Attоrney Sаrаh represents Oliviа in a wrоngful terminatiоn lawsuit against West Valley Medical Center. Shortly before trial, Olivia tells Sarah that she plans to testify that she never received disciplinary warnings from West Valley. Sarah knows this testimony is false because Olivia previously admitted receiving three written warnings, copies of which remain in Sarah’s file. Olivia insists that if the truth comes out, she will lose the case. Meanwhile, Sarah’s client trust account has become overdrawn after Sarah accidentally paid office rent directly from the trust account. To cover the shortage before anyone notices, Sarah deposits personal funds into the account and later reimburses herself after another client’s settlement check clears. Defense counsel sends Sarah discovery requests asking whether Olivia possesses any documents reflecting disciplinary actions. Sarah knows Olivia destroyed several responsive documents after litigation began. Sarah responds that Olivia has produced all responsive documents. Several weeks later, the parties reach a settlement. The defendant sends Sarah a settlement check. Sarah deposits the funds into her trust account. Two months later, Sarah sends an email to Olivia telling her that she has the settlement funds. She reminds Olivia of their conversation where they agreed that Sarah would work on a contingency fee for one-third of any fees. Olivia disagrees with Sarah’s statement and instead says that because the case did not go to trial and there was very little work, in her opinion, Sarah should only get 20%. Sarah decides to keep 30% for herself and sends Olivia a check for the remaining 70% of the settlement fees. Discuss all ethical violations, if any, Sarah has committed. Apply the ABA Model Rules and the California Rules of Professional Conduct.
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