Office of the General Counsel

• Publication year: 2022
• Pages: 0042

Office of the General Counsel Vol. 28 No. 3 Pg. 42 Georgia Bar Journal December, 2022

I'm a Lawyer, Not a Banker!

Under current ethics rules, a lawyer can't give a client rent money—but that might change if a pending proposed amendment is approved.

BY PAULA FREDERICK

"I think we can get this dispossessory tossed out, and we should be able to get you some compensation for the things that were damaged when the apartment flooded," you assure your new pro bono client after hearing her story. "Remember to pay your rent directly to the court for the next couple of months, so you don't get evicted before the trial."

"I spent the rent money—I had to buy new furniture," your client reminds you. "I sure hope we can get my money back, but I'll probably get evicted before we get to court!"

"I tell you what. My firm can pay the rent for the next couple of months," you offer. "We have a special fund for cases like yours."

Can a lawyer give a client rent money?

Not now; but if a pending proposed amendment is approved, that could change.

The American Bar Association amended the applicable Model Rule of Professional Conduct in 2020. Under the new ABA rule,^[1] a lawyer representing an indigent client pro bono may give the client "modest gifts ... for food, rent, transportation, medicine and other basic living expenses."

Before this change, the ethics rules prohibited lawyers from giving gifts to clients who they represent in litigation matters. Comment 5 of Rule 1.8 explained that the prohibition was justified because of the risk that clients would pursue lawsuits that might not otherwise be brought, and because the assistance could give lawyers too great a financial stake in the litigation.

Proponents of the new version of 1.8(e) argue that allowing modest gifts for necessities will not create conflicts of interest or invite abuse. Under the revised rule the lawyer cannot advertise the availability of gifts, or use them as an inducement to lure clients. Once given, the lawyer may not seek or accept reimbursement of the gift.

Of course, the ABA Model Rules are not binding in Georgia. As it does with all amendments to the Model Rules, the Georgia...