Legal Question in Real Estate Law in California
Attorney paying clients debt
Can an attorney cure arrearages to prevent his or her clients pending foreclosure out of the attorneys own pocket? Property in question involved in multi party litigation. Involved attorneys suggest paying because their clients cannot afford to contribute. This action done to prevent property from being lost and relegating case to be a loss without the property selling thus no party or attorney gets paid and loosing clients settlement.
3 Answers from Attorneys
Re: Attorney paying clients debt
Yes, an attorney can. But, there are important ethical rules that must be followed between the attorney and his client.
Re: Attorney paying clients debt
No, this would be prohibited under Rule 4-210 of the California Rules of Professional Conduct, which forbids an attorney or law firm from paying the personal or business expenses of a client, other than expenses incurred in the course of litigation. There are a couple of other exceptions to this rule, but I don't think they apply.
The attorneys involved can contact the State Bar ethics hot line for a free and more official answer.
Re: Attorney paying clients debt
No, this would be prohibited under Rule 4-210 of the California Rules of Professional Conduct, which forbids an attorney or law firm from paying the personal or business expenses of a client, other than expenses incurred in the course of litigation. There are a couple of other exceptions to this rule, but I don't think they apply.
The attorneys involved can contact the State Bar ethics hot line for a free and more official answer.
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