Certified Legal Professional (CLP) Practice Exam

Did the attorney properly allocate the settlement amounts among the homeowners in a way that could lead to disciplinary action?

1. No, because the homeowners were aware of each other's settlement amounts and consented

2. No, because the attorney followed equitable distribution principles

3. Yes, because the attorney acted on behalf of individual homeowners without their consent

4. Yes, because aggregate settlements should approach uniformity

The correct answer is: Yes, because the attorney acted on behalf of individual homeowners without their consent

The correct choice emphasizes the importance of an attorney’s obligation to represent each client’s interests individually and the need for consent when making decisions that affect their financial outcomes. In the scenario presented, the attorney has a fiduciary duty to act in the best interests of each homeowner. If the attorney allocated the settlement amounts without the explicit consent of individual homeowners, this could be seen as a breach of that duty. When an attorney acts on behalf of multiple clients, clear communication and consent are necessary when handling matters that could impact clients’ rights and entitlements, such as the division of settlement proceeds. Failing to secure that consent typically constitutes grounds for disciplinary action, as it goes against established professional standards. The other options do not sufficiently address the potential ethical violations involved. For example, the awareness of settlement amounts among the homeowners does not negate the need for consent when making allocations. Similarly, following equitable distribution principles or achieving uniformity in aggregate settlements does not exempt an attorney from the responsibility to explicitly inform each client and obtain their agreement before proceeding.