Source: http://www.mccarthyfingar.com/attorneys/frank-streng/speaking-engagements/entitled-practical-skills-introduction-t.aspx
Timestamp: 2019-04-23 18:24:15+00:00

Document:
· What is professionalism? How does a lawyer maintain professionalism and a successful business?
· What are lawyers selling? Knowledge, competence and experience in solving a client’s problem?
· Have you ever talked to anyone who attending a “lawyer bashing” revocable trust seminar?
Canon 1: A Lawyer Should Assist in Maintaining the Integrity and Competence of the Legal Profession.
Canon 2: Lawyer Should Assist the Legal Profession in Fulfilling its Duty to Make Legal Counsel Available.
In general the court, in determining the justice and reasonableness of an attorney’s claim for services, should consider the time spent, the difficulties involved in the matters to which the services were rendered, the nature of the services, the amounts involved, the professional standing of the counsel, and the results obtained.
o SCPA 2111 (an attorney who is also a fiduciary must obtain court approval to received advance legal fees).
· Effective March 4, 2002, all attorneys must have a written letter of engagement before commencing representation OR within a reasonable time after commencing representation of a client if it is impracticable at the time of commencement or if the scope of services cannot be determined at the time of the commencement of representation.
· For purposes of Part 1215, where an entity (such as an insurance carrier) engages an attorney to represent a third party, the term "client" shall mean the entity that engages the attorney.
· Where there is a significant change in the scope of services or the fee to be charged, an "updated letter of engagement" must be given to the client.
o to domestic relations matters which are still subject to Part 1400 of the Joint Rules of the Appellate Division.
§ where applicable, notice of the client's right to arbitration of fee disputes under Part 137.
§ Under §137.1(b)(2), an attorney may make fee arbitration apply to disputed amounts less than $1,000 or more than $50,000 "if the parties have consented. ..." Without the client's consent, fee arbitration does not apply to sums less than $1,000 or more than $50,000.
§ Under §137.2(b), an attorney may make fee arbitration mandatory for the client by obtaining the client's written consent in "a retainer agreement or other writing..." If not included in the retainer agreement, fee dispute arbitration commenced by a client is mandatory for the attorney but is not mandatory for the client if commenced by the attorney.
§ Under §137.2(c), an attorney can make the arbitration award final, instead of subject to a de novo review, by obtaining the client's written consent.
§ Under §137.2(d), an attorney can select a different arbitral forum for fee dispute arbitration, by obtaining the client's written consent.
· What if there is no retainer agreement?
Canon 3: A Lawyer Should Assist in Preventing the Unauthorized Practice of Law.
Canon 4: Lawyer Should Preserve the Confidences and Secrets of a Client.
1. Reveal a confidence or secret of a client.
4. Confidences or secrets necessary to establish or collect the lawyer’s fee or to defend the lawyer or his or her employees or associates against an accusation or wrongful conduct.
· the independent trustee of residuary trust?
· permissible lifetime beneficiaries of residuary trust?
· remainderman of residuary trust?
· the outright residuary beneficiaries?
· all of the above?
· What does it mean to “act in a fiduciary capacity” Is it different to “act in a representative capacity”? No; you are acting “in behalf” of someone else – the beneficiaries.
This court is of the opinion that a fiduciary has an obligation to disclose the advice of counsel with respect to matters affecting the administration of the estate (2A Scott, Trusts § 173 [4th ed]). This is subject to the limitation that the fiduciary should have the protection of the privilege when litigation has commenced or is anticipated (2A Scott, Trusts § 173 [4th ed]); see, In re LTV Sec. Litig., 89 FRD 595). Certainly, the fiduciary is entitled to the benefit of counsel in the preparation of his defense in a contested accounting or other proceeding.
· When does a lawyer advise the fiduciary that “litigation . . . is anticipated”? For purposes of privilege, should we be identifying areas where litigation might be “anticipated”?
· Is there risk in asserting privilege for trusts and estates lawyers whose fee applications may need to be determined by the Court; and the lawyer is considered, more than in other areas, to be “officers of the Court”? Ethical dilemmas for advocates: When does your duty of advocacy end and your relationship to the Surrogate’s Court and its personnel begin?
· Do lawyers have conflicts of interest as to potential privilege issues when the lawyer’s fee may be compromised if the lawyer becomes an “advocate” on a privileged issue?
Canon 5: A Lawyer Should Exercise Independent Professional Judgment on Behalf of a Client.
Can you take a case if you will be a witness?
(1) If the testimony will relate solely to an uncontested issue.
(2) If the testimony will relate solely to a matter of formality and there is no reason to believe that substantial evidence will be offered in opposition to the testimony.
(3) If the testimony will relate solely to the nature and value of legal services rendered in the case by the lawyer or the lawyer’s firm to the client.
B. Neither a lawyer nor the lawyer’s firm shall accept employment in contemplated or pending litigation if the lawyer knows or it is obvious that the lawyer or another lawyer in the lawyer’s firm may be called as a witness on a significant issue other than on behalf of the client, and it is apparent that the testimony would or might be prejudicial to the client.
· Act as the sole advocate?
· Act as “co-counsel” and use a trial counsel?
· Will contest on your Will. Answer: Get trial counsel for probate proceeding; and represent estate if the fiduciary wants you. In many instances, it might be advisable to have a different lawyer acting as counsel of record; and not simply as a trial counsel.
· Estate Litigation dealing with nonprobate assets payable to fiduciary. Keep in mind who you represent.
A. A lawyer shall decline proffered employment if the exercise of independent judgment in behalf of a client will be or likely to be adversely affected by the acceptance of the proffered employment, or if it would be likely to involve the lawyer in representing differing interests, except to the extent permitted under DR 5-105(C).
B. A lawyer shall not continue multiple employment if the exercise of independent professional judgment in behalf of a client will be or is likely to be adversely affected by the lawyer’s representation of another client, or if it would be likely to involve the lawyer in representing differing interests, except to the extent permitted under DR 5-105(C).
C. In the situations covered by DR-105(A) and (B), a lawyer may represent multiple clients if a disinterested lawyer would believe that the lawyer can competently represent the interest of each and if each consents to the representation after full disclosure of the implications of the simultaneous representation and the advantages and risks involved.
· Conflict Rules. Existence of Conflict: Under DR 5-105, you first determine whether a conflict exists. A conflict exists if either (1) the attorney’s “exercise of independent professional judgment” on behalf of one client “will be or is likely to be adversely affected” by representing the other client, or (2) the simultaneous representation of both clients “would be likely to involve the lawyer in representing differing interests. DR 5-105(A) and (B).
· Possible Waiver of Conflict by Clients: If there is a conflict, the attorney must determine whether the conflict may be waived by both clients. Specifically, both clients can waive the conflict, provided “it is obvious that the lawyer can adequately represent the interests of each” client. DR 5-105(C). DR 5-108 makes clear that a lawyer shall not represent another party in a manner adverse to that client.
· Disclosure before Obtaining Waivers: If the attorney concludes that, upon waiver, he or she can still adequately represent client, the attorney can obtain waiver from both clients only “after full disclosure of the possible effect of [the joint] representation on the exercise of the lawyer’s independent professional judgment on behalf of each.” DR 5-105(C).
· Representing multiple clients with potential conflicts of interest is a common theme for many trusts and estates lawyers, particularly since a substantial part of trusts and estates practice is considered to be “nonadversarial.” Examples of some problems follow.
· Medicaid Eligibility for Institutionalized Spouse f/b/o Community Spouse. Is all fair in love and Medicaid eligibility?
· Spousal Refusal Technique: A natural conflict with a married person’s duty of support [Domestic Relations Law § 32; Family Court Act § 412.
· Can we ethically represent the community spouse on spousal refusal matters even though, as part of the assignment process, the “refusing” spouse is subject to a lawsuit by “your client” – albeit, with the local Department of Social Services acting as “your client’s agent?
· Consider financial benefits that community spouse may get and why, as matter of substituted judgment, the institutionalize spouse (a) consents or (b) would consent as a matter of substituted judgment. But . . . how do you protect yourself. What if institutionalized spouse unable to consent because of mental disability?
· Lifetime Planning: Can you represent both clients in these scenarios? Does it matter whether husband and/or wife are on second or third marriages and have children of prior marriages?
· Husband and Wife in preparation of Wills and Trust Agreements and Related Estate Planning.
· Husband and Wife in Husband’s or Wife’s creation of Irrevocable Life Insurance Trust.
· Husband and Wife in Husband’s or Wife’s execution of spousal waiver of Qualified Plan accounts.
· Husband and Wife who cannot agree on who the “ultimate” beneficiaries of estate will be.
· Both fiancées in prospective marriage in the preparation and execution of prenuptial agreements.
· Multiple Fiduciaries. Inform fiduciaries of the consequences of representing all of them. In the event of a conflict, you may continue to represent one of them, with the consent of the other fiduciary. See discussion below on representing fiduciaries and beneficiaries.
· Fiduciary and Surviving Spouse in Will with Q-Tip trust with issues as to Whether Spouse Files Elective Share. Husband and Wife make reciprocal wills creating Credit Shelter outright bequests and Q-Tip trusts. Husband predeceases and an issue exists as to whether the wife will get “more money” by an elective share. Must there be independent representation for the wife?
· Communications with Beneficiaries. Can a lawyer represent one or more of the beneficiaries of the estate and the fiduciary of the estate? No, not in the proper sense, and the beneficiaries would need to engage separate counsel to represent their interest. But, to the extent that the fiduciary of the estate is considered to be acting in a representative capacity (as the representative of the residuary beneficiaries of the estate), then the lawyer for the fiduciary arguably has a duty to such beneficiaries (see Matter of Clarke, 12 N.Y.2d 183, 187 (1962) (“An attorney for the fiduciary has the same duty of undivided loyalty to the cestui as the fiduciary himself”). That duty is sometimes discharged by the lawyer having necessary communications with such beneficiaries in the proper representation of the fiduciary as the client. See discussion above for issues arising out of attorney-client privilege. Indeed, pursuant to SCPA 2102(1), a fiduciary has a duty to respond to written requests for information concerning an estate, and the attorney for the estate will frequently provide to such beneficiaries copies of important documents in the estate, such as Federal and New York estate tax returns and related papers, even prior to an accounting.
· Representing Fiduciary in Individual and Representative Capacities. Can a lawyer represent a fiduciary both in his or her capacity as a fiduciary and his or her capacity as a beneficiary. Yes, and it happens all the time. But, what if the fiduciary/beneficiary has offered a will for probate and substantial litigation and/or controversies take place in the estate, such as a will contest and other similar problems for which your client is the target? The answer is still yes, but the lawyer needs to evaluate all of the consequences in these difficult scenarios.
· Consider: Retainer agreement. Who do you represent and who pays the bill?
· clients with differing goals in will contest (distributees with interest in challenging will; distributees with interest in sustaining a claim against the estate for debt.
Almost needs no introduction: It started with an attorney, in which, in 1931, the Court of Appeals held that, in the absence of an acceptable explanation, a jury would be justified in drawing an inference of undue influence as to a bequest drafted by the drafting attorney to the drafting attorney. Court advised: have someone else draw the Will under these circumstances.
· Putnam rule has been widely expanded to apply to just about anyone with a confidential relationship able to exercise influence.
· EC 5-6: Do not influence a client to name you as fiduciary; avoid the appearance of impropriety.
There may be circumstances which can justify a lawyer’s conduct in offering his services as executor. Principally, those circumstances must be such as support a firm conviction that the client would request his lawyer to serve in that capacity if he were aware of the lawyer’s willingness to accept the responsibility. Not only should the lawyer have enjoyed a long-standing relationship with the client, but it must also appear that the client is experiencing difficulty in selecting other persons qualified and competent to serve as executor.
· If, however, will is made prior to statute - 12/31/95, Court will examine on a case-by-case basis. However, as time passes, the window is virtually completely shut by the Court.
· form language in Will does not do the trick; need separate form.
· Query: whose will is it?!?!
Under the Putnam Rule, a legacy in favor of a person who is in a confidential relationship to the testator may be excised from a will if the Surrogate finds that the legacy was the product of undue influence. While the Putnam Rule is an offspring of the objection of undue influence,23 the Surrogate can allow the probate of the will but expunge the legacy.24 In applying the rule, the court either requires the submission of an affidavit or schedules a hearing to explore the circumstances that led to the legacy.
Canon 6: A Lawyer Should Represent a Client Competently.
EC 6-4: Having undertaken representation, a lawyer should use proper care to safeguard the interests of the client. If a lawyer has accepted employment in a matter beyond the lawyer’s competence but in which the lawyer expected to become competent, the lawyer should diligently undertake the work and study necessary to qualify. In addition to being qualified to handle a particular matter, the lawyer’s obligation to the client requires adequate preparation for and appropriate attention to the legal work, as well as promptly responding to inquiries from the client.
1. Handle a legal matter which the lawyer knows or should know that he or she is not competent to handle, without associating with a lawyer who is competent to handle it.
2. Handle a legal matter without preparation adequate in the circumstances.
3. Neglect a legal matter entrusted to the lawyer.
· If a lawyer does not have prior experience in a particular legal matter, he or she can still be engaged. For example, a lawyer who has no experience even in litigation in the Surrogate’s Court involving sophisticated tax issues can be engaged, provided that lawyer commits himself or herself in becoming competent or associates with a lawyer who is competent on the tax issues.
· For lawyers with insufficient experience in this area, consult and pay out of your own pocket someone who is. Ethically, professionally and economically required. The alternative: your very sophisticated client sees your lack of experience in working on the tax aspect of the litigation; and your client either gets bum work or fires you.
· Before mandatory CLE, maintaining your skills and ability, through CLE, permitted us lawyers to satisfying our ethical obligations.
· The use of legal assistants by trusts and estates lawyers brings on ethical obligations. Assuring proper oversight and training is necessary to assure that competent legal work is carried out in behalf of a client.
· Performing legal work effectively, and expeditiously, is an important component of carrying out competent legal work.
· Communicate, Communicate, Communicate!!!! The single biggest criticism of lawyers is their failure to return phone calls or otherwise communicate with their clients.
· What exactly is a non NY matter?
Canon 7: A Lawyer Should Represent a Client Zealously Within the Bounds of the Law.
The responsibilities of a lawyer may vary according to the intelligence, experience, mental condition or age of a client, the obligations of a public officer, or the nature of a political proceeding. Examples include the representation of an illiterate or an incompetent, service as a public prosecutor or other government lawyer, and appearances before administrative and legislative bodies.
Any mental or physical condition of a client that renders him incapable of making a considered judgment on his own behalf casts additional responsibilities upon his lawyer. Where an incompetent is acting through a guardian or other legal representative, a lawyer must look to such representative, for those decisions which are normally the prerogative of the client to make. If a client under disability has no legal representative, his lawyer may be compelled in court proceedings to make decisions on behalf of the client. If the client is capable of understanding the matter in question or of contributing to the advancement of his interests, regardless of whether he is legally disqualified from performing certain acts, the lawyer should obtain from him all possible aid. If the disability of a client and the lack of a legal representative compel the lawyer to make decisions for his client, the lawyer should consider all circumstances then prevailing and act with care to safeguard and advance the interests of his client. But obviously a lawyer cannot perform any act or make any decisions which the law requires his client to perform or make, either for himself if competent, or by a duly constituted representative if legally incompetent.
· Can you represent a third party in bringing a guardianship proceeding to appoint a guardian for your client?
(a) when a client’s ability to make adequately considered decisions in connection with the representation is impaired, whether because of minority, mental disability or for some other reason, the lawyer shall, as fair as reasonably possible, maintain a normal client-lawyer relationship with the client.
(b) A lawyer may seek the appointment of a guardian or take other protective action with respect to a client, only when the lawyer reasonably believes that the client cannot adequately act in the client’s own interest.
· Ethical dilemmas for advocates: When does your duty of advocacy end and your relationship to the Surrogate’s Court and its personnel begin?
Canon 8: A Lawyer Should Assist in Improving the Legal System.
Canon 9: A Lawyer Should Avoid Even the Appearance of Professional Impropriety.
EC 9-5: Separation of the funds of a client from those of his lawyer not only serves to protect the client but also avoids even the appearance of impropriety, and therefore commingling of such funds should be avoided.
A. Prohibition Against Commingling and Misappropriation of Client Funds or Property. A lawyer in possession of any funds or other property belonging to another person, where such possession is incident to his or her practice of law, is a fiduciary, and must not misappropriate such funds or property or commingle such funds or property with his or her own.
· Full compliance with DR 9-102 in dealing with client escrow accounts is essential to assure that a lawyer maintains his or her license to practice.
· Proper record keeping is the key.
· Should you use escrow accounts in the management of estates and trusts?
· DR 9-102 goes beyond the management of escrow accounts; it goes to the core of the lawyer’s business records. DR 9-102(D.) requires retention for 7 years many business records, including, but not limited to, all escrow account records, special account records, retainer and compensation agreements, client disbursement records and bills.
· What are the stakes in proper management of escrow accounts: Tarrytown lawyers, Robert J. Ponzini, Robert W. Spencer and Thomas W. Maroney know that the stakes were very high, when their license were suspended (later modified by the Second Department).
· What about check fees, for example, certified check fees? Either know, with certainty, what they are if you permit them to be charged against the escrow account. Or, do what my firm does, and have such charges assessed against our firm’s business account.
21 257 NY 140, 177 NE 399 (1931).
22 Id at 143, 177 NE at 400. See also New York State Bar Association Code of Professional Responsibility EC 5-5 (1975). See generally Groppe, Putnam/Weinstock Revisited: Problems Facing the Attorney/Legatee/ Fiduciary, 7 Newsletter of General Practice Section NYSBA (1986).
23 See generally Children's Aid Socy v Loveridge, 70 NY 387 (1877).
24 Matter of Lawson, 75 AD2d 20, 428 NYS2d 106 (4th Dept 1980); Matter of Eckert, 93 Misc 2d 677, 403 NYS2d 633 (1978).
25 Matter of Hayes, 49 Misc 2d 152, 267 NYS2d 452 (1966).
26 Matter of Satterlee, 281 AD 251, 119 NYS2d 309 (1st Dept 1953).
27 Matter of McCarthy, 269 AD 145 54 NYS2d 591 (1st Dept 1945), affd , 296 NY 987, 73 NE2d 566 (1947).
28 Gordon v Bialystoker Center, 45 NY2d 692, 385 NE2d 285, 412 NYS2d 593 (1978); Matter of Burke, 82 AD2d 260, 441 NYS2d 542 (2d Dept 1981).
29 Matter of Collins, 124 AD2d 48, 510 NYS2d 940 (9th Dept 1987).
30 Marx v McGlynn, 88 NY 357 (1882) (a precursor to Putnam , in which it is cited, Matter of Putman, 257 NY 140, 144, 146, 177 NE 399, 400-01 (1931)).
31 Matter of Guidi, 259 AD 652, 20 NYS2d 240 (1940).
32 40 NY2d 1, 351 NE2d 647, 386 NYS2d 1 (1976).
33 Id at 5, 351 NE2d at 648, 386 NYS2d at 3.
34 111 AD2d 924, 491 NYS2d 35 (2d Dept 1985).
35 Matter of Stalbe, 130 Misc 2d 725, 727, 497 NYS2d 237, 240 (1985).
36 See, e.g., Matter of Harris, 123 Misc 2d 247, 473 NYS2d 125 (1984). Some Surrogate's Courts require the probate petition to disclose whether an attorney-fiduciary or a member of the firm is a drafter of the will, and if so the drafter is required to prepare and file an affirmation setting forth the facts and circumstances surrounding the testator's selection of the drafter as a fiduciary of the estate. These affirmations, which are sometimes required to be filed in probate and accounting proceedings, are apparently being used to determine the reasonableness of commissions and attorney fees for an attorney-fiduciary.

References: §137
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