The Concept of Ethics in Law Office Management

The concept of ethics is a major topic when it comes to law and law offices. Ethics is a contributing factor for so many things, including things like laws and beliefs, that it isn't something that can be easily ignored. Some regard ethics as a series of rules for how they conduct themselves in both professional and personal settings. Others do not consciously think about ethics and what role it has in their lives and in society.

Ethics can be a governing force for all of a law firm's aspects and it is highly important for law office management. It is present on multiple levels and can create an impact on multiple levels as well. Those who are in charge of managing a law office, whether it is a law office manager specifically or other staff members of the firm, will need to pay attention to the involvement of ethics with their management capabilities.

What Is Ethics?

Ethics is a term applied to codes of conduct that influence and regulate professional behavior and the obligations associated with it. 1 There are professional organizations and associations that determine what is included in an industry's ethical code. For the legal system, the American Bar Association adopted the Rules of Professional Conduct in 1983 and every state bar association-excluding California, which has its own code-has adopted it since. 2

In a profession, it is the associated code of ethics that dictates what behavior is acceptable and what isn't. For them to be able to legally practice law, all lawyers must swear to uphold the code of ethics adopted by their state bar association. Violations of the ethical code of conduct can have serious consequences, as discussed later in this article.

How Does Ethics Affect Law Office Management?

The short description of what in law office management is affected by ethics and professional codes of conduct is everything. Each aspect of law office management can be potentially shaped by the restrictions of ethics and the professional code. How those elements are affected will depend on what they are and what is laid out in the code. While there is a nationally accepted code-sans California-each state does have its own supplementary ethics code that is accepted in their courts system. Thus, the location of a law office can also be a contributing factor with ethics and law office management.

Structurally-The structuring of a law office is going to be heavily affected by ethics. When a law office is first getting started, everything about the office is decided upon with influence from the Rules of Professional Conduct. For example, the way law offices choose their name is based on the Rules; specifically regulations that, to summarize, state that names and other identifying pieces of information should not mislead the public. 3 It is often why law offices use the names or the firm partners in their name-but only the actively practicing members who are actually partners. And alive-a firm partner whose name is listed in part of the office's name must be removed from the office name in the event of their death, per ethics restrictions. Such restrictions requires a lot of planning and careful decision making when deciding upon the structure of the firm.

Structural changes made to a law office once it is operational can also be affected by ethics. Those changes must be in compliance with the Rules of Professional Conduct and any violations can result in those changes being required to reverse. One such change that has become prevalent amongst law offices, the decision to go paperless or convert to digital files and records, has come under debate about whether or not it violates legal ethics. 4 The increase in usage of technology was not something originally considered when the ethical code was first written, putting technological additions in a sort of ethics grey-zone. The use of technology itself isn't considered a violation, but it can open the doors to potential violations due to its usage.

Daily Operations-The daily operations of a law office are going to be first affected by the structure of the firm and the ethics that shaped it. Any ethics regulations that did not affect the law office's structure can still affect its operations. Client interactions are a part of a law office's daily operations, and how a lawyer and their firm treats and interacts with clients is affected by ethics. Most ethics violations occur or are discovered through client interactions, as most instances are reported by clients who witnessed an ethics violation.

Actions taken by a staff member-lawyer or otherwise-that are considered in violation of the ethical code as set by the state's bar association can result in the entire firm being penalized. The handling of confidential information or actions that put the safety of a client at risk are often examples of actions that may be seen as ethical violations. Mistakes in management tasks, such as the organization of files and their disposal, can still be penalized even if they are the result of an accident.

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Personnel-The personnel of a law office are bound to the same ethics guidelines as the licensed lawyers are because their actions can have a widespread effect. As with the example above, inappropriate handling of a file containing a client's confidential information can expose them to danger. Security breaches are not uncommon in the legal system, and that information can allow for some serious damage if it ended up in the wrong hands. If, for example, a client's identity is stolen and the source is traced back to their lawyer, it's not going to look good. Whether it's directly or indirectly, the law office is responsible for the identity theft occurring in the first place.

One major part of the ethical code that involves personnel is informed consent. Informed consent is a term stating that a lawyer is required to give their clients the proper explanation and information in regards to possible legal actions they may take, including the possible risks and the alternatives available. 5 While the concept applies specifically to lawyers, it does not mean that other staff members of a firm or those under the employ of the lawyer can lie or mislead clients.

What Are The Common Ethics Violations With Law Offices and Lawyers?

An ethical violation occurs when a lawyer goes against the ethical code they agreed to conduct themselves accordingly. The list for possible violations is incredibly long and some are more obvious and identifiable than others. As there are some violations that have become well-known over others, it is best to discuss the common violations that law staff can commit. Reports of violations are usually investigated for evidence or proof that something was done counter to the ethics code.

Commingling-Defined as taking funds from clients, employers, employees, or beneficiaries and adding it to ones' own funds, commingling is basically theft. 6 Violators who commingle are often subject to criminal consequences in addition to consequences handed down by the bar association. Victims of this violation may be able to have their money returned to them without issue, but they may need to resort to legal action in order to have their funds returned to them.

Neglect-Lawyers, as per ethics code, are required to keep in touch with their clients throughout their case. Failure to do so are considered violations, not just in regards to ethics, but usually of their own contractual obligations. Communication requirements are usually included in legal contracts, such as the one that creates the lawyer's professional relationship with their client. The ethics code requires that lawyers keep their clients informed throughout their case and that they properly explain details pertaining to their case.

Solicitation-A part of remaining honest, lawyers are barred from soliciting clients with false information. They must not include misleading information to attract or retain clients. They also cannot use things like testimonials from past clients or statistical data about their firm's performance. Making a guarantee-either verbally, on paper, or in any way, shape, or form-would also be considered solicitation and therefore an ethics violation.

What Are the Consequence for Ethics Violations?

Violations of ethics and professional conduct codes are not going to result in a slap on the wrist. If anything, there are going to be serious consequences that legal personnel are going to have to face should they be found in violation of a part of an ethical code. Instances of violations can be discovered and reported through multiple channels. Usually, violations are reported by clients and other legal personnel via complaints filed with the appropriate bar association.

Liability-Liability is what a person is legally responsible for. It is not always clear who is liable for certain things in certain situations. Within businesses-and law offices are businesses-liability usually applies to what occurs on the business property or as a direct result of actions taken by the business. The amount of things that can make a law firm liable is steadily growing as the legal system changes. 7 Ethics violations where liability is involved usually affects the entire firm.

Not all ethics violations that bring liability into play are going to result in action from the state bar association. In some cases, a lawyer could be cleared of an ethics violation but still be held liable for their actions. Most lawyers and law offices-as well as other businesses in other industries-invest in liability insurance for such cases. It can help cover costs that develop as a result of being held liable. Liability insurance can be used when a legal professional is held liable due to a justified ethics violation without any conflict.

Malpractice-Malpractice is found in the medical field as well as the legal industry and operates similarly. It usually is warranted when there is justifiable proof that there has been an ethics violation or wrong-doing. Specifically, malpractice claims apply when a lawyer has violated the terms of a contract, been neglectful of a client, or violates major portions of the Rules of Professional Conduct. 8 Malpractice can also be applicable if there has been injury or harm cause by a lawyers actions, which also violates the Rules of Professional Conduct.

Most instances of malpractice require the affected client(s) to file a lawsuit against the lawyer in question. Clients need to be able to prove that their lawyer was owed them a responsibility for their actions, that their breach resulted in harm, that they acted carelessly enough to cause a breach of duty, and that their actions have resulted in significant financial loss. This does require seeking legal counsel, and preferable those who are experienced with legal malpractice cases. Legal malpractice lawyers are going to be familiar with the requirements of malpractice and the circumstances that can be involved with such a case. Malpractice cases require a lot of details in order to be tried in the first place so paying attention to the specifics of a lawyer or law office's actions is highly important.

Revoked License-When a lawyer commits a serious violation or continually breaks the Rules of Professional Conduct, there is a very real possibility that they could have their license to practice law revoked. When that happens, they usually cannot seek licensure anywhere in the country or through any bar association. Basically, they are fired and then blacklisted. It is the final option that bar associations can take with lawyers who disregard the rules and it is not taken likely. Reversing the decision to revoke a lawyer's license to practice law cannot be done. Such instances are severe and often the result of major violations or outright disregard for others. Ethics violations that result in the loss of licensure are usually done with a lot of care and effort being put into an investigation to ensure that everything is being considered and addressed. Typically, revoking of licensure is a possible outcome of malpractice cases or instances where a lawyer is found guilty of criminal behavior.