Iowa R. Prof'l Conduct 32:4.1

In the course of representing a client, a lawyer shall not knowingly:

(a) make a false statement of material fact or law to a third person; or

(b) fail to disclose a material fact to a third person when disclosure is necessary to avoid

assisting a criminal or fraudulent act by a client, unless disclosure is prohibited by rule 32:1.6.

Comment

Misrepresentation

[1] A lawyer is required to be truthful when dealing with others on a client’s behalf, but generally

has no affirmative duty to inform an opposing party of relevant facts. A misrepresentation can occur

if the lawyer incorporates or affirms a statement of another person that the lawyer knows is false.

Misrepresentations can also occur by partially true but misleading statements or omissions that are

the equivalent of affirmative false statements. For dishonest conduct that does not amount to a false

statement or for misrepresentations by a lawyer other than in the course of representing a client, see

rule 32:8.4.

Statements of Fact

[2] This rule refers to statements of fact. Whether a particular statement should be regarded as

one of fact can depend on the circumstances. Under generally accepted conventions in negotiation,

certain types of statements ordinarily are not taken as statements of material fact. Estimates of price

or value placed on the subject of a transaction and a party’s intentions as to an acceptable settlement

of a claim are ordinarily in this category, and so is the existence of an undisclosed principal except

where nondisclosure of the principal would constitute fraud. Lawyers should be mindful of their

obligations under applicable law to avoid criminal and tortious misrepresentation.

Crime or Fraud by Client

[3] Under rule 32:1.2(d), a lawyer is prohibited from counseling or assisting a client in conduct that

the lawyer knows is criminal or fraudulent. Paragraph (b) states a specific application of the principle

set forth in rule 32:1.2(d) and addresses the situation where a client’s crime or fraud takes the form

of a lie or misrepresentation. Ordinarily, a lawyer can avoid assisting a client’s crime or fraud by

withdrawing from the representation. Sometimes it may be necessary for the lawyer to give notice

of the fact of withdrawal and to disaffirm an opinion, document, affirmation, or the like. In extreme

cases, substantive law may require a lawyer to disclose information relating to the representation to

avoid being deemed to have assisted the client’s crime or fraud. If the lawyer can avoid assisting

a client’s crime or fraud only by disclosing this information, then under paragraph (b) the lawyer is

required to do so, unless the disclosure is prohibited by rule 32:1.6.