Also known as: subterfuges · deceit · artifice
Written by attorneys · grounded in primary & secondary sources — see below
A stratagem or device used to conceal, evade, or avoid something, especially a legal obligation or liability.
Sofia Stern, a tax attorney, understated her law practice income and hid client cash fees in offshore accounts to reduce her personal tax liability. When the Department of Agriculture investigated, the concealment allowed her to evade detection of the full extent of her earnings. The conduct constituted professional misconduct because it involved a deliberate plan to avoid statutory reporting obligations.
Seth Shapiro, owner of BlueWave Shipping, told Horizon Logistics that its vessel had passed all safety inspections without deficiencies even though he knew serious issues remained. Horizon relied on the statement and signed the charter. The false assurance operated as a device to induce the contract and avoid disclosure of the true condition.
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Sean Steele failed to disclose substantial income and assets during settlement negotiations with his spouse Skylar Sullivan. The resulting agreement was reached only because Skylar lacked knowledge of the true financial picture. The nondisclosure served as a device that allowed Sean to avoid a fair division and later justified setting the agreement aside.
Scott Summers at AeroSafe Components knew of dangerous defects in airbags but continued shipping them to Nova Motors while concealing the problems. Nova later discovered the concealment after a recall and sought recovery for losses caused by reliance on the supplier's silence. The concealment operated as the device that caused the pecuniary harm.
Sierra Santos challenged Western Airlines' mandatory retirement policy for flight engineers at age sixty. The airline defended the rule as part of a pension plan, but evidence showed it was adopted to sidestep the ADEA's prohibition on age discrimination. The plan functioned as a device to avoid the statute's core protections.
Summit Bank implemented a new scheduling system that appeared neutral but was designed to prevent Textile Workers Union organizers from gaining access to employees. The system allowed the bank to claim compliance with labor rules while effectively blocking union activity. The scheduling change served as the device to evade federal labor obligations.
Subterfuge requires an affirmative device or plan intended to conceal or evade a legal duty, whereas simple nondisclosure may not rise to that level unless it is part of a scheme to induce reliance. Courts examine whether the conduct involves deliberate concealment calculated to avoid liability or statutory obligations.
Yes. Model Rule 8.4(c) prohibits conduct involving dishonesty, fraud, deceit, or misrepresentation regardless of whether client funds are affected. A lawyer's use of concealment to evade personal tax obligations or regulatory requirements still reflects on honesty and fitness to practice.
A plan qualifies as a subterfuge when it is adopted or applied to evade the statute's prohibition on age discrimination rather than to achieve a legitimate business purpose. Evidence that the plan was designed to force retirement of older workers while preserving younger employees can establish the prohibited device.
…is barred from that assembly because of his views on the Vietnam war. Bond v. Floyd , 385 U. S. 116. Real estate agents use artifice to avoid selling "white property" to the blacks.[^maj-86] The blacks who travel the country, though entitled by law to the facilities for sleeping and dining that are offered all tourists,…