Tag Archive for: Ethics

The federal prohibition of marijuana under the Controlled Substances Act creates thorny ethical issues for attorneys representing clients in the cannabis industry in the twenty-nine states that have legalized medical marijuana and the eight states that have legalized recreational marijuana. The Rhode Island Ethics Advisory Panel Op. 2017-01 recently joined other states in concluding that attorneys may ethically advise clients on all matters related to a particular state’s medical marijuana law, as long as attorneys also advise clients regarding the federal law. Although there is a growing consensus among courts and ethics committees that attorneys representing clients in the marijuana industry are not in violation of the applicable state rules of professional conduct, these rules and opinions do not protect lawyers who assist clients in the operation of marijuana-related businesses in ways which might contravene federal laws. Actively assisting clients in the marijuana industry may be illegal under federal law, and therefore has the potential to result in criminal liability for violation of the Controlled Substances Act, aiding and abetting criminal conduct (18 U.S.C. § 2), or money laundering (18 U.S.C. §§ 1956, 1957). While the Cole Memorandum provides some protection against federal prosecution for legal marijuana businesses that adhere to their state’s regulatory framework, it does not provide legal protection for service providers to the industry, including attorneys. Indeed, the Cole Memorandum expressly states that state law does not provide a legal defense to a violation of federal law, including a civil or criminal violation of the Controlled Substances Act.

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This Risk Management Tip is brought to you by AXA XL and Hinshaw & Culbertson, LLP, leaders in risk management.

AXA XL is the #1 global commercial property and casualty insurer with combined GWP of 17.6 billion in 2017. AXA and its principal insurance subsidiaries have the following insurer financial strength ratings as of December 2018: A+ A.M. Best, AA- Standard & Poor’s, AA- Fitch and, A1 Moody’s.

Records retention presents important issues of ethics (safeguarding client property, maintaining confidentiality and loyalty), risk management (avoiding ethical violations and claims), and cost control.

A new article written by our Corporate Counsel, Daniel Hager, outlines steps that your firm can take to implement an effective records retention policy that will help your firm meet its ethical obligations, reduce risk, and lessen costs.

California Firms: Click here to download this article.
Arizona Firms: Click here to download this article.
Firms not in CA/AZ: Click here to download this article.

Klinedinst PC to Offer Initial Complimentary Legal Ethics Consultations

AHERN Insurance Brokerage is an industry leader in providing customized insurance solutions for law firms. On top of supplying extraordinary services to its clients, AHERN continuously looks for additional opportunities to add value to its clients’ practices.

AHERN has arranged for Klinedinst PC – a leader in the area of ethics, risk management, and the law of lawyering – to provide up to 30 minutes of free legal ethics consultation to its attorney and law firm clients in California, following a conflict of interest check. Klinedinst PC has offices in San Diego, Orange County, Los Angeles, Sacramento and Seattle.

The attorneys at Klinedinst have decades of experience in advising a wide range of practitioners, from solo and small firms to the largest law firms in the world. The members of the firm’s Legal Ethics and Law Firm Risk Management Team have a deep understanding of the challenges facing the profession and provide succinct, to-the-point guidance on these professional standards. Heather L. Rosing, Chair of the Team, serves as a legal adviser to the Rules Revision Commission of the State Bar of California, which is assisting in rewriting the Rules of Professional Conduct. Dave Majchrzak, Senior Counsel with the firm, is the Vice Chair of the San Diego County Bar Association’s Legal Ethics Committee, and formerly served on the State Bar’s Standing Committee on Professional Responsibility and Conduct.

No one understands better that ethics issues often arise on a moment’s notice and need to be dealt with promptly. Klinedinst has developed a reputation for its quick response to its professional clients.

AHERN is very excited to offer this valuable resource to its attorney and law firm clients in California.

Click here for more details about this new value-added offering.

It is Friday night after a long work week and an attorney has stopped off at the local watering hole. She makes her way to the bar and recognizes an old law school classmate whom she has not seen in years. He has apparently had a few cocktails and waves for her to come join him. He offers her a celebratory drink and says, “Come celebrate my big score, 7 digit bill in a simple uncontested matter.” As he celebrates and clinks her drink to his “clueless client”, she wonders if she has an ethical duty to report his billing misconduct.

What is your duty to report another lawyer under Rule 8.3?

Click here to continue reading this Practice Tip…