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Question 1
You have been working diligently on a case for Dan Trampp, a real estate mogul with varied and numerous holdings. Trampp is suing Ivan Ah, who reportedly used Trampp's trademark to try to acquire an apartment building in Manhattan that only a mogul of Trampp's magnitude could acquire. Both Trampp and Ivan Ah claim ownership of the apartment building. Trampp is excited, however, when he realizes that Ivan Ah will momentarily settle. On one of his good days, prior to the expected settlement, Trampp agrees to part with some of this contested property for fair market value and sells to you. You are able to finance the purchase with incredibly low mortgage rates. Instantly, you live in a fabulous apartment overlooking the Hudson, with a gorgeous view of Hoboken! But are you subject to discipline?
Correct Model Rule 1.8(j) holds that a lawyer may not acquire a 'proprietary interest in the subject matter of litigation.' This includes acquiring any type of property right from the client, with an exception for contingent fees, attorney liens when necessary, and costs of the litigation. The reason is that acquiring property rights might cloud a lawyer's independent judgment of the client's case. A lawyer buying from his client places himself in an adversarial position which could endanger the lawyer's duty of unswerving loyalty to the client. Therefore, choice (a) is the best answer. Choice (b) is incorrect, given that acquiring Ivan Ah's consent would have no bearing on the adversarial position you now find yourself in with your own client, Trampp. Even if you tried to obtain written consent from Trampp, ethics would still have been violated if you acquired the contested property.
Incorrect! Model Rule 1.8(j) holds that a lawyer may not acquire a 'proprietary interest in the subject matter of litigation.' This includes acquiring any type of property right from the client, with an exception for contingent fees, attorney liens when necessary, and costs of the litigation. The reason is that acquiring property rights might cloud a lawyer's independent judgment of the client's case. A lawyer buying from his client places himself in an adversarial position which could endanger the lawyer's duty of unswerving loyalty to the client. Therefore, choice (a) is the best answer. Choice (b) is incorrect, given that acquiring Ivan Ah's consent would have no bearing on the adversarial position you now find yourself in with your own client, Trampp. Even if you tried to obtain written consent from Trampp, ethics would still have been violated if you acquired the contested property.
Correct
Incorrect!
Correct
Incorrect!
Question 2
You represent Jonathan Knoxville in a personal injury suit. Jonathan was hired by a television network to pin steaks on his shirt and set them aflame. The goal was initially to cook the steaks to at least "medium-well" standards, but unfortunately, Jonathan suffered terrible burns before the steaks could make it past "rare." You take Jonathan's case on contingency. If he wins his case against the television network, you earn a fee, if not, you don't. Jonathan is out of money right now, so you pay his court costs and lend him money for rent and food. You agree that Jonathan will only pay you back if he wins his case against the network. Are you subject to discipline?
Correct Model Rule 1.8(e) prohibits a lawyer from providing 'financial assistance to a client in connection with pending or contemplated litigation.' A lawyer may advance court costs and other litigation expenses, but paying a client's rent and grocery needs goes beyond the ethical boundary. The ethical rules aim to prevent a situation where the lawyer is essentially paying the client to bring suit on behalf of the client. Moreover, the lawyer may not acquire property rights in the client's case that may impair the lawyer's independent judgment. Therefore, choice (a) is the best answer. Choice (b) is not the best answer, because in almost all jurisdictions lawyers may not advance money for food or rent for even indigent clients, out of fear that lawyers will be 'paying off' clients to sue on their behalf. Choice (c) is incorrect because 'being nice' does not mean you are also acting ethically in the context of the rules.
Incorrect! Model Rule 1.8(e) prohibits a lawyer from providing 'financial assistance to a client in connection with pending or contemplated litigation.' A lawyer may advance court costs and other litigation expenses, but paying a client's rent and grocery needs goes beyond the ethical boundary. The ethical rules aim to prevent a situation where the lawyer is essentially paying the client to bring suit on behalf of the client. Moreover, the lawyer may not acquire property rights in the client's case that may impair the lawyer's independent judgment. Therefore, choice (a) is the best answer. Choice (b) is not the best answer, because in almost all jurisdictions lawyers may not advance money for food or rent for even indigent clients, out of fear that lawyers will be 'paying off' clients to sue on their behalf. Choice (c) is incorrect because 'being nice' does not mean you are also acting ethically in the context of the rules.