Must I disclose the existence of an unperfected state medical-services lien to the adverse insurer or the workers' comp court when settling my client's case?

Plain-English summary

The inquiring attorney asked whether, in connection with settling a workers' compensation case, he must disclose the existence of an unperfected state agency lien for medical services to the state agency, the insurance company, or the court. The lien recites that the medical care grew out of the subject industrial accident; the client disclaims that connection.

The panel took the position that Rule 1.6 governs. Under Rule 1.6, an attorney shall not disclose information relating to the representation of a client unless the client consents after consultation, subject to exceptions the panel found not relevant. The panel concluded that Rule 1.6 precludes the attorney from disclosing the lien to the state agency and the employer's insurance company. It added that although Rule 4.1(b) recognizes that a lawyer may be required to disclose false statements made by a client to a third party, that rule is subject to the protection of Rule 1.6.

The panel further stated that the attorney has an obligation to disclose the information to the court if the failure to do so would assist a fraudulent act by the client, citing Rule 3.3(b). The panel noted it did not possess sufficient information to make that determination, and pointed to General Information Opinion #2, which addresses Rule 3.3 (candor toward the tribunal).

Currency note

This opinion was issued in 1992, after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rules 1.6, 3.3, and 4.1 as originally adopted. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process, which amended these rules. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule mentioned here.

Common questions

Q: Can I tell the adverse insurer or the state agency about my client's unperfected lien?

A: Per the opinion, no; Rule 1.6 precludes disclosing that information to the state agency and the employer's insurance company without the client's consent.

Q: Does Rule 4.1's disclosure provision override confidentiality here?

A: Per the opinion, no; although Rule 4.1(b) recognizes a lawyer may be required to disclose false statements made by a client to a third party, that rule is subject to the protection of Rule 1.6.

Q: Do I ever have to disclose the lien to the court?

A: Per the opinion, the attorney must disclose to the court if the failure to do so would assist a fraudulent act by the client, under Rule 3.3(b); the panel lacked sufficient facts to decide whether that condition was met.

Background and rules framework

The opinion applies Rhode Island Rules 1.6 (confidentiality), 3.3 (candor toward the tribunal), and 4.1 (truthfulness in statements to others), which correspond to the same-numbered Model Rules. The panel read Rule 1.6 as the controlling confidentiality duty, treated Rule 4.1(b)'s disclosure recognition as subject to Rule 1.6, and identified Rule 3.3(b) as the provision that can require disclosure to a tribunal to avoid assisting a client's fraudulent act. It cross-referenced General Information Opinion #2 on Rule 3.3.

Citations and references

Rules of Professional Conduct:

• MR 1.6 (confidentiality of information)
• MR 3.3 (candor toward the tribunal)
• MR 4.1 (truthfulness in statements to others)
• RI RPC 1.6, 3.3(b), 4.1(b)

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• RI EAP General Information Opinion #2: addresses Rule 3.3, candor toward the tribunal.

See also

• RI EAP Op. 91-39: Must Disclose an Adverse Change in Criminal Law to the Court
• RI EAP Op. 2024-08: Need Not Disclose a Fraudulent Document to the Court Before Withdrawing
• RI EAP Op. 89-12: No Duty to Disclose a Former Client's Inconsistent Court Testimony

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2092-17.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

DIGEST OF ETHICS ADVISORY PANEL
Opinion #92-17, Request #228
Issued May 20, 1992

An attorney seeks Panel advice regarding his obligation to disclose to the Workers' Compensation Court and/or adverse parties the existence of a state agency's unperfected lien for payment of medical services. The lien recites that the medical care grew out of the subject industrial accident. The client disclaims this. The attorney's concern focuses on whether in connection with the settlement of the case he/she must disclose the existence of the lien to the state agency, the insurance company or the court.

The Panel takes the position that this situation is governed by Rule 1.6 of the Rhode Island Rules of Professional Conduct. Rule 1.6 states that an attorney shall not disclose information relating to the representation of a client unless the client consents after consultation, subject to exceptions not relevant here. Rule 1.6 precludes an attorney from disclosing this information to the state agency and the employer's insurance company. Although Rule 4.1(b) recognizes that a lawyer may be required to disclose false statements made by a client to a third party, this Rule is subject to the protection of Rule 1.6.

The Panel also believes, however, that the attorney has an obligation to disclose this information to the court if the failure to do so would assist a fraudulent act by the client (See Rule 3.3(b)). The Panel does not possess sufficient information to make this determination. See also General Information Opinion #2 which addresses Rule 3.3 Candor Toward the Tribunal.