ETHICS COMMITTEE OPINION NO . 16-02
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STATE BAR ASSOCIATION OF NORTH DAKOTA
ETHICS COMMITTEE OPINION NO . 16-02
This opinion is advisory only
QUESTION PRESENTED The Ethics Committee has been asked to render its opinion on whether a lawyer may undertake representation of Party B while accepting payment of attorney fees from Party A , who is bringing suit against Party B and wants to ensure that Party B has legal representation .
OPINION Based on the facts presented below , Party A may cover the attorney fees for Party B , providing that the lawyer for Party B reasonably believes this third party payment will not interfere with his independent professional judgment and there is consent from the client ( Party B ).
APPLICABLE NORTH DAKOTA RULES OF PROFESSIONAL CONDUCT
Rule 1.6 ( a ), N . D . R . Prof . Conduct : Confidentiality of Information ; Rule 1.7 ( c ), N . D . R . Prof . Conduct : Conflict of Interest : General Rule ; Rule 1.8 ( f ), N . D . R . Prof . Conduct : Conflict of Interest : Prohibited Transactions ; Rule 5.4 ( c ), N . D . R . Prof . Conduct : Professional Independence of a Lawyer
FACTS PRESENTED Party A is bringing suit against Party B . Party A wants to ensure Party B has legal representation , therefore Party A has offered to pay the attorney fees for Party B . Party B is permitted to find a lawyer of his own choosing .
DISCUSSION Rule 1.7 ( c ), N . D . R . Prof . Conduct , addresses situations where the lawyer ’ s responsibilities to a third party may adversely affect his representation of the client . The lawyer is prohibited from undertaking representation unless the lawyer reasonably believes there will be no adverse effect on the representation and the client consents after consultation .
Rule 1.8 ( f ), N . D . R . Prof . Conduct , allows for a lawyer to accept compensation for representing a client from someone other than the client ( including an indemnitor ) provided certain conditions are met . The lawyer must determine that there will be no interference with his independent professional judgment . The client must consent after consultation . And , the lawyer must abide by Rule 1.6 , N . D . R . Prof . Conduct , regarding confidentiality . continued on page 38
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