My personal-injury client is struggling to pay the mortgage. Can I lend the client money to help cover the monthly payments?

Plain-English summary

The inquiring attorney sought the panel's opinion as to whether the attorney is prohibited by Rhode Island Rule of Professional Conduct 1.8(e) from lending a client in a personal-injury action money to assist the client in meeting monthly mortgage obligations.

The panel took the position that Rule 1.8(e) does prevent the attorney from lending the client money to assist the client in meeting monthly mortgage obligations.

Currency note

This opinion was issued in 1991, after the Rhode Island Supreme Court adopted the Model Rules of Professional Conduct effective November 15, 1988, and it applies Rule 1.8(e) as then in force. The Rhode Island Supreme Court later revised the Rules of Professional Conduct in 2007 as part of the nationwide Ethics 2000 process, which renumbered and amended several provisions, and the rule on financial assistance to clients has been the subject of later amendments in many jurisdictions. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule mentioned here.

Common questions

Q: Can a lawyer lend a personal-injury client money for living expenses like the mortgage?

A: Under this opinion, no. The panel concluded Rule 1.8(e) prevents the attorney from lending the client money to help meet monthly mortgage obligations.

Q: What rule governs financial assistance to a client in litigation?

A: The panel applied Rule 1.8(e), which restricts a lawyer's financial assistance to a client in connection with pending or contemplated litigation.

Background and rules framework

The opinion applies Rule 1.8(e) (Conflict of Interest: Current Clients, Specific Rules; financial assistance to a client), corresponding to Model Rule 1.8(e). Rule 1.8(e) restricts a lawyer from providing financial assistance to a client in connection with litigation, and the panel read it to bar lending the personal-injury client money for monthly mortgage payments.

Citations and references

Rules of Professional Conduct:

• MR 1.8 (conflict of interest: current clients, specific rules), paragraph (e) on financial assistance
• RI RPC 1.8(e)

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• None cited.

See also

• RI EAP Op. 91-19: Related Lawyers on Opposing Sides
• RI EAP Op. 95-12: Disputed Medical Lien Funds

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2091-26.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

Digest of Ethics Advisory Panel
Opinion #91-26, Request #129
Issued May 23, 1991

An attorney seeks Panel opinion as to whether the attorney is prohibited by Rhode Island Rule of Professional Conduct 1.8(e) from lending a client in a personal injury action money to assist the client in meeting monthly mortgage obligations.

The Panel takes the position that Rule 1.8(e) does prevent the attorney from lending the client money to assist the client in meeting monthly mortgage obligations.

Ethics Advisory Panel advice is protective in nature. There is no requirement that an attorney abide by a Panel opinion, but if he or she does, he or she is fully protected from any charge of impropriety.