Opinion 938

The Committee reviewed your proposal to incorporate an escrow company with a non-lawyer and share space with the escrow corporation and your law office. The Committee understood that you will supervise the work with the non-professionals in the escrow corporation, and refer your legal clients to the escrow corporation for services. You plan to post a written disclosure notice in the reception area commonly shared by the lawyer and the escrow company regarding the relationship between you and the escrow corporation. Further, the Committee understood that you will not advertise that you are a lawyer in any advertisements for your escrow business.

The Committee was of the opinion that there is nothing improper in establishing the escrow corporation and sharing space with your law office. The Committee was concerned regarding the question of solicitation of professional employment for your law practice from the escrow business. The Committee was of the opinion that the escrow company could not refer clients to you for related legal business, not only because there was potential for improper solicitation, but also because there would be a potential conflict of interest in representing the clients on matters related to the escrow work for which your corporation was also representing them. The Committee was of the opinion that since as an escrow officer you would owe an equal obligation to both parties to the transaction, you could not then undertake to represent either of them on related legal matters because your independent legal judgment would be adversely affected.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.