REPORT OF THE ACREL WORKING GROUP ON ETHICS AND PROFESSIONALISM September 27, 2004 EXECUTIVE SUMMARY The ACREL Ethics and Professionalism Working Group (“Professionalism Working Group”) was formed in September 2003. The Professionalism Working Group is comprised of the following members: William B. Dunn, John S. Hollyfield, James A. Kenney, III, Edward A. Peterson, James F. Morrow, Betty B. Robbins, Margaret A. “Peggy” Rolando, Peter W. Salsich, Jr., Kevin L. Shepherd, and Robert A. Thompson. The primary charge of the Professionalism Working Group was to review the existing ACREL Statement of Professionalism (“Existing Statement”) and determine whether any changes should be made to it in light of various developments since its adoption by the Board of Governors in 1997. INTRODUCTION The Professionalism and Practice Committee in 19971 developed the Existing Statement, which the Board of Governors adopted that year. The Existing Statement, which appears on pages 1 and 2 of the 2004 ACREL Directory, represents a significant aspirational statement of ACREL and reflects its commitment to professionalism. Since the adoption of the Existing Statement seven years ago, significant changes have occurred in both the business community and legal profession. These changes have contributed in some measure to a palpable increase in the lack of civility in the legal profession. This lack of civility manifests itself in lawyer to lawyer dealings, lawyer and client interaction, and lawyer and court relations. For example, in a 2002 study, the State Bar Association of Utah (the “Utah Study”) noted that three of the most cited factors for the decline in professionalism were (a) the competitive demands of increasing commercialism, (b) reflection of corresponding movements in general societal ethics and culture, and (c) the current structure and organization of the legal profession. 2 In elaborating on the factor involving the competitive demands of increasing commercialism, the Utah Study observed that “[s]o long as the legal profession is a means for livelihood, commercialism will exist. The challenge to the professionalism 1 The members of the 1997 Professionalism and Practice Committee were Ed Peterson (chair), Barbara S. Banks (vice chair), Don Beimdiek, Richard A. Cantlin, David S. Cohn, Robert J. Conrad, Roger K. Garfink, Peter B. Glass, Susan B. Hoffnagle (Board liaison), Wayne S. Hyatt, Dan B. Miller, David Alan Richards, Peter W. Salsich, Jr., Frank Smith, Jr., Michael J. Strone, and Susan G. Talley. 2 Jeffrey M. Vincent, Aspirational Morality: The Ideals of Professionalism—Part II, Utah B.J. 12 (2002) (“UTAH STUDY”), cited in THE MARYLAND JUDICIAL TASK FORCE ON PROFESSIONALISM—REPORT AND RECOMMENDATIONS (Nov. 10, 2003), available at http://www.courts.state.md.us/publications.html (last visited Feb. 16, 2004) (“MARYLAND REPORT”). movement is to seek ways to temper the financial realities with a commitment to pursue the common good.”3 With respect to the factor regarding the reflection of corresponding movements in general societal ethics and culture, the Utah Study pointed to changing social mores as a contributing cause for the decline in professionalism: Certainly, social mores have changed in recent decades. Sociologists and psychologists have observed that the convenience of modern life has corresponded with an expectation of instant gratification. Unabashed partisanship and argumentative dialogue have become fodder for popular media programs reliant on public conflict, many of which also portray excessively aggressive styles of lawyering. Cynicism and moral relativism have taken hold. Some observers argue that these new social norms, among others, have led to a focus on the quick win instead of a reasoned approach to conflict resolution, a popularization of the “bulldog” lawyer, and other ethically deteriorative practices.4 Finally, the Utah Study commented that a decline in professionalism may be due to the current structure and organization of the legal profession, such as the increasing size of law firms and the resultant absence of senior lawyer mentoring and rolemodeling.5 THE PROFESSIONALISM WORKING GROUP The Professionalism Working Group had its inaugural meeting at the annual meeting in New Orleans on October 17, 2003. Since that time, the Professionalism Working Group has had several conference calls to discuss various issues. The ensuing discussions have prompted considerable debate. The activities of the Professionalism Working Group have been aided immeasurably by the significant literature and efforts of other bar associations and judicial task forces in the professionalism area since the adoption of the Existing Statement in 1997. Various state bar organizations and other interested groups have formed professionalism commissions and task forces to promote awareness of professionalism or to study the perceived decline in professionalism in the legal community.6 The rapid growth of these groups underscores the growing concern about 3 UTAH STUDY at 13. Id. 5 Id. 6 The groups include the following: Supreme Court of Florida’s Commission on Professionalism State Bar of Georgia Chief Justice’s Commission on Professionalism New Jersey Commission on Professionalism in the Law Commission on Professionalism of the State Bar of New Mexico New York State Judicial Institute on Professionalism in the Law North Carolina Chief Justice’s Commission on Professionalism 4 2 BA3:263870.8 the lack of professionalism in the legal profession and the seriousness with which the issue is being addressed. PROFESSIONALISM—WHAT IS IT? In evaluating the Existing Statement, it is useful to revisit the basic principles of professionalism. The Professionalism Working Group is not aware of a universally accepted definition of professionalism.7 A 1996 ABA report, however, sought to define professionalism in the following terms: A professional lawyer is an expert in law pursuing a learned art in service to clients and in the spirit of public service; and engaging in these pursuits as part of a common calling to promote justice and public good.8 Justice Sandra Day O’Connor has offered the following definition of professionalism: A commitment to develop one’s skills to the fullest and to apply that responsibility to the problems at hand. Professionalism requires adherence to the highest ethical standards of conduct and a willingness to subordinate narrow self-interest in pursuit of a more fundamental goal of public service. Because of the tremendous power they wield in our system, lawyers must never forget that their duty to serve their clients fairly and skillfully takes priority over the personal accumulation of wealth. At the same time, lawyers must temper bold advocacy for their clients with a sense of responsibility to the larger legal system which strives, however imperfectly, to provide justice for all.9 Ohio Supreme Court Commission on Professionalism Oregon Supreme Court/Oregon State Bar Joint Commission on Professionalism Multnomah Bar Association Professionalism Commission South Carolina Chief Justice’s Commission on Professionalism The Texas Center for Legal Ethics and Professionalism University of South Carolina School of Law Center on Professionalism American Bar Association Center for Professional Responsibility 7 One state bar organization has sought to define professionalism in the following terms: Professionalism is conduct consistent with the tenets of the legal profession as demonstrated by a lawyer’s civility, honesty, integrity, character, fairness, competence, ethical conduct, public service, and respect for the rule of law, the courts, clients, persons who work with the legal profession, witnesses, and unrepresented parties. State Bar of New Mexico Creed of Professionalism, available at http:// www.nmbar.org/Content/NavigationMenu/Other_Bars_Legal_Groups/Commission_on_Professionalism/Cr eed_of_Professionalism/Creed_of_Professionalism.htm (last visited Feb. 16, 2004) [the “NEW MEXICO BAR CREED”]. 8 ABA PROFESSIONALISM COMMITTEE REP., TEACHING AND LEARNING PROFESSIONALISM 6 (1996). 9 MARYLAND REPORT at 15, citing CHIEF JUSTICES’ COMMISSION ON PROFESSIONALISM TO THE SUPREME COURT OF GEORGIA, § 10, at 15 (1996). 3 BA3:263870.8 However one defines professionalism, there is a crucial distinction between professionalism and ethics. The “model rules of professional ethics reflects what is minimally expected of lawyers, [but] ‘professionalism’ encompasses what is more broadly expected of lawyers—both by the public and by the finest traditions of the legal profession itself.”10 In short, professional ethics prescribe what a lawyer must do while professionalism prescribes what a lawyer should do. The Professionalism Working Group discussed the need to revise the Existing Statement by defining professionalism in the context of real estate work. We identified several attributes of professionalism, including (a) civility, (b) contribution to public service and the community, including pro bono activities, (c) high quality lawyering, (d) the need to stay current in the practice area, (e) ethics, and (f) personal integrity. Although none of these attributes is the exclusive domain of real estate lawyers, they can nonetheless be highlighted within the confines of real estate work. CIVILITY Civility is a key component of professionalism. The lack of civility is an often cited example of the lessening of professionalism in the legal profession. The lack of civility has prompted some bar associations and courts to focus specifically on this issue. For example, in a 2003 report by the Joint Bench/Bar Committee on Civility, the Supreme Court of Delaware and the Delaware State Bar Association jointly adopted the Principles of Professionalism for Delaware Lawyers (the “Delaware Civility Study”).11 The Delaware Civility Study identified the attributes of civility as follows: Professional civility is conduct that shows respect not only for the courts and colleagues, but also for all people encountered in practice. Respect requires promptness in meeting appointments, consideration of the schedules and commitments of others, adherence to commitments whether made orally or in writing, promptness in returning telephone calls and responding to communications, and avoidance of verbal intemperance and personal attacks. . . . A lawyer should represent a client with vigor, dedication and commitment. Such representation, however, does not justify conduct which unnecessarily delays matters, or is abusive, rude or disrespectful. A lawyer should recognize that such conduct may be detrimental to a client’s interests and contrary to the administration of justice. Some have noted a potential for natural tension between a lawyer’s duty to represent zealously a client and the “emerging duty to act in a professional and civil manner” in the representation.12 But “zealous representation does not mean that one must Id. at 13, citing CHIEF JUSTICES’ COMMISSION ON PROFESSIONALISM TO THE SUPREME COURT OF GEORGIA, § 1, at 1 (emphasis in original). 11 PRINCIPLES OF PROFESSIONALISM FOR DELAWARE LAWYERS. 12 MARYLAND TASK FORCE REPORT at 6. 10 4 BA3:263870.8 become a zealot.”13 Nor does civility or courtesy reflect weakness on the part of the advocate. The State Bar of New Mexico has adopted an extensive Creed of Professionalism that specifically directs a lawyer to advise a client that “civility and courtesy are not weaknesses[.]”14 The Mississippi Bar Association underscores this point in its Lawyer’s Creed by stating that “[e]ffective advocacy does not mean that any tactic is acceptable” or that effective advocacy requires antagonistic or obnoxious behavior.15 Even if clients have ill feelings between them, that does not justify ill feelings between the lawyers. The Professionalism Aspirations of the Minnesota Bar state that “[a]s professionals, ills feelings between clients should not influence our conduct, attitude, or demeanor toward opposing counsel.”16 Civility, then, is an important component of professionalism.17 Although the Existing Statement contains a reference to civility, the Professionalism Working Group believes that reference should be expanded and emphasized. PROFESSIONALISM IN REAL ESTATE LEGAL PRACTICE As noted above, the Existing Statement is not cast in terms specific to the practice of real estate law or real estate transactions. The Professionalism Working Group defines “real estate law” in its broadest possible meaning, ranging from ad valorem tax appeal work to zoning activities. Some groups have sought to define professionalism requirements or principles in the conduct of business transactions, such as the Standards of Professionalism adopted by the Oklahoma Bar Association Board of Governors and the Oklahoma Judicial Conference in 2002. Section 3.10 of the Standards of Professionalism state, among other things, that “[b]usiness transactions should be negotiated, documented and consummated in an atmosphere of cooperation and informed mutual agreement.” The Creed of Professionalism adopted by the State Bar of New Mexico contains the following statements: With respect to opposing parties and their counsel, . . . In the preparation of documents and in negotiations, I will concentrate on substance and content; [and] I will clearly identify, for other counsel or parties, all changes that I have made in all documents.18 13 Id. NEW MEXICO BAR CREED. 15 MISSISSIPPI CODE OF PROFESSIONAL CONDUCT’S LAWYER’S CREED, available at http://www.msbar.org/creed (last visited Feb. 16, 2004). 16 PROFESSIONALISM ASPIRATIONS, adopted by the Minnesota Supreme Court, available at http://www2.mnbar.org/sec/professionalism%aspirations%20final%20copy.htm (last visited Feb. 16, 2004). 17 One court has noted that “honesty and fair dealing are integral components of civility. Promises and agreements fairly reached, whether orally or in writing, will be adhered to in good faith.” STANDARDS FOR CIVILITY IN PROFESSIONAL CONDUCT, United States District Court for the Western District of Michigan, available at http://www.miwd.uscourts.gov/ (last visited Feb. 16, 2004). 18 NEW MEXICO BAR CREED. 14 5 BA3:263870.8 The Professionalism Working Group believes it is important that ACREL, as the premier organization of real estate lawyers in this country, identify specific components of professionalism in real estate practice and incorporate them into a revised Existing Statement. These components range from negotiating and documenting real estate transactions in a cooperative manner to reflecting accurately changes in drafts of documents to the prompt returning of telephone calls and to the prompt response to correspondence. EDUCATIONAL COMPONENT Professionalism is an important attribute of ACREL and its membership, and ACREL needs to assume a prominent leadership role in promoting the awareness of professionalism. Professionalism is a career-long journey of learning: it is not confined, nor should it be, to new practitioners. ACREL has historically produced continuing legal education programs involving professionalism. Attached to this report as Attachment 1 is a list of the more recent professionalism programs. One means to achieve this goal is to expand the professionalism CLE offerings within ACREL. ACREL’s ethics programs at times contain a professionalism component, but too often the ethics component overshadows the professionalism component. Increased attention should be made in providing professionalism CLE programs as the central topic of discussion. The Professionalism Working Group suggests that the Programs Committee actively seek and promote professionalism programs at each ACREL meeting, either in the context of work shop programs or main course-type programs. The Professionalism Working Group notes that Jim Morrow has shared a copy of the State Bar of Arizona’s Instructor’s Manual for the Professionalism Course (dated May 28, 2003). This exhaustive manual contains a wealth of information about how to structure a professionalism course, and it includes over 100 hypotheticals used to teach the subject matter. In discussing the importance of drawing a distinction between ethics and professionalism, this manual cogently notes: The instructor should keep in mind throughout the presentation that this is NOT A COURSE IN ETHICS. “Ethics” refers to required conduct by members of the Bar, pursuant to the Arizona Rules of Professional Conduct. . . . “Professionalism” starts from the proposition that there are often alternative ways of addressing various situations, none of which, strictly speaking, would violate one of the Rules of Professional Conduct. The question then becomes what course of action is the most “professional” way to address these situations. As part of the educational process to promote professionalism, the Professionalism Working Group discussed the need to offer a program on how best to teach or instill professionalism in younger lawyers. ACREL members should have the educational tools and techniques necessary to instill concepts of professionalism into the 6 BA3:263870.8 younger generation of real estate practitioners. For example, a program should be designed that would allow ACREL members to take this information back to their workplaces and try to convey the importance of professionalism in practicing real estate law. Written materials should supplement this type of program so that ACREL members would have the substantive content to disseminate to their colleagues. As an initial step in promoting the importance of professionalism CLE offerings, the Professionalism Working Group will explore the development of a professionalism course for the 2005 annual meeting in Denver. To that end, Pete Salsich will contact the ACREL Education Committee to see what materials are being used in the law school community to teach professionalism. Betty Robbins will provide supplemental assistance in this effort as needed. In addition to regular CLE courses on professionalism, the ACREL Newsletter should contain periodic articles on professionalism. This approach will serve to remind members of the importance of professionalism and afford insight into new developments in professionalism. PROMOTION OF PROFESSIONALISM ACREL has a unique position and opportunity to promote professionalism within the legal real estate community. Bob Thompson has raised an intriguing concept that he has dubbed the “counterforce” issue. Bob will circulate a memo fleshing out his thoughts on this issue, but in essence it involves the need for ACREL lawyers, many of whom hold leadership positions within their firms, to emphasize more the importance of professionalism and the fact that professionalism and economic self-interest are not incompatible institutional goals. This issue calls on law firm leaders and the “powerful doves” to change the practice of law by rewarding behaviors that promote professionalism and balanced lives for lawyers. There must be a recognition that the practice of law is not solely the pursuit of economic gain. The economic pressure placed on lawyers threatens professionalism. Bob would like to moderate an ACREL panel program in the near future to explore this issue in greater detail. RECOGNITION OF PROFESSIONALISM To underscore the importance of professionalism within ACREL, it may be worthwhile to consider the creation of an award recognizing the ACREL member who has demonstrated, through example and practice, the highest ideals of professionalism and adherence to the Statement of Professionalism. This approach would serve to highlight the importance ACREL attaches to professionalism and serve to keep the issue in front of the membership. Related to this point, it is equally important that professionalism appear on the agenda for each ACREL meeting in some manner. This may take the form of alluding to one or more tenets in the Statement of Professionalism or promoting an upcoming professionalism program. The key is to ensure that the organization is committed to 7 BA3:263870.8 professionalism on an on-going, and not episodic, basis. The proposed revision to the Existing Statement specifically references the need to demonstrate an institutional commitment to the advancement and promotion of professionalism. MEMBERSHIP SELECTION CRITERIA ACREL’s Guidelines for Regular Member Selection, last revised in March 2003 (“Member Selection Guidelines”), do not contain a specific member selection criterion involving professionalism. Rather, the Member Selection Guidelines state that the nominee “must be a distinguished real property law practitioner who is well known as a specialist in real estate law by fellow members of the real estate bar and who enjoys an outstanding reputation for excellence and integrity in the practice of law.” (emphasis supplied.) Integrity is obviously an important selection criterion. The Professionalism Working Group suggests that consideration be given to adding an additional member selection criterion focusing specifically on a nominee’s reputation for professionalism, including civility. The College’s well-deserved reputation for collegiality is consistent with the notion of adding a specific reference to professionalism in the Member Selection Guidelines. PRO BONO SERVICE AS PART OF PROFESSIONALISM The Existing Statement recognizes the importance of pro bono or reduced fee legal services as part of professionalism. To assist practitioners in understanding the rich diversity of public service and pro bono activities, the Professionalism Working Group discussed the need to publicize the opportunities available to practitioners. We noted that real estate lawyers may bring their “non-legal” skills to bear on these types of activities, all of which reflects favorably on the legal profession. We noted that one of the purposes of ACREL is to “give back” to the community in a multitude of ways. Examples include the Habitat for Humanity efforts ACREL has undertaken in recent years. The Member Selection Guidelines reflect the importance of this purpose.19 MENTORING Guideline No. 5.b. states in pertinent part that “[t]he nominee shall have devoted substantial time and effort to add to a more informed bar or public with respect to matters of real estate law and to improve real estate practice and real estate law by . . . otherwise performing public service (all other than as the nominee’s primary profession).” The New Hampshire Lawyer Professionalism Creed, adopted by The Board of Governors of the New Hampshire Bar Association on April 4, 2001, emphasizes the importance of pro bono service by lawyers. This creed states in pertinent part that “[a] New Hampshire lawyer has a social conscience and is dedicated to serve the public and society. A New Hampshire lawyer is willing to take up an unpopular cause or to engage in pro bono work, even when it is unpleasant or costly.” THE NEW HAMPSHIRE LAWYER PROFESSIONALISM CREED, available at http://www.nhbar.org (last visited Feb. 16, 2004). 19 8 BA3:263870.8 The Professionalism Working Group discussed the importance of lawyer mentoring to advance the level of professionalism. Professionalism cannot be learned by reading a book on professionalism. Younger lawyers learn the importance of professionalism by viewing the style and personal interaction of more senior lawyers in handling a real estate matter. ACREL members, because of their prominence in the real estate area, are ideal role models for younger lawyers. It is important to encourage increased interaction between the older and younger generation of lawyers so as to impart professionalism concepts to the next generation of lawyers. PROPOSED REVISION OF EXISTING STATEMENT Based on its discussions and its critical review of the Existing Statement, the Professionalism Working Group has concluded that various changes may be appropriate to the Existing Statement. By its terms, the Existing Statement is not specific to a real estate practice but rather is cast in practice generic terms. To enhance the relevance of the Existing Statement to ACREL members and their real estate practices and to provide a meaningful level of guidance to ACREL members, the Professionalism Working Group recommends that the Existing Statement be amended to include specific references to real estate practices. The Professionalism Working Group debated whether the Existing Statement should be revised to state, among other things, that lawyers should seek “fair and balanced agreements” as part of their professional obligations. We tested this premise against the ethical duties of a lawyer found in the Model Rules of Professional Conduct (“Model Rules”). Model Rule 1.2(a) requires the lawyer to abide by the client’s decisions concerning the objectives of the representation, subject to the limitations and requirements of the balance of Model Rule 1.2 and the other applicable Model Rules; and to reasonably consult with the client as to the means by which they are to be pursued, as required by Model Rule 1.4(a)(2). Some viewed this as encouraging, if not requiring, a lawyer to inform the client of the spectrum of possibilities that may be available in negotiation of an agreement, including the cost and benefit of aggressive positions versus proposing or seeking a “fair and balanced” agreement. Many observed that lawyers often ignore their obligation to consult with the client about the means by which the objectives are to be pursued. While Model Rule 1.2(a) further states that a lawyer may take such action on behalf of the client as is impliedly authorized to carry out the representation, too often lawyers accept a reactive scorched earth role, thinking the lawyer is doing what the client must want. This Rule does not require adherence to the tactics a client wishes to use to achieve the objectives if the objectives can be achieved another way, but we note that a lawyer would take a great risk by pursuing the lawyer’s tactics without client concurrence, after consultation. There are limitations in the Model Rules to being a hired gun at the mercy of a client; and a lawyer may withdraw from representing a client who pursues actions (or directs the lawyer to pursue actions) the lawyer finds repugnant or with which the lawyer has a fundamental disagreement (Model Rule 1.16(b)(4)), or would cause the lawyer to violate other Rules (Model Rule 1.16(a)). A lawyer is not required, or at liberty, to propose or reach a “fair” agreement if the client’s objective is to negotiate an 9 BA3:263870.8 advantageous one and that can be done without violating the other limitations of the Model Rules. A lawyer can and must provide helpful guidance to the client about the means by which the objectives are to be pursued, and that is where the discussion of the fair and balanced approach can be put on the table. We believe that pursuit of a “fair and balanced agreement” is outside the purview of a professionalism statement, and could impinge on the professional responsibility of the lawyer to represent the client diligently (Model Rule 1.3) in attaining the objectives of the representation. Proponents of the obligation to seek such an agreement viewed it as simply aspirational in nature and underscored the point that a “fair and balanced agreement” may in the long run be in the client’s best interest. However, after considerable discussion, the recommended revision of the Statement of Professionalism purposely omits reference to this aspiration. This conclusion reflects the consensus that the focus of a professionalism standard is not the nature of the agreement but rather the means used to achieve the client’s objectives. Simply, the lawyer should not regard pursuit of the client’s objectives as a license to oppress or to achieve some personal accomplishments unnecessary to the client’s objectives. Based on the above, attached as Attachment 2 is a proposed revision to the Existing Statement. This revision seeks to reflect the points raised in this report and increase the awareness and profile of professionalism within the College. Of course, some Members may disagree with portions of the Existing Statement, but that is to be expected in an area that it, by its nature, ill-defined and subject to interpretation. The Professionalism Working Group decided to retain the basic framework of the Existing Statement, but felt it was necessary to emphasize certain aspects of the Existing Statement. CONCLUSION ACREL has a unique opportunity to assume an important, and much needed, leadership role in the advancement of professionalism within the legal profession. The proposals outlined in this report should provide a measure of guidance in how ACREL may be able to assist itself, and other interested parties, in reviving and enhancing professionalism within our ranks. 10 BA3:263870.8 ATTACHMENT 1 List of Recent ACREL Professionalism Programs “Beyond Ethics: A Discussion of Legal Ethics and Professionalism & Hypothetical No. 2 – The Missing Blacklining,” by Georgette C. Poindexter (Fall 2000) “Ethical and Other Issues for Counsel in Multi-State Real Estate Transactions,” by Alan Wayte, Steven M. Alden and Diana MacPherson (Fall 1999) “Ethical Conduct and Liability to Third Persons in Legal Opinions Practice,” by William B. Dunn (Spring 2000) “Ethical Considerations in the Rezoning Process (“Conflicts of interest and Other Ethical Issues in Land Use Matters; Not Your Ordinary Bear”),” by Edward A. Peterson (Spring 1999) “Ethical Considerations in the Rezoning Process (“Exactions – Bribery or Justifiable Compensation?”),” by Joseph N. Barker (Spring 1999) “Ethics Jeopardy for Real Estate Lawyers: A Videotape Presentation Produced by the Texas Center for Legal Ethics and Professionalism,” by D. Diane Dillard, John E. Blyth, Richard A. Cantlin and Charles W. Trainor (Fall 1999) “Hypothetical No. 1 – The Incomplete Closing Opinion,” by Stuart F. Ebby (Fall 2000) “Key Issues Regarding Law Firm Management, or “Have You Met Your Partner, Associate, Contract Lawyer, Counsel, etc.?” or “It’s the Money, Stupid,” by Robert L. Brown (Spring 1998) “Professionalism for the Real Estate Practitioner,” by Peter W. Salsich, Jr. (Fall 2000) 11 BA3:263870.8 ATTACHMENT 2 Proposed Revision of Existing Statement STATEMENT OF PROFESSIONALISM The American College of Real Estate Lawyers stands for the highest standards in the practice of real estate law. In furtherance of the standards of the College, its Members have adopted this Statement of Professionalism and aspire to the following tenets. 1. COMMITMENT TO THE CLIENT. 2. Members must adopt the highest standards of excellence in the practice of law, fulfill the fiduciary duties owed to each client, and place the interests of the client, the legal profession and the administration of justice above selfinterest. Members should endeavor to achieve the client’s lawful objectives in matters as expeditiously and economically as possible. Members should keep the client informed of the progress of the matter for which the Members have been retained or engaged, including the costs and fees. COMMITMENT TO INTEGRITY AND CIVILITY. Members must adhere strictly to applicable legal and ethical standards of professional responsibility, acting with fairness, honesty, personal dignity and professional integrity. Members must scrupulously honor commitments made and extend civility and courtesy to all persons. Members should advise clients that civility and courtesy are not to be equated with weakness but are consistent with vigorous advocacy and zealous representation. In the conduct of negotiations, Members should conduct themselves with dignity and fairness and refrain from conduct meant to harass or annoy the opposing party. Members should (a) in pursuing the objectives of the client act in the best interests of the client but at all times in a professional manner consistent with this Statement, (b) conduct civil, honest and open negotiations, (c) draft understandable documents consistent with the understandings of the parties, and (d) disclose to the other party obvious drafting errors inconsistent with those understandings. 12 BA3:263870.8 3. Members will clearly identify, for other counsel or parties, all changes and revisions made to documents. Members will scrupulously refrain from making misleading statements of law or fact, whether by omission, inference, or implication. COMMITMENT TO THE PROFESSION. 4. Members should, at a personal level, encourage excellence in the law by one or more of the following activities: promoting a stringent program of continuing legal education, engaging in professional speaking and writing that expands the knowledge and practice skills of all members of the bar, training and mentoring new and less experienced lawyers, and voicing respect for the legal system. Members should avail themselves of professionalism courses to remain abreast of developments in this important area. Members should strive to provide role models and examples of balanced lives and professional practice for law students and young lawyers. COMMITMENT TO THE COMMUNITY. 5. Members must provide pro bono or reduced fee legal services to low income members of the community or legal services to public or private organizations designed to address needs or persons of limited means and should perform public and community service for the public good. Examples of this commitment include, among others, providing legal assistance to non-profit neighborhood and community development organizations and offering negotiating and drafting skills to resolve local “not in my backyard” issues. COMMITMENT TO THE ORGANIZATION. Members should advance the dialogue on professionalism in the legal profession by participating in ACREL CLE professionalism programs, writing articles on professionalism, and engaging other lawyers in professionalism discussions. Members should nominate those candidates for admission into ACREL who have exhibited high levels of professionalism in their practices. 13 BA3:263870.8 Members should observe and practice the tenets set forth in this Statement of Professionalism. 14 BA3:263870.8