Safekeeping Property of Clients and Third Parties

Question 1

The attorney declined to advance the funds but offered to guarantee the client’s promissory note to a local bank in order to secure the funds needed to cover those expenses. The client has agreed to reimburse the attorney in the event she incurs liability on the guaranty. Is this allowed?

Answer 1

While financial assistance to a client is generally prohibited with respect to pending or planned litigation, a lawyer is permitted to advance litigation costs (including the expenses of medical examination and the costs of obtaining and presenting evidence) to the client under MRPC 1.8(e).