguardsadverselyaffectthelawyer’s

abilitytorepresentclients(e.g.,bymakingadeviceorimportantpieceofsoftwareexcessivelydifficulttouse)

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Conflicts(Loyalty&Confidentiality)Rule4-1.7(a)Exceptasprovidedinparagraph(b),alawyershallnotrepresentaclientiftherepresentationinvolvesaconcurrentconflictofinterest.Aconcurrentconflictofinterestexistsif:

(1) therepresentationofoneclientwillbedirectlyadversetoanotherclient;or

(2) thereisasignificantriskthattherepresentationofoneormoreclientswillbemateriallylimitedbythelawyer'sresponsibilitiestoanotherclient,aformerclientorathirdpersonorbyapersonalinterestofthelawyer.

Rule4-8.4

Itisprofessionalmisconductforalawyerto:(a) violateorattempttoviolatetheRulesof

ProfessionalConduct,knowinglyassistorinduceanothertodoso,ordosothroughtheactsofanother ...

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DutytoSupervise– Rule4-5.3Withrespecttoanonlawyeremployedorretainedbyorassociatedwithalawyer:

(a) apartner,andalawyerwhoindividuallyortogetherwithotherlawyerspossessescomparablemanagerialauthorityinalawfirmshallmakereasonableeffortstoensurethatthefirmhasineffectmeasures givingreasonableassurancethattheperson’sconductiscompatiblewiththeprofessionalobligationsofthelawyer;

(b) alawyerhavingdirectsupervisoryauthorityoverthenonlawyershallmakereasonableefforts toensurethattheperson’sconductiscompatiblewiththeprofessionalobligationsofthelawyer;and...

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DutytoSupervise– Rule4-5.3Withrespecttoanonlawyeremployedorretainedbyorassociatedwithalawyer:...(a)(b)

(c) alawyershallberesponsible forconductofsuchapersonthatwouldbeaviolationoftheRulesofProfessionalConductifengagedinbyalawyerif:(1) thelawyerorders or,withtheknowledgeofthespecific

conduct,ratifies theconductinvolved;or(2) thelawyerisapartnerorhascomparablemanagerial

authority inthelawfirminwhichthepersonisemployed,orhasdirectsupervisoryauthorityovertheperson,andknowsoftheconductatatimewhenitsconsequencescanbeavoidedormitigatedbutfailstotakereasonableremedialaction.

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Levelsof(Formal)Discipline• Disbarment• Suspension– Indefinite(IL/MO)orspecificperiod(IL)

• StayedSuspension• Probation• Reprimand(IL"Censure")

– Public– Private

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Other"Discipline"

• Admonition(MO)orReprimand(IL)– Temporary– Lesspublic– Oftensomelevelofchoice

• Diversion

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ProblemswithDiscipline• Disciplinesystemmayemployvolunteerlawyers• Manytypesofconductexcluded

– Feedisputes– Incivility

• Disciplinedlawyersaredisproportionatelysoloorsmallfirmpractitionersandminorities

• Clientsreportmostmisconduct,butmanytypesofproblemsescapeclientnotice

• Lackofinformationgiventocomplainant/client• Mostdisciplineispunitive,notrehabilitative

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MichaelDowneyDowneyLawGroupLLC

(314)961-6644(844)961-6644tollfree

mdowney@DowneyLawGroup.com

ThankYou