LEO: Attorney as Noteholder - Suit Against LE Op. 578
Attorney as Noteholder - Suit Against Maker.
May 31, 1984
An attorney assumed a note and guaranteed payment of the note along with
a husband and wife. Ultimately the note went into default and the attorney
purchased the note at that time. Thereafter, the attorney prepared an
agreement, whereby the husband agreed to hold the wife harmless from
liability on the note. When the husband filed for bankruptcy, the attorney
sought contribution from the wife. Although the Legal Ethics Committee
expressed grave reservation about the propriety of the attorney preparing
agreements in which he had a financial interest, it would not be improper
for the attorney to sue the wife for her obligations under the note.
Committee Opinion May 31, 1984