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John Gaal's Ethics Corner
Q: While representing a client in a transactional matter, I learned that the opposing party had committed an illegal act. Must I report that act to the appropriate authorities?
A: Under New York's Code of Professional Responsibility, you are not required to report this conduct. Moreover, under the Code, you may actually be prohibited from doing so unless your client consents to the reporting. Only a few provisions of the Code of Professional Responsibility impose an obligation upon a lawyer to report wrongdoing, and those provisions are very narrowly written.
Disciplinary Rule 1-103 sets out a lawyer's obligation to report certain types of misconduct involving other lawyers (those things which reflect on a lawyer's honesty, trustworthiness or fitness as a lawyer). This rule is not applicable to your situation because the individual who you have learned committed the unlawful act in this case is not an attorney.
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