WI Bar Wisconsin Professional Responsibility and Ethics 2 — Questions and Answers
Question 1: Under Wisconsin SCR 20:1.15, an attorney who receives client funds in connection with a representation must do which of the following?
- Deposit them in the attorney's general business operating account for efficiency
- Hold them in a separate trust account and keep records of all deposits and disbursements (Correct answer)
- Immediately disburse them to the client to avoid commingling
- Report the receipt of funds to the Wisconsin Office of Lawyer Regulation within 30 days
Correct answer: Hold them in a separate trust account and keep records of all deposits and disbursements
SCR 20:1.15 requires attorneys to hold client property in a separate trust account and maintain complete records of all client funds, keeping them segregated from the attorney's own funds.
Question 2: Wisconsin SCR 20:1.8(a) governs business transactions between attorneys and clients. Which of the following conditions is required before an attorney may enter such a transaction?
- The attorney must obtain the client's written consent before beginning any representation
- The transaction must be fair and reasonable, its terms must be fully disclosed in writing, and the client must be advised in writing to seek independent counsel (Correct answer)
- The transaction must be approved by the State Bar of Wisconsin's Ethics Committee
- The attorney must disclose the transaction to opposing counsel
Correct answer: The transaction must be fair and reasonable, its terms must be fully disclosed in writing, and the client must be advised in writing to seek independent counsel
SCR 20:1.8(a) requires that the transaction be fair and reasonable, fully disclosed in writing in a manner the client understands, and that the client be advised in writing to seek independent legal advice.
Question 3: Under Wisconsin SCR 20:1.5, which of the following factors is relevant to determining whether a fee is reasonable?
- Whether the client is a Wisconsin resident
- The time and labor required and the novelty and difficulty of the questions involved (Correct answer)
- Whether the attorney graduated from a Wisconsin law school
- The amount the attorney charges other attorneys for co-counsel services
Correct answer: The time and labor required and the novelty and difficulty of the questions involved
SCR 20:1.5(a) lists time and labor required and the novelty and difficulty of questions as among the factors used to assess whether a fee is reasonable.
Question 4: Under Wisconsin SCR 20:1.9, which duty does an attorney owe to a former client?
- The attorney may represent a new client against the former client on any matter with full written disclosure
- The attorney must never again represent any client in any matter if there is any connection to the former representation
- The attorney may not represent another person in a substantially related matter in which that person's interests are materially adverse to the former client, without consent (Correct answer)
- The attorney must refer all former clients to successor counsel before accepting new matters
Correct answer: The attorney may not represent another person in a substantially related matter in which that person's interests are materially adverse to the former client, without consent
SCR 20:1.9(a) prohibits an attorney from representing a new client against a former client in a substantially related matter where the interests are materially adverse, unless the former client gives informed written consent.
Question 5: Wisconsin SCR 20:1.16 requires mandatory withdrawal under certain circumstances. Which of the following requires an attorney to withdraw from a representation?
- The client disagrees with the attorney's litigation strategy
- The representation will result in violation of the rules of professional conduct or other law (Correct answer)
- The case becomes more complex than originally anticipated
- The opposing counsel is more experienced than the attorney
Correct answer: The representation will result in violation of the rules of professional conduct or other law
SCR 20:1.16(a)(1) mandates withdrawal when continued representation would result in violation of the Rules of Professional Conduct or other applicable law.
Question 6: Under Wisconsin's rules, a contingent fee agreement must be in writing and signed by the client. Additionally, which of the following matters does Wisconsin specifically prohibit contingent fee arrangements?
- Personal injury tort claims
- Employment discrimination claims
- Criminal defense and domestic relations matters where payment is contingent on divorce being granted (Correct answer)
- Real estate contract disputes
Correct answer: Criminal defense and domestic relations matters where payment is contingent on divorce being granted
Wisconsin SCR 20:1.5(d) prohibits contingent fees in criminal defense cases and in domestic relations matters where the fee is contingent upon securing a divorce or on the amount of alimony or property settlement achieved.
Question 7: Under Wisconsin SCR 20:5.4, which of the following is generally prohibited regarding sharing legal fees with non-lawyers?
- Paying a non-lawyer employee a bonus based on the firm's overall profitability
- Including a non-lawyer in a profit-sharing plan for the entire firm
- Sharing a percentage of legal fees from a specific case with a non-lawyer referral source (Correct answer)
- Paying a non-lawyer consultant for services related to case management software
Correct answer: Sharing a percentage of legal fees from a specific case with a non-lawyer referral source
SCR 20:5.4 prohibits sharing legal fees directly with non-lawyers or non-law organizations, including paying referral fees to non-lawyers as a percentage of case recovery.
WI Bar Wisconsin Professional Responsibility and Ethics 2
Under Wisconsin SCR 20:1.15, an attorney who receives client funds in connection with a representation must do which of the following?