Lawyeringlaw.com Tip of the Month

Tip for June 2010

Avoid Business Transactions with Clients

Lawyers and law firms should enter into business transactions with clients only with extreme caution and only after complying with the requirements of the applicable Rules of Professional Conduct - in most states, Rule 1.8(a).  Business transactions with clients include investing in client companies, investing with clients, borrowing money from clients, lending money to clients, or entering into virtually any other kind of agreement or contract with clients.  Transactions such as these may implicate issues of conflicts of interest and a presumption of undue influence, and may place at risk the lawyer's interest in the transaction, the lawyer's fees from that client and future representation of that client.  This web site contains materials that discuss the issues pertaining to transactions with clients in more detail.