Can a lawyer who knows of a person's unknown interest in a trust fund tell them and offer to represent them for a percentage?

Plain-English summary

The inquiry asked whether a lawyer who knew of an individual's interest in a trust fund, of which the individual was ignorant, could approach the individual and make the facts known to him on a contract percentage based on the amount of the trust fund.

The Committee agreed that the lawyer should acquaint the individual with the facts of his interest in the trust fund, but concluded that if, in passing on that information, the lawyer made any suggestion as to employment, on a cash or contingent-fee basis, the conduct would directly violate Canon 24, which prohibits solicitation of business, directly or indirectly (9-0).

Currency note

This opinion was issued in 1953, under the former Texas Canons of Ethics, which the Texas Disciplinary Rules of Professional Conduct replaced effective January 1, 1990. Solicitation of clients is now governed by Texas Disciplinary Rule 7.03 and ABA Model Rule 7.3, and the advertising restrictions at issue predate Bates v. State Bar of Arizona, 433 U.S. 350 (1977), which narrowed categorical bans on lawyer advertising. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Could the lawyer tell the person about the trust interest at all?

A: Yes. The Committee agreed the lawyer should acquaint the individual with the facts of his interest (9-0).

Q: Could the lawyer offer to handle it for a percentage?

A: No. Making any suggestion as to employment, on a cash or contingent basis, would directly violate Canon 24 (9-0).

Background and rules framework

The opinion interprets former Texas Canon 24, which prohibited solicitation of business, direct or indirect, distinguishing disclosure of a fact from soliciting the resulting work. The modern analog is ABA Model Rule 7.3 (solicitation of clients).

Citations and references

Rules of Professional Conduct:

• MR 7.3 (solicitation of clients), as the modern analog
• Texas Canon 24 (advertising and solicitation)

See also

• TX Ethics Op. 92: Lawyer Organizing a Collection Agency
• TX Ethics Op. 106: Advancing Living Expenses to a Client
• TX Ethics Op. 110: Contributor Credit Noting "Attorney"

Source

• Landing page: https://www.legalethicstexas.com/resources/opinions/opinion-76/
• Original PDF: https://tcle-web.s3.amazonaws.com/public/documents/Opinion_76.pdf

Original opinion text

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

QUESTION PRESENTED

Where an attorney has knowledge of an individual's interest in a trust fund, of which right the individual is ignorant, would it be a violation of the Canons of Ethics for such attorney to approach the individual and make the facts known to him on a contract percentage based on the amount of the trust fund?

18 Baylor L. Rev. 229 (1966)

SOLICITATION - EMPLOYMENT TRUSTS
An attorney who has knowledge of an individual's interest in a trust fund, of which interest the individual is ignorant, should acquaint the individual with the facts as to his interest in the trust fund, but, in passing on the information, may not make any suggestion as to employment.

Canon 24.

The committee agrees that the attorney should acquaint the individual with the facts as to his interest in the trust fund, but, in passing on such information, should the attorney make any suggestion as to employment, either on a cash or contingent fee basis such conduct would be in direct violation of Canon 24 which prohibits solicitation of business, directly or indirectly. (9-0)

Tex. Comm. On Professional Ethics, Op. 76 (1953)