MPRE Law Firms 3 — Questions and Answers
Question 1: A law firm discovers that a contract attorney it hired failed to disclose a prior disciplinary suspension when applying. The firm continued using the attorney for six months. Under the Model Rules, the firm:
- Bears no responsibility since the attorney misrepresented credentials
- May be responsible for the attorney's conduct under supervisory rules (Correct answer)
- Must immediately notify all clients served by the attorney
- Is only liable if the attorney committed malpractice during that period
Correct answer: May be responsible for the attorney's conduct under supervisory rules
Under Rule 5.1, firms are responsible for establishing systems to ensure all lawyers comply with ethical rules, including verifying credentials.
Question 2: A law firm represents a defendant in litigation while a different partner at the same firm simultaneously represents the plaintiff in an unrelated matter. This situation:
- Is not a conflict since the matters are unrelated
- Creates a conflict that must be analyzed under Rule 1.7 (Correct answer)
- Is automatically waivable by both clients
- Only becomes a conflict if the two partners discuss each other's cases
Correct answer: Creates a conflict that must be analyzed under Rule 1.7
Under Rule 1.10, conflicts of interest are imputed across all lawyers in a firm, so representing adverse parties in any matters triggers conflict analysis.
Question 3: A law firm instructs its associates to always recommend mediation to clients before filing suit, primarily because the firm owns a stake in a local mediation company. This practice:
- Is ethical if mediation is generally in clients' best interest
- Requires disclosure to clients as a business interest that could affect advice (Correct answer)
- Is permitted under fee-splitting rules if clients save money
- Is only prohibited if the mediation company fails to provide good service
Correct answer: Requires disclosure to clients as a business interest that could affect advice
Rule 1.7 and 1.8 require disclosure when an attorney has a personal financial interest that could materially limit independent judgment.
Question 4: A law firm hires a former prosecutor who handled a major drug case. The prosecutor is now 'screened' from the firm's current representation of the drug defendant. Under the Model Rules:
- The screen is never sufficient; the entire firm is disqualified
- Timely screening may allow the firm to continue the representation (Correct answer)
- The screen is only effective if the former prosecutor consents
- Screening is only available for private sector lateral hires, not former government lawyers
Correct answer: Timely screening may allow the firm to continue the representation
Rule 1.11 permits timely screening of former government lawyers to allow a firm to continue representing the opposing party.
Question 5: A law firm partner retires and joins a competing firm. The second firm now represents clients whose interests are adverse to clients of the first firm. The first firm should:
- Withdraw from all matters where the retired partner had any involvement
- Determine if imputed conflict rules and screening apply to the departed partner's knowledge (Correct answer)
- Do nothing since the partner is no longer associated with the firm
- Notify all clients of the potential conflict and seek blanket waivers
Correct answer: Determine if imputed conflict rules and screening apply to the departed partner's knowledge
Rule 1.9 governs duties to former clients, and the firm must analyze what confidential information the retired partner possessed.
Question 6: An attorney's law firm dissolves. Which of the following is the attorney's PRIMARY obligation regarding pending client matters?
- To give clients sufficient notice to obtain other counsel (Correct answer)
- To complete all active matters before winding down
- To transfer all files to the state bar for safekeeping
- To notify opposing counsel in all pending cases within 24 hours
Correct answer: To give clients sufficient notice to obtain other counsel
When a firm dissolves, the paramount duty is to protect clients by providing adequate notice so they can find replacement counsel.
Question 7: A law firm's partnership agreement requires departing partners to forfeit deferred compensation if they take clients with them when they leave. Under the Model Rules, this agreement is:
- Fully enforceable as a standard business arrangement
- Void because it restricts a lawyer's right to practice after departure (Correct answer)
- Only enforceable if the departing partner consents in writing
- Valid if the forfeiture amount does not exceed six months of compensation
Correct answer: Void because it restricts a lawyer's right to practice after departure
Rule 5.6 prohibits agreements that restrict a lawyer's right to practice after leaving a firm, including financial penalties that effectively discourage competition.
MPRE Law Firms 3
A law firm discovers that a contract attorney it hired failed to disclose a prior disciplinary suspension when applying.
The firm continued using the attorney for six months.
Under the Model Rules, the firm: