LEO: Attorney as Noteholder - Suit Against  LE Op. 578

 

Attorney as Noteholder - Suit Against Maker.

 

May 31, 1984

 

An attorney assumed a note and guaranteed payment of the note along with

a husband and wife. Ultimately the note went into default and the attorney

purchased the note at that time. Thereafter, the attorney prepared an

agreement, whereby the husband agreed to hold the wife harmless from

liability on the note. When the husband filed for bankruptcy, the attorney

sought contribution from the wife. Although the Legal Ethics Committee

expressed grave reservation about the propriety of the attorney preparing

agreements in which he had a financial interest, it would not be improper

for the attorney to sue the wife for her obligations under the note.

 

Committee Opinion May 31, 1984