context: . We need not decide whether an attorney would be able to assert bona fide payee status under similar circumstances, as that case is not before us. We note, however, that, unlike lenders, attorneys have both a legal and an ethical duty to reasonably investigate the facts prior to filing pleadings with the court.
citation_a.signal: see
citation_a.parenthetical: lawyer who sought to intervene in chemical products liability class action violated rules of professional conduct by failing to investigate whether his clients were exposed to chemical
citation_a.sentence: See, e.g., Callahan v. Schoppe, 864 F.2d 44, 46 (5th Cir. 1989) ("Rule 11 of the Federal Rules of Civil Procedure imposes a duty of reasonable investigation into the facts and the law prior to filing a document with a court.”); Mod. Rules Prof. Cond. § 3.1 ("A lawyer shall not bring or defend a proceeding, or assert or controvert an issue therein, unless there is a basis in law and fact for doing so that is not frivolous.”); In re Zohdy, 892 So.2d 1277 (La. 2005) (lawyer who sought to intervene in chemical products liability class action violated rules of professional conduct by failing to investigate whether his clients were exposed to chemical). Courts may wish to consider an attorney’s disregard for these duties in determining whether the attorney's acceptance of payment pursuant to his client’s fraudulent claim was in good faith.
citation_b.signal: cf.
citation_b.identifier: 7 P.3d 1118, 1126
citation_b.parenthetical: an attorney's status as an officer of the court "places him on a different legal footing," and the court could not approve the retention of an attorney's fees where the client was guilty of fraudulent conduct in procuring the judgment
citation_b.sentence: Cf. Excel Corp. v. Jimenez, 269 Kan. 291, 7 P.3d 1118, 1126 (2000) (an attorney’s status as an officer of the court "places him on a different legal footing,” and the court could not approve the retention of an attorney’s fees where the client was guilty of fraudulent conduct in procuring the judgment).