State Bar of New Mexico Ethics Opinions
Free plain-English summaries of legal ethics opinions issued by the State Bar of New Mexico, with full citations and source links on every page.
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Can a New Mexico lawyer use generative AI tools like ChatGPT in the practice of law?
Yes. A New Mexico lawyer may use generative AI in practice, but must do so responsibly, protecting client confidences, verifying AI output for accuracy and candor to courts, charging only for time act…
Can a New Mexico lawyer split a fee with a lawyer in another firm who only signed up the client and did no work?
No. A fee split with a lawyer who performs no services and assumes no responsibility is an impermissible referral fee. Lawyers in different firms may divide a fee only if the division is proportional …
Can a New Mexico personal injury lawyer agree to personally indemnify the opposing party against third-party claims as a condition of the client's settlement?
No. A lawyer who personally guarantees, from the lawyer's own funds, to indemnify the opposing party against future third-party claims provides prohibited financial assistance to the client and create…
Can a New Mexico lawyer charge a contingent fee on an auto-accident property damage claim and charge interest on costs advanced?
Yes to both, within limits. A contingent fee on a property damage claim is permitted if written, reasonable under Rule 16-105(A), and clearly communicated; interest on advanced costs is allowed if rea…
Can a New Mexico lawyer pay an expert witness a fee that is contingent on the outcome of the case?
The opinion concluded that paying a fact witness on a contingency basis violated the rules, while whether paying an expert witness contingently violated them turned on undeveloped New Mexico substanti…
Does a New Mexico lawyer have to report another lawyer's unreasonable fee?
The opinion concluded that charging an unreasonable fee is misconduct, and that a lawyer with knowledge of it has a mandatory duty under Rule 16-803 to report it to the appropriate authority; a lawyer…
Can a lawyer let clients fund trust-account retainer deposits by credit card, with the lawyer covering the processor's fee so the full amount lands in trust?
The committee concluded the proposal does not comport with the rules, because credit-card charge-backs can commingle one client's trust funds with another's and the lawyer's own funds in violation of …
When a contingent fee agreement ends early, can the lawyer collect a fee, and what can a contingent fee contract say about fees on termination?
The committee concluded a contingent fee agreement may give the lawyer a quantum meruit fee when the client discharges the lawyer without cause, but only up to the maximum contract fee and only when t…
Must a lawyer tell the client the hourly rates charged for paralegals and other non-lawyer staff, and can the lawyer bill that non-lawyer time as if it were attorney time?
The committee concluded a lawyer must disclose the rates charged for non-lawyer staff and may bill separately for their supervised work, but billing non-lawyer time as attorney time would be a fraudul…
May a lawyer refer collection of unpaid fees against clients to a credit bureau or a commercial collection agency?
The opinion concluded it is improper to report a client's unpaid account to a credit bureau solely to impede the client's credit, but a lawyer may generally use a contingent-fee commercial collection …
May a lawyer charge a contingent fee in a domestic relations matter to collect child support arrears or to win a divided share of an ex-spouse's retirement after the divorce is final?
The opinion concluded the rule barring contingent fees keyed to securing a divorce or to alimony, support, or property settlement does not bar a contingent fee in post-decree proceedings to enforce a …
May a lawyer actively seek his statutory attorney's fee at a fee hearing when the client objects because the fee comes out of her recovery?
The opinion concluded the lawyer may actively seek his fee, treating it like any post-representation fee dispute, since the client consented to the statutory fee basis in writing; the conflict and zea…
Can a lawyer co-sign or guarantee a bank loan covering a client's living expenses when the loan is to be repaid from the client's pending, unliquidated claim?
The opinion concluded it was improper for the attorney to guarantee a client's promissory note when repayment was anticipated from an unliquidated claim the attorney was handling, because Rule 5-103(B…
When an attorney leaves a firm in the middle of a contingent-fee case, can the firm hold the client's files as a retaining lien to force a fee-split agreement with the departing lawyer?
The opinion concluded the firm could not use a retaining lien, or the threat of one, on the client's files to compel a separation agreement with the departing attorney, because until the client is giv…
In a federal civil rights case, may a defendant offer and a plaintiff accept a single lump-sum settlement that bundles damages, costs, and the plaintiff's statutory attorney's fees?
The opinion concluded that in cases involving only damages it is not ethically improper for a defendant to offer, or a plaintiff to accept, a lump-sum settlement covering damages, costs, and attorney'…
Can a law partnership keep paying a former partner a percentage of its gross fees under a buy-out agreement if that former partner resigns, is suspended, or is disbarred and becomes a nonlawyer?
The opinion concluded the buy-out payments were permissible under Rules 2-107 and 3-102, even if the former partner later resigned, was suspended, or was disbarred, because they were deferred payment …
Can a salaried in-house bank lawyer seek court-awarded attorney fees in collection and foreclosure suits, and may the bank keep more than the lawyer's cost?
The opinion concluded that a salaried in-house bank lawyer had to disclose to the court that she was exclusively on salary when requesting fees, that it would be improper for the bank to collect more …
Can a lawyer be employed to run a legal clinic organized by a nonprofit corporation that has no lawyers on its board, and run a private practice on the same premises in exchange for the use of those premises?
The opinion concluded the employment came within Rule 2-103(D) if the clinic's users were beneficiaries of the nonprofit and the listed conditions were met, and the dual arrangement was not objectiona…
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Legal ethics opinions from the State Bar of New Mexico interpret the rules of professional conduct for working lawyers, in response to inquiries from members and committees. They are not binding like court discipline decisions, but courts and discipline boards treat formal opinions as substantial guidance on how the rules apply. Every opinion above has a plain-English question and short answer, plus a link to the original source on the bar's site.