Advisory Opinion Number: 20000185

QUESTION: Attorney is representing Client in a traffic matter. Client has a friend who is a friend of the Judge. Client had her friend contact the Judge regarding the traffic violation. The Judge responded that he could not speak about the case. What are Attorney's ethical violations concerning either mandatory or discretionary withdrawal?
 
ANSWER: Attorney should advise Client to cease this type of activity and contact. If Client is willing to do so, Attorney may remain in the case. If Client is not willing to do so, Attorney must withdraw.




Advisory Opinion Number: 20000006

QUESTION: Client would like to enter into an agreement with a company that essentially makes a loan against the potential recovery on Client's personal injury case. The company will agree not to seek payment from Client for the loan if no recovery is made. Before the company will loan Client the money they require information concerning Client's medical bills, medical records, police reports, liens, an estimated amount of recovery on the claim and Attorney's estimated value of the claim. Client has directed Attorney to provide the information to the company. Question 1. Are there any ethical problems with divulging this information to a third party? Is it necessary to get a written waiver of the privilege from Client? Question 2. Is there any ethical problem with Attorney signing an agreement with the loan company to pay that company directly from Attorney's trust account after the recovery is made? Question 3. If Client changes his or her mind and refuses to allow payment from Attorney's trust, would Attorney violate Attorney's fiduciary duty to Client by disbursing the payment when there is not a valid lien and only the signed agreement?

ANSWER: Answer 1. This opinion only addresses Attorney's responsibilities under Supreme Court Rule 4. It does not address the advantages and disadvantages of the arrangement nor the application of any other laws to the arrangement. If Attorney participates in this type of arrangement, Attorney must advise Client about all aspects of the arrangement and make sure that Client understands all of the implications. One aspect that Client must understand and agree to is that they cannot ensure that the other party would or could maintain confidentiality of the information Attorney provides. Attorney may not participate in the arrangement and then withhold information required by the arrangement, even if Client so requests, without disclosing that Attorney is withholding information. That conduct could involve assisting Client with a fraud or dishonest conduct under Rule 4-8.4(c). Answer 2. This is permissible, if Client consents. Answer 3. If Attorney enters into the agreement described in Question 2 and Client changes his or her mind, Attorney would not be able to disburse the funds to Client or the company, until the dispute is resolved. Under those circumstances, Attorney would hold the funds in Attorney's trust account for a reasonable period of time to allow them to resolve the dispute. If they did not resolve the dispute in a reasonable period of time, Attorney would interplead the disputed funds.



Advisory Opinion Number: 990184

QUESTION: Attorney is representing Client in a personal injury matter. Client is experiencing a financial hardship and has contacted a corporation that provides interim funding to individuals with claims or lawsuits pending. In order to consider providing an advance to Client, the corporation has asked Attorney to provide case documents for review and fill out necessary forms. The corporation has explained to Client that it is an advance against an impending settlement, not a loan, and the advance is risky and the corporation's fees are high. Even though Attorney has fully discussed the matter with Client and expressed caution concerning the interest rates, Client has asked Attorney to provide the necessary paperwork to the corporation. Would it be ethical for Attorney to participate in this type of agreement?

ANSWER: This opinion only addresses Attorney's responsibilities under Supreme Court Rule 4. It does not address the advantages and disadvantages of the arrangement nor the application of any other laws to the arrangement. If Attorney agrees to participate in this arrangement, Attorney has obligations to advise Client about all aspects of the arrangement and to look after Client's interests. One aspect would be ensuring that the other party agrees to maintain confidentiality regarding information Attorney provides. Attorney may not participate in the arrangement and then withhold information required by the arrangement without disclosing that Attorney is withholding information. That conduct could involve assisting Client with a fraud or dishonest conduct under Rule 4-8.4(c).




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