Sunday, March 4, 2012

When an Attorney/Husband Fails to Disclose His Own Assets In His Divorce

ISSUE:  An attorney licensed in the State of New York is getting a divorce and during that divorce proceeding, he does not disclose some of his assets to his wife.  Although this may cause the final judgment of divorce to be reopened, is the attorney's failure to disclose his assets a violation of his ethical duties as an attorney in the State of New York?  In other words, can he be sanctioned as an attorney?

I.          The Rules of Professional Conduct apply to attorneys who self-represent.
Disciplinary rules that prohibit lawyers from engaging in certain conduct in the representation of a client also applies to pro se attorneys, whose clients are themselves. In re Chiofalo 909 N.Y.S.2d 36 (1 App Div. 2010); see also, West’s 45 Key Note 32(5).
An attorney in a matrimonial proceeding remains subject to the Rules of Professional Conduct during the proceeding, even if he is an unrepresented party.


 II.        The Rules of Professional Conduct prohibit dishonesty and, in some circumstances, failure to disclose.
Rule 8.4 of the New York Rules of Professional Conduct broadly states that:
“A lawyer or law firm shall not...
                 (c) engage in conduct involving dishonesty, fraud, deceit or misrepresentation;
(d) engage in conduct that is prejudicial to the administration of justice....”
 Focusing on a lawyer’s conduct before a tribunal, Rule 3.3(a)(1) states that,
“[a] lawyer shall not knowingly,
            (1)        make a false statement of fact or law to a tribunal...
(3)        offer or use evidence that the lawyer knows to be false.  If a lawyer, the lawyer’s client, or a witness called by the lawyer has offered material evidence and the lawyer comes to know of its falsity, the lawyer shall take reasonable remedial measures, including, if necessary, disclosure to the tribunal.”

 “Lawyers have a special obligation as officers of the court to protect a tribunal against criminal or fraudulent conduct that undermines the integrity of the adjudicative process.” Comments Section 12 of Rule 3.3.  A lawyer shall take remedial measures when they know that the client has engaged in illegal or fraudulent conduct, such as, “failing to disclose information to the tribunal when required by law to do so.” Comments Section 12 of Rule 3.3.   Although the duty of truthfulness does not require the disclosure of all information directly contrary to the client’s position, Comments Section 3 of Rule 3.3 elaborates that “[t]here are circumstances where failure to make a disclosure is the equivalent of an affirmative misrepresentation.” Comments Section 3 of Rule 3.3 (emphasis added); see, New York Practice Series 34:18. 
Considering that a party is required by law to disclose their finances in a matrimonial proceeding, the failure to disclose those finances is likely to be an affirmative representation.

Conclusion
When an attorney is a party to a matrimonial proceeding, the attorney’s purposeful failure to disclose his assets is almost certainly an affirmative misrepresentation in violation of the New York Rules of Professional Conduct Rule 3.3(a) and Rule 8.4.

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