What is the current state of the law in relation to the conduct of an attorney in business dealings between the attorney and client?

California, United States of America


The following excerpt is from Beery v. State Bar, 239 Cal.Rptr. 121, 43 Cal.3d 802, 739 P.2d 1289 (Cal. 1987):

"All business dealings between an attorney and client in which the attorney benefits are closely scrutinized for unfairness on the attorney's part [citations] and attorneys have been disciplined for inducing clients to invest in enterprises without fully apprising them of the risks. [Citations.]" (Yokozeki v. State Bar (1974) 11 Cal.3d 436, 445, fn. 4, 113 Cal.Rptr. 602, 521 P.2d 858.)

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