7. Law firms and associations (4-10%)

Question 1

In what two instances will lawyer A be vicariously liable for lawyer B’s violation of the RPC?

Answer 1

1. Lawyer A orders or ratifies the conduct involved, or
2. Lawyer A has authority over lawyer B, knows of the conduct at a time when its consequences can be avoided/mitigated, but fails to take reasonable remedial action

Question 2

Is the fact lawyer B acted at the direction of lawyer A a defence for lawyer B?

Answer 2

No, unless it was a “reasonable resolution of an arguable question of professional duty”

Question 3

What are the three exceptions to the prohibition of splitting fees with non-lawyers?

Answer 3

1. Paying non-lawyer employees
2. Sharing court-awarded legal fees with a non-profit if the non-profited had hired the lawyer
3. Paying firm benefits to a deceased lawyer’s estate / buying a deceased/disabled lawyer’s practice and making payment to a non-lawyer representative

Question 4

What one clause is prohibited from being in a settlement agreement?

Answer 4

Restriction on the lawyer’s right to practice, except for in retirement agreements