Attorney White is representing Client A in a dispute with Client B. Attorney White's law firm has a 'Chinese Wall' in place to screen Attorney White from any information regarding Client B, whom another partner in the firm, Attorney Black, represents in unrelated matters. Client A and Client B have both given informed consent, confirmed in writing, to the firm's representation, acknowledging the screening measures. During the course of Client A's dispute, Attorney White inadvertently overhears a conversation between Attorney Black and Client B in the firm's hallway, revealing highly confidential information about Client B that is directly relevant to Client A's dispute. What is Attorney White's ethical obligation?
- AAttorney White must report the breach of the 'Chinese Wall' to the firm's managing partner, who will then decide the appropriate course of action.
- BAttorney White must ignore the information and continue representing Client A as if the information was never heard, relying on the initial consent and screening.
- CAttorney White must immediately cease all representation of Client A and withdraw from the case, as the 'Chinese Wall' has been breached and the conflict is now unmanageable.
- DAttorney White must immediately inform Client A of the overheard information, as the duty of loyalty to Client A now overrides the screening measures.
Show answer & explanationAnswer & explanation
Correct answer: C. Attorney White must immediately cease all representation of Client A and withdraw from the case, as the 'Chinese Wall' has been breached and the conflict is now unmanageable.
When a screening mechanism (Chinese Wall) fails and a lawyer inadvertently receives confidential information that is directly relevant and adverse to an existing client, the conflict becomes unmanageable. The lawyer cannot use the information for Client A due to confidentiality to Client B, nor can they ignore it while zealously representing Client A. In such a scenario, withdrawal from representing Client A is typically required.
Why the other options are wrong
- A. While reporting to the managing partner is prudent for firm management, it does not resolve Attorney White's immediate ethical conflict regarding Client A's representation.
- B. Ignoring material information would constitute a breach of the duty of loyalty and competence to Client A.
- D. Disclosing Client B's confidential information to Client A would violate the duty of confidentiality to Client B.
Imputed Conflict (Screening Breach)
If a screening mechanism intended to prevent an imputed conflict fails, and a lawyer gains material confidential information about a client whose interests are adverse to another client, the conflict becomes unmanageable, and the lawyer must withdraw from the affected representation.
- Screening is designed to prevent information flow.
- A breach can render the conflict unmanageable.
- Withdrawal is often the required remedy when a breach occurs.
Memory trick: A broken wall means a broken trust; retreat from the battle.