Multistate Professional Responsibility Examination (MPRE)The Client-Lawyer RelationshipMedium
A lawyer represents a sophisticated corporate client in a complex merger negotiation. During a critical phase, the client instructs the lawyer to intentionally misrepresent certain financial projections to the opposing party to gain a strategic advantage. The lawyer advises the client that such an action would be fraudulent and unethical. The client insists, stating it is a common practice in their industry. What is the lawyer's ethical obligation in this situation?
- AThe lawyer must report the client's intent to the appropriate regulatory authorities.
- BThe lawyer must comply with the client's instruction, as the client has the ultimate authority regarding the objectives of the representation.
- CThe lawyer must withdraw from the representation if the client insists on the fraudulent conduct.
- DThe lawyer may proceed with the misrepresentation but must document the client's instruction to mitigate personal liability.
Show answer & explanationAnswer & explanation
Correct answer: C. The lawyer must withdraw from the representation if the client insists on the fraudulent conduct.
Model Rule 1.16(a)(1) mandates withdrawal if the representation will result in violation of the rules of professional conduct or other law. Intentionally misrepresenting financial projections constitutes fraudulent conduct, which a lawyer cannot assist. Therefore, if the client insists, the lawyer must withdraw.
Why the other options are wrong
- A. Reporting to authorities is generally not required unless confidentiality is overcome by a specific exception, and mandatory withdrawal is the primary ethical obligation here.
- B. While clients control objectives, lawyers cannot assist in criminal or fraudulent conduct.
- D. A lawyer cannot assist in fraudulent conduct, regardless of client instruction or documentation; this would violate ethical rules.
Mandatory Withdrawal (Client Fraud)
A lawyer must withdraw from representation if the representation will result in the lawyer violating the rules of professional conduct or other law, such as assisting in a client's fraudulent scheme.
- This is a non-negotiable obligation.
- Applies even if the client insists or it's 'common practice'.
- The lawyer's ethical duties supersede client instructions in such cases.
Memory trick: When the client's path leads to a cliff of fraud, the lawyer must step back.