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consultant to corporate and law firm management.

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When you are guilty of malpractice, you run a grave risk if you prepare
a defense while continuing to represent the client.
As a lawyer, you are in a fiduciary relationship with your client. You
must tell your client if you think you are guilty of malpractice. You must
tell enough to give the client the ability to make an informed decision whether
to discharge you and hire new attorneys.
Hence the general rule the courts may enforce upon you is:
"Ask and think, but
don't talk! Research whether we are guilty of malpractice, but don't
write about it. Don't even talk to me about it!
Internal Firm Memo of Law may not be privileged. In Versuslaw, Inc. v. Stoel Rives, LLP, 2005 Wash. App. LEXIS 586
(Wash. App. April 4, 2005) the court held that internal law firm memoranda
concerning a possible malpractice claim against the law firm might not be
privileged if they were written while the lawyer-client relationship still
existed. It makes sense, because of the fiduciary duty to disclose. The
next logical extension is saying that lawyers in the firm discussing the
possibility of malpractice have no effective work product privilege to prevent
disclosure of what was said about the possible conflict of interest between
the firm and its client (and maybe even discussions with the insurer are
subject to disclosure.). The only safe harbor seems to be to get out of
the attorney-client relationship, then research and talk about the malpractice
possibility.
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