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Lawyer Business Transactions with Clients

The Connecticut Appellate Court released today a decision highlighting the prohibitions of the Rule 1.8 of the Connecticut Rules of Professional Conduct for Attorneys. The attorney who represented his client in various legal matters including the purchase of real estate. The lawyer then introduced the client to one of his law partners, who arranged for the client to loan money from the real estate transaction to the law firm. The statewide grievance committee found the lawyer violated Rule 1.8 of the ethics code. Rule 1.8 provides protection to clients by limiting the circumstances when lawyers may engage in business transactions with clients. In this instance, the lawyer was found to have violated Rule 1.8 by his “failure to advice [his client] in writing that [the client] should consider independent counsel in connection with the loan of money to the law firm.” On appeal, the Appellate Court upheld the decision to impose a sanction against the attorney.

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