I was reminded recently of an Ethics Decision (unpublished) that answered the question, “When must a lawyer disclose unsavory personal information” to a client or prospective client? Ethics Decision 2003-5. If you are currently being investigated by the State Bar, are you required to disclose that fact to your clients, or any prospective clients? What about if you are being investigated by the government? Or if you have been charged in a criminal matter? At what point do attorneys have an obligation to disclose this kind of personal information to clients?
The State Bar has determined that an attorney has an obligation to reveal “unsavory personal information” when the attorney reasonably believes such information is necessary for the client to make an informed decision regarding representation. You should ask yourself, can the client give informed consent to continued representation without this information? For example, an attorney who has received a grievance for an advertising violation, can reasonably conclude that the disciplinary matter will have no bearing upon his representation of his clients or prospective clients. The matter will likely be resolved without the attorney losing the ability to practice law. On the other hand, a lawyer who has a complaint pending for misappropriation of trust funds, where the State Bar has evidence to support the charges, will very likely lose his license. He should consider whether he can appropriately conclude the client’s representation in the short term, or whether it will be necessary to give clients notice and the choice of alternative counsel. The key here is to inform the client in plenty of time so the client’s interests are not prejudiced by the need to select new counsel.
In addition, if the attorney anticipates that a pending disciplinary or criminal matter may be so time consuming that it could adversely affect the representation of his client, there likely would also be a duty to disclose to any current clients whose representation may be impacted. The attorney in such a situation should also consider whether to undertake any new representation. The same considerations would apply to any personal situation that may take significant time away from the practice of law, such as personal health issues or a family health crisis.
It is interesting to note that the test for whether to disclose is not whether the client would want to know that information, but rather, whether the client needs the information to make an informed decision regarding representation. The test appears to hinge upon whether the client could be prejudiced or whether the representation may suffer due to the attorney’s personal circumstances. Another point is that the State Bar leaves the decision to disclose to the professional judgment or the discretion of the attorney. I find that curious because it is likely that an attorney’s professional judgment may be impaired because he may have a vested interest in not disclosing the information.
If you are ever faced with this question about whether to reveal personal information to the client, I would try to put yourself in the client’s shoes. If you, as the client, might want to know the information, then also ask yourself whether there is any possibility that your personal circumstances could affect the client’s representation. If either answer is yes, and you are reluctant to inform the client, get the advice of ethics counsel. It may be prudent to get another set of eyes to review the situation.