Reference no: EM13505815
A professional corporation has one shareholder, attorney X. The law practice is almost exclusively personal injury and worker's compensation practice. The professional corporation enters into contingent fee contracts with the clients, which contracts comply withRule 1.04. This professional corporation makes loans to clients, although not currently to workers compensation clients, for reasonably necessary medical and living expenses. Many of the attorney's clients are referred to medical doctors for examination and diagnostic work. Attorney X also owns a regulated loan company which makes loans to the general public.
A doctor approaches attorney X about jointly purchasing medical equipment and facilities. The equipment and facilities would be used in providing medical services to some of attorney X's law practice clients. Attorney X would receive a share of the profits earned by the use of the medical equipment and facilities.
Questions Presented
1. Whether the professional corporation may charge interest on loans extended to client?
2. Whether the professional corporation may refer clients to the regulated loan company owned by attorney X to obtain loans; and, if so, is disclosure by the professional corporation or attorney X required?
3. Whether ownership of the medical equipment and facilities is a conflict of interest for attorney X?
4. If such ownership is a conflict of interest, is disclosure by the professional corporation or attorney X required?
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