May a lawyer sell written-off former-client receivables on the stated information terms?

Short answer The opinion says the described sale does not violate the Rules of Professional Conduct when the buyer receives only debtor contact details and outstanding balances, without details of legal services.

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MOLEC

Issued

1996

Apply this to your situation

This page answers the general question as of 1996. Ask about yours and see what the current Missouri Rules of Professional Conduct say for your facts, with citations.

How much weight this carries: Under Missouri Supreme Court Rule 5.30, formal opinions are binding; informal opinions are advisory. Source.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official ethics opinion. The original opinion (linked on this page) is the authoritative source for any reliance.

Plain-English summary

A buyer offered to purchase written-off former-client receivables for a percentage of their value. The buyer would receive debtor names, contact details, and balances, but no description of the legal work.

Based on those stated limits, the opinion concludes the proposed sale does not violate the Rules of Professional Conduct.

Currency note

This opinion was issued in 1996, before Missouri’s 2007 revisions to the Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it.

Common questions

Q: May the buyer receive the nature of the legal services?

A: The question expressly excludes those details from the information provided.

Q: Is the conclusion broader than this proposal?

A: The opinion bases its answer on the facts the lawyer supplied.

Background and rules framework

Based on those stated limits, the opinion concludes the proposed sale does not violate the Rules of Professional Conduct.

Source

Landing page: https://mo-legal-ethics.org/informal-opinion/960103/

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

QUESTION: Attorney has received a proposal from an entity to purchase Attorney´s accounts receivable. The entity would purchase accounts receivable which Attorney has written off for a percentage of their total. The entity would only be provided with the name of the debtor, the debtor´s last known address and telephone number(s), and the outstanding balances. The entity would never be provided with information that would detail the nature of the legal services provided. The accounts receivable the entity would purchase would only relate to former clients. Would this violate the rules? ANSWER: Based on the information Attorney has provided, the proposal Attorney has outlined will not violate the Rules of Professional Conduct.

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