The requirements for when an attorney may enter into a transaction with a client in which the attorney will acquire a pecuniary interest adverse to the client have been slightly modified by Cal Rules of Prof Cond 1.8.1. Here’s what you need to know. An attorney can’t enter into a transaction with a client in which the attorney or another attorney in his or her law firm acquires an “ownership, possessory, security, or other pecuniary interest adverse to a client” unless the following requirements are met (Cal Rules of Prof Cond 1.8.1 (former Rule 3-300), 1.8.11): The terms of the transaction are fair and reasonable to the client, and the terms and the attorney’s role in the transaction or acquisition are fully disclosed in writing and set out in a way that the client should reasonably understand (Rule 1.8.1(a)); The client is represented in the transaction by an independent attorney of the client’s choice or the attorney advises the…
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