LEO: Attorney - Business Interests Which May  LE Op. 1027

 

Attorney - Business Interests Which May Affect

Professional Judgment.

 

February 1, 1988

 

You wish to know whether or not it is improper for an attorney to

represent the legal affairs of a business when the attorney has a personal

or financial interest in that business.

 

Disciplinary Rule 5-101(A) [ DR:5-101] states that "A lawyer shall not

accept employment if the exercise of his professional judgment on behalf

of his client may be affected by his own financial, business, property or

personal interests except with the consent of his client after full and

adequate disclosure under the circumstances."

 

Disciplinary Rule 5-104(A) [ DR:5-104] provides that "A lawyer shall

not enter into a business transaction with a client if they have differing

interests therein and if the client expects the lawyer to exercise his

professional judgment therein for the protection of the client, unless the

client has consented after full and adequate disclosure under the

circumstances and provided that the transaction was not unconscionable,

unfair or inequitable when made."

 

Based upon the facts presented and the above cited disciplinary rules, as

long as the attorney's professional judgment on behalf of his client is

not affected by his financial interest and disclosure is made and consent

received, it is not improper for an attorney to represent the legal

affairs of a business when the attorney has a personal or financial

interest in the business.

 

Committee Opinion February 1, 1988