MPRE Client-Lawyer Relationship 2 — Questions and Answers
Question 1: An attorney represents a corporation. During the representation, a mid-level employee tells the attorney in confidence that the CEO has been embezzling funds, which will harm the company. What should the attorney do?
- Keep the information confidential and take no action
- Report the information to the appropriate person within the organization (Correct answer)
- Immediately report the embezzlement to law enforcement
- Withdraw from the representation without explanation
Correct answer: Report the information to the appropriate person within the organization
Under Model Rule 1.13, when a lawyer representing an organization learns of wrongdoing that may harm it, the lawyer must refer the matter up the corporate ladder to the highest authority that can act.
Question 2: A lawyer is retained to handle a personal injury case on a contingency fee basis. Before any settlement, the client tells the lawyer she wants to drop the case. What must the lawyer do?
- Refuse to withdraw because the contingency fee contract prevents it
- Continue the case to protect the lawyer's fee interest
- Withdraw and return all client files and property (Correct answer)
- File a lien before withdrawing to secure the fee
Correct answer: Withdraw and return all client files and property
A client may discharge a lawyer at any time, and upon termination the lawyer must surrender papers and property to which the client is entitled regardless of any fee disputes.
Question 3: A lawyer receives a settlement offer of $50,000 in a personal injury matter. The client has previously said she would accept any offer over $40,000. Must the lawyer communicate this offer to the client?
- No, because the client already authorized acceptance of such offers
- Yes, the lawyer must promptly inform the client of the settlement offer (Correct answer)
- No, the lawyer may accept on the client's behalf without further consultation
- Yes, but only if the lawyer believes the offer is inadequate
Correct answer: Yes, the lawyer must promptly inform the client of the settlement offer
Under Model Rule 1.4, a lawyer must promptly inform the client of any settlement offer so the client can make an informed decision about whether to accept.
Question 4: An attorney has been representing a client in a business dispute for two years. The attorney realizes she has developed a personal romantic relationship with the client. Under the Model Rules, this relationship:
- Is always prohibited and requires immediate withdrawal
- Is permitted because the relationship began before the representation
- Creates a conflict of interest that may require disclosure or withdrawal (Correct answer)
- Is permitted as long as the client consents in writing
Correct answer: Creates a conflict of interest that may require disclosure or withdrawal
Model Rule 1.8(j) prohibits sexual relationships with clients unless a consensual relationship existed before the representation began, and even then such relationships can create conflicts requiring attention.
Question 5: A lawyer represents a defendant charged with assault. The defendant confides he committed the crime. During trial, the prosecutor asks the defendant on cross-examination whether he committed the assault, and the defendant says 'No.' The lawyer knows this is false. What must the lawyer do?
- Do nothing because the defendant has a constitutional right to testify
- Immediately disclose the perjury to the court
- Take reasonable remedial measures, including potentially disclosing to the court if necessary (Correct answer)
- Move for a mistrial to protect the defendant
Correct answer: Take reasonable remedial measures, including potentially disclosing to the court if necessary
Under Model Rule 3.3, a lawyer must take reasonable remedial measures when a client offers false testimony, which may include disclosure to the tribunal if other measures fail.
Question 6: An attorney agrees to represent a client for a flat fee of $3,000 to handle a contract dispute. The attorney collects the fee upfront. Under the Model Rules, how must this fee be handled?
- It may be deposited in the attorney's operating account immediately since it is earned upon receipt
- It must be held in a client trust account until earned (Correct answer)
- It must be refunded if the matter resolves in less than one month
- It may be deposited in the operating account only after the client signs a fee agreement
Correct answer: It must be held in a client trust account until earned
Under Model Rule 1.15, advance fees that have not yet been earned must be held in a client trust account until the lawyer earns them by performing legal services.
Question 7: A lawyer represents a minor child in a custody dispute. The child wants the lawyer to advocate for living with the father, but the lawyer believes living with the mother is in the child's best interest. What should the lawyer do?
- Advocate for the father as directed by the child client (Correct answer)
- Substitute the lawyer's judgment for the client's and advocate for the mother
- Withdraw from the representation due to the conflict
- Seek guidance from the court about how to proceed
Correct answer: Advocate for the father as directed by the child client
Under Model Rule 1.14, even when representing a client with diminished capacity, a lawyer should follow the client's expressed wishes to the extent possible, advocating for the client's stated preferences.
An attorney represents a corporation.
During the representation, a mid-level employee tells the attorney in confidence that the CEO has been embezzling funds, which will harm the company.
What should the attorney do?