What is the legal test for an attorney who enters into business dealings with his client?

California, United States of America


The following excerpt is from Rodgers v. State Bar, 256 Cal.Rptr. 381, 48 Cal.3d 300, 768 P.2d 1058 (Cal. 1989):

There is always a danger to the fiduciary relationship between an attorney and his client when the two enter into business dealings. While such transactions are not prohibited, they are scrutinized with the utmost strictness for any unfairness. (Beery v. State Bar (1987) 43 Cal.3d 802, 812-813, 239 Cal.Rptr. 121, 739 P.2d 1289.) The burden of proof is on the attorney to show that the dealings between him and his client were fair and reasonable. (Hunniecutt v. State Bar (1988) 44 Cal.3d 362, 372-373, 243 Cal.Rptr. 699, 748 P.2d 1161.)

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