Advisory Opinion: 1433

Year Issued: 1991

RPC(s): RPC 1.2(d); 1.6

Subject: Assisting client with transferring property previously fraudulently conveyed; client confidence or secret; duty to disclose client fraud

The Committee reviewed your inquiry concerning information you have received that your client previously made a fraudulent conveyance to a third party to defraud his wife in a divorce and his creditors in a Chapter 11 bankruptcy. The Committee was of the opinion that you would be assisting a fraud if you represented the client in now transferring title of the property to him. The Committee is also of the opinion that to assist the client to obtain refinancing of the house would be placing a potential cloud on the title because of possible marital and bankruptcy claims that were not disclosed and therefore you could not so represent him. Finally, because this information was disclosed to you in the context of an attorney-client relationship, you have no duty to report the client's past conduct to the bankruptcy trustee or the family court. See RPC 1.6.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.