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Payment of compensation by third party, C3S44 CPRA

Section 44, Canon III

SECTION 44. Payment of compensation by third party. – A lawyer shall not receive any fee, reward, costs, commission, interest, rebate or forwarding allowance or other compensation from anyone other than the client, except upon the written informed consent of such client.
Receipt of compensation from someone other than the client must not interfere with the lawyer’s independence, professional judgment, or the lawyer-client relationship. Neither should information relating to representation of a client be disclosed in violation of the rule on privileged communication. (2023 Code of Professional Responsibility and Accountability or CPRA)

1. Payment of compensation by third party

a. No receiving payment from third party

Under this section, lawyers are prohibited from receiving “any fee, reward, costs, commission, interest, rebate or forwarding allowance or other compensation from anyone other than the client.”

1) Exception

The prohibition against receiving payment from third party is subject to the exception: “except upon the written informed consent of such client.”

b. Non-interference

If lawyers were given written informed consent by the client to receive payment from third parties, the receipt thereof “must not interfere with the lawyer’s independence, professional judgment, or the lawyer-client relationship.”

1) No disclosure of client’s confidences

Despite having received payment from third parties, lawyers are prohibited from disclosing any client confidence’s or information relating to client representation that would be “in violation of the rule on privileged communication.”

References

Canon III, 2023 Code of Professional Responsibility

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