Multistate Professional Responsibility Examination (MPRE)The Client-Lawyer RelationshipMedium
A lawyer represents a client in a divorce proceeding. During the representation, the client tells the lawyer, 'I'm thinking of selling my house to my brother for $1. The house is worth $500,000, but I don't want my spouse to get any of it in the divorce.' The lawyer advises the client that such a transfer would be fraudulent and could lead to severe legal penalties. The client insists on proceeding with the transfer. What is the lawyer's ethical obligation?
- AThe lawyer must report the client's intent to the court or the opposing counsel.
- BThe lawyer must advise the client that they cannot reveal this information to anyone, even if the client proceeds.
- CThe lawyer must withdraw from representation if the client proceeds with the fraudulent transfer.
- DThe lawyer may proceed with the representation as long as they do not assist in the fraudulent transfer.
Show answer & explanationAnswer & explanation
Correct answer: C. The lawyer must withdraw from representation if the client proceeds with the fraudulent transfer.
A lawyer must withdraw from representation if the client insists upon taking action that the lawyer knows is criminal or fraudulent. Here, the lawyer has advised the client that the action is fraudulent, and the client insists on proceeding, triggering mandatory withdrawal.
Why the other options are wrong
- A. Reporting client confidences, even intent to commit fraud, is generally prohibited unless an exception applies (e.g., future death/substantial bodily harm). Fraudulent property transfer usually doesn't meet this threshold.
- B. While confidentiality is paramount, it does not compel a lawyer to continue representing a client who insists on engaging in fraudulent conduct; mandatory withdrawal takes precedence.
- D. Simply not assisting is insufficient if the client insists on the fraudulent act. The lawyer must withdraw to avoid even indirect involvement.
Mandatory Withdrawal (Client Fraud)
A lawyer must withdraw from representation if the client insists upon taking action that the lawyer knows is criminal or fraudulent.
- Client insists on criminal/fraudulent act.
- Lawyer must withdraw.
- Not merely permissive, but mandatory.
Memory trick: Fraud Flag: If the client insists on crime, the lawyer must quit.