Giving Advice Establishes Attorney-Client Relationship
The New Jersey Advisory Committee on Professional Ethics opines that a non-profit trade association cannot disclaim the formation of an attorney-client relationship with persons who call in on a hot line for legal advice from an attorney that the association compensates for her time. The result is not affected by the adoption of RPC 6.5:
Inquirer represents a nonprofit trade association that wants to set upa legal hotline, staffed by attorneys, to provide short-term, limitedlegal services to its members, with no expectation of continuedrepresentation in the matter. The nonprofit association wouldcompensate the attorneys on either a flat fee annual basis or an hourlyrate for the services for its members. The attorneys would be paid bythe association, and no formal conflict check would be done on receiptof an inquiry from an association member. Association members would beadvised in writing that no attorney-client relationship arises, and anypotential conflict of interest would be waived by the member unless theattorney providing the advice knows there is a conflict.
Inquirer expresses the view that ACPE Opinion 671, 133 N.J.L.J. 1370 (April 5, 1993), 2 N.J.L. 535 (April 5, 1993), does not apply to its inquiry due to the subsequent adoption of RPC6.5. Opinion 671 expressly provides that an attorney-clientrelationship ordinarily arises during one-on-one discussions between alawyer and a person seeking legal advice, and found that anorganization cannot disclaim the attorney-client relationship. Opinion671 further noted that organizations providing legal services to itsmembers or beneficiaries, where the attorneys providing the advice arepaid, ordinarily must adhere to the provisions of RPC 7.3(e)(4) and register with the Supreme Court.
The Committee concludes that RPC 6.5 does not supersede Opinion 671 and the Opinion is, in fact, fully applicable to this inquiry. RPC 6.5provides that a lawyer who is participating in a program sponsored by anonprofit organization or court by providing short-term limited legalservices without an expectation of continued representation is notsubject to strict application of RPC 1.7, RPC 1.9, and RPC 1.10. Specifically, a conflict arises under these Rulesonly when the lawyer knows that the representation of the clientinvolves a conflict of interest, and conflicts are imputed to the firmonly when the lawyer knows that another lawyer in his or her firm wouldbe disqualified from representing the client. RPC 6.5(a)(1) and (2).
(Mike Frisch)