Post on 12-Jan-2016
description
PR Overview• Fiduciary principles
– Agency law– 2005 ABA Model Rules
• Duty of loyalty– Confidentiality– Fidelity
• Duty of care
• Duty of confidentiality
PR Overview
• Judgment– Practical reasoning taking into account
interactions among all relevant interests
Sources and Scope of Liability
GovernmentInstitution
Related Party
Rules ofProfessional Conduct
Your client(fiduciary Rules)
GeneralLegal rules
The Web
Lawyer
ClientRelated parties
Agencies Tribunals
Survival rules of thumb
• 1. Never create a duty you don’t intend to create
• 2. Always be prepared to walk away• 3. Assume that everything you do or say
will become publicly known• 4. Never mistake the client’s problem for
yours (stay calm)• 5. Never do anything as a lawyer that you
find repugnant as an ordinary person
Agency and fiduciary overview
Fiduciary duty
• “A fiduciary duty is the duty of an agent to treat his principal with the utmost candor, rectitude, care, loyalty, and good faith--in fact to treat the principal as well as the agent would treat himself.”
Burdett v. Miller, 957 F.2d 1375 (7th Cir. 1992) (Posner, J)
Fiduciary duty
• (1) Agency is the fiduciary relation which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act.
• (2) The one for whom action is to be taken is the principal.
• (3) The one who is to act is the agent.
Agency and fiduciary dutyP
A 3P
Fiduciary aspect of agency
Reliance/binding aspect of agency
7108 West Grand Ave.
• What is the procedural posture of this case?• What was the plaintiffs’ argument?• How did Judge Easterbrook characterize the
legal problem?• What was Judge Easterbrook’s argument for
not letting Habib and his clients off the hook?• What does this argument imply about the
lawyer’s role?
Tante v. Herring
• Did Tante commit malpractice? • Did Tante breach a contract with the
Herrings?• What does it mean to say Tante is a fiduciary
with regard to information he gets from his client?
• What should Tante have done to fulfill his duty of good faith & loyalty?
• What is the relationship between the fiduciary cause of action and disciplinary rules?
Tante v. Herring
Rule violationsFiduciarybreaches
Tante
Barbara A v. John G
• What does the Court see as “the essence” of a fiduciary relationship?
• What part of the case does the Court say the attorney-client relationship is relevant to?
• How would the plaintiff’s case be affected if fiduciary standards apply to her claims?
• What question is to be addressed on remand?
Fiduciary duty
• “A fiduciary duty is the duty of an agent to treat his principal with the utmost candor, rectitude, care, loyalty, and good faith--in fact to treat the principal as well as the agent would treat himself.”
Burdett v. Miller, 957 F.2d 1375 (7th Cir. 1992) (Posner, J)
Fiduciary duty
• (1) Agency is the fiduciary relation which results from the manifestation of consent by one person to another that the other shall act on his behalf and subject to his control, and consent by the other so to act.
• (2) The one for whom action is to be taken is the principal.
• (3) The one who is to act is the agent.
Authority
AUTHORITY
• Power—– Ability to change legal status by act or
omission (7108 W. Grand Ave.)
• Authority– Power created by principal’s assent
that agent act for principal
• Two types of relevant authority:– Actual authority– Apparent authority
Actual Authority
• Express: agreement of lawyer/client• Implied in fact: because of the nature of
the representation• Implied in law: because presumed by law.
P
A 3P
AgreementRstmt §23MR 1.2(a)
Apparent Authority
• Created by acts of the principal with respect to a third party that lead the third party to believe, reasonably, that the agent has authority to do the act in question.
P
A 3P
AgreementRstmt §23MR 1.2(a)
Acts by P expressing to 3P that A may act for P with regard to 3P; Rstmt §27
AuthorityP
A 3P
AgreementRstmt §23MR 1.2(a)
Acts by P expressing to 3P that A may act for P with regard to 3P; Rstmt §27
Ability to act as and for client;Risk of liability for mis-stated authority;Undisclosed client contractual liability; Rstmt §30
Authority
AgreementRstmt §23MR 1.2(a)
Acts by P with regard to 3P
Rstmt§31
Death,Discharge,End of matterWithdrawal
Limiting the scope of representation
Scope of representation
Issues relevantto client
Rule 1.2
(a) Subject to paragraphs (c) and (d), a lawyer shall abide by a client’s decisions concerning the objectives of representation and, as required by Rule 1.4, shall consult with the client as to the means by which they are to be pursued. A lawyer may take such action on behalf of the client as is impliedly authorized to carry out the representation. A lawyer shall abide by a client’s decision whether to settle a matter. In a criminal case, the lawyer shall abide by the client’s decision, after consultation with the lawyer, as to the plea to be entered, whether to waive jury trial and whether the client will testify.
Client Calls (MR 1.2(a))
• Civil Cases– Settlement
– Costs
• Criminal Cases– Plea
– Jury trial
– Testimony
Rule1.4(a) A lawyer shall:
(1) Promptly inform the client of any decision or circumstance with respect to which the client’s informed consent, as defined in Rule 1.0(e), is required by these rules;
(2) Reasonably consult with the client about the means by which the client’s objectives are to be accomplished;
(3) Keep the client reasonably informed about the status of the matter;
(4) Promptly comply with reasonable requests for information; and
(5) Consult with the client about any relevant limitation on the lawyer’s conduct when the lawyer knows that the client expects assistance not permitted by the Rules of Professional conduct or other law.
Rule1.4
(b) A lawyer shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation.
In re Grievance Proceeding
• What does the agreement in question provide?
• Who drafted it?• What did the Grievance Committee conclude
about Rule 1.2(a) in conjunction with Rule 1.4?
• Did the attorney actually enforce this agreement by keeping information from the client in question?
• Is this just a rule of discipline?
In re Grievance Proceeding
• As a matter of interpretation, how does the court read MR 1.2? Literally/formally? Purposively?– Cf Preamble para. 14: The rules of professional
conduct are rules of reason. They should be interpreted with reference to the purposes of legal representation and of the law itself.
• Why no discipline?– What purposes does discipline serve?– What about compensation?
FennelFennel
Brewington Frink
AgreementRstmt §23MR 1.2(a)
Acts by P expressing to 3P that A may act for P with regard to 3P; Rstmt §27
Fennell
• Very straightforward apparent authority opinion: representative case
• Note conflicting perspectives:– District court views interaction from its own
perspective/that of lawyers—settlements like this happen all the time; this is what lawyers do; otherwise mild chaos
– CTA2 sees it from lawyers perspective, too, but relative to the client, not the docket
• Look at the language of the 3/20 letter from Brewington (p.21); what is going on there?
The Web II
Brewington
FennellOther lawyers
Agencies Tribunals
Fiduciary obligations, but annoyed at client for complaining abt settlement
Reputational stake with court; and opposing counsel
Blanton
• Note the time between the first trial date and the second, and between the arbitration agreement and the second trial date– What is going on here?
• Look at the terms of arbitration; what do they tell you?
• This is “doubling down”
The Web III
Harris
BlantonRelated parties
Agencies Tribunals
Rejection of bindingArb. = no authority
Severe pressure: go to trial now or agree to binding arb.
Blanton
• What is Ms. Blanton’s ground for objecting to arbitration?
• Note the competing interests at stake—3P reliance and client autonomy/claim against lawyer
• Would it have mattered if the arbitration were less one-sided?
• Why not just let Ms. Blanton sue Harris?– What would she have to prove?– How would she have to prove it?
• How can you reconcile this case with 7108 West Grand Avenue?
Lally
• What happened?• What is the lawyer’s explanation?• Note how actual instructions even on tactical
matters affects the Court’s view of the case• Note (preliminarily—we’ll come back to this) the
number of arguments Kuster raises on damages
Olfe
• The court distinguishes between a failure to– Perform services in a way that meets the standard of
care applicable to such services (breach of the duty of care by incompetence); and failure to
– Carry out the (lawful) instructions of the principal (breach of the duty of care by disobedience)
• Cf Blanton on this issue
• Litigating the former may require expert testimony to establish the standard of care, so it can be shown the lawyer didn’t meet it
• Litigating the latter does not