Advisory Opinion:
1568
Year Issued:
1994
RPC(s):
RPC 1.4; 1.7
Subject:
Conflict of interest; lawyer for charity representing potential donors
I have been instructed by the Rules of Professional Conduct Committee to respond to your recent ethics inquiry regarding the provision of legal services for members of charitable organizations. Specifically, the issue presented is whether a law firm can enter into a business arrangement with a charitable organization to represent church members wishing to make charitable donations to the church. The charity want to recommend the firm to members who ask for recommendations for an attorney to prepare the documents for donating to the church. The charity would pay for the prospective donor to have the attorney review the documents. In addition, the law firm may be asked to do legal work on general charity matters unrelated to the giving department. The Committee was of the opinion that the proposed arrangement for representation was impermissible on three grounds:
1) It would be a conflict of interest under RPC 1.7(b) if the firm represents the charity on general matters because under the plan, the lawyer's duty to the client/donor competes with the lawyer's duty to the church.
2) It would violate RPC 1.7(b)(2) because the plan does not allow for consultation and full disclosure to the client; and
3) The communication between the client/donor and the lawyer is violated under RPC 1.4(b).
In addition, there is a potential danger that the lawyer's professional independence would be compromised because of the third party employer relationship with the church.
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