Practice question from MPRE practice questions
Attorney Lisa discovers that her law firm partner has been commingling client trust funds with operating expenses to cover temporary cash flow shortages, always replacing the funds within 48 hours. The partner insists no client has been harmed. Lisa reports this to the state bar. Three months later, the partner is suspended and threatens to sue Lisa for defamation and tortious interference. What is Lisa's strongest defense? A. The partner's conduct did not actually harm any clients financially B. Lisa had a reasonable belief the partner violated professional rules and reported in good faith C. The report was made to a tribunal rather than publicized to third parties D. The partner's suspension proves the allegations were true, establishing truth as a defense E. Attorney-client privilege protects Lisa's observations about firm financial practices
Answer
B
Explanation
Under Model Rule 8.3, lawyers have immunity from civil liability when reporting professional misconduct in good faith to disciplinary authorities, even if the allegations prove unfounded. This immunity exists to encourage reporting without fear of retaliation. Option B correctly identifies this absolute immunity for good-faith reporting. Option A is wrong because actual harm is irrelevant to the duty to report or immunity. Option C confuses venue with immunity grounds. Option D mistakes the suspension as merely evidential rather than recognizing the broader immunity. Option E is incorrect because these are not client confidences but firm operational matters.