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Chapter 3

Chapter 3. The Business, Technology, and Marketing of Legal Services. A. Finding Clients. A taste of advertising What issue of professionalism do advertising and billing implicate? Businessperson or professional ?. Finding Intro.

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Chapter 3

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  1. Chapter 3 The Business, Technology, and Marketing of Legal Services

  2. A. Finding Clients A taste of advertising What issue of professionalism do advertising and billing implicate? Businessperson or professional?

  3. Finding Intro • What Chief Justice provided a testimonial to a lawyer advertisement? • What President advertised as a lawyer? • What Rule (s) govern solicitation? • Rule 7.3, if permissible Rule 7.1 • What Rule(s) govern advertising? • Rules 7.1-7.5

  4. What do Hazard, Pearce & Stempel suggest is the primary cause of anxiety about advertising?

  5. Solicitation 3-1 • Attorney is a sole practitioner whose practice is largely in the areas of tax, wills, estates, and trusts. Attorney learned of a new Internal Revenue Service (IRS)regulation that probably affects the trust provisions in a will she prepared for Testatrix two years ago. Attorney has not represented Testatrix since she drew the will. Is Attorney subject to discipline if she calls Testatrix and advises her of the new IRS ruling and the need to revise the will? • Yes, if Attorney has any reason to believe that Testatrix has another lawyer.Yes, because Attorney would be soliciting legal business from a person who is not a current client. • No, provided Attorney does not thereafter prepare a new will for Testatrix.No, because Testatrix is a former client of Attorney.

  6. What’s the Rule governing solicitation and how does it apply? • Rule 7.3 (a)  A lawyer shall not by in‑person, live telephone or real-time electronic contact solicit professional employment when a significant motive for the lawyer's doing so is the lawyer's pecuniary gain, unless the person contacted: • (1)  is a lawyer; or • (2)  has a family, close personal, or prior professional relationship with the lawyer. • But keep in mind: (b)  A lawyer shall not solicit professional employment by written, recorded or electronic communication or by in‑person, telephone or real-time electronic contact even when not otherwise prohibited by paragraph (a), if: • (1)  the target of the solicitation has made known to the lawyer a desire not to be solicited by the lawyer; or • (2)  the solicitation involves coercion, duress or harassment.

  7. Why does the Supreme Court permit a ban on solicitation, but not advertising? • Ohralik • Danger of “fraud, undue influence, intimidation, overreaching” • Personal pressure • Uninformed decisionmaking • Difficulty of policing

  8. Solicitation 3-2 • Alpha, an associate at Lincoln & Center, working on a pro bono case for the ACLU, solicits clients for litigation to challenge the requirement of sterilization for pregnant mothers in order to continue receiving Medicaid. Has Alpha committed a disciplinary violation? • yes • no

  9. What is the relevant Rule and how does it apply? • Rule 7.3 (a)  A lawyer shall not by in‑person, live telephone or real-time electronic contact solicit professional employment when a significant motive for the lawyer's doing so is the lawyer's pecuniary gain, unless the person contacted: • (1)  is a lawyer; or • (2)  has a family, close personal, or prior professional relationship with the lawyer.

  10. Could the Rules constitutionally prohibit the solicitation activity in this problem? • In re Primus • Pro Bono/ “not for pecuniary gain” • Political expression and association

  11. Advertising 3-3 • An attorney served two four-year terms as the state's governor immediately prior to reopening his law office in the state. The attorney printed and mailed an announcement of his return to private practice to members of the bar, previous clients, and personal friends whom he had never represented. The printed announcement stated that the attorney had reopened his law office, gave his address and telephone number, and added that he had been the state's governor for the past eight years. The outside envelope for the mailing displayed the phrase "Advertising Material." Is the attorney subject to discipline for the announcement? • Yes, because the mailing included persons who had not been his clients.Yes, because his service as governor is unrelated to his ability as a lawyer.No, because the information in the announcement was true.No, because the announcement does not display the words "advertising material."

  12. What Rules apply? • How do we know that the Rules permit advertising? • Rule 7.2(a) • Subject to the requirements of Rules 7.1 and 7.3, a lawyer may advertise services through written, recorded or electronic communication, including public media. • What Rule governs the content of the mailing? • Rule 7.1 • A lawyer shall not make a false or misleading communication about the lawyer or the lawyer's services. A communication is false or misleading if it contains a material misrepresentation of fact or law, or omits a fact necessary to make the statement considered as a whole not materially misleading. • What Rule determines whether it was necessary to label the mailing “advertising material”? • Rule 7.3 (c)  • Every written, recorded or electronic communication from a lawyer soliciting professional employment from anyone known to be in need of legal services in a particular matter shall include the words "Advertising Material" on the outside envelope, if any, and at the beginning and ending of any recorded or electronic communication, unless the recipient of the communication is a person specified in paragraphs (a)(1) or (a)(2). Comment [8]  General announcements by lawyers, including changes in personnel or office location, do not constitute communications soliciting professional employment from a client known to be in need of legal services within the meaning of this Rule.

  13. 3-4 • A recently graduated attorney began a plaintiff's personal injury practice, but was having a difficult time attracting clients. The attorney hired an advertising agency to prepare a television commercial in which the attorney appeared to be arguing a case before a jury. In the commercial, the jury brought back a large award for the attorney's client. The voice-over stated that results would vary depending upon the particular legal and factual circumstances. The attorney's only experience at the time the commercial was filmed was in moot court in law school. As a result of airing the commercial, the attorney received several significant cases. Is the attorney subject to discipline? • Yes, because the commercial created an unjustified expectation about the results that could be achieved in court. • Yes, because the commercial implied that the attorney had successfully argued a case to a jury.No, because commercial speech is protected under the First Amendment.No, because the commercial contained an express disclaimer about the results a client could expect.

  14. What Rule? • Rule 7.1 A lawyer shall not make a false or misleading communication about the lawyer or the lawyer's services. A communication is false or misleading if it contains a material misrepresentation of fact or law, or omits a fact necessary to make the statement considered as a whole not materially misleading. • Can a truthful advertisement be misleading? • Comment [2]  Truthful statements that aremisleading are also prohibited by this Rule. A truthful statement is misleading if it omits a fact necessary to make the lawyer's communication considered as a whole not materially misleading. A truthful statement is also misleading if there is a substantial likelihood that it will lead a reasonable person to formulate a specific conclusion about the lawyer or the lawyer's services for which there is no reasonable factual foundation. • Comment [3]  An advertisement that truthfully reports a lawyer's achievements on behalf of clients or former clients may be misleading if presented so as to lead a reasonable person to form an unjustified expectation that the same results could be obtained for other clients in similar matters without reference to the specific factual and legal circumstances of each client's case. Similarly, an unsubstantiated comparison of the lawyer's services or fees with the services or fees of other lawyers may be misleading if presented with such specificity as would lead a reasonable person to conclude that the comparison can be substantiated. The inclusion of an appropriate disclaimer or qualifying language may preclude a finding that a statement is likely to create unjustified expectations or otherwise mislead the public.

  15. 3-5 • Attorney advertises on the local television station. In the advertisements, a professional actor says: "Do you need a lawyer? Call Attorney-her telephone number is area code (555) 555-5555 and her office address is 1234 Center Lane, Lincoln City, State of Fordham. Her fees might be lower than you think." Attorney approved the prerecorded advertisement and is keeping in her office files a copy of the recording of the actual transmission and a record of when each transmission was made. Is the advertisement proper? • Yes.No, unless Attorney's fees are lower than those generally charged in the area where she practices. • No, because she used a professional actor for the television advertisement.No, if she makes a charge for the initial consultation.

  16. As a general matter, does this advertisement satisfy Rule 7.2? • Rule 7.2 Advertising • (a) Subject to the requirements of Rules 7.1 and 7.3, a lawyer may advertise services through written, recorded or electronic communication, including public media. • c) Any communication made pursuant to this rule shall include the name and office address of at least one lawyer or law firm responsible for its content.

  17. Is it proper to say “her fees may be lower than you think”? • Rule 7.1 A lawyer shall not make a false or misleading communication about the lawyer or the lawyer's services. A communication is false or misleading if it contains a material misrepresentation of fact or law, or omits a fact necessary to make the statement considered as a whole not materially misleading. • Comment [3]  An advertisement that truthfully reports a lawyer's achievements on behalf of clients or former clients may be misleading if presented so as to lead a reasonable person to form an unjustified expectation that the same results could be obtained for other clients in similar matters without reference to the specific factual and legal circumstances of each client's case. Similarly, an unsubstantiated comparison of the lawyer's services or fees with the services or fees of other lawyers may be misleading if presented with such specificity as would lead a reasonable person to conclude that the comparison can be substantiated. The inclusion of an appropriate disclaimer or qualifying language may preclude a finding that a statement is likely to create unjustified expectations or otherwise mislead the public.

  18. Must the ad say “advertising material”? • Rule 7.3 (c)   Every written, recorded or electronic communication from a lawyer soliciting professional employment from anyone known to be in need of legal services in a particular matter shall include the words "Advertising Material" on the outside envelope, if any, and at the beginning and ending of any recorded or electronic communication, unless the recipient of the communication is a person specified in paragraphs (a)(1) or (a)(2). • Query: Is this advertisement aimed at someone “known to be in need of legal services”?

  19. Is this ad acceptable? • Ad: I fix problems

  20. Review the Rules“I fix problems”“1/3 of a billion” • Rule 7.1 A lawyer shall not make a false or misleading communication about the lawyer or the lawyer's services. A communication is false or misleading if it contains a material misrepresentation of fact or law, or omits a fact necessary to make the statement considered as a whole not materially misleading. • Can a truthful advertisement be misleading? • Comment [3]  An advertisement that truthfully reports a lawyer's achievements on behalf of clients or former clients may be misleading if presented so as to lead a reasonable person to form an unjustified expectation that the same results could be obtained for other clients in similar matters without reference to the specific factual and legal circumstances of each client's case. Similarly, an unsubstantiated comparison of the lawyer's services or fees with the services or fees of other lawyers may be misleading if presented with such specificity as would lead a reasonable person to conclude that the comparison can be substantiated. The inclusion of an appropriate disclaimer or qualifying language may preclude a finding that a statement is likely to create unjustified expectations or otherwise mislead the public.

  21. Does Rule 8.4 (e) create a problem? • Rule 8.4 Misconduct • It is professional misconduct for a lawyer to: • (e) state or imply an ability to influence improperly a government agency or official or to achieve results by means that violate the Rules of Professional Conduct or other law;

  22. “advertising material”? • (c)   Every written, recorded or electronic communication from a lawyer soliciting professional employment from anyone known to be in need of legal services in a particular matter shall include the words "Advertising Material" on the outside envelope, if any, and at the beginning and ending of any recorded or electronic communication, unless the recipient of the communication is a person specified in paragraphs (a)(1) or (a)(2).

  23. 3-6 • An attorney represented a plaintiff in an action against a manufacturer of a drain cleaner. The plaintiff's complaint alleged that the manufacturer's product exploded in use and caused her serious and permanent injuries. The jury agreed and awarded the plaintiff $5,000,000 in actual damages and an additional $5,000,000 in punitive damages. The manufacturer paid the judgment. The attorney made this recovery the cornerstone of an aggressive television advertising campaign for his law practice. In those ads, a voice-over discussed the $10,000,000 recovery obtained in the plaintiff's case. The plaintiff praised the attorney's legal skills in an on-camera statement, saying that no one would work harder on a case than the attorney. The plaintiff prepared her on-camera statement in response to the attorney's request, but without any further involvement by the attorney, and she believed it to be entirely true. Is the attorney subject to discipline for using the television advertisement described above? • Yes, because the advertisement is likely to create an unjustified expectation about the results the attorney will be able to achieve and is therefore misleading. • Yes, because the attorney's advertisement contains a client testimonial. • No, because the plaintiff prepared the entire statement without any involvement by the attorney. • No, because the result obtained in the plaintiff's case was reported accurately, and the plaintiff believed that everything she said about the attorney was true.

  24. Rule 7.1 A lawyer shall not make a false or misleading communication about the lawyer or the lawyer's services. A communication is false or misleading if it contains a material misrepresentation of fact or law, or omits a fact necessary to make the statement considered as a whole not materially misleading. • Rule 7.1 Comment [3]  An advertisement that truthfully reports a lawyer's achievements on behalf of clients or former clients may be misleading if presented so as to lead a reasonable person to form an unjustified expectation that the same results could be obtained for other clients in similar matters without reference to the specific factual and legal circumstances of each client's case. Similarly, an unsubstantiated comparison of the lawyer's services or fees with the services or fees of other lawyers may be misleading if presented with such specificity as would lead a reasonable person to conclude that the comparison can be substantiated. The inclusion of an appropriate disclaimer or qualifying language may preclude a finding that a statement is likely to create unjustified expectations or otherwise mislead the public.

  25. 3-7 Attorney Alpha, a member of the bar, placed a printed flyer in the booth of each artist exhibiting works at a county fair. The face of the flyer contained the following information: "I, Alpha, am an attorney, with offices in 800 Bank Building, telephone (555) 555-5555. I have a J.D. degree from State Law School and an M.A. degree in fine arts from State University. My practice includes representing artists in negotiating contracts between artists and dealers and protecting artists' interests. You can find me in the van parked at the fair entrance." All factual information on the face of the flyer was correct. There was a retainer agreement on the back of the flyer. At the entrance to the fair, Alpha parked a van with a sign that read "Alpha-Attorney at Law." For which, if any, of the following is Alpha subject to discipline? • A. Placing copies of the flyer in the booth of each artist. • B. Including a retainer agreement on the back of the flyer. • C. Parking the van with the sign on it at the fair entrance. • D. A & B. • E. All of the above. • F. None of the above.

  26. Rules and result • Rule 7.1 False and misleading? • Rule 7.3. Solicitation? • Rule 7.2(c). Office address?. • Rule 7.4 (a) & (d). Specialist? (cont.)

  27. Rule 7.4 Communication of Fields of Practice and Specialization • (a) A lawyer may communicate the fact that the lawyer does or does not practice in particular fields of law. • (b) A lawyer admitted to engage in patent practice before the United States Patent and Trademark Office may use the designation "Patent Attorney" or a substantially similar designation. • (c) A lawyer engaged in Admiralty practice may use the designation "Admiralty," "Proctor in Admiralty" or a substantially similar designation. • (d) A lawyer shall not state or imply that a lawyer is certified as a specialist in a particular field of law, unless: • (1) the lawyer has been certified as a specialist by an organization that has been approved by an appropriate state authority or that has been accredited by the American Bar Association; and • (2) the name of the certifying organization is clearly identified in the communication.

  28. 3-8 • Alpha and Beta practiced law under the firm name of Alpha & Beta. When Beta died, Alpha did not change the firm name. Thereafter, Alpha entered into an arrangement with another attorney, Gamma. Gamma pays Alpha a certain sum each month for office space, for use of Alpha's law library, and for secretarial services. Alpha and Gamma each have their own clients, and neither participates in the representation of the other's clients or shares in fees paid. On the entrance to the suite of offices shared by Alpha and Gamma are the words "Law Firm of Alpha, Beta & Gamma." Is Alpha subject to discipline? • Yes, because Beta was deceased when Alpha made the arrangement with Gamma. • Yes, because Gamma is not a partner of Alpha.No, because Alpha and Beta were partners at the time of Beta's death.No, because Gamma is paying a share of the rent and office expenses.

  29. What Rule and what result? • Rule 7.5(a) A lawyer shall not use a firm name, letterhead or other professional designation that violates Rule 7.1. A trade name may be used by a lawyer in private practice if it does not imply a connection with a government agency or with a public or charitable legal services organization and is not otherwise in violation of Rule 7.1. • (b) A law firm with offices in more than one jurisdiction may use the same name or other professional designation in each jurisdiction, but identification of the lawyers in an office of the firm shall indicate the jurisdictional limitations on those not licensed to practice in the jurisdiction where the office is located. • (c) The name of a lawyer holding a public office shall not be used in the name of a law firm, or in communications on its behalf, during any substantial period in which the lawyer is not actively and regularly practicing with the firm. • (d) Lawyers may state or imply that they practice in a partnership or other organization only when that is the fact. • (cont.)

  30. Comment [1] . . . use of such names in law practice is acceptable so long as it is not misleading. If a private firm uses a trade name that includes a geographical name such as "Springfield Legal Clinic," an express disclaimer that it is a public legal aid agency may be required to avoid a misleading implication. It may be observed that any firm name including the name of a deceased partner is, strictly speaking, a trade name. The use of such names to designate law firms has proven a useful means of identification. However, it is misleading to use the name of a lawyer not associated with the firm or a predecessor of the firm, or the name of a nonlawyer.

  31. Get What’s Yours • Spot the Issues • Rule 7.1 False and misleading? • Rule 7.3. Solicitation? • Rule 7.2(c). Office address? • Rule 7.3 (c). Advertising material? • Rule 7.4 (a) & (d). Specialist? • Rule 7.5. Trade name?

  32. Types of Ads that Troubled New York • Client Testimonial • GettingAttention • Trade Name • The Alexander firm

  33. 3-9 • The State of Fordham decides to restrict lawyer advertisements in order to protect the reputation of lawyers and to prevent lawyers from misleading potential clients. Fordham enacts content restrictions prohibiting lawyers from using client testimonials, attention-getting techniques that are clearly unrelated to criteria for selecting a lawyer, or "a nickname, moniker, motto or trade name that implies an ability to obtain results in a matter." It also establishes a thirty-day moratorium on targeted advertising following a particular personal injury event. Plaintiffs sue to enjoin these restrictions. What result? • The Court upholds both the content restrictions and the moratorium. • The Court upholds the content restrictions, but not the moratorium. • The Court upholds the moratorium, but not the content restrictions. • The Court enjoins both the content restrictions and the moratorium.

  34. What result? • ALEXANDER v. CAHILL, 598 F.3d 79 (2d Cir. 2010), Casebook p. 216, concluded that the content restrictions failed to satisfy the Supreme Court‘s Central Hudson test for restrictions on commercial speech, but that the moratorium properly extended to all advertising the restriction on targeted direct mailing that the Supreme Court upheld in the Florida Bar case. • Central Hudson Test: Commercial speech not protected unless it “concern[s] lawful activity and [is] not misleading.” Government can additionally regulate if “governmental interest is substantial,” “the regulation directly advances the governmental interest,” and the regulation “is not more extensive than necessary to serve that interest.”

  35. 3-10 • An attorney and a restaurant owner entered into a reciprocal referral arrangement. The attorney agreed to prominently display ads for the restaurant in her office, and to mention the restaurant to all her clients who requested a recommendation of a nearby place to eat. In return, the owner agreed to prominently display ads for the attorney's firm in the restaurant and to recommend the attorney to any of his customers who indicated a need for the services provided by the attorney. The reciprocal referral agreement was not exclusive, and the clients and customers would be informed of the existence and nature of the agreement. Is the attorney subject to discipline for entering into this agreement? • Yes, because she asked the owner to place ads for the firm in the restaurant. • Yes, because the agreement provided something of value to the restaurant owner in return for recommending the attorney's services. • No, because she did not pay the restaurant owner for the referrals. • No, because the agreement is not exclusive, and the clients and customers will be informed of the existence and nature of the agreement.

  36. Rule 7.2 permits referral. So why that result? • Rule 7.2 (b)(4) refer clients to another lawyer or a nonlawyer professional pursuant to an agreement not otherwise prohibited under these Rules that provides for the other person to refer clients or customers to the lawyer, if • (i) the reciprocal referral agreement is not exclusive, and • (ii) the client is informed of the existence and nature of the agreement.

  37. Finding Review -1 • What is the distinction between advertising and solicitation? • Solicitation is “in‑person, live telephone or real-time electronic contact solicit professional employment.” Rule 7.3. Advertising is marketing that does not fall within this definition. • Can a lawyer solicit business from: • In-house counsel? • A close friend? • A former client? • From anyone if the motive is not pecuniary gain?

  38. Finding Review • Can truthful advertising ever violate the Rules? • Rule 7.1 & comment • True or false: A lawyer can never make a reciprocal referral agreement. • Rule 7.2(b)(4) • Can a lawyer ever indicate her specialty in an advertisement? • Rule 7.4 • True or false: A lawyer or law firm can never use a trade name • Rule 7.5 (a)

  39. Even more review • Green & Fazio I • Green & Fazio II

  40. Chapter 3-2 Billing Clients

  41. Under professionalism, why is billing a difficult topic? • Business-Profession dichotomy • Barratry

  42. What are corporate clients thinking?

  43. Billing Intro I • What Rule generally governs fees? • Rule 1.5 • What Rules have special application to attorney’s fees? • Rule 1.5 (c), Rule 1.8 (i) • What Rule provides guidelines for safekeeping and disbursement of fees and property? • Rule 1.15 • What Rule governs gifts, financial assistance to clients, payment with equity, media rights, and financial ? • Rule 1.8 (c), (e), (a), and (d).

  44. 3-11 • A company's president telephoned his city's best-known employment attorney and asked her to represent the company in a dispute that had just arisen with the company's chief financial officer. The attorney, who had never previously represented the company, agreed. At the president's insistence, she immediately commenced the representation. A few days later, during a meeting with the president, the attorney first revealed the amount of her customary hourly fee and then explained that the company would also be responsible for reimbursing her expenses. The president responded that her fee was higher than he had expected but that he would be happy for the company to pay it, given her excellent work to date. Although the attorney intended to follow up with a confirming letter, she never did so. For several more months, she assisted the company in resolving its employment dispute. Afterward, she sent the company a bill accurately reflecting her hourly fee and expenses, which were reasonable. Is the attorney subject to discipline? • Yes, because she did not disclose the basis of her fee before commencing the representation.  • Yes, because she did not confirm her fee agreement in writing.  • No, because she disclosed the basis of her fee within a reasonable time after commencing the representation.  • No, because she was not required to advise the client of her customary hourly fee, unless requested to do so.

  45. What rule and what result? • Rule 1.5 (a) A lawyer shall not make an agreement for, charge, or collect an unreasonable fee or an unreasonable amount for expenses. The factors to be considered in determining the reasonableness of a fee include the following: • (1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly; • (2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer; • (3) the fee customarily charged in the locality for similar legal services; • (4) the amount involved and the results obtained; • (5) the time limitations imposed by the client or by the circumstances; • (6) the nature and length of the professional relationship with the client; • (7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and • (8) whether the fee is fixed or contingent. • Rule 1.5 (b) The scope of the representation and the basis or rate of the fee and expenses for which the client will be responsible shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation, except when the lawyer will charge a regularly represented client on the same basis or rate. Any changes in the basis or rate of the fee or expenses shall also be communicated to the client.

  46. 3-12 • Is it ethical for an attorney to bill two clients the hourly fees for work performed at the same time (e.g. billing one client for reviewing a contract while traveling for another client)?  Yes  No

  47. What authority and what result? • ABA Formal Op. 93-379 • Rule 1.5 (a) The factors to be considered in determining the reasonableness of a fee include the following: • (1) the time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly; • (2) the likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer; • (3) the fee customarily charged in the locality for similar legal services; • (4) the amount involved and the results obtained; • (5) the time limitations imposed by the client or by the circumstances; • (6) the nature and length of the professional relationship with the client; • (7) the experience, reputation, and ability of the lawyer or lawyers performing the services; and • (8) whether the fee is fixed or contingent.

  48. Rule 1.5 (b) The scope of the representation and the basis or rate of the fee and expenses for which the client will be responsible shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation, except when the lawyer will charge a regularly represented client on the same basis or rate. Any changes in the basis or rate of the fee or expenses shall also be communicated to the client. • Comment [2] . . . In a new client-lawyer relationship, however, an understanding as to fees and expenses must be promptly established. Generally, it is desirable to furnish the client with at least a simple memorandum or copy of the lawyer's customary fee arrangements that states the general nature of the legal services to be provided, the basis, rate or total amount of the fee and whether and to what extent the client will be responsible for any costs, expenses or disbursements in the course of the representation. A written statement concerning the terms of the engagement reduces the possibility of misunderstanding.

  49. Rules of General Application • Rule 1.4(b) A lawyer shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation. • Rule 7.1 A lawyer shall not make a false or misleading communication about the lawyer or the lawyer's services. A communication is false or misleading if it contains a material misrepresentation of fact or law, or omits a fact necessary to make the statement considered as a whole not materially misleading.

  50. 3-13 • Three of your clients have asked you to analyze the same proposed legislation. Any work you perform for the clients is billed on an hourly basis. If you spend one hour analyzing the legislation, is it ethical to bill each client one hour for the time spent?  Yes  • No

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