MARYLAND STATE BAR ASSOCIATION, INC.
COMMITTEE ON ETHICS
ETHICS DOCKET NO. 2000-42
Conflict of Interest-Charitable Gift to Client
You have inquired whether you can make a gift of a small sum of money, without any conditions of repayment, to a client whom you are representing in a personal injury case. You indicate your motivation is to help a client who is in financial difficulty as a result of injuries he sustained in an automobile collision.
Rule 1.8e of the Rules of Professional Conduct prohibits providing financial assistance to a client in connection with pending or contemplated litigation. The tow exceptions are for the advancement of court costs and expenses of litigation and the payment of such costs for an indigent client.
The cases that have been decided concerning Rule 1.8 and its predecessor all concern the advancement of money to a client in the context of litigation. See, e.g., Attorney Grievance Commission v. Kandel, 317 Md. 464, 635 A.2d 1327 (1995). The concept of advancement by definition implies a repayment or reimbursement to the attorney from some source, usually at the conclusion of the litigation. However, your letter states unequivocally that you propose making a gift with no conditions of repayment and that the money would not be an advance toward the costs or expenses of litigation.
Given the circumstances you outline, the Committee does not believe that your proposal is barred by the Rules inasmuch as the payment is unrelated to costs of litigation. However, we are concerned as a matter of public policy of condoning gift giving to clients because some attorneys and law firms are much better equipped to make potentially large gifts to clients and thereby curry favor. However, the practice of gift giving does not appear to be barred by the Rules of Professional Conduct.