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MT · rules

Mont. R. Prof'l Conduct 1.8

Conflict of Interest: Current Clients: Specific Rules

activein force · 2020-10-29 – presentact-effective-date

(a) A lawyer shall not enter into a business transaction with a client or knowingly acquire

an ownership, possessory, security or other pecuniary interest adverse to a client unless:

(1) the transaction and terms on which the lawyer acquires the interest are fair and

reasonable to the client and are fully disclosed and transmitted in writing to the

client in a manner that can be reasonably understood by the client;

(2) in matters in which a lawyer wishes to assert a retaining lien against client

property, papers or materials in the lawyer’s possession to secure payment for the

lawyer’s services and costs advanced relating to such property, papers or materials,

a written agreement for such a lien shall expressly set forth the limitations contained

in paragraph (i)(3);

(3) the client is advised in writing of the desirability of seeking and is given a

reasonable opportunity to seek the advice of independent legal counsel on the

transaction; and

(4) the client gives informed consent, in a writing signed by the client, to the

essential terms of the transaction and the lawyer’s role in the transaction, including

whether the lawyer is representing the client in the transaction.

(b) A lawyer shall not use information relating to representation of a client to the

disadvantage of the client unless the client gives informed consent, except as permitted or

required by these Rules.

(c) A lawyer shall not solicit any substantial gift from a client, including a testamentary

gift, or prepare on behalf of a client an instrument giving the lawyer or a person related to

the lawyer any substantial gift unless the lawyer or other recipient o f the gift is related to

the client. For purposes of this paragraph, related persons include a spouse, child,

grandchild, parent, grandparent or other relative, or individual with whom the lawyer or

the client maintains a close, familial relationship.

(d) Prior to the conclusion of representation of a client, a lawyer shall not make or negotiate

an agreement giving the lawyer literary or media rights to a portrayal or account based in

substantial part on information relating to the representation.

(e) A lawyer shall not provide financial assistance to a client in connection with pending

or contemplated litigation, except that:

(1) a lawyer may advance court costs and expenses of litigation, the repayment of

which may be contingent on the outcome of the matter;

(2) a lawyer representing an indigent client may pay court costs and expenses of

litigation on behalf of the client;

(3) a lawyer may, for the sole purpose of providing basic living expenses, guarantee

a loan from a regulated financial institution whose usual business involves making

loans if such loan is reasonably needed to enable the client to withstand delay in

litigation that would otherwise put substantial pressure on the client to settle a case

because of financial hardship rather than on the merits, provided the client remains

ultimately liable for repayment of the loan without regard to the outcome of the

litigation and, further provided that neither the lawyer nor anyone on his/her behalf

offers, promises or advertises such financial assistance before being retained by the

client.

(f) A lawyer shall not accept compensation for representing a client from one other than

the client unless:

(1) the client gives written informed consent;

(2) there is no interference with the lawyer’s independence of professional judgment

or with the client-lawyer relationship; and

(3) information relating to representation of a client is protected as required by Rule

1.6.

(g) A lawyer who represents two or more clients shall not participate in making an

aggregate settlement of the claims of or against the clients, or in a criminal case an

aggregated agreement as to guilty or nolo contendere pleas, unless each client gives

informed consent, in a writing signed by the client. The lawyer’s disclosure shall include

the existence and nature of all the claims or pleas involved and of the participation of each

person in the settlement.

(h) A lawyer shall not:

(1) make an agreement prospectively limiting the lawyer’s liability to a client for

malpractice unless the client is independently represented in making the agreement;

or

(2) settle a claim or potential claim for such liability with an unrepresented client or

former client unless that person is advised in writing of the desirability of seeking

and is given a reasonable opportunity to seek the advice of independent legal

counsel in connection therewith.

(i) A lawyer shall not acquire a proprietary interest in the cause of action or subject matter

of litigation the lawyer is conducting for a client, except that the lawyer:

(1) may acquire and assert a charging lien only against causes of action or

counterclaims in litigation pursuant to and only to the extent specified in MCA 37-

61-420(2); such a charging lien does not extend to other client property, papers or

materials in the lawyer’s possession, to any matter not in litigation, or to any matter

otherwise not covered by the specific language of MCA 37-61-420(2);

(2) may contract with a client for a reasonable contingent fee in a civil case; and

(3) may not acquire or assert a retaining lien to secure payment due for the lawyer’s

services against any client property, papers or materials other than those related to

the matter for which payment has not been made and, upon termination of

representation, shall deliver to the client any client property, papers or materials

reasonably necessary to protect the client’s interest in the matter to which the

property, papers or materials relate as provided in Rule 1.16(d).

(j) A lawyer shall not have sexual relations with a client unless a consensual sexual

relationship existed between them when the client-lawyer relationship commenced.

(k) While lawyers are associated in a firm, a prohibition in the foregoing paragraphs (a)

through (i) that applies to any one of them shall apply to all of them.

Provenance

Source
courts.mt.gov
Retrieved
2026-09-15
Edition
2026-09-15
Content hash
228a08256378adcd5c0fa2bf520ca935f70ebd5e73b53ee8dafb14db4ea9a1dd
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