The leak of millions of documents apparently hacked from Panama-based law firm Mossack Fonesca has exposed the tax strategies of some of the world’s elite. But the Panama Papers also shine a light on some failures of Mossack Fonesca to screen out problematic clients — failures of due diligence that the firm itself recognized.
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In today’s soft legal services market, some aspiring members of the profession feel pressure to work for free, but the fairness of such arrangements in general has come under scrutiny. In a twist, the New York State Bar Association earlier this month said that law firms could bill clients for services provided by unpaid legal interns, as long as the amount is not excessive, and the internship program complies with applicable law.
My spouse and I visited Chicago years ago, and confusedly started driving the wrong way down a one-way street. We were promptly pulled over by one of the Windy City’s finest. I gave him my best smile, and said, “Sorry, officer, we’re from out of town.” He grunted, “Don’t they have one-way streets where you come from?” But he didn’t give us a ticket. A recent disciplinary opinion out of Oklahoma, involving a tech-challenged bankruptcy lawyer, brings the story to mind.
A lawyer’s duty of care to a client does not include raising claims on the client’s behalf that are merely “colorable,” and not actually “viable,” the Oregon Supreme Court held last month. The court quoted with approval from an amicus brief from the state’s mandatory provider of malpractice insurance, which said that a “colorability” standard would only promote “scorched earth litigation,” and expose lawyers to “hindsight bias.”