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As now is generally known, the American Bar Association has
adopted a new set of recommended Rules of Professional Conduct
(Rules), to supplant the present Code of Professional Responsibility
(Code). As is also generally known, one of the most intensely
debated issues in the new Rules was the problem of client
fraud-that is, the problem of what a lawyer properly should do
when he discovers that a transaction he is handling for a client is
tainted with fraud. In adopting the new Rules, the ABA rejected
the proposal of the Kutak Commission and replaced it with an
amendment formulated by a group led by the American College of
Trial Lawyers and the ABA Section of General Practice. The debate
and the adoption of the amendment excited a great deal of
public attention, much of it criticism that the amendment sanctions
cover up of client fraud.

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