A Mid-Size Law Firm Was Devoted Almost Entirely to Personal

A mid-size law firm was devoted almost entirely to personal injury cases. Many of the law firm's clients, however, were low- and middle-income citizens and in difficult financial situations because of their physical injuries and inability to work. The law firm regularly referred these clients to a finance company located in the same building. The finance company offered loans to personal injury plaintiffs under an arrangement that would repay the loan through a settlement or judgment based on the personal injury claim. Nonetheless, the plaintiffs would still be liable for the loan if the claim was not settled or resolved by a judgment in the client's favor. At no time did the law firm or the finance company disclose that the law firm owned the finance company. Is the law firm subject to discipline for its interest in the finance company?

A) Yes, but only because the law firm did not disclose its interest in the finance company.
B) Yes, because the law firm has a personal business interest that may affect the independent professional judgment of the law firm's lawyers.
C) No, because lawyers in a law firm can use the law firm to own interests in other businesses.
D) No, because the law firm's clients were in no way obligated to use the finance company.

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