G. Business Transactions with Clients Flashcards
What is required for Lawyer to enter adverse business transactions with Client?*
1) Reasonable + Fair transaction to Client!!!
2) Fully disclosed terms to Client in writing!!!
- Client can reasonably understand
3) Written advice to Client to hire independent lawyer for such arrangement!!!
4) Client gives informed consent + SIGNED + in WRITING!!!
- Loan/sales transaction
- Lawyer investment on Client’s behalf
What is considered ‘business transaction’?*
Lawyer knowingly acquires interest of!!!;
- Ownership
- Security
- Possession
- Money
NOT ordinary fee agreement/standard commercial transactions which Client routinely markets goods/services to public
When may Lawyer use/NOT use Client’s confidential info?*
NOT disadvantage Client!!!
NOT benefit Lawyer/other person
UNLESS Client gives informed consent!!!
UNLESS exception to duty of confidentiality applies
When may Lawyer NOT accept gifts from Clients?*
1) Client is NOT Lawyer’s relative!!!
2) Substantial gift!!!
- NOT testamentary gift
- UNLESS small gift (token of appreciation/appropriate holiday gift)!!!
Lawyer must NOT prepare legal instrument!!!
- UNLESS Client is Lawyer’s relative!!!
UNLESS Lawyer did NOT solicit gift from Client!!!
When may Lawyer financially assist Clients in pending litigation?*
Advance court costs + other litigation expenses!!!
Pay court costs + litigation expenses for INDIGENT client!!!
NOT loan to Client for living expenses/medical treatment!!!
What is required for Lawyer to participate in aggregate settlement agreement with multiple parties?*
1) ALL Clients agree on sharing of aggregate sum!!!
2) Lawyer discloses terms of sharing agreement to Clients!!!
- Total payable amount
- Claims + Defences + Pleas
- Payor + Method of payment of Lawyer’s fees
3) ALL Clients give informed consent + SIGNED + in WRITING!!!
When may Lawyer agree with Client on waiving/limiting Lawyer’s liability for legal malpractice?
Client has independent representation
Lawyer practises in limited liability entity
- BUT Lawyer remains personally liable for own malpractice
Agreement reasonably limits Lawyer’s representation under ABA Model Rules
Agreement to arbitrate legal malpractice claims
- Proper under local law
- Client understands scope + effect of agreement
When may Lawyer negotiate agreements giving himself literary/media rights re information related to Client representation?*
AFTER Client representation is complete!!!
FYI ONLY refers to information re CURRENT (NOT past) client representation (NOT media character, etc)!!!
