UPON THE REQUEST OF A MEMBER OF THE SOUTH CAROLINA BAR, THE ETHICS ADVISORY COMMITTEE HAS RENDERED THIS OPINION ON THE ETHICAL PROPRIETY OF THE INQUIRER’S CONTEMPLATED CONDUCT. THIS COMMITTEE HAS NO DISCIPLINARY AUTHORITY. LAWYER DISCIPLINE IS ADMINISTERED SOLELY BY THE SOUTH CAROLINA SUPREME COURT THROUGH ITS COMMISSION ON LAWYER CONDUCT.
Ethics Advisory Opinion 93-28
Attorney A has been contacted by an individual who wishes to establish a business whereby the business would contact physicians who were owed monies by workers' compensation carriers for services rendered to injured workers. The business would pay to physicians discounted amounts owed and assume physicians' accounts receivable for service pertaining to work related injuries. Attorney A has been asked to assist in such business.
Question:
Is it permissible for a business to assume accounts receivable from physicians who are treating work related injuries? Is it permissible for Attorney A to participate in the business as described above?
Summary:
The question as to whether this is a proper business is not a proper question for this committee. Similarly, any participation by Attorney A does not appear to involve the practice of law and so would not be controlled by the Rules of Professional Conduct.
Opinion:
This committee advises attorneys concerning their conduct with regard to the Rules of Professional Conduct and other applicable ethical standards. Of course, businesses other than the practice of law are not controlled by these Rules and hence are not within the purview of this committee. The propriety of a business other than the practice of law would constitute a matter of substantive law, which this committee does not address.
Any participation of Attorney A in this business, from the brief description provided does not appear to involve the practice of law. Consequently, the Rules of Professional Conduct do not appear to apply to any involvement in this business. Of course, the lawyer should always be mindful of Rule 8.4 and the general spirit of the Rules in all activities whether directly involved with the practice of law or not.