Rules Governing the Legal Profession and Judiciary in Illinois
TABLE OF CONTENTS
SUPREME
COURT OF ILLINOIS RULES OF PROFESSIONAL CONDUCT
ARTICLE
VIII.
The
practice of law is a public trust.
Lawyers are the trustees of the system by which citizens
resolve disputes among themselves, punish and deter crime, and
determine their relative rights and responsibilities toward each other
and their government. Lawyers
therefore are responsible for the character, competence and integrity
of the persons whom they assist in joining their profession; for
assuring access to that system through the availability of competent
legal counsel; for maintaining public confidence in the system of
justice by acting competently and with loyalty to the best interests
of their clients; by working to improve that system to meet the
challenges of a rapidly changing society; and by defending the
integrity of the judicial system against those who would corrupt,
abuse or defraud it.
To
achieve these ends the practice of law is regulated by the following
rules. Violation of these rules is grounds for discipline.
No set of prohibitions, however, can adequately articulate the
positive values or goals sought to be advanced by those prohibitions.
This preamble therefore seeks to articulate those values in
much the same way as did the former canons set forth in the Illinois
Code of Professional Responsibility.
Lawyers seeking to conform their conduct to the requirements of
these rules should look to the values described in this preamble for
guidance in interpreting the difficult issues which may arise under
the rules.
The
policies which underlie the various rules may, under certain
circumstances, be in some tension with each other.
Wherever feasible, the rules themselves seek to resolve such
conflicts with clear statements of duty.
For example, a lawyer must disclose, even in breach of a client
confidence, a client's intent to commit a crime involving a serious
risk of bodily harm. In
other cases, lawyers must carefully weigh conflicting values, and make
decisions, at the peril of violating one or more of the following
rules. Lawyers are
trained to make just such decisions, however, and should not shrink
from the task. To reach
correct ethical decisions, lawyers must be sensitive to the duties
imposed by these rules and, whenever practical, should discuss
particularly difficult issues with their peers.
Timely,
affordable counsel is essential if disputes are to be avoided and,
when necessary, resolved. Basic
rights have little meaning without access to the judicial system which
vindicates them. Effective access to that system often requires the assistance
of counsel.
It
is the responsibility of those licensed as officers of the court to
use their training, experience and skills to provide services in the
public interest for which compensation may not be available.
It is the responsibility of those who manage law firms to
create an environment that is hospitable to the rendering of a
reasonable amount of uncompensated service by lawyers practicing in
that firm.
Service
in the public interest may take many forms.
These include but are not limited to pro bono representation of
persons unable to pay for legal services and assistance in the
organized bar's efforts at law reform.
An individual lawyer's efforts in these areas is evidence of
the lawyer's good character and fitness to practice law, and the
efforts of the bar as a whole are essential to the bar's maintenance
of professionalism.
The
absence from the proposed new rules of ABA Model Rule 6.1 regarding pro
bono and public service therefore should not be interpreted as
limiting the responsibility of attorneys to render uncompensated
service in the public interest. Rather,
the rationale for the absence of ABA Model Rule 6.1 is that this
concept is not appropriate for a disciplinary code, because an
appropriate disciplinary standard regarding pro
bono and public service is difficult, if not impossible, to
articulate. That ABA
Model Rule 6.1 itself uses the word "should" instead of
"shall" in describing this duty reflects the uncertainty of
the ABA on this issue.
The
quality of the legal professional can be no better than that of its
members. Lawyers must
exercise good judgment and candor in supporting applicants for
membership in the bar.
Lawyers
also must assist in the policing of lawyer misconduct.
The vigilance of the bar in preventing and, where required,
reporting misconduct can be a formidable deterrent to such misconduct,
and a key to maintaining public confidence in the integrity of the
profession as a whole in the face of the egregious misconduct of a
few.
Legal
services are not a commodity. Rather,
they are the result of the efforts, training, judgment and experience
of the members of a learned profession.
These rules reflect the sensitive task of striking a balance
between making available useful information regarding the availability
and merits of lawyers and the need to protect the public against
deceptive or overreaching practices.
All communications with clients and potential clients should be
consistent with these values.
The
lawyer-client relationship is one of trust and confidence.
Such confidence only can be maintained if the lawyer acts
competently and zealously pursues the client's interests within the
bounds of the law. "Zealously"
does not mean mindlessly or unfairly or oppressively.
Rather, it is the duty of all lawyers to seek resolution of
disputes at the least cost in time, expense and trauma to all parties
and to the courts.
"Belief"
or "believes"
denotes that the person involved actually supposed the fact in
question to be true. A
person's belief may be inferred from circumstances.
"Confidence"
denotes information protected by the lawyer-client privilege
under applicable law.
"Contingent
fee agreement"
denotes an agreement for the provision of legal services by a
lawyer under which the amount of the lawyer's compensation is
contingent in whole or in part upon the successful completion of the
subject matter of the agreement, regardless of whether the fee is
established by formula or is a fixed amount.
"Disclose"
or "disclosure"
denotes communication of information reasonably sufficient to
permit the client to appreciate the significance of the matter in
question.
"Firm"
or "law firm"
denotes a lawyer or lawyers engaged in the private practice of
law in a partnership, professional corporation, or other entity or in
the legal department of a corporation, legal services organization or
other entity.
"Fraud"
or "fraudulent"
denotes conduct having a purpose to deceive and not merely
negligent misrepresentation or failure to apprise another of relevant
information.
"Knowingly"
"known" or "knows"
denotes actual knowledge of the fact in question.
A person's knowledge may be inferred from circumstances.
"Partner"
denotes a lawyer who is a member of a partnership, or a
shareholder or officer in a law firm organized as a professional
corporation.
"Person"
denotes natural persons, partnerships, business corporations,
not-for-profit corporations, public and quasi public corporations,
municipal corporations, State and Federal governmental bodies and
agencies, or any other type of lawfully existing entity.
"Reasonable"
or "reasonably"
when used in relation to conduct by a lawyer denotes the
conduct of a reasonably prudent and competent lawyer.
"Reasonable
belief" or "reasonably
believes" when
used in reference to a lawyer denotes that the lawyer believes the
matter in question and that the circumstances are such that the belief
is reasonable.
"Reasonably
should know"
when used in reference to a lawyer denotes that a lawyer of
reasonable prudence and competence would ascertain the matter in
question.
"Secret"
denotes information gained in the professional relationship,
that the client has requested be held inviolate or the revelation of
which would be embarrassing to or would likely be detrimental to the
client.
"Substantial"
when used in reference to degree or extent denotes a material
matter of clear and weighty importance.
(a) A lawyer shall provide competent representation to
a client. Competent
representation requires the legal knowledge, skill, thoroughness and
preparation necessary for the representation.
(b) A lawyer shall not represent a client in a legal
matter in which the lawyer knows or reasonably should know that the
lawyer is not competent to provide representation, without the
association of another lawyer who is competent to provide such
representation.
(c) After accepting employment on behalf of a client, a
lawyer shall not thereafter delegate to another lawyer not in the
lawyer's firm the responsibility for performing or completing that
employment, without the client's consent.
Adopted
February 8, 1990, effective August 1, 1990.
RULE
1.2
Scope of Representation
(a) A lawyer shall abide by a client's decisions
concerning the objectives of representation, subject to paragraphs
(c), (d) and (e), and shall consult with the client as to the means by
which they are to be pursued. A
lawyer shall abide by a client's decision whether to accept an offer
of settlement of a matter. In a criminal case, the lawyer shall abide by the client's
decision, after disclosure by the lawyer, as to a plea to be entered,
whether to waive jury trial and whether the client will testify.
(b) A lawyer's representation of a client, including
representation by appointment, does not constitute an endorsement of
the client's political, economic, social or moral views or activities.
(c) A lawyer may limit the objectives of the
representation if the client consents after disclosure.
(d) A lawyer shall not counsel a client to engage, or
assist a client, in conduct that the lawyer knows is criminal or
fraudulent, but a lawyer may discuss the legal consequences of any
proposed course of conduct with a client and may counsel or assist a
client to make a good-faith effort to determine the validity, scope,
meaning or application of the law.
(e) A lawyer shall not present, participate in
presenting, or threaten to present criminal charges or professional
disciplinary actions to obtain an advantage in a civil matter.
(f) In representation of a client, a lawyer shall not:
(1) file a suit, assert a position, conduct a defense, delay
a trial or take other action on behalf of the client when the lawyer
knows or reasonably should know that such action would serve merely to
harass or maliciously injure another;
(2) advance a claim or defense the lawyer knows is
unwarranted under existing law, except that the lawyer may advance
such claim or defense if it can be supported by a good-faith argument
for an extension, modification, or reversal of existing law; or
(3) fail to disclose that which the lawyer is required by law
to reveal.
(g) A lawyer who knows a client has, in the course of
representation, perpetrated a fraud upon a person or tribunal shall
promptly call upon the client to rectify the same, and if the client
refuses or is unable to do so, the lawyer shall reveal the fraud to
the affected person or tribunal, except when the information is
protected as a privileged communication.
(h) A lawyer who knows that a person other than the client
has perpetrated a fraud upon a tribunal shall promptly reveal the
fraud to the tribunal.
(i) When a lawyer knows that a client expects
assistance not permitted by these Rules or other law, the lawyer shall
consult with the client regarding the relevant limitations on the
lawyer's conduct.
Adopted
February 8, 1990; effective August 1, 1990.
A lawyer shall act with reasonable diligence and promptness in
representing a client.
Adopted
February 8, 1990; effective August 1, 1990.
(a) A lawyer shall keep a client reasonably informed
about the status of a matter and promptly comply with reasonable
requests for information.
(b) A lawyer shall explain a matter to the extent
reasonably necessary to permit the client to make informed decisions
regarding the representation.
Adopted
February 8, 1990; effective August 1, 1990.
(a) A lawyer's fee shall be reasonable. The factors to be considered in determining the
reasonableness of a fee include the following:
(1) the time and labor required, the novelty and difficulty
of the questions involved, and the skill requisite to perform the
legal service properly;
(2) the likelihood, if apparent to the client, that the
acceptance of the particular employment will preclude other employment
by the lawyer;
(3) the fee customarily charged in the locality for similar
legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the
circumstances;
(6) the nature and length of the professional relationship
with the client;
(7) the experience, reputation, and ability of the lawyer or
lawyers performing the services; and
(8) whether the fee is fixed or contingent.
(b) When the lawyer has not regularly represented the
client, the basis or rate of the fee shall be communicated to the
client before or within a reasonable time after commencing the
representation.
(c) A fee may be contingent on the outcome of the
matter for which the service is rendered, except in a matter in which
a contingent fee is prohibited by paragraph (d) or other law.
A contingent fee agreement shall be in writing and shall state
the method by which the fee is to be determined, including the
percentage or percentages that shall accrue to the lawyer in the event
of settlement, trial or appeal, litigation and other expenses to be
deducted from the recovery, and whether such expenses are to be
deducted before or after the contingent fee is calculated.
Upon conclusion of a contingent fee matter, the lawyer shall
provide the client with a written statement stating the outcome of the
matter and, if there is a recovery, showing the remittance to the
client and the method of its determination.
(d) A lawyer shall not enter into an arrangement for,
charge, or collect:
(1) any fee in a domestic relations matter, the payment or
amount of which is contingent upon the securing of a dissolution of
marriage or upon the amount of maintenance or support, or property
settlement in lieu thereof; provided, however, that the prohibition set forth
in Rule 1.5(d)(1) shall not extend to representation in matters
subsequent to final judgments in such cases;
(2) a contingent fee for representing a defendant in a
criminal case.
(e) Notwithstanding Rule 1.5(c), a contingent fee
agreement regarding the collection of commercial accounts or of
insurance company subrogation claims may be made in accordance with
the customs and practice in the locality for such legal services.
(f) Except as provided in Rule 1.5(j), a lawyer shall
not divide a fee for legal services with another lawyer who is not in
the same firm, unless the client consents to employment of the other
lawyer by signing a writing which discloses:
(1) that division of fees will be made;
(2) the basis upon which the division will be made, including
the economic benefit to be received by the other lawyer as a result of
the division; and
(3) the responsibility to be assumed by the other lawyer for
performance of the legal services in question.
(g) A division of fees shall be made in proportion to
the services performed and responsibility assumed by each lawyer,
except where the primary service performed by one lawyer is the
referral of the client to another lawyer and
(1) the receiving lawyer discloses that the referring lawyer
has received or will receive economic benefit from the referral and
the extent and basis of such economic benefit, and
(2) the referring lawyer agrees to assume the same legal
responsibility for the performance of the services in question as
would a partner of the receiving lawyer.
(h) The total fee of the lawyers shall be reasonable.
(i) For purposes of Rule 1.5 "economic
benefit" shall include:
(1) the amount of participation in the fee received with
regard to the particular matter;
(2) any other form of remuneration passing to the referring
lawyer from the receiving lawyer, whether or not with regard to the
particular matter; and
(3) an established practice of referrals to and from or from
and to the receiving lawyer and the referring lawyer.
(j) Notwithstanding Rule 1.5(f), a payment may be made
to a lawyer formerly in the firm, pursuant to a separation or
retirement agreement.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.6
Confidentiality of Information
(a) Except when required under Rule 1.6(b) or permitted
under Rule 1.6(c), a lawyer shall not, during or after termination of
the professional relationship with the client, use or reveal a
confidence or secret of the client known to the lawyer unless the
client consents after disclosure.
(b) A lawyer shall reveal information about a client to
the extent it appears necessary to prevent the client from committing
an act that would result in death or serious bodily harm.
(c) A lawyer may use or reveal:
(1) confidences or secrets when permitted under these Rules
or required by law or court order,
(2) the intention of a client to commit a crime in
circumstances other than those enumerated in Rule 1.6(b); or
(3) confidences or secrets necessary to establish or collect
the lawyer's fee or to defend the lawyer or the lawyer's employees or
associates against an accusation of wrongful conduct.
(d) The relationship of trained intervenor and a
lawyer, judge, or a law student who seeks or receives assistance
through the Lawyers' Assistance Program, Inc., shall be the same as
that of lawyer and client for purposes of the application of Rule 8.1,
Rule 8.3 and Rule 1.6.
(e) Any information received by a lawyer in a formal
proceeding before a trained intervenor, or panel of intervenors, of
the Lawyers' Assistance Program, Inc.,
or in an
intermediary program approved by a circuit court in which
nondisciplinary complaints against judges or lawyers can be referred
shall be deemed to have been
received from a client for purposes of the application of Rules 1.6,
8.1 and 8.3.
Adopted
February 8, 1990; effective August 1, 1990; amended February
2, 1994, effective immediately;
amended May
24, 2006, effective immediately..
RULE
1.7
Conflict of Interest: General Rule
(a) A lawyer shall not represent a client if the
representation of that client will be directly adverse to another
client, unless:
(1) the lawyer reasonably believes the representation will
not adversely affect the relationship with the other client; and
(2) each client consents after disclosure.
(b) A lawyer shall not represent a client if the
representation of that client may be materially limited by the
lawyer's responsibilities to another client or to a third person, or
by the lawyer's own interests, unless:
(1) the lawyer reasonably believes the representation will
not be adversely affected; and
(2) the client consents after disclosure.
(c) When representation of multiple clients in a single
matter is undertaken, the disclosure shall include explanation of the
implications of the common representation and the advantages and risks
involved.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.8
Conflict of Interest: Prohibited Transactions
(a) Unless the client has consented after disclosure, a
lawyer shall not enter into a business transaction with the client if:
(1) the lawyer knows or reasonably should know that the
lawyer and the client have or may have conflicting interests therein;
or
(2) the client expects the lawyer to exercise the lawyer's
professional judgment therein for the protection of the client.
(b) Unless all aspects of the matter giving rise to the
employment have been concluded, a lawyer shall not enter into any
arrangement or understanding with a client or a prospective client by
which the lawyer acquires an interest in publication, media, or other
literary rights with respect to the subject matter of employment or
proposed employment.
(c) A lawyer shall not prepare an instrument giving the
lawyer or a person related to the lawyer as parent, child, sibling or
spouse any substantial gift from a client, including a testamentary
gift, except where the client is related to the donee.
(d) While representing a client in connection with
contemplated or pending litigation, a lawyer shall not advance or
guarantee financial assistance to the client, except that a lawyer may
advance or guarantee the expenses of litigation, including, but not
limited to, court costs, expenses of investigation, expenses of
medical examination, and costs of obtaining and presenting evidence
if:
(1) the client remains ultimately liable for such expenses;
or
(2) the repayment is contingent on the outcome of the matter;
or
(3) the client is indigent.
(e) 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 aggregate agreement as
to guilty or nolo contendere pleas, unless each client consents after disclosure,
including disclosure of the existence and nature of all the claims or
pleas involved and of the participation of each person in the
settlement.
(f) A lawyer shall not make an agreement with a client
prospectively limiting the lawyer's liability to the client unless
such an agreement is permitted by law and the client is independently
represented in making the agreement.
(g) A lawyer shall not settle a claim against the
lawyer made by an unrepresented client or former client without first
advising that person in writing that independent representation is
appropriate in connection therewith.
(h) A lawyer shall not enter into an agreement with a client
or former client limiting or purporting to limit the right of the
client or former client to file or pursue any complaint before the
Attorney Registration and Disciplinary Commission.
(i) A lawyer shall not acquire a proprietary interest
in the cause of action or the subject matter of litigation which is
being conducted for a client except by:
(1) acquiring a lien granted by law to secure fees or
expenses; or
(2) contracting with a client for a reasonable contingent fee
in a civil case.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.9
Conflict of Interest: Former Client
(a) A lawyer who has formerly represented a client in a
matter shall not thereafter:
(1) represent another person in the same or a substantially
related matter in which that person's interests are materially adverse
to the interests of the former client, unless the former client
consents after disclosure; or
(2) use information relating to the representation to the
disadvantage of the former client, unless:
(A) such use is permitted by Rule 1.6; or
(B) the information has become generally known.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.10 Imputed
Disqualification: General Rule
(a) No lawyer associated with a firm shall represent a
client when the lawyer knows or reasonably should know that another
lawyer associated with that firm would be prohibited from doing so by
Rules 1.7, 1.8(c) or 1.9, except as permitted by Rules 1.10(b), (c) or
(d), or by Rule 1.11 or Rule 1.12.
(b) When a lawyer becomes associated with a firm, the
firm may not represent a person in a matter that the firm knows or
reasonably should know is the same or substantially related to a
matter in which the newly associated lawyer, or a firm with which that
lawyer was associated, had previously represented a client whose
interests are materially adverse to that person unless:
(1) the newly associated lawyer has no information protected
by Rule 1.6 or Rule 1.9 that is material to the matter; or
(2) the newly associated lawyer is screened from any
participation in the matter.
(c) When a lawyer has terminated an association with a
firm, the firm may thereafter represent a person with interests
materially adverse to those of a client represented by the formerly
associated lawyer if:
(1) the matter is not the same or substantially related to
that in which the formerly associated lawyer represented the client;
and
(2) no lawyer remaining in the firm has information protected
by Rule 1.6 and Rule 1.10 that is material to the matter.
(d) A disqualification prescribed by Rule 1.10 may be
waived by the affected client under the conditions stated in Rule 1.7.
(e) For purposes of Rule 1.10, Rule 1.11, and Rule
1.12, a lawyer in a firm will be deemed to have been screened from any
participation in a matter if:
(1) the lawyer has been isolated from confidences, secrets,
and material knowledge concerning the matter;
(2) the lawyer has been isolated from all contact with the
client or any agent, officer, or employee of the client and any
witness for or against the client;
(3) the lawyer and the firm have been precluded from
discussing the matter with each other; and
(4) the firm has taken affirmative steps to accomplish the
foregoing.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.11 Successive
Government and Private Employment
(a) Except as otherwise expressly permitted by law, a
lawyer shall not represent a private client in connection with a
matter in which the lawyer participated personally and substantially
as a public officer or employee, unless the appropriate government
agency consents after disclosure.
No lawyer in a firm with which that lawyer is associated and
who knows or reasonably should know of the lawyer's prior
participation may undertake or continue representation in such a
matter unless:
(1) the disqualified lawyer is screened from any
participation in the matter and is apportioned no specific share of
the fee therefrom; and
(2) written notice is promptly given to the appropriate
government agency to enable it to ascertain compliance with the
provisions of Rule 1.11.
(b) Except as otherwise permitted by law, a lawyer
having information that the lawyer knows is confidential government
information about a person, acquired when the lawyer was a public
officer or employee, may not represent a private client whose
interests are adverse to that person in a matter in which the
information could be used to the material disadvantage of that person.
A firm with which that lawyer is associated may undertake or
continue representation in the matter only if the disqualified lawyer
is screened from any participation in the matter and is apportioned no
specific share of the fee therefrom.
(c) Except as otherwise expressly permitted by law, a
lawyer serving as a public officer or employee shall not:
(1) participate in a matter in which the lawyer participated
personally and substantially while in private practice or
nongovernmental employment, unless under applicable law no one is, or
by lawful delegation may be, authorized to act in the lawyer's stead
in the matter; or
(2) negotiate for private employment with any person who is
involved as a party or as lawyer for a party in a matter in which the
lawyer is participating personally or substantially.
(d) As used in Rule 1.11, the term "matter"
denotes:
(1) any judicial or other proceeding, application, request
for a ruling or other determination, contract, claim, controversy,
investigation, charge, accusation, offset or other particular matter
involving a specific party or parties; and
(2) any other matter covered by the conflict of interest
rules of the appropriate government agency.
(e) As used in Rule 1.11, the term "confidential
government information" denotes information which has been
obtained under governmental authority and which, at the time Rule 1.11
is applied, the government is prohibited by law from revealing to the
public or has a legal privilege not to reveal, and which is not
otherwise available to the public.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.12 Former
Judge or Arbitrator
(a) Except as provided in Rule 1.12(d), a lawyer shall
not represent anyone in connection with a matter in which the lawyer
participated personally and substantially as a judge or other
adjudicative officer, arbitrator, or law clerk to such a person,
unless all parties to the proceeding consent after disclosure.
(b) A lawyer shall not negotiate for employment with
any person who is involved as a party or as a lawyer for a party in a
matter in which the lawyer is participating personally and
substantially as a judge, other adjudicative officer, or arbitrator.
A lawyer serving as a law clerk to a judge, other adjudicative
officer, or arbitrator may negotiate for employment with a party or a
lawyer involved in a matter in which the clerk is participating
personally and substantially, but only after the lawyer has notified
the judge, other adjudicative officer, or arbitrator.
(c) If a lawyer is disqualified by Rule 1.12(a), a
lawyer in the firm with which that lawyer is associated who knows or
reasonably should know of that disqualification shall not undertake or
continue representation in the matter unless:
(1) the disqualified lawyer is screened from any
participation in the matter and is apportioned no specific share of
the fee therefrom; and
(2) written notice is promptly given to the appropriate
tribunal to enable it to ascertain compliance with the provisions of
Rule 1.12.
(d) An arbitrator selected as a partisan of a party in
a multimember arbitration panel is not prohibited from subsequently
representing that party.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.13 Organization
as Client
(a) A lawyer employed or retained by an organization
represents the organization acting through its duly authorized
constituents.
(b) If a lawyer for an organization knows that an
officer, employee, or other person associated with the organization is
engaged in action, intends to act or refuses to act in a matter
related to the representation that is a violation of a legal
obligation to the organization, or a violation of law which reasonably
might be imputed to the organization, and is likely to result in
substantial injury to the organization, the lawyer shall proceed as is
reasonably necessary in the best interest of the organization.
In determining how to proceed, the lawyer shall give due
consideration to the seriousness of the violation and its
consequences, the scope and nature of the lawyer's representation, the
responsibility in the organization and the apparent motivation of the
person involved, the policies of the organization concerning such
matters, and any other relevant considerations.
Any measures taken shall be designed to minimize disruption of
the organization and the risk of revealing information relating to the
representation to persons outside the organization.
Such measures may include among others:
(1) asking reconsideration of the matter;
(2) advising that a separate legal opinion on the matter be
sought for representation to appropriate authority in the
organization; and
(3) referring the matter to higher authority in the
organization, including, if warranted by the seriousness of the
matter, referral to the highest authority that can act in behalf of
the organization as determined by applicable law.
(c) If, despite the lawyer's efforts in accordance with
paragraph (b), the highest authority that can act on behalf of the
organization insists upon action, or a refusal to act, that is clearly
a violation of the law and is likely to result in substantial injury
to the organization, the lawyer may resign in accordance with Rule
1.16.
(d) In dealing with an organization's directors,
officers, employees, members, shareholders or other constituents, a
lawyer shall explain the identity of the client when it is apparent
that the organization's interests are adverse to those of the
constituents with whom the lawyer is dealing.
(e) A lawyer representing an organization may also
represent any of its directors, officers, employees, members,
shareholders or other constituents, subject to the provisions of Rule
1.7. If the organization's consent to the dual representation is
required by Rule 1.7, the consent shall be given by an appropriate
official of the organization other than the individual who is to be
represented, or by the shareholders.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.14 Client
Under a Disability
(a) When a client's ability to make adequately
considered decisions in connection with the representation is
impaired, whether because of minority, mental disability, or some
other reason, the lawyer shall, as far as reasonably possible,
maintain a normal client-lawyer relationship.
(b) A lawyer may seek the appointment of a guardian or
take other protective action with respect to a client, only when the
lawyer reasonably believes that the client cannot adequately act in
the client's own interest.
Adopted
February 8, 1990; effective August 1, 1990.
RULE
1.15 Safekeeping
Property
(a) A lawyer shall hold property of clients or third persons that is in a lawyer’s possession in connection with a representation separate from the lawyer’s own property. Funds shall be kept in a separate account or accounts maintained in the state where the lawyer’s office is situated, or elsewhere with the consent of the client or third person. Other property shall be identified as such and appropriately safeguarded. Complete records of such account funds and other property shall be kept by the lawyer and shall be preserved for a period of seven years after termination of the representation.
(b) Upon receiving funds or other property in which a client or third person has an interest, a lawyer shall promptly notify the client or third person. Except as stated in this rule or otherwise permitted by law or by agreement with the client, a lawyer shall promptly deliver to the client or third person any funds or other property that the client or third person is entitled to receive and, upon request by the client or third person, shall promptly render a full accounting regarding such property.
(c) When in the course of representation a lawyer is in possession of property in which both the lawyer and another person claim interests, the property shall be kept separate by the lawyer until there is an accounting and severance of their interests. If a dispute arises concerning their respective interests, the portion in dispute shall be kept separate by the lawyer until the dispute is resolved.
(d) All nominal or short-term
funds of clients paid to a lawyer or law firm, including advances for
costs and expenses, shall be deposited in one or more pooled
interest-bearing trust accounts established with a bank or savings and
loan association, with the Lawyers Trust Fund of Illinois designated as
income beneficiary. Each pooled, interest-bearing trust account shall
comply with the following provisions:
(1) Each
lawyer or law firm shall establish one or more interest-bearing trust
accounts with any bank(s), savings bank(s) or savings and loan
association(s) authorized by federal or state law to do business in
Illinois. Each interest-bearing trust account shall be insured by the
Federal Deposit Insurance Corporation or the Federal Savings and Loan
Insurance Corporation and such funds shall be subject to withdrawal
promptly upon request. At the direction of the lawyer or law firm, such
funds may be used to purchase securities pursuant to fully
collateralized overnight repurchase agreements with such financial
institution(s), provided such securities: (a) are guaranteed as to
principal and interest by the full faith and credit of the United States
or are AAA-rated United States agency obligations, and (b) are held by a
third-party custodian who shall be either the Federal Reserve Bank of
Chicago or St. Louis or a correspondent bank who is a member of the
Federal Reserve System.
(2) The rate of
interest payable on any interest-bearing trust account shall not be less
than the rate paid by the depository institution to depositors other
than lawyers or law firms.
(3) Each lawyer or law
firm shall direct the depository institution to remit net interest or
dividends, after deduction of reasonable charges and fees, as the case
may be, on the average monthly balance in the account, or as otherwise
computed in accordance with the institution’s standard accounting
practice, at least quarterly, directly to the Lawyers Trust Fund of
Illinois. A statement shall be transmitted with each remittance showing
the name of the lawyer or law firm directing that the remittance be
sent, the account number, the gross interest, the service fee/handling
charge, if any, the net interest remitted, the amount of such
remittance, the remittance period, and the rate of interest applied.
(4) Each lawyer or law
firm shall deposit into such interest-beari