CP Professional and Ethical Responsibility Questions and Answers 1 — Questions and Answers
Question 1: A paralegal works for a law firm representing Company A in a contract dispute against Company B. The paralegal's spouse is an accountant at Company B. The paralegal's duties on the case are purely administrative and do not involve substantive legal work. What is the paralegal's primary ethical obligation in this situation?
- Continue working on the case, as the duties are only administrative.
- Disclose the potential conflict of interest to the supervising attorney immediately. (Correct answer)
- Advise the spouse to resign from Company B to avoid any appearance of impropriety.
- Request a transfer to a different department within the law firm without explaining why.
Correct answer: Disclose the potential conflict of interest to the supervising attorney immediately.
A paralegal has an ethical duty to avoid conflicts of interest and disclose any potential conflicts to their supervising attorney. Even if the paralegal's role is administrative, the relationship with an employee of the opposing party creates a potential conflict that must be disclosed so the attorney can assess the situation and implement safeguards if necessary.
Question 2: A supervising attorney asks a paralegal to draft a simple will for a new client based on a standard firm template. The attorney is out of the office and tells the paralegal to meet with the client, fill in the details, have the client sign it, and arrange for witnesses. Which part of this instruction constitutes the unauthorized practice of law (UPL) for the paralegal?
- Drafting the will using a firm-approved template.
- Arranging for the witnesses to be present for the signing.
- Meeting with the client to fill in the factual details on the template.
- Overseeing the client's execution of the will without direct attorney supervision. (Correct answer)
Correct answer: Overseeing the client's execution of the will without direct attorney supervision.
Overseeing the final execution of a legal document like a will without direct attorney supervision can be considered UPL. While drafting documents for an attorney's review is a standard paralegal task, the final act of advising a client and ensuring proper legal execution requires an attorney's independent legal judgment and direct involvement. Accepting a case, setting fees, and giving legal advice are also considered UPL.
Question 3: According to the NALA Code of Ethics, what is the primary ethical principle underlying the requirement for paralegals to pursue continuing legal education (CLE)?
- To increase the paralegal's billing rate and firm profitability.
- To satisfy the requirements of the state bar association.
- To maintain a high degree of competence and integrity. (Correct answer)
- To allow for networking opportunities with other legal professionals.
Correct answer: To maintain a high degree of competence and integrity.
NALA's Canon 6 states that a paralegal must strive to maintain integrity and a high degree of competency through education and training. The core purpose of CLE is to ensure that paralegals remain knowledgeable and skilled in order to assist the legal profession in providing high-quality legal services.
Question 4: A paralegal receives a check from a client as an advance for future legal fees and court filing costs. The law firm maintains both a general operating account and an IOLTA (Interest on Lawyers' Trust Accounts). What is the correct procedure for the paralegal to follow?
- Deposit the check into the firm's general operating account and transfer funds to the IOLTA as costs are incurred.
- Cash the check and keep the funds in a secure office safe until they are needed.
- Deposit the entire amount into the IOLTA account. (Correct answer)
- Deposit the portion for legal fees into the operating account and the portion for costs into the IOLTA.
Correct answer: Deposit the entire amount into the IOLTA account.
Unearned client funds, which include advance payments for fees and costs, must be deposited into a client trust account, such as an IOLTA. These funds do not belong to the law firm until they are earned or the costs are incurred. Depositing them into the operating account is an improper commingling of funds.
Question 5: Which of the following activities is ethically permissible for a paralegal to perform under the supervision of an attorney?
- Representing a client at a deposition.
- Negotiating settlement terms directly with opposing counsel.
- Interviewing a potential client and drafting a complaint for the attorney's review and signature. (Correct answer)
- Providing an opinion to a client on the likelihood of success on appeal.
Correct answer: Interviewing a potential client and drafting a complaint for the attorney's review and signature.
Paralegals may perform substantive legal work, such as interviewing clients and drafting legal documents, as long as the work is properly delegated and supervised by an attorney who maintains ultimate responsibility. Representing a client in a deposition, negotiating settlements, and giving legal opinions are functions that require a lawyer's license and constitute the unauthorized practice of law for a paralegal.
Question 6: A paralegal is working on a sensitive corporate merger case. While having lunch with a friend who is also a paralegal at a different firm, the paralegal discusses the challenges of the case in hypothetical terms, without mentioning the names of the companies involved. This action is:
- Ethical, because no client names or identifying details were mentioned.
- Ethical, because the friend is also a paralegal and bound by confidentiality.
- Unethical, because it violates the duty of confidentiality. (Correct answer)
- Unethical, but only if the friend is able to guess the identities of the clients.
Correct answer: Unethical, because it violates the duty of confidentiality.
The duty of confidentiality is extremely broad and covers all information relating to the representation of a client, whatever its source. Discussing case details, even hypothetically, in a public or non-secure setting risks inadvertent disclosure and is a breach of this fundamental duty. The duty of confidentiality applies regardless of whether the listener is also a legal professional.
CP Professional and Ethical Responsibility Questions and Answers 1
A paralegal works for a law firm representing Company A in a contract dispute against Company B.
The paralegal's spouse is an accountant at Company B.
The paralegal's duties on the case are purely administrative and do not involve substantive legal work.
What is the paralegal's primary ethical obligation in this situation?