May a lawyer disclose that a bankruptcy client failed to list life-insurance proceeds, or is the lawyer bound by confidentiality?

Plain-English summary

A lawyer asked about the duty or ability to disclose the existence of life insurance proceeds payable to a client who, with her late husband, had been in a Chapter 7 bankruptcy proceeding that is now closed. The committee was of the opinion that the scope of the lawyer's duty depends on whether the failure to disclose the funds constitutes a crime, and if so, whether it is a completed or continuing crime under federal or state law.

As a completed crime, that is, a past act, the committee said that under RPC 1.6 the lawyer may not disclose it without the client's consent. If it is a continuing crime and the bankruptcy proceeding is not concluded, then under RPC 3.3 the lawyer would have a duty to disclose it to the trustee in bankruptcy. If the proceeding has concluded, then under that rule and RPC 1.6, the lawyer may disclose it.

Currency note

This opinion was issued in 1993, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer reveal that a bankruptcy client hid life-insurance proceeds?

A: The committee said it depends on whether the nondisclosure is a crime and whether it is completed or continuing.

Q: What if it is a completed, past crime?

A: The committee said that under RPC 1.6 the lawyer may not disclose it without the client's consent.

Q: What if it is a continuing crime in an open proceeding?

A: The committee said that under RPC 3.3 the lawyer would have a duty to disclose it to the trustee in bankruptcy; if the proceeding has concluded, the lawyer may disclose.

Background and rules framework

The opinion applied RPC 1.6 (confidentiality) and RPC 3.3 (candor toward the tribunal), each corresponding to the same-numbered ABA Model Rules. The committee made the criminal-law characterization the pivot: a completed crime stays within RPC 1.6's confidentiality, while a continuing crime in a live proceeding engages the RPC 3.3 duty of candor to the bankruptcy court and its trustee.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 1.6 (confidentiality of information); Washington RPC 1.6
• ABA Model Rule 3.3 (candor toward the tribunal); Washington RPC 3.3

See also

• WA Ethics Op. 1496: Disclosing a Client's False Statements to a Tribunal
• WA Ethics Op. 1526: Found Notes Showing a Court-Order Violation

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=630

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Advisory Opinion: 1549
Year Issued: 1993
RPC(s): RPC 1.6; 3.3
Subject: Client confidence or secret; disclosure of bankruptcy client misrepresentation to tribunal

The Committee reviewed your inquiry concerning your duty or ability to disclose existence of life insurance proceeds payable to your client, who, with her late husband, was in a Chapter Seven bankruptcy proceeding which is now closed. The Committee was of the opinion that the scope of your duty [depends] upon whether the failure to disclose the existence of the funds constitutes a crime, and if so, whether it is a completed or continuing crime under federal or state law. As a completed crime, that is, a past act, pursuant to RPC 1.6 you may not disclose it without your client's consent. If it is a continuing crime, and if the bankruptcy proceeding is not concluded, then under RPC 3.3 you would have a duty to disclose it to the trustee in bankruptcy. If the proceeding has concluded, then pursuant to that rule and RPC 1.6, you may disclose it.