Rule 4.1 - Truthfulness In Statements To OthersIn the course of representing a client a lawyer shall not knowingly:
(a) make a false statement of fact or law; or(b) fail to disclose a fact when disclosure is necessary to avoid assisting a criminal or fraudulent act by a client.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 failure to act or by knowingly failing to correct false statements made by the lawyer's client or someone acting on behalf of the client.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 in this category, and so is the existence of an undisclosed principal except where nondisclosure of the principal would constitute fraud.Fraud by Client
[3] Paragraph (b) recognizes that substantive law may require a lawyer to disclose certain information to avoid being deemed to have assisted the client's crime or fraud. The requirement of disclosure is governed by Rule 1.6.Virginia Code Comparison
Paragraph (a) is substantially similar to DR 7-102(A)(5), which stated, "[I]n his representation of a client, a lawyer shall not . [k]nowingly make a false statement of law or fact."
With regard to paragraph (b), DR 7-102(A)(3) provided, "In his representation of a client, a lawyer shall not . [c]onceal or knowingly fail to disclose that which he is required by law to reveal."
Committee Commentary
The Committee deleted the ABA Model Rule's references to a "third person" in the belief that such language merely confused the Rule. Additionally, the Committee deleted the word "material" preceding "fact or law" from paragraph (a) to make it more closely parallel DR 7-102(A)(5). The word "material" was similarly deleted from paragraph (b) as it appears somewhat redundant. Finally, the modified Comment expands the coverage of the Rule to constructive misrepresentation-i.e., the knowing failure of a lawyer to correct a material misrepresentation by the client or by someone on behalf of the client.