Public Welfare - Knowledge of Information Damaging to Client's Interest
Case 72
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2026-02-13 15:43
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Doe has an ethical obligation to report his findings to the authority upon learning of the hearing.
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Section 1 of the code is clear in providing that the engineer "will act in professional matters for each client or employer as a faithful agent or trustee." In this spirit Engineer Doe has advised the XYZ Corporation that the results of his studies indicate that the established standards will in his opinion be violated. His verbal advice to the corporation would seem to meet the letter and spirit of §§1 and 1(c). The termination of Doe’s contract with full payment for services rendered is a business decision which we will presume is permitted by the terms of the engineering services contract between Doe and his client. Doe, however, has reason to question why the corporation specifically stipulates that he not render a written report. Upon learning of the hearing, he is squarely confronted with his obligations to the public concerning its safety, health, and welfare. Section 2(a) requires that his duty to the public be paramount. In this case, it is presumed that a failure to meet the minimum standards established by law is detrimental to the public health and safety. We note that we have not heretofore during the entire existence of the board had occasion to interpret §2(c) of the code. That portion of §2(c) which requires the engineer to report any request for "unprofessional" conduct to "proper authorities" is particularly pertinent in the situation before us. The client’s action instructing Doe to not render a written report when coupled with XYZ’s testimony at the hearing raises the question of Doe’s obligation under §2(c). We interpret the language in the context of the facts to mean that it would now be "unprofessional conduct" for Doe to not take further action to protect the public interest. It is not material, in our view, that the subject matter does not involve plans and specifications as stipulated in §2(c). We interpret "plans and specifications" in this section to include all engineering instruments of service. That particular reference must be read i...
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The XYZ Corporation has been advised by a State Pollution Control Authority that it has 60 days to apply for a permit to discharge manufacturing wastes into a receiving body of water. XYZ is also advised of the minimum standard that must be met.In an effort to convince the authority that the receiving body of water after receiving the manufacturing wastes will still meet established environmental standards, the corporation employs Engineer Doe to perform consulting engineering services and submit a detailed report.After completion of his studies but before completion of any written report, Doe concludes that the discharge from the plant will lower the quality of the receiving body of water below established standards. He further concludes that corrective action will be very costly. Doe verbally advises the XYZ Corporation of his findings. Subsequently, the corporation terminates the contract with Doe with full payment for services performed, and instructs Doe not to render a written report to the corporation.Thereafter, Doe learns that the authority has called a public hearing and that the XYZ Corporation has presented data to support its view that the present discharge meets minimum standards.
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Does Doe have an ethical obligation to report his findings to the authority upon learning of the hearing?
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Find Similar CasesD-tuple Component Breakdown
53
Total Entities9/9
Components Populated9/9
With EmbeddingsCombined Embedding
Roles
R
w=0.12
384D
Engineer Doe Consulting Engineer
Retained by XYZ Corporation to study whether its manufacturing waste discharge would allow the receiving water to...
XYZ Corporation Client
Manufacturing corporation required to apply for a discharge permit within 60 days. Employed Engineer Doe to perform...
Engineer Doe Faithful Agent
The discussion holds that Engineer Doe met the faithful agent duty of Section 1 and 1(c) by verbally advising XYZ...
Public Affected Community
The public is the party toward whom Doe's paramount duty runs; the board presumes that failure to meet the minimum...
Board of Ethical Review
Adjudicates the present matter, interpreting Sections 1, 1(c), 2, 2(a), 2(c), and 7 of the code, interpreting plans...
State Pollution Control Authority Regulator
Advised XYZ Corporation that it has 60 days to apply for a discharge permit and of the minimum standard that must be...
Engineer Doe Public Responsibility
The board holds that upon learning of the hearing Doe is squarely confronted with his paramount duty to the public...
7 entities
Principles
P
w=0.2
384D
Loyalty in Advising XYZ Client
Doe verbally advises the XYZ Corporation of his adverse study findings before completing any written report, acting...
Public Welfare at Discharge Hearing
Doe's engineering conclusion that the plant discharge will lower the receiving water below established standards,...
Confidentiality in Reporting to Authority
The Board states that Section 7 does not give it pause because Doe's advising the proper authority of the apparent...
3 entities
Obligations
O
w=0.15
384D
Engineer Doe Faithful Agent Duty
Engineer Doe shall act as a faithful agent of XYZ Corporation by advising the client of his study findings,...
XYZ Corporation Permit Application Duty
XYZ Corporation shall apply within 60 days for a permit to discharge manufacturing wastes into the receiving body of...
Engineer Doe Public Safety Duty
Engineer Doe shall hold paramount the safety, health, and welfare of the public, given his conclusion that the plant...
Engineer Doe Paramount Public Duty
Engineer Doe must regard his duty to the public welfare as paramount and have proper regard for the safety, health,...
Engineer Doe Authority Reporting Duty
Engineer Doe must take further action to protect the public interest by notifying the proper authorities, since the...
5 entities
States
S
w=0.1
384D
XYZ Discharge Permit Requirement
Pending Permit Hearing
Doe Awareness Of Hearing
XYZ Insistence On Unprofessional Conduct
Doe Disclosure Not Confidential
Doe Adverse Discharge Finding
Receiving Water Degradation Risk
No Written Report Directive
Doe Contract Terminated
XYZ Selective Hearing Presentation
XYZ Awareness Of Findings
Costly Corrective Action Condition
Doe Report Stipulation Suspicion
13 entities
Resources
Rs
w=0.1
384D
NSPE Code of Ethics
NSPE Code of Ethics (topic: faithful agency, paramount duty to public safety, reporting unprofessional conduct, and...
XYZ Public Hearing Data
compliance of the present discharge with minimum standards
BER Case 67-10
Case No. 67-10 (topic: the profession's devotion of its members' interests to the public welfare)
3 entities
Actions
A
w=0.1
384D
Consultant Engagement
Verbal Advisory of Findings
Contract Termination
Report Suppression Instruction
Public Hearing Testimony
Authority Notification
6 entities
Events
E
w=0.08
384D
Regulatory Permit Notification
Adverse Findings Discovery
Public Hearing Called
Hearing Testimony Awareness
4 entities
Capabilities
Ca
w=0.07
384D
Engineer Doe Standards Adequacy Judgment
Engineer Doe judged that the plant discharge would lower the quality of the receiving body of water below...
Engineer Doe Findings Disclosure
Engineer Doe verbally advised XYZ Corporation of his adverse study findings before completing any written report....
Engineer Doe Confidentiality Judgment
Discharging the duty to notify proper authorities presupposes Doe's competence to judge that advising authority of...
Engineer Doe Authority Disclosure
The board's holding that Doe must take further action by advising proper authority of the apparent danger to the...
Engineer Doe Engineering Analysis
Engineer Doe was employed by XYZ Corporation to perform consulting engineering services, completed his studies of...
Engineer Doe Situation Recognition
Doe recognizes that the client's stipulation against a written report is questionable and that, upon learning of the...
Board Normative Framework Assessment
The Board of Ethical Review identifies and applies the governing code sections, interpreting Section 2(c) for the...
Board Precedent Reasoning
The Board reasons analogically from its prior Case No. 67-10, distinguishing its unrelated facts while drawing from...
8 entities
Constraints
Cs
w=0.08
384D
XYZ Discharge Standard Boundary
XYZ Corporation must not discharge manufacturing wastes into the receiving body of water in a manner that lowers the...
Engineer Doe Client Confidentiality Boundary
Engineer Doe must not disclose confidential information concerning the business affairs or technical processes of...
Doe Written Report Prohibition
Engineer Doe must not render a written report of his study findings to XYZ Corporation, per the corporation's instruction.
Engineer Doe Unsafe Instruments Prohibition
Engineer Doe must not complete, sign, or seal plans and specifications, read by the board to include all engineering...
4 entities
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