An attorney practices in estate planning and probate. Six months ago, the attorney completed his representation of the executor of a probate estate, and the probate closing statement was filed. Today, the executor contacts the attorney’s paralegal and, during the conversation, admits that he hid certain assets of the estate (total value, $1,000) so he could keep them. What, if any, obligations does the paralegal’s employer have under the Model Rules?
Explanation
Answer: B - To encourage the executor to disclose the assets. The general rule is that lawyers, and employees of lawyers, are prohibited from disclosing any information related to the representation of a client. Model Rule 1.6(a). An exception exists, however, that allows (but does not require) an attorney to disclose information related to a client if doing so will “prevent, mitigate, or rectify substantial injury to the financial interests or property of another that . . . has resulted from the client’s commission of a crime or fraud in furtherance of which the client has used the lawyer’s service.” Model Rule 1.6(b)(3) and comment 8. Answer B is the best choice because an attorney would be well advised to encourage the executor to disclose the assets, but is not required to disclose the fraud. (Note that the $1,000 value may not be considered substantial.) Other rules or laws may require that the attorney disclose the fraud. Neither Answer A, nor Answer C is the best choice because the attorney is not required to disclose the assets or the wrongdoing. Answer D is not the best choice because at least some moral obligation exists to encourage the executor to disclose the assets.
