The Settlement Letter and the Undisclosed Account
Maria is a certified paralegal at a three-attorney firm. Her supervising attorney, Ms. Diaz, is in a multiday trial and has said to interrupt only for emergencies. At 4:40 p.m. Friday, client Mr. Chen calls. Opposing counsel emailed a settlement offer that expires Monday at noon. Chen says, 'Accept it. Draft the acceptance and sign Ms. Diaz's name; she told me I could decide.' Maria has drafted the letter. Chen then adds that he has a cryptocurrency account worth about $85,000 that he did not list in his interrogatory answers, saying it is separate property and 'not relevant.' The firm's written policy says paralegals may draft correspondence but may not sign legal documents or give legal advice. Chen is upset and says he will call the state bar if Maria does not send the letter immediately.
1. May Maria sign and send the acceptance letter as Mr. Chen requests? Identify the ethical rules and practical steps.
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Maria may not sign Ms. Diaz's name or send an acceptance as if from the attorney. Signing another lawyer's name is a misrepresentation and could violate Rules 8.4(c) and 5.5; a paralegal also may not give legal advice about whether to accept. The firm policy supports drafting only under attorney supervision. The deadline is real, but urgency does not authorize unauthorized practice of law.
Practical steps:
- Preserve the offer and email.
- Try the attorney's emergency contact and the firm's backup attorney.
- Tell Chen that Maria cannot advise or sign, but can transmit his decision if an attorney authorizes it.
- Prepare a draft acceptance for attorney review and a file memo.
- Document the time and instructions.
If no attorney can be reached, Maria should not let the deadline force unauthorized action. She can request a short extension from opposing counsel in writing, without disclosing privileged information.
2. How should Maria handle Mr. Chen's undisclosed cryptocurrency account?
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The account cannot be hidden. The paralegal's duty runs to the supervising attorney; Maria must report the statement to Ms. Diaz promptly, even though the client said not to. Confidentiality under Rule 1.6 protects information from outsiders, not from the lawyer. The attorney must address the false interrogatory answer; Rule 3.3 and discovery rules prohibit offering false evidence or failing to correct a material misrepresentation.
Maria should not advise Chen to conceal it, alter documents, or communicate directly with opposing counsel about it. She should preserve the client's message, prepare a memo, and let the attorney decide whether to supplement discovery or advise the client about separate-property tracing. If the attorney directs a correction, Maria can draft the supplemental response for review. The account may or may not be separate property, but concealment is the ethics issue.
3. What file documentation and client communication should Maria complete by end of day?
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Maria should create a contemporaneous memo with the time of the call, the offer deadline, Chen's exact instructions, his statement about the account, and the attorney contacts attempted. She should save the offer email and draft letter in the file, note that no attorney authorized sending or signing, and record any extension request.
She should send Chen a non-advice follow-up confirming that his call was received, that the attorney will respond, and that he should not communicate directly with opposing counsel. She must avoid predicting outcome or giving legal advice. If Chen threatens the bar, she should remain professional and route the complaint to the attorney. The file should show that the paralegal stayed within scope and escalated both the deadline and the undisclosed asset.