Aug. 15, 2012 – Ethical dilemmas affect every lawyer’s practice. This series of questions and answers appears each month in InsideTrack. The answers, offered by State Bar’s ethics counsel Timothy Pierce, are intended to provide guidance only and are not legal authority. Each situation will depend on the facts and circumstances involved.
Question
I represent a client on a personal injury matter. I’ve represented this client on several matters over the years and consider her a friend as well. The accident has resulted in hard times for her because she hasn’t been able to work and is danger of being evicted. I’d like to give the client a loan/gift so she can stay afloat until the case is settled or tried. Can I do this?
Answer
No. SCR 20:1.8(e) prohibits giving financial assistance to clients in connection with pending or contemplated litigation, and loans or help with living expenses has consistently been considered “financial assistance.” Some states have read a “humanitarian” exception into this Rule, but Wisconsin is not one of them. Note that the Rules does allow lawyers to make costs contingent on the outcome of a matter and to pay court costs and expenses on behalf of indigent clients. Neither of these exceptions allow a lawyer to help a client with living expenses.
Reference: SCR 20:1.8(e)
