Inquiry:
Under what circumstances, if any, may a lawyer lend money to a client for whom the lawyer is handling a personal injury claim?
Opinion:
Rule 5.3(b) of the Rules of Professional Conduct generally prohibits lawyers advancing or guaranteeing financial assistance to a client while representing the client in connection with contemplated or pending litigation. There is one narrow exception to the rule which permits a lawyer to "advance or guarantee the expenses of litigation, including court costs, expenses of investigation, expenses of medical examination and costs of obtaining and presenting evidence, provided the client remains ultimately liable for such expenses."
The North Carolina State Bar has recently launched a redesigned website to improve accessibility and navigation. If you experience any broken links or access errors, you may submit website feedback at: webmaster@ncbar.gov