The Colorado Supreme Court last week delivered an opinion that gives attorneys guidance on how to act when entering a business relationship with a client. The court’s decision covered Colorado Rules of Professional Conduct 1.8 and 4.2.
Rule 1.8 says attorneys should not enter business transactions with clients or acquire a possessory interest where either is adverse to a client. Rule 4.2 states that an attorney cannot talk with a client otherwise represented without the other attorney present. The Supreme Court’s direction reinforces the rules’ guidance that attorneys must not enter business transactions with clients in a way that gives the attorney power over their client.