Academic Year 2026 – Comprehensive Study Guide
Who is the attorney's client when an insurance company hires the attorney to defend a
policyholder? - correct answer ✔✔ Depending on state law, either the policyholder or the
insurance company and the policyholder jointly are the attorney's client when an insurance
company hires the attorney to defend a policyholder.
Without the assistance of independent counsel, a client signed a retainer agreement with his
lawyer that included the following provisions: (a) The lawyer would spend no more than 20
hours on the matter; (b) The client must arbitrate any legal malpractice claims; and (c) The
lawyer's liability for any malpractice issues would be capped at $10,000. What (if any) parts of
this agreement are valid? - correct answer ✔✔ Parts (a) and (b) are valid. A lawyer may limit the
scope of her representation (as in (a)) and may agree prospectively with a client to arbitrate all
matters (as in (b)). Part (c) is not valid. A lawyer cannot limit her liability for malpractice unless
the client was independently represented in negotiating the agreement.
Client C, a 21 year old college student, was charged with possession of marijuana. C's mother
wants to hire Lawyer L to represent C. She agrees not to interfere in L's representation of C and
not to sit in on or ask about any meetings between C and L. Can L now take C's case under these
conditions? - correct answer ✔✔ L cannot take C's case unless C gives informed consent. A
lawyer must not accept compensation from a third person for representing a client, unless: (i)
The client gives informed consent, (ii) The third person does not interfere with the lawyer's
independence or the representation of the client, and (iii) The arrangement does not
compromise the client's confidential information.
Lawyer L represents co-plaintiffs A and B in a wrongful death suit. Defendant D offers A and B $1
million as an aggregate settlement. L disclosed all of the terms of the offer to both A and B and
made sure that they had come to an agreement about how the settlement would be divided
among them. Can L now participate in the making of the aggregate settlement? - correct answer
✔✔ Before L can participate in making the aggregate settlement he must first receive informed
consent from A and B in writing. Because L has not done so, it is incorrect to say that he has met
the requirements. The answer choice that adds the requirement that he must recommend in
, writing that each client obtain separate, independent counsel is also incorrect. There is no such
requirement here.
At ABC law firm, Lawyer L represented C in the matter of C v. D, and was privy to a great deal of
confidential material from C. L then left ABC law firm and became an associate at JKM law firm.
Can another lawyer at JKM law firm now represent a new client, R, in the substantially related
matter of R v. C, even though L is disqualified under conflicts rules from representing R herself? -
correct answer ✔✔ If a lawyer who is disqualified from representing a client joins a new firm,
the new firm may be disqualified as well unless the lawyer is properly screened and does not
share fees from the matter, and the former client is given notice. Thus, another lawyer at JKM
law firm can now represent a new client, R, in the substantially related matter of R v. C, but only
if L is properly screened, does not share fees from the matter, and C is given notice. There is no
requirement that C give informed consent, confirmed in writing.
__________ are forbidden from negotiating for private employment with a party (or the
attorney for a party) in a matter in which they are __________. - correct answer ✔✔ Judges,
arbitrators, mediators, third-party neutrals, and other adjudicative officers are forbidden to
negotiate for private employment with a party (or the attorney for a party) in a matter in which
they are participating personally and substantially. Answers that include law clerks are incorrect,
because they are subject to a special rule. They are allowed to negotiate for private
employment with a party (or the attorney for a party) in a matter in which the law clerk is
participating personally and substantially as long as they notify that judge/officer in advance.
Lawyer L obtained confidential information during a consultation with Prospective Client P.
Normally, L and any other attorney at L's firm would be prohibited from representing Client C in
the same or a substantially related matter if such confidential information could significantly
harm P. This conflict of interest may be overcome by: - correct answer ✔✔ This conflict of
interest may be overcome by obtaining informed consent, confirmed in writing, from P and C.
Notifying P and C in writing, notifying only P in writing, and/or obtaining informed consent from
only P are not sufficient. Note that another way of overcoming the conflict is to: (i) Demonstrate
that the lawyer who held discussions with the prospective client took care to avoid exposure to
any more confidential information than was necessary to determine whether to represent the
prospective client; (ii) Demonstrate that the disqualified lawyer is timely screened from any
participation in the matter and will not share the fee (but he may take his ordinary salary or
partnership share); and (iii) Give written notice to the prospective client.