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HomeMy WebLinkAbout80-542 ShirkTO: FACTS: ADVICE OF CHIEF COUNSEL Kenelm L. Shirk, III Shirk, Reist & Posey P.O. Box 1552 Lancaster, PA 17603 STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 February 22, 1980 RE: Attorney Client Disclosure Requirements Advice #542 On February 8, 1980 Kenelm L. Shirk, III wrote this Commission on behalf of the Lancaster County Bar Association Municipal Law Committee inquiring as to the ramifications of the attorney client disclosure requirments of the State Ethics Act as discussed in Lowery, 79 -76. DISCUSSION: As a practical matter, the only time clients of a solicitor will be disclosed where the solicitor has performed legal services in compliance with the Code of Professional Responsibility is where the solicitor takes on a new solicitorship and has received adjusted gross income of $500 or more from clients which his firm represented before that governmental body. Thus the matters discussed in 1(a) & 1(b) involving estates, domestic relations, juvenile law, etc., would not normally be disclosed unless the litigation is directly involving the governmental body with which the solicitor /attorney is associated. The threshold amount for disclosure is $500 adjusted gross income to that solicitor; thus, if the fees were $5,000 and the partnership distribution to an attorney /solicitor is $450, no disclosure is required. As to the question relating to parcing the fee up and allocating it to governmental work versus non - governmental work, for administrative convenience this Commission would prefer not to get involved in the internal accounting practices of a law firm to that extent. Therefore, allocating fees to escape reporting is not permitted. As suggested by the letter, ministerial representation need not be disclosed. For example, use of the row offices, essential in the practice of law, does not constitute doing business with the county, nor would filing a personal property tax return be considered as non - ministerial representation with the county. In contrast, litigation over a tax return would be considered noA- ministerial, so that if an attorney became a county solicitor he or she would reveal the identity and address of that client involved in the litigation. Kenelm L. Shirk, III February 22, 1980 Page 2 The phrase "doing business within the jurisdiction of the governmental body" relates to clients whose activities are within the jurisdictional power of the particular governmental body. For example, a solicitor who represents a zoning board and a developer within the jurisdictional power of that zoning board would disclose the identity and address of the developer to the zoning board. Where a law firm or engineering firm is designated as solicitor or engineer, it is the responsibility of the municipality to designate the particular individuals who bear the responsibility of filing a Financial Interest Statement with that governmental body. If a particular governmental body decides it would be interesting to receive financial interests forms from every member of the law firm, that law firm is inviedtoadvisevthe. Commission immediately in order that it may properly Although individual circumstances may warrant the designation of more than one person in a law firm who shall bear the responsibility of filing a Financial Interest Statement, arbritrary designation of members of the firm, e.g., all the senior partners, is not warranted. The Financial Interest Statements are due May 1, 1980. CONCLUSION: The disclosure requirement for attorneys is limited to those persons who have paid fees for services related to matters before the governmental body with which that attorney is or would be associated. Pursuant to Section 7(9)(ii), this advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, providing the requester has disclsoed truthfully all the material facts and committed the acts complained of in reliance on the advice given. Kenelm L. Shirk, III February 22, 1980 Page 3 A personal appearance before the Commission and a formal opinion will be issued upon your request if you feel this reply does not suffice. This letter is a public record and will be made available as such. DRM /rdp -2 VID RITTENHOUSE MORRISON Chief Counsel