Practice Quiz

Paralegal

Category - Ethics

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A lawyer represented a corporation that owned and managed many apartment and rental properties. After the lawyer represented the corporation in a hotly contested case, and the corporation lost, the president of the corporation refused to pay the remaining amount due in attorneys’ fees because he believed the attorney had been negligent in his handling of the case. After discussing the dispute with the president, the lawyer agreed to settle the matter for one-half of the amount due in attorneys’ fees and the transfer of all of the corporation’s legal affairs to a different attorney. Is the lawyer subject to any discipline?
  1. Yes, because he did not advise the president to seek the advice of independent counsel.
  2. Yes, because he did not request that the dispute be resolved through the bar association’s fee arbitration service.
  3. No, because the opposing party effectively increased the fees by hotly contesting the case.
  4. No, because the lawyer was not negligent in the handling of the case.
Explanation
Answer: A - Yes, because he did not advise the president to seek the advice of independent counsel. “A lawyer shall not . . . settle a claim or potential claim for liability with an unrepresented client or a former client unless that person is advised in writing of the desirability of seeking and is given reasonable opportunity to seek the advice of independent legal counsel.” Model Rule 1.8(h)(2). Answer A is the best choice because the facts do not suggest that the lawyer advised the president to consult an independent attorney. Answer B is not the best choice because the Model Rules do not require fee arbitration. Neither Answer C, nor Answer D is the best choice because they speculate about facts not stated in the scenario.
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