1.2:210 FORMATION OF CLIENT-LAWYER RELATIONSHIP

• Jurisdiction: Arizona

1.2:210 Formation of Client-Lawyer Relationship

As previously noted, the attorney-client relationship is generally understood to be a matter of contract, except if the attorney has been appointed by the court. 7A C.J.S. Attorney & Client § 1669, at 249. That contract consists of an offer by the lawyer, coupled with the acceptance or consent of a client, or the offer or request by the client together with the acceptance of the lawyer. Id. The contract may be either express or implied from the circumstances. See In re Petrie, 154 Ariz. 295, 299, 742 P.2d 796, 800 (1987); Franko v. Mitchell, 158 Ariz. 391, 397, 762 P.2d 1345, 1351 (App. 1988); Ariz. Ethics Op. No. 02-04 ("The Arizona Supreme Court has explained the subjective test by stating, where a person holds an objectively reasonable belief that a lawyer is acting as his attorney, relies on that belief and relationship, and the lawyer does not refute that belief, we will treat that relationship as one between attorney and client in bar disciplinary matters.") (internal quotation marks omitted). An attorney that gives free advice is held to the same standard as an attorney who is paid for services. See Franko, 158 Ariz. at 397, 762 P.2d at 1351. Where an attorney serves as a mere conduit for the transfer of funds, however, an attorney-client relationship will not ordinarily be created. Ralls v. United States, 52 F.3d 223 (9th Cir. 1995).

To determine whether an attorney-client relationship has been created, the Arizona Supreme Court has endorsed the following analysis:

[T]he relationship is proved by showing that the party sought and received advice and assistance from the attorney in matters pertinent to the legal profession. . . . The appropriate test is a subjective one, where the court looks to the nature of the work performed and to the circumstances under which the confidences were divulged. An important factor in evaluating the relationship is whether the client thought an attorney-client relationship existed.

Petrie, 154 Ariz. at 299–300, 742 P.2d at 800–01 (citations and internal quotation marks omitted). In Petrie, the court held that an attorney-client relationship existed between a lawyer and a couple seeking to adopt a baby. Although the relationship was initially subject to the condition that the couple locate a baby to adopt, the relationship was created on satisfaction of that condition. Id.; see also Alexander v. Super. Ct., 141 Ariz. 157, 685 P.2d 1309 (1984) (holding that test is...