In a 218 to 201 vote, the ABA’s policy-making body amended its ethics code to allow, but not require, lawyers to breach attorney-client privilege if they believe doing so would stop a client from committing a financial crime or fraud. Reuters reports via Yahoo! News.com: “ABA Allows Lawyers to Act as Whistle-Blowers.”
The Dow Jones Newswire via the Wall Street Journal also reports in this article–“ABA Approves Corporate Whistleblowing Rule For Attorneys” and this article–“US Lawyers Given More Freedom To Report Corporate Fraud” (Subscription required.)
The Christian Science Monitor provides this op-ed in favor of the new rules: “Client Confidentiality.” The article supplies the following information:
The new rules simply keep up with the times, and it is hoped, give attorneys a little more room to blow a whistle when needed, without compromising conscience. Thirty-eight states already allow attorneys to take such action; four states require it. Eight others, plus the District of Columbia, have laws prohibiting lawyers from revealing client confidences, except to prevent death or bodily harm.
David Giacalone has provided some very prolific coverage of the news as well as Denise Howell.
So much has been happening this summer in this whole area of attorney-client privilege. I am thinking of the news this summer of the IRS requiring a certain law firm to turn over names of clients who had invested in certain tax shelters. (See the New York Times article–“Lawyers warily watching a U.S. demand for client lists.”) I am also thinking of the SEC rules that took effect last week requiring lawyers to report “up the ladder” to top executives or the board of a public company that is a client if they find “evidence of a material violation” of securities laws which Corp Law Blog reported on here.