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Rule 1.8 of the Model Rules of Professional Conduct

Definition

Prohibits or limits a lawyer from engaging in certain relationships or transactions with current clients. First, the rule prohibits engaging in business or financial transactions with a current client unless the terms are fair; the lawyer discloses in writing the terms, the lawyer’s role, and the advisability of obtaining independent legal counsel; and the lawyer obtains the client’s consent. Second, the rule prohibits using information relating to a representation against a client without informed consent. Third, the rule prohibits soliciting a gift or preparing an instrument that gives the lawyer something valuable unless the client is a relative. Fourth, the rule prohibits entering an agreement for literary or media rights related to a representation before its conclusion. Fifth, the rule limits the ways that a lawyer can provide a client with financial assistance, accept fees from third parties, participate in settlements involving multiple clients, prospectively agree to limit or settle malpractice claims, or acquire an interest in client litigation. Finally, the rule prohibits sexual relations with clients unless a sexual relationship existed before the lawyer represented the client.

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Institutional Labor Advisors LLC v. Allied Resources Inc.


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State ex rel. Oklahoma Bar Association v. Smolen