Agenda
• Review Missed Syllabus [CALI exercise]
• Collect PA Rule Book Order Forms
• Review missed part of Chapter 1
– D. The Legal Dimension of Professional
Responsibility
– E. Review Useful URLs Handout
• Chapter 2 material
– Move here Admission issues: How Do I Become a
Lawyer?
D. The Legal Dimension of
Professional Responsibility
• Review the history of the ABA Model Rules of
Professional Conduct
– The 1908 Canons
– The 1977 Code of Professional Responsibility
• Used DRs & ECs [Disciplinary Rules & Ethical Considerations]
– 1983 ABA Model Rules and Ethics 2000 & Ethics 20/20
Amendments (2012-13)
• The ALI, Restatement of the Law Governing
Lawyers (2000)
• Additional sources of law (constitutional,
statutory, case-law, international initiatives)
• Review of URLs Handout
Rule 8.1 Bar Admission And Disciplinary Matters
An applicant for admission to the bar, or a lawyer in connection
with a bar admission application or in connection with a
disciplinary matter, shall not:
(a) knowingly make a false statement of material fact; or
(b) fail to disclose a fact necessary to correct a misapprehension
known by the person to have arisen in the matter, or knowingly
fail to respond to a lawful demand for information from an
admissions or disciplinary authority, except that this rule does
not require disclosure of information otherwise protected by
Rule 1.6.
Material We Are Covering
in Assignment #2(1)
1. Admission as a lawyer
[State or federal court admission rules]
2. UPL: Nonlawyer Practice- state rules, statutes or cases
3. UPL: Lawyers Working with Nonlawyers [5.3 & 5-4]
4. Ancillary Businesses [5.7]
5. UPL: Unauthorized Practice by Lawyers [5.5]
6. BONUS: Choice of [Ethics] Law [8.5]
4
E. Admission Issues: How Do You Become a Lawyer?
• State-based admission system
• Find your state’s Bar Admission Rules (e.g PA BAR
203). Typically for new applicants:
– Take the bar exam (includes the MPRE – taken earlier)
– Character & fitness requirements
– New Developments: The UBE & the ABA’s revised
model admission on motion rule
• Residency requirements are unconstitutional
• Separate admission for EACH court system (state
v. each federal court)
• Temporary admissions procedures (Rule 5.5 & Pro
Hac Vice – see chapter 2)
UPL: Nonlawyer Practice
6
2-1. What is the rationale offered for
restrictions on non-lawyer practice? P.31
• Protecting the legal profession from
competition
• Protecting consumers from incompetent and
unethical practitioners
• Preventing innovation in the delivery of legal
services
• None of the above
7
2-2. As a general rule, in most jurisdictions a
non-lawyer may do the all of following except:
• Sell legal forms
• Type in the blanks in legal forms for a
customer
• Publish books advising people on how to
complete legal forms
• Advise customers in person on how to
complete legal forms
• No exceptions - a non-lawyer may perform all
of the above.
P. 31
8
2-3 (p. 39). Legal Software Inc. makes available to consumers a
program that helps them fill out legal forms. The software asks the
consumer to answer personal questions regarding the consumer's
circumstances and preferences regarding the consumer's legal
problem. The software and associated web site identify the relevant
form the consumer needs and based on the others help the
consumer complete the appropriate form, suggesting specific
provisions tailored to the consumer's needs and preferences. Has
Legal Software Inc. engaged in unauthorized practice of law?
1. According to the traditional rule, no because software is the same
as a book.
2. According to the traditional rule, no because the service is not
personalized.
3. According to the traditional rule, yes because the service is
personalized.
4. According to the traditional rule, yes because the service is
personalized, but the rule has changed to permit legal software.
9
UPL:
Lawyers Working with Nonlawyers
and
and Ancillary Businesses
10
2-4 (p. 42). An attorney is a senior partner at a law firm in which there
are 50 lawyers. The firm pays each of its lawyers a fixed annual
salary. In addition, at year's end, each lawyer receives a bonus from
the profits of the firm in the proportion that the annual salary of
each bears to the total of the fixed annual salaries of all lawyers.
The attorney plans to introduce a new management plan under
which the firm's non-lawyer office administrator would have general
charge of all business matters but would not participate in any
decisions involving legal judgment. The administrator would be paid
a fixed annual salary and would be included as a participant in the
firm's bonus plan on the same basis as the lawyers in the firm. This
would usually yield a bonus of approximately one-fourth to onethird of the administrator's total annual compensation. The amount
paid to the administrator will not exceed the compensation
commonly paid to law office administrators within the local legal
community.
Is it proper for the attorney to institute such a plan?
11
2-5 (p. 44). An attorney is a member of the bar and a
salaried employee of a bank's trust department. As part
of his duties, he prepares a monthly newsletter
concerning wills, trusts, estates, and taxes that the bank
sends to all of its customers. The newsletter contains a
recommendation to the customer to review his or her
will in light of the information contained and, if the
customer has any questions, to bring the will to the
bank, where the attorney will review the customer's will
and answer the customer's legal questions. The bank
provides that attorney's services to its customers for no
charge.
Is the attorney subject to discipline for the foregoing?
12
2-6 (p. 44). A business attorney entered into a partnership
with a certified public accountant. The partnership
provided legal and other assistance to clients in
connection with business and tax planning, tax filings,
and other personal and corporate business matters. The
accountant performed only work that she was authorized
to perform as a certified public accountant. The attorney
made reasonable efforts to ensure that the accountant
did not interfere with the attorney's compliance with his
professional obligations as a lawyer.
Is the attorney subject to discipline?
13
2-7 (p. 45). Joan Lawyer has a leading real estate practice in Small
County. She is also part owner of Small County Title. She suggests to
her clients who purchase real estate that they consider purchasing
their title insurance from Small County Title. Joan discloses in writing
that she owns the company and recommends that her clients
consider the rates and policies of competing title insurance
companies. She explains that the services provided by Small County
Title are not legal services and that the legal ethics rules do not
apply to the purchase of title insurance. Joan suggests that clients
feel free to consult another lawyer as to whether they should
purchase title insurance from a company their real estate lawyer
owns. The rates and policies that Small County Title offers are
comparable to those of its competitors.
Under what circumstances, if any, would this be ok?
14
Question 2-7 Choices
1. Joan is not subject to discipline if the clients give
informed consent in writing.
2. Joan is not subject to discipline because she
informs clients of the opportunity to consult
independent counsel.
3. Joan is not subject to discipline because the rates
and policies of Small County Title are comparable
to those of its competitors.
4. Joan is subject to discipline unless she complies
with all three requirements listed above.
15
Unauthorized Practice by
Lawyers
16
2-8 (p. 47). Giant Manufacturer wants to buy widgets from
Small Producer. Both Giant and Small are headquartered in
California. Small's outside counsel, John Lawyer, admitted
to practice in New York, travels to California from his New
York office to negotiate the deal on Small's behalf. After
extensive negotiations, Giant agrees to pay Small $10
million for the widgets. John bills Small for $500,0000]
thousand for legal fees. Small believes the fee is far too
high and refuses to pay. It retains a California lawyer and
decides to argue that it does not have to pay anything to
John Lawyer because he was engaged in unauthorized
practice of law.
Will Small’s argument succeed?
17
• 2-9 (p. 56). Joan Jones is an associate at
Franklin & Ignatius. She is admitted to the
New York Bar. The firm sends her to the State
of Sirius to appear in court in a case where the
firm has been admitted pro hac vice.
Has she committed UPL?
18
2-10 (p. 57). Did Joan Jones violate UPL when she entered
Fordham to investigate and prepare the case before
the firm and its lawyers were admitted pro hac vice?
2-11 (p. 57). Would she have violated UPL if the firm had
brought an arbitration on behalf of its client and not a
court case?
2-12 (p. 58) . Does Joan violate UPL if she transfers fulltime to F&I's Sirius office and works under the
supervision of a Sirius admitted attorney?
2-13 (p. 58) . Does Joan commit UPL if she leaves F&I to
become in-house counsel at Monolith, Inc., located in
19
Sirius?
2-14 (p. 59). Joan rejoins F&I as a partner in its New York office. As a
corporate partner, she is in charge of representing ABC, Inc., based
in New Jersey, in its takeover of DEF, Inc., based in New York. Her
team includes Jim, a NY lawyer coordinating the NJ litigation, and
Jane, a corporate associate admitted in NY and NJ. They discover
ABC has made a fraudulent statement relevant to the litigation. NJ
requires disclosure. NY does not. The F&I lawyers do not disclose.
Which of the following is true?
1. If the predominant effect is in NJ, all face discipline absent
contrary reasonable belief.
2. Only Jane faces discipline because she is a NJ lawyer.
3. Only Jim faces discipline because he is litigating the matter in NJ.
4. None face discipline because NY does not require disclosure.
20