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Confidential data in computers and information systems, including those used by attorneys and law firms, faces greater security threats today than ever before. They take a variety of forms, ranging from email phishing scams and social engineering attacks to sophisticated technical exploits resulting in long-term intrusions into law firm networks. They also include lost or stolen laptops, tablets, smartphones and USB drives, as well as inside threats — malicious, untrained, inattentive, and even bored personnel. These threats are a particular concern to attorneys because of their ethical duties of competence and confidentiality.
Effective cybersecurity requires an ongoing, risk-based, comprehensive process that addresses people, policies and procedures, and technology, including training. Effective security also requires an understanding that security is everyone's responsibility and constant security awareness by all users of technology.
Attorneys have ethical and common law duties to take competent and reasonable measures to safeguard information relating to clients and also often have contractual and regulatory duties to protect confidential information.
Several ethics rules in the ABA Model Rules of Professional Conduct and state Rules of Professional Conduct have particular application to protection of client information, including competence (Rule 1.1), communication (Rule 1.4), confidentiality of information (Rule 1.6) and supervision (Rules 5.1, 5.2 and 5.3).
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The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
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