Rule 1.08. Conflict of Interest: Prohibited Transactions

RULE 1.08. Conflict of Interest: Prohibited Transactions

(a) A lawyer shall not enter into a business transaction with a client, or knowingly acquire an

ownership, possessory, security or other pecuniary interest adverse to a client, unless:

(1) the terms of the transaction or acquisition are fair and reasonable to the client, and

are fully disclosed and transmitted to the client in a writing that can be reasonably

understood by the client;

(2) the client either is represented in the transaction or acquisition by an independent

lawyer of the client’s choice or the client is advised in writing to seek the advice of an

independent lawyer of the client’s choice and is given a reasonable opportunity to

seek that advice; and

(3) the client thereafter provides informed consent in writing to the terms of the

transaction or acquisition, and to the lawyer’s role in it, including whether the lawyer

is representing the client in the transaction.

(b) A lawyer shall not prepare an instrument giving the lawyer or a person related to the

lawyer as a parent, child, sibling, or spouse any substantial gift from a client, including a

testamentary gift, except where the client is related to the donee.

(c) Prior to the conclusion of all aspects of the matter giving rise to the lawyers employment,

a lawyer shall not make or negotiate an agreement with a client, prospective client, or former

client giving the lawyer literary or media rights to a portrayal or account based in substantial

part on information relating to the representation.

ift, except where the client is related to the donee.

(c) Prior to the conclusion of all aspects of the matter giving rise to the lawyers employment,

a lawyer shall not make or negotiate an agreement with a client, prospective client, or former

client giving the lawyer literary or media rights to a portrayal or account based in substantial

part on information relating to the representation.

(d) A lawyer shall not provide financial assistance to a client in connection with pending or

contemplated litigation or administrative proceedings, except that:

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(1) a lawyer may advance or guarantee court costs, expenses of litigation or

administrative proceedings, and reasonably necessary medical and living expenses,

the repayment of which may be contingent on the outcome of the matter; and

(2) a lawyer representing an indigent client may pay court costs and expenses of

litigation on behalf of the client.

(e) A lawyer shall not accept compensation for representing a client from one other than the

client unless:

(1) the client consents;

(2) there is no interference with the lawyers independence of professional judgment or

with the client-lawyer relationship; and

(3) information relating to representation of a client is protected as required by Rule

1.05.

(f) A lawyer who represents two or more clients shall not participate in making an aggregate

settlement of the claims of or against the clients, or in a criminal case an aggregated

agreement to guilty or nolo contendere pleas, unless each client has consented after

consultation, including disclosure of the existence and nature of all the claims or pleas

involved and of the nature and extent of the participation of each person in the settlement.

not participate in making an aggregate

settlement of the claims of or against the clients, or in a criminal case an aggregated

agreement to guilty or nolo contendere pleas, unless each client has consented after

consultation, including disclosure of the existence and nature of all the claims or pleas

involved and of the nature and extent of the participation of each person in the settlement.

(g) A lawyer shall not make an agreement prospectively limiting the lawyer’s liability to a

client for malpractice unless permitted by law and the client is independently represented in

making the agreement, or settle a claim for such liability with an unrepresented client or

former client without first advising that person in writing that independent representation is

appropriate in connection therewith.

(h) A lawyer shall not acquire a proprietary interest in the cause of action or subject matter of

litigation the lawyer is conducting for a client, except that the lawyer may:

(1) acquire a lien granted by law to secure the lawyer’s fee or expenses; and

(2) contract in a civil case with a client for a contingent fee that is permissible under