Rule 1.13 Organization As Client
(a)
A lawyer employed
or retained by an organization represents the organization acting
through its duly authorized constituents.
(b)
If a lawyer for an
organization knows that an officer, employee or other person
associated with the organization is engaged in action, intends to
act or refuses to act in a matter related to the representation that
is a violation of a legal obligation to the organization, or a
violation of law which reasonably might be imputed to the
organization, and that is likely to result in substantial injury to
the organization, then the lawyer shall proceed as is
reasonably
necessary in the best interest of the organization. Unless the
lawyer reasonably believes that it is not necessary in the best
interest of the organization to do so, the lawyer shall refer the
matter to higher authority in the organization, including, if
warranted by the circumstances, to the highest authority that can
act on behalf of the organization as determined by applicable law.
(c)
Except as provided
in paragraph (d), if
(1)
despite the
lawyer’s efforts in accordance with paragraph (b) the highest
authority that can act on behalf of the organization insists upon or
fails to address in a timely and appropriate manner an action or a
refusal to act, that is clearly a violation of law, and
(2)
the lawyer
reasonably believes that the violation is reasonably certain to
result in substantial injury to the organization,
then the lawyer may
reveal information relating to the representation whether or not
Rule 1.6 permits such disclosure, but only if and to the extent the
lawyer reasonably believes necessary to prevent
substantial injury
to the organization.
(d)
Paragraph (c) shall
not apply with respect to information relating to a lawyer's
representation of an organization to investigate an alleged
violation of law, or to defend the organization or an officer,
employee or other constituent associated with the organization
against a claim arising out of an alleged violation of law.
(e)
A lawyer who
reasonably believes that he or she has been discharged because of
the lawyer's actions taken pursuant to paragraphs (b) or (c), or who
withdraws under circumstances that require or permit the lawyer to
take action under either of those paragraphs, shall proceed as the
lawyer reasonably believes necessary to assure that the
organization's highest authority is informed of the lawyer's
discharge or withdrawal.
(f)
In dealing with an
organization’s directors, officers, employees, members, shareholders
or other constituents, a lawyer shall explain the identity of the
client when the lawyer knows or
reasonably should know that the
organization’s interests are adverse to those of the constituents
with whom the lawyer is dealing.
(g)
A lawyer
representing an organization may also represent any of its
directors, officers, employees, members, shareholders or other
constituents, subject to the provisions of
Rule 1.7. If the
organization’s consent to the dual representation is required by
Rule 1.7, the consent shall be given by an appropriate official of
the organization other than the individual who is to be represented,
or by the shareholders.