Q. Can I take a security interest in property my client owns (but not involved in the representation) to guarantee my fee?
A. IRPC 1.8(i) provides that a lawyer shall not acquire a proprietary interest in the cause of action or subject matter of litigation a lawyer is conducting for his client. See Supreme Court Rule 1.8. Comment [16] to that Rule provides additional guidance on acquiring security interests from clients. That Comment says: “When a lawyer acquires by contract a security interest in property other than that recovered through the lawyer’s efforts in the litigation, such acquisition is a business or financial transaction with a client and is governed by the requirements of paragraph (a)” of RPC 1.8 (which requires: objectively fair and reasonable terms; written disclosure of the terms; written notice that the client should seek review by another lawyer; and informed client consent in writing).
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