Could a Nebraska lawyer manage a bank, sell insurance there, and maintain a separate law office in the same community?

Plain-English summary

The inquiring lawyer wanted to take an active role as bank president, sell insurance from an office in the bank, and operate a separate general law practice elsewhere in the community. The committee approved the arrangement under three restrictions.

The banking and insurance operations could not feed legal business to the law office. The lawyer could not deal with bank or insurance customers on matters with legal implications or provide services there that would be legal services if performed by a lawyer.

Advertising, announcements, and cards for the bank or insurance operation could never identify the bank president as a lawyer. The opinion allowed insurance other than life insurance but stated that prior Nebraska and ABA opinions prohibited selling life insurance.

Currency note

This opinion was issued in 1973, before Nebraska's adoption of the 2005 Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement.

Common questions

Q: Could the lawyer's law office be in the bank?

A: No under the facts approved. The opinion required a separate and distinct law office in another building.

Q: Could bank customers receive legal advice at the bank?

A: No. The lawyer could not handle matters with legal implications or provide services considered legal work there.

Q: Could bank or insurance advertising mention that the president was a lawyer?

A: No. The prohibition covered advertising, announcements, and cards connected with those businesses.

Q: Did the opinion permit life-insurance sales?

A: No. It limited the approved insurance activity to insurance other than life insurance.

Background and rules framework

Former DR 2-101 restricted publicity calculated to attract clients, and DR 2-103 prohibited recommending the lawyer's own employment to a nonlawyer who had not sought advice about hiring counsel. The committee applied those rules to prevent the bank and insurance business from serving as sources of legal clients.

Citations and references

Former Nebraska Code of Professional Responsibility:

• DR 2-101
• DR 2-103
• Former Canon 27

Other opinions cited:

• Nebraska Formal Opinion 68-3 (1963)
• ABA Informal Opinion 424
• ABA Informal Opinion 987

See also

• Nebraska Ethics Op. 75-10: Lawyer as bank trust officer
• Nebraska Ethics Op. 11-02: Lawyer as full-time insurance agent
• Nebraska Ethics Op. 74-3: Lawyer as real-estate broker

Source

• Landing page: Nebraska lawyer ethics opinions archive
• Original PDF: Nebraska Ethics Advisory Opinion 73-9

Original opinion text

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

Nebraska Ethics Advisory Opinion for Lawyers No. 73-9

A LAWYER MAY SERVE AS PRESIDENT OF A BANK AND TAKE AN ACTIVE MANAGEMENT ROLE IN THE BANK AS PRESIDENT AND ALSO SELL INSURANCE OTHER THAN LIFE INSURANCE FROM AN OFFICE WITHIN THE BANK, AND MAY ALSO MAINTAIN A SEPARATE AND DISTINCT OFFICE FOR THE GENERAL PRACTICE OF LAW IN THE SAME COMMUNITY BUT IN A BUILDING SEPARATE FROM THE BANK'S OFFICES IF (1) THE BANKING AND INSURANCE BUSINESSES ARE CONDUCTED IN SUCH A MANNER THAT THEY DO NOT FEED LEGAL BUSINESS TO THE LAW OFFICE AND IF (2) HE DOES NOT DEAL WITH CUSTOMERS AT THE BANK OR THE INSURANCE OFFICE ON MATTERS THAT HAVE LEGAL IMPLICATIONS, OR WHICH WOULD BE CONSIDERED LEGAL SERVICES WHEN PERFORMED BY A LAWYER AND IF (3) HE IS NEVER IDENTIFIED AS A LAWYER IN ANY ADVERTISING, ANNOUNCEMENTS OR CARDS RELATED TO THE BANKING AND INSURANCE BUSINESSES.

DISCIPLINARY RULES CONSTRUED:

DR2-101 - Publicity in general (A) A lawyer shall not ... use ... any form of public communication... calculated to attract lay clients;.... (B) A lawyer shall not publicize himself...except as permitted under DR2-103.

DR2-103 - Recommendation of professional employment (A) A lawyer shall not recommend employment ... of himself, his partner or associate to a non-lawyer who has not sought his advice regarding employment of a lawyer.

Old Canon 27: Advertising, Direct or Indirect - It is unprofessional to solicit employment by circulars, advertisements through touters or by personal communications or interviews not warranted by personal relations.

An attorney inquires if he may take an active management role in a bank of which he is President and also sell insurance from an office within the bank and also practice law in the same town in an office separate from the bank

Formal Opinion No. 68-3 of the Nebraska State Bar Association dated October 8, 1963 has ruled that a lawyer may engage in selling insurance, other than life insurance. That opinion permitted the insurance business to be conducted from the law office, but prohibited advertising of the insurance business. Since the inquiring attorney states that the insurance business will be conducted in the banking office, we do not feel that it is necessary to prohibit advertising, but we do feel it necessary to prohibit any identification of the inquirer as a lawyer in any of the advertising material. The sale of life insurance is prohibited under Informal Opinion No. 424 of the American Bar Association and Formal Opinion No. 68-3 of the Nebraska Bar Association cited above.

On the issue of whether the lawyer may also assume an active role in the bank's management as its President, we have relied heavily upon Informal Opinion No. 987 of the American Bar Association which dealt with a similar inquiry. As is indicated by our opinion herein, this type of activity is not per se prohibited, but the attorney must make certain that he does not violate any canons of ethics, and thus the three cautionary prohibitions are set forth in our opinion of approval. It is therefore the attorney's responsibility to make certain that he does not violate any of these canons of ethics.

Nebraska Ethics Advisory Opinion for Lawyers No. 73-9