AUG 0 3 2009

THE AMERICAN LAW INSTITUTE

A Concise Restatement

of THE LAW GOVERNING

LAWYERS

Compiled

by

VINCENT R. JOHNSON Professor of Law

St. Mary's University School of Law

and

SUSAN SAAB FORTNEY George Mahon Professor

Texas Tech University School of Law

ST. PAUL,MN

AMERICAN LAW INSTITUTE PUBLISHERS 2007

Mat #40661125

TABLE OF CONTENTS

Page

Introduction...................................... ... ... .. ...... .... ...... ......... .. ..... 1

CHAPTER 1. REGULATION OF THE LEGAL PROFESSION

TOPIC 1. REGULATION OF LAWYERS-IN GENERAL

Section

1. Regulation of Lawyers-In General................ .............. ....... 4

TOPIC 2. PROCESS OF PROFESSIONAL REGULATION

TITLE A. ADMISSION TO PRACTICE LAW 2. Admission to Practice Law..... ... .......... ......... .. ......... .. .... ....... 6

TITLE B. AUTHORIZED AND UNAUTHORIZED PRACTICE

3. Jurisdictional Scope of the Practice of Law by a Lawyer... . 7

4. Unauthorized Practice by a Nonlawyer .. ...... ..... ...... ............ 11

TITLE C. PROFESSIONAL DISCIPLINE

5. Professional Discipline ........... ...................... ................. ........ 15

TOPIC 3. CIVIL JUDICIAL REMEDIES IN GENERAL

6. Judicial Remedies Available to a Client or Nonclient for Lawyer Wrongs.. ... ... ...... ...... ................ .................... ...... .... .. .. 18

7. Judicial Remedies Available to a Lawyer for Client Wrongs 23

TOPIC 4. LAWYER CRIMINAL OFFENSES

8. Lawyer Criminal Offenses.. ................ ...................... ............ 24

TOPIC 5. LAW-FIRM STRUCTURE AND OPERATION

TITLE A. ASSOCIATION OF LAWYERS IN LAW ORGANIZATIONS

9. Law-Practice Organizations-In General.... ........ ........... .. .. 25

TITLE B. LIMITATIONS ON NONLAWYER INVOLVEMENT IN A LAW FIRM

10. Limitation n Nonlawyer Involvement in a Law Firm......... 29

TITLE C. SUPERVISION OF LAWYERS AND NONLAWYERS WITHIN AN ORGANIZATION

11. A Lawyer's Duty of Supervision .......................... .. ............... 32

12. Duty of a Lawyer Subject to Supervision....... ... .. ....... .. ..... ... 36

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Section TABLE OF CONTENTS

TITLE D. RESTRICTIONS ON THE RIGHT TO PRACTICE LAW

Page

13. Restrictions on the Right to Practice Law........... ................ 37

CHAPTER 2. THE CLIENT-LAWYER RELATIONSHIP

TOPIC 1. CREATING A CLIENT-LAWYER RELATIONSHIP

14. Formation of a Client-Lawyer Relationship...... ............ ...... 40

15. A Lawyer's Duties to a Prospective Client........ .. ........ ........ . 46

TOPIC 2. SUMMARY OF THE DUTIES UNDER A CLIENT-LAWYER RELATIONSHIP

16. A Lawyer's Duties to a Client-In General... ............... ........ 50

17. A Client's Duties to a Lawyer........... .... ........ .... ...... .............. 52

18. Client-Lawyer Contracts ...................................................... 52

19. Agreements Limiting Client or Lawyer Duties ................... 57

TOPIC 3. AUTHORITY TO MAKE DECISIONS

20. A Lawyer's Duty to Inform and Consult with a Client ....... 59

21. Allocating the Authority to Decide Between a Client and a Lawyer ............. ...... .. .. ..... ......... .. ... ........................... .. ..... .... ... 61

22. Authority Reserved to a Client.... .............................. .... ....... 63

23. Authority Reserved to a Lawyer.................. .... .. ................... 64

24. A Client with Diminished Capacity...................................... 65

TOPIC 4. A LAWYER'S AUTHORITY TO ACT FOR A CLIENT

25. Appearance Before a Tribunal.............. ... ...... .............. .. ....... 68

26. A Lawyer's Actual Authority.. .. ........ ......... ..... .. .................... 68

27. A Lawyer's Apparent Authority.......... ..... .... .... ...... ............... 69

28. A Lawyer's Knowledge; Notification to a Lawyer; and Statements of a Lawyer.. ......... ................... ... ....................... 70

29. A Lawyer's Act or Advice as Mitigating or Avoiding a Client's Responsibility ... .. .. .. ...... .................. ...... ........ ......................... 71

30. A Lawyer's Liability to a Third Person for Conduct on Behalf of a Client. .... ... .. .. ........ ........ ..... ..... ............................. 72

TOPIC 5. ENDING A CLIENTBLAWYER RELATIONSHIP

31. Termination of a Lawyer's Authority .............. .. :.......... .. ...... 73

32. Discharge by a Client and Withdrawal by a Lawyer .... .. ..... 75

33. A Lawyer's Duties When a Representation Terminates .. ... 79

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TABLE OF CONTENTS Section Page

CHAPTER 3. CLIENT AND LAWYER: THE FINANCIAL AND PROPERTY RELATIONSHIP

TOPIC 1. LEGAL CONTROLS ON ATTORNEY FEES

34. Reasonable and Lawful Fees ..... ............. .................... ... ....... 81

35. Contingent-Fee Arrangements ............ .. .......... .... .. ........ ...... 85

36. Forbidden Client-Lawyer Financial Arrangements... .... .. .. . 90

37. Partial or Complete Forfeiture of a Lawyer's Compen-sation................... .... ................................. ............. ... ... .. .. ..... .. 92

TOPIC 2. A LAWYER'S CLAIM TO COMPENSATION

38. Client-Lawyer Fee Contracts ........... .... .. .. .... ........ ... .. . .. .. .. .... 95

39. A Lawyer's Fee in the Absence of a Contract .. ................ .... 97

40. Fees on Termination. ............................... ........... ... ..... .......... 98

TOPIC 3. FEE-COLLECTION PROCEDURES

41. Fee-Collection Methods ........................................................ 102

42. Remedies and the Burden of Persuasion ..... ....... ...... ... ........ 103

43. Lawyer Liens .. ... .... .... .... .. ...... ... ...... ........ ............ .............. ... .. 104

TOPIC 4. PROPERTY AND DOCUMENTS OF CLIENTS AND OTHERS

44. Safeguarding and Segregating Property .................. ............ 107

45. Surrendering Possession of Property ................................... 110

46. Documents Relating to a Representation ............................ 112

TOPIC 5. FEE SPLITTING WITH A LAWYER NOT IN THE SAME FIRM

47. Fee-Splitting Between Lawyers Not in the Same Firm ..... 114

CHAPTER 4. LAWYER CIVIL LIABILITY

TOPIC 1. LIABILITY FOR PROFESSIONAL NEGLIGENCE AND BREACH OF FIDUCIARY DUTY

48. Professional Negligence-Elements and Defenses Generally.......... .. ........................ .. .......................... ........ ... ... .. 117

49. Breach of Fiduciary Duty-Generally .................................. 120

50. Duty of Care to a Client ........................................................ 121

51. Duty of Care to Certain Nonclients ... .... .............. ...... ..... ...... 123

52. The Standard of Care. .... .... ......................... .. .. ........ .............. 126

53. Causation and Damages .................. ... .. ... .. ............................ 131

54. Defenses; Prospective Liability Waiver; Settlement with a Client ................................................................................... 134

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TABLE OF CONTENTS Section Page

TOPIC 2. OTHER CIVIL LIABILITY

55. Civil Remedies of a Client Other Than for Malpractice ...... 138

56. Liability to a Client or Nonclient Under General Law .. .. ... 139

57. Nonclient Claims-Certain Defenses and Exceptions to Liability ... .... ..... ... ...................... .. .... ................... ...... ... .... .. ..... 140

TOPIC 3. VICARIOUS LIABILITY

58. Vicarious Liability .. .. ...................... .. ...... .. ...... .... .. .. .. .. .... .. .. .. . 143

CHAPTER 5. CONFIDENTIAL CLIENT INFORMATION

TOPIC 1. CONFIDENTIALITY RESPONSIBILITIES OF LAWYERS

TITLE A. A LAWYER'S CONFIDENTIALITY DUTIES

59. Definition of "Confidential Client Information" .................. 151

60. A Lawyer's Duty to Safeguard Confidential Client Information. ..... .......................... ..... .. ... .. .......... ...... .. .... .. ...... .. 152

TITLE B. USING OR DISCLOSING CONFIDENTIAL CLIENT INFORMATION

61. Using or Disclosing Information to Advance Client Interests ... .. ... ... ...... .. .. .. ...... ..... ............ ..... .... ................ .. .... .... 160

62. Using or Disclosing Information with Client Consent.. ...... 161

63. Using or Disclosing Information When Required by Law .. 161

64. Using or Disclosing Information in a Lawyer's Self-Defense ........... ...... ... .. .... ... ..... .. .... ... .. ........ .. .. ................. 162

65. Using or Disclosing Information in a Compensation Dispute ... .... ... ..... .. .. .. .. .. .... ... ... .... .. .. .............. ............ .. ...... .. ... . 165

66. Using or Disclosing Information to Prevent Death or Serious Bodily Harm .............................. ............ .. .. .. .. .... .. .................. 165

67. Using or Disclosing Information to Prevent, Rectify, or Mitigate Substantial Financial Loss .............................. .. .... 169

TOPIC 2. THE ATTORNEY-CLIENT PRIVILEGE

TITLE A. THE SCOPE OF THE PRIVILEGE

68. Attorney-Client Privilege .... ...... .... ................................ ....... 173

69. Attorney-Client Privilege-"Communication" ...... .......... .. .. 175

70. Attorney-Client Privilege-"Privileged Persons" .......... .. .. .. 178

71. Attorney-Client Privilege-"In Confidence" .............. ...... .. .. 180

72. Attorney-Client Privilege-Legal Assistance as the Object of a Privileged Communication .. .... .... .................... ...... ...... .. 182

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TABLE OF CONTENTS Section Page

TITLE B. THE ATTORNEY-CLIENT PRIVILEGE FOR ORGANIZATIONAL AND MULTIPLE CLIENTS

73. The Privilege for an Organizational Client.. ............ .... .. ..... 185

74. The Privilege for a Governmental Client .................. ........... 190

75. The Privilege of Co-Clients .................................................. 191

76. The Privilege in Common-Interest Arrangements ............. 193

TITLE C. DURATION OF THE ATTORNEY-CLIENT PRIVILEGE; WAIVERS AND EXCEPTIONS

77. Duration of the Privilege. .. .... .. ............................................. 196

78. Agreement, Disclaimer, or Failure to Object .. ...... .... ........... 196

79. Subsequent Disclosure .. ............. ..... ..... ....... .. ... ..................... 197

80. Putting Assistance or a Communication in Issue .......... .. ... 200

81. A Dispute Concerning a Decedent's Disposition of Property ................. .... ........ .............. ........... .. .... ..................... 201

82. Client Crime or Fraud ............... ... ........ .. .... .. .... ..................... 202

83. Lawyer Self-Protection ............. ... .... ................ ..................... 205

84. Fiduciary-Lawyer Communications .................................... 206

85. Communications Involving a Fiduciary Within an Organization ..... .............................. ..................... .. ........... ..... 206

TITLE D. INVOKING THE PRIVILEGE AND ITS EXCEPTIONS

86. Invoking the Privilege and Its Exceptions ......... ................. . 208

TOPIC 3. THE LAWYER WORK-PRODUCT IMMUNITY

TITLE A. THE SCOPE OF THE LAWYER WORK-PRODUCT IMMUNITY

87. Lawyer Work-Product Immunity ...... ............... ... .. ...... ........ 209

88. Ordinary Work Product ........ ........................... .. ................... 212

89. Opinion Work Product ........................................ ..... ............ . 213

TITLE B. PROCEDURAL ADMINISTRATION OF THE LAWYER WORK-PRODUCT IMMUNITY

90. Invoking the Lawyer Work-Product Immunity and Its Exceptions .............................................................................. 214

TITLE C. WAIVERS AND EXCEPTIONS TO THE WORK-PRODUCT IMMUNITY

91. Voluntary Acts ....................................................................... 215

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TABLE OF CONTENTS Section Page

92. Use of Lawyer Work Product in Litigation .......................... 216

93. Client Crime or Fraud ..... .... .... ..... ......................... .. ............ .. 217

CHAPTER 6. REPRESENTING CLIENTS-IN GENERAL

TOPIC 1. LAWYER FUNCTIONS IN REPRESENTING CLIENTS IN GENERAL

94. Advising and Assisting a Client-In General ........ .... ... .. ... .. 218

95. An Evaluation Undertaken for a Third Person ... .. ... ... .... .. .. 223

TOPIC 2. REPRESENTING ORGANIZATIONAL CLIENTS

96. Representing an Organization as Client ... ..... ...... .. ..... .... .... . 226

97. Representing a Governmental Client ............................. .. .... 231

TOPIC 3. LAWYER DEALINGS WITH A NONCLIENT

TITLE A. DEALINGS WITH A NONCLIENT-GENERALLY

98. Statements to a N onclient ........................ ... ... ...... ... ........... .. 235

TITLE B. CONTACT WITH A REPRESENTED NONCLIENT

99. A Represented Nonclient-The General Anti-Contact Rule ... .. ..... ..... .. .. ...... .. ..... .. .......... ... .. ... ......... ...... ..................... 238

100. Definition of a Represented Nonclient ........ ......... ................ 243

101. A Represented Governmental Agency or Officer .. .............. 247

102. Information of a Nonclient Known to Be Legally Protected ... ... ... .. ... ... .. .. ....... ...... ..... ... ... .......... .. ....................... 250

TITLE C. DEALINGS WITH AN UNREPRESENTED NON CLIENT

103. Dealings with an Unrepresented Nonclient ......... ... ..... ... .. .. 253

TOPIC 4. LEGISLATIVE AND ADMINISTRATIVE MATTERS

104. Representing a Client in Legislative and Administrative Matters ........ ....... ...... .... .... .............. ..... .... ... .... ... ..... ................ 256

CHAPTER 7. REPRESENTING CLIENTS IN LITIGATION

TOPIC 1. ADVOCACY IN GENERAL

105. Complying with Law and Tribunal Rulings .. ... ..... .. .... ..... ... 258

106. Dealing with Other Participants in Proceedings ....... ........ .. 259

107. Prohibited Forensic Tactics ............ ...... ..... .. ... ...................... 261

108. An Advocate as a Witness .. ................... ......... ...... ... .............. 262

109. An Advocate's Public Comment on Pending Litigation ...... 267

xlI

110. Frivolous Advocacy .... .. ....... ................. .... ........ .... ... ... .. ...... .. .. 269

111. Disclosure of Legal Authority .... .. ....... ...... .. ............ ... ........... 271

112. Advocacy in Ex Parte and Other Proceedings ....... ... ...... .. .. . 273

TOPIC 3. ADVOCATES AND TRmUNALS 113. Improperly Influencing a Judicial Officer .. ...... ...... .. ..... .. .... 274

114. A Lawyer's Statements Concerning a Judicial Officer .. ... ... 276

115. Lawyer Contact with a Juror ............. .... ........ .. ... ............. .. ... 276

TOPIC 4. ADVOCATES AND EVIDENCE 116. Interviewing and Preparing a Prospective Witness ..... .. ..... 277

117. Compensating a Witness .. .. ... ........... .. ..... ............. ..... ... .... .. ... 280

118. Falsifying or Destroying Evidence .. ......... ...... .......... ...... ...... 281

119. Physical Evidence of a Client Crime ... ... ... ... ..... ..... ... ...... ..... 283

120. False Testimony or Evidence .. ..... ... .... .. ... ... ... .. ... ..... ... ......... . 285

CHAPTER 8. CONFLICTS OF INTEREST

TOPIC 1. CONFLICTS OF INTEREST-IN GENERAL

121. The Basic Prohibition of Conflicts ofInterest ... .. .... ............ 292

122. Client Consent to a Conflict ofInterest.. .. ...... .... ...... ..... ...... 300

123. Imputation of a Conflict of Interest to an Mflliated Lawyer ... .... ... ..... ...... ... .. ... .. .. ............. ... .. .. ... .......... .. ..... .. ........ 310

124. Removing Imputation .... ........ .... .......... ......... ... .... ...... ..... ...... 316

TOPIC 2. CONFLICTS OF INTEREST BETWEEN A LAWYER AND A CLIENT

125. A Lawyer's Personal Interest Mfecting the Representation of a Client ............................ ... ......... .. .................. .. ... ........ ...... 322

126. Business Transactions Between a Lawyer and a Client .. .. . 325

127. A Client Gift to a Lawyer .... ............ .. .. .. .... ...... ........... ...... .. ... 329

TOPIC 3. CONFLICTS OF INTEREST AMONG CURRENT CLIENTS

128. Representing Clients with Conflicting Interests in Civil

TOPIC 4. CONFLICTS OF INTEREST WITH A FORMER CLIENT

132. A Representation Adverse to the Interests of a Former Client ... .... .... .. .... ........ .. ................ ... ....... .................. .. .... ......... 347

133. A Former Government Lawyer or Officer .. .... ... ...... ... ...... ... 355

TOPIC 5. CONFLICTS OF INTEREST DUE TO A LAWYER'S OBLIGATION TO A THIRD PERSON

134. Compensation or Direction of a Lawyer by a Third Person 357

135. A Lawyer with a Fiduciary or Other Legal Obligation to a Nonclient .. ; ..... ... .. ............... ..... .... .............. ... ..... ........... ........ . 360

Index ..... ...... ..... .. ....... .... ....... ....... ......... ..... ... ..... .. .................... 365