| An attorney's improper involvement in a client's | | | | The problems that these activities may create |
| business affairs or entrepreneurial interests can | | | | could include: |
| raise conflict of interest issues and may form the | | | | · Inadequate or nonexistent directors and |
| basis of a legal malpractice claim. | | | | or officers insurance for the lawyer acting as |
| These types of business relationships may take | | | | outside counsel as an officer and a director; |
| several forms which may include: | | | | · Improper advice based upon self dealing; |
| · Becoming a part of a client's business | | | | · Conflict of interest issues that arise; |
| and gaining an ownership interest in that business; | | | | · Weakened malpractice claims against |
| · Becoming an officer or director of a | | | | the lawyer who may claim that he/she was not |
| client's business; | | | | acting as your lawyer but as a business partner. |
| · Having a client become a partner or | | | | · Once you get the approval of, or fully |
| investor with the lawyer; | | | | understand the advice of a disinterested third |
| · Investing in the client's business; | | | | party lawyer then you should have the original |
| · Accepting stock from a client instead of | | | | lawyer reduce everything to writing which you |
| customary fees. | | | | should run by the third party lawyer for final |
| If a client is in doubt or feels uncomfortable or | | | | approval. |
| just wants another opinion about any proposed | | | | If you feel that your attorney has mishandled |
| transaction then it is advisable to get the advice | | | | your business or personal affairs then you should |
| of another, unrelated lawyer, to comment on the | | | | seek the services of a legal malpractice lawyer |
| fairness of the proposed transaction. | | | | for advise. |