Lawyer's loans from client breached independence duty

OG 1994 28Other CourtJul 18, 1994

Extracted by Omnilex

Omnilex summary

The decision concerns a lawyer who, while acting for client C., took two loans totaling CHF 175,000 from the client during the mandate. The court held that this exposed the lawyer to a risk of conflict of interest and violated the duty of independence laid down in the standes rules of the Luzerner Anwaltsverband. The lawyer may not bind his own financial interests so closely to those of the client that independent representation is no longer ensured.

Omnilex headnote

A lawyer's acceptance of a loan from a client during an ongoing mandate endangers professional independence; the lawyer may not intertwine his own economic interests with those of the client in such a way that independent representation becomes impossible or that, in the event of conflicting interests, his own interests could prevail over those of the client (consid. unspecified).

Full text

Die Aufnahme eines Darlehens bei einem Klienten durch den Anwalt beeinträchtigt dessen wirtschaftliche Unabhängigkeit. Der Anwalt soll seine eigenen Interessen nicht derart mit denjenigen seines Klienten verknüpfen, dass er diese nicht mehr losgelöst von jenen vertreten kann und Gefahr läuft, bei Zielkonflikten die eigenen Interessen vor diejenigen seines Mandanten zu stellen (Sterchi Martin, Komm. zum bernischen Fürsprecher-Gesetz, Bern 1992, N 5b zu Art. 9 und N 3 zu Art. 13). Dadurch, dass der Beschwerdegegner für C. als Anwalt tätig war und während der Dauer des Mandatsverhältnisses bei ihm zwei Darlehen in der Höhe von insgesamt Fr. 175000.- aufnahm, hat er sich der Gefahr einer Interessenkollision ausgesetzt und gegen das in Ziff. I/1 der Standesregeln des Luzerner Anwaltsverbandes verankerte Gebot der Unabhängigkeit des Rechtsanwalts verstossen.

Keywords

lawyer independenceconflict of interestprofessional ethicsclient loandisciplinary law

Extracted by Omnilex

Key legal questions extracted by Omnilex

Key legal question

Whether a lawyer violates the duty of independence by borrowing money from a client during the mandate

Extracted holding

Yes. By tying his own financial interests to those of the client, the lawyer created a risk of conflict of interest and breached the independence requirement.

Extracted reasoning

A loan from a client impairs the lawyer's economic independence. The lawyer must not link his own interests to the client's to the extent that he can no longer represent them separately and may place his own interests above those of the client in case of conflict.

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