Friday, July 22, 2011
An attorney who accepted a loan from a client has been reprimanded by the Nebraska Supreme Court. The attorney had settled a claim for the client and had held a portion in escrow per the client's instruction.
Two years later, the attorney sought the loan due to his financial circumstances. He did not comply with the formalities of the rule governing business transactions with a client and did not provide security for the loan, which was repaid with interest. However, he had previously been sanctioned by the Iowa Supreme Court for similar misconduct.
The Iowa loan had been discharged in bankruptcy. (Mike Frisch)