Can a lawyer personally guarantee a settlement payment on behalf of a client?
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This page answers the general question as of 1987. Ask about yours and see what the current Washington Rules of Professional Conduct says for your facts, with citations.
Plain-English summary
The committee was of the opinion that it would not be proper for a lawyer to personally guarantee settlement payment on behalf of a client.
The inquiry also raised a related question about a personal check the lawyer had given in payment of the judgment, which was returned for insufficient funds. The committee was of the opinion that this raised a legal rather than an ethical question, and therefore it could give no opinion on it.
Currency note
This opinion was issued in 1987, before the 2006 revisions to the Washington Rules of Professional Conduct. The rule then numbered RPC 1.8(e), on a lawyer's financial assistance to a client, corresponds to Model Rule 1.8(e) and was rewritten in the current rules. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule mentioned here.
Common questions
Q: Can a lawyer guarantee a client's settlement payment out of the lawyer's own pocket?
A: Per the opinion, no. The committee was of the opinion that it would not be proper for a lawyer to personally guarantee settlement payment on behalf of a client.
Q: Did the committee address the lawyer's bounced check on the judgment?
A: No. The committee was of the opinion that the question about a personal check returned for insufficient funds raised a legal rather than an ethical question, so it gave no opinion.
Background and rules framework
The opinion applies the rule then numbered Washington RPC 1.8(e), corresponding to Model Rule 1.8(e), which limits a lawyer's financial assistance to a client in connection with litigation. The committee read a lawyer's personal guarantee of a client's settlement payment as outside what is proper, while treating the separate dishonored-check issue as a legal question beyond the committee's ethics remit.
Citations and references
Rules of Professional Conduct:
- Washington RPC 1.8(e) (financial assistance to a client in connection with litigation), corresponding to Model Rule 1.8(e).
See also
- ABA Formal Op. 04-432: posting bail for a client
- Illinois State Bar Op. 95-06: advancing financial assistance to a client is improper
Source
- Landing page: https://ao.wsba.org/print.aspx?ID=225
Original opinion text
Reproduced from the official source for research purposes. The linked source is authoritative.
Advisory Opinion: 1145
Year Issued: 1987
RPC(s): RPC 1.8(e)
Subject: Lawyer personally guaranteeing settlement payment
Reviewing your inquiry, the committee was of the opinion that it would not be proper for a lawyer to personally guarantee settlement payment on behalf of a client. The Committee was further of the opinion that the question raised by your inquiry concerning a personal check given by the lawyer in payment of the judgment, which was returned for insufficient funds raises a legal rather than an ethical question, and therefore, the Committee could give no opinion.
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