Opinion ID: 1595333
Heading Depth: 1
Heading Rank: 3

Heading: Misrepresentations and Improper Disclosures

Text: The referee made a number of findings in support of his conclusion that Fuller violated Minn. R. Prof. Conduct 1.6(a) & (d) by revealing confidences and secrets gained during representation of Imprint and Hanson. Fuller first argues that Hanson's chemical dependency and treatment plans were not a client secret because he did not gain the information from his professional relationship with Hanson and that Hanson had given him permission to disclose the treatment plans. Fuller also asserts that referring to Hanson's need for treatment was much less harmful to Hanson than stating that the reason for his withdrawal was due to an extensive number of improper and fraudulent activities. Hanson testified at Fuller's disciplinary hearing that he did not recall ever discussing his treatment plans with Fuller and that he never authorized Fuller to disclose his plans. The referee concluded that Fuller disclosed Hanson's treatment plans, which were a client secret as defined by Minn. R. Prof. Conduct 1.6(d). The referee also concluded that Fuller had violated Minn. R. Prof. Conduct 1.6(d) when he disclosed that Hanson had written worthless checks. Fuller alleges that although he represented Hanson in the criminal action relating to his worthless checks, Hanson's conviction for theft by check was a public record, so it cannot be a client secret. The referee agreed with Fuller that disclosure of Hanson's conviction for theft by check did not violate the Rules of Professional Conduct; however, Fuller did not give any justification for his disclosures that Hanson continually wrote Fuller worthless checks, which the referee concluded to be disclosure of a client secret. Fuller responds to all the charges of improper disclosure of client confidences by asserting that he was required to disclose the information so he would not be assisting Hanson in illegal activity. Minn. R. Prof. Conduct 1.6(b) provides six circumstances in which an attorney may disclose client confidences. The first exception is that an attorney may disclose a client confidence if he has the consent of the client. See Minn. R. Prof. Conduct 1.6(b)(1). The other exceptions relevant to this petition are that an attorney may reveal the intention of a client to commit a crime and information necessary to prevent a crime and confidences and secrets necessary to rectify the consequences of a client's criminal or fraudulent act in the furtherance of which the lawyer's services were used. Minn. R. Prof. Conduct 1.6(b)(3) & (4). Fuller maintains that his duty to the bankruptcy court required him to disclose: (1) Hanson's inability to operate due to his alcoholism, (2) Hanson's continuing practice of issuing worthless checks, and (3) Hanson's intent to defraud Imprint's landlords. Fuller explains that throughout his representation of Hanson, parties to the actions relied on Fuller's integrity, even though they doubted Hanson's. Therefore, Fuller argues that he was required to disclose that he was not representing Hanson and that the parties should not rely on past representations of Fuller about Hanson's stability and commitment to pay his debts. Fuller relies on Minnesota law and federal bankruptcy law for the proposition that he was required to make disclosures to all others in the bankruptcy action. See, e.g., Hoppe v. Klapperich, 224 Minn. 224, 240-241, 28 N.W.2d 780, 791 (1947); In re Rivers, 167 B.R. 288, 301 (Bkrtcy. N.D.Ga.1994). In Hoppe, we concluded that an attorney is a quasi judicial officer and that when a client's interests conflict with the public's interests, the attorney must first fulfill his duties to the public as an officer of the court. See Hoppe, 224 Minn. at 240-41, 28 N.W.2d at 791. In Rivers, the bankruptcy court explained that when the interests of the debtor in possession conflict with those of the court and the bankruptcy estate, it is the estate and the court to which the attorney owes his highest allegiance. 167 B.R. at 301. Fuller argues that his duties to the bankruptcy court and the bankruptcy estate overrode any state law duty to maintain Hanson's confidences. Additionally, Fuller argues, our pronouncements in Hoppe also dictate that he has a duty to the public to stop the ongoing fraud by his client. While federal and state law may require-and the Rules of Professional Conduct may authorize-an attorney to disclose the ongoing fraud by a client, it is the scope and methods taken by Fuller that have created the disciplinary problem. Fuller is correct that he could have potential liability for Hanson's wrongdoing if he provided any assistance to Hanson's alleged scheme. See Hoppe, 28 N.W.2d at 792. However, Fuller overcompensated and disclosed more information to more persons than the law requires or the Rules of Professional Conduct authorizes. The referee found that Fuller made unsubstantiated allegations of death threats, underreporting the sale price of some Imprint assets, gambling, and murder. Fuller testified that he believes all of his statements were truthful and that most were based on statements Hanson made to him, but Fuller is unable to provide substantiating factual support. As a result, the referee found that the disclosures by Fuller were not made for any legitimate purpose. The referee then concluded that Fuller's statements in many of the letters violated Minn. R. Prof. Conduct 3.3(a), 4.1, 4.4, 8.4(c), and 8.4(d). Even if Fuller could prove the allegations he made in his letters, these disclosures would still need to be justified under Minn. R. Prof. Conduct 1.6(b), which limits the circumstances under which an attorney can reveal client confidences. Although it is plausible for Fuller to argue that he was required to notify the attorney for Imprint's landlords that Hanson intended to defraud them, it is less plausible for Fuller to argue he was required to notify persons, such as the Vice President and the U.S. Attorney General, of Hanson's alleged death threats to Fuller, of Hanson's serial bankruptcies, or of Hanson's theft of the Imprint 401(k) monies. We agree with the referee's conclusion that Fuller made improper disclosures; therefore, we conclude the referee's findings and his conclusion that Fuller violated Minn. R. Prof. Conduct 3.3(a), 4.1, 4.4, 8.4(c), and 8.4(d) are not clearly erroneous.