Informal Opinion Number: 980116

Reference Note:  Rule 4-1.8, Conflict of Interest: Prohibited Transactions, was amended effective November 23, 2021.  This informal opinion predates that amendment and should be read with Rule 4-1.8(e)(3) and Comments [11], [12], and [13].

QUESTION: Attorney has been approached by several people over the years seeking to have Attorney´s firm provide cash payments to help the clients sustain themselves and their families during the pendency of their person injury actions. Attorney has always told the potential client that it would not be permitted under the Rules of Professional Conduct. Is this correct?
ANSWER: Attorney is correct in Attorney´s understanding that Rule 4-1.8(e) prohibits Attorney from loaning money to a client or providing any other form of financial assistance, other than advancing the costs and expenses of litigation.

Informal Opinions are ethics advisory opinions issued by the Office of Legal Ethics Counsel to members of the Bar about Rule 4 (Rules of Professional Conduct), Rule 5 (Complaints and Proceedings Thereon), and Rule 6 (Fees to Practice Law) pursuant to Missouri Supreme Court Rule 5.30(c). Written summaries of select Informal Opinions are published for informational purposes as determined by the Advisory Committee of the Supreme Court of Missouri pursuant to Rule 5.30(c). Informal opinion summaries are advisory in nature and are not binding. These opinions are published as an educational service and do not constitute legal advice.

To request an Informal Opinion, please visit: http://mo-legal-ethics.org/for lawyers/requesting-an-informal-advisory-opinion/.

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