Fee Agreements

The rules treat various types of fee agreements differently.  I thought I’d run through them.

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Hourly Fee

The rule: Rule 1.5(b).

An agreement to charge an hourly fee need not be in writing.  That being said, I can’t imagine NOT putting the agreement in writing.  As I’ve blogged, a well-written fee agreement provides a perfect opportunity to avoid complaints by setting reasonable expectations.  The Oregon State Bar has also written on the importance of managing client expectations.

While there’s no requirement to reduce an hourly fee agreement to writing, a lawyer must communicate to the client the scope of the representation and the basis or rate of the fee within a reasonable time after commencing the representation.  Per the rule, it’s preferable that the communication be in writing.

Contingent Fee

The rule: Rule 1.5(c).

A contingent fee MUST:

  • be in a writing that is signed by the client;
  • state the method by which the fee is to be determined, including the percentage that the lawyer will take if the case resolves by settlement, trial or appeal;
  • notify the client of the expenses for which the client will be responsible, including expenses for which the client will be responsible even if the client does not prevail;
  • specify the litigation & other expenses that will deducted from any recovery; and,
  • state whether those expenses will be deducted before or after the contingent fee is calculated.

In Vermont, the failure to reduce a contingent fee in writing has resulted in lawyers being reprimanded and admonished.

Discipline aside, as we learned from Captain Jack Sparrow, the lack of a written contingent fee agreement might cost a lawyer a heckuva lot of coin.

Fee Divided Among Lawyers in Different Firms

The rule:  Rule 1.5(e).

Vermont does not allow straight referral fees. I’ve written on that here, here, and here.

If lawyers in different firms want to share any portion of a fee:

  • the division must be in proportion to the services performed by each, or, both must assume joint responsibility for the representation;
  • the client must agree to the arrangement, including the share that each lawyer will receive;
  • the agreement must be confirmed in writing; and
  • the total fee must be reasonable.

Advance Fees that are Earned upon Receipt

The rules: 1.5(f), 1.5(g), 1.15(c).

My post on the distinction between advance fees that must remain in trust and fees that may be considered earned upon receipt is here.

When a fee is paid in advance, a lawyer may treat it as earned, even though no work has yet to be performed, only if:

  • before or within a reasonable time after the representation begins, a lawyer confirms to the client in writing:
    • the scope of availability & services that the client will receive; and,
    • that the fee is not refundable.

FINAL POINT

The rule: Rule 1.5(a).

No matter the type of fee, it must be reasonable.

 

 

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Monday Morning Answers – #129

Happy Labor Day!

Is it hot & humid?  Yes!  But, you have a choice how you respond to the weather.  One choice is to bemoan it & sit on the couch all day.  Another is to smile at the thought of one more day to wear shorts, flip-flops, and to be outdoors!  Maybe even by the grill with a cold beverage . . . on a Monday!

I choose the latter.

Friday’s questions are here.  The answers follow the honor roll.  Also, you’ll recall that I asked readers to share the events seared into their memories.  I did so in the context of Friday being the anniversary of Princess Diana’s passing.  As always with my readers, the response was fantastic and significantly outnumbered entries into the quiz.

The most-cited events were to be expected:

  • 9/11
  • the space shuttle Challenger tragedy

A few others mentioned by at least 3 people:

  • JFK assassination
  • Sandy Hook
  • MLK assassination
  • the moon landing
  • Princess Diana
  • Boston Marathon bombings
  • Barack Obama elected

Interestingly, but perhaps not surprisingly given the frequent musical references on this blog, many of you will never forget where you were & what you were doing when you learned that a musician died.  Among the musicians whose deaths were mentioned more than once:

  • Kurt Cobain
  • Jerry Garcia
  • John Lennon
  • Jim Morrison
  • Elvis Presley
  • Prince
  • Tupac Shakur

Anyhow, thank you again for sharing. I love your stories.  Alas, to make the honor roll, you’ve got to answer the questions!

Honor Roll

(responses had to include quiz answers to make the honor roll)

Answers

Question 1

Lawyer called me with an inquiry.  My response included the following words and phrases:  “knowledge,” “violation,”  “substantial question,”  and “honesty, trustworthiness, fitness.”

What did Lawyer call to discuss?

  • A.  Informing a court that a client had testified falsely in a civil matter.
  • B.  Informing a court that a criminal defense client had testified falsely.
  • C.  Reporting another lawyer’s misconduct.  See, Rule 8.3(a).
  • D.  Whether reciprocal discipline would be imposed in Vermont as a result of Lawyer being sanctioned in another state.

Question 2

The conflicts rules are NOT relaxed for:

  • A.  Lawyers who transfer from one private firm to another.
  • B.  Lawyers who move from government practice to private practice.
  • C.  Lawyers who provide short-term pro bono services under the auspices of a program sponsored by a nonprofit or court.
  • D.  All of the above.

Vermont’s rules do not allow for the automatic screening of lateral transfers.  I’ve blogged on that issue here & here.  Later this month, the PRB will consider a rule change that I’ve recommended that would allow a new firm to screen a lateral transfer from another firm.

Our rules allow for screening when a lawyer moves from government practice to private practice.  In addition, Rule 6.5 relaxes the conflicts rules for lawyers who provide short-term pro bono services under the auspices of a program sponsored by a nonprofit or court.

Question 3

You’re at a CLE.   You hear me say:  “yes, it’s okay as long as  (1) your client gives informed consent; (2) there is no interference with the lawyer’s independence of professional judgment or with the client-lawyer relationship; and (3) information relating to the representation of your client is protected as required by Rule 1.6.”

What did someone ask if it was okay to do?

  • A.  Accept compensation for representing a client from someone other than the client.  See, Rule 1.8(f).
  • B.  Request that guardian be appointed for the client.
  • C.  Represent co-defendants in a criminal matter.
  • D.  Talk to the media in a client’s case.

Question 4

Client provides Lawyer with an advance payment of $2,000.  Lawyer has yet to do any work for Client.

Which is most accurate?

  • A.  The fee agreement must be confirmed in writing.
  • B.  The fee agreement must be confirmed in a writing that is signed by Client.
  • C.  The $2,000 must go into Lawyer’s pooled interest-bearing trust account (“IOLTA”).
  • D.  Lawyer may treat the money as Lawyer’s own if Lawyer confirms in writing (i) that the fee is not refundable; and (ii) the scope of availability or services that Client will receive.    See, Rule 1.5(f) & (g).

Here, A & B are not correct.  The rules do not require standard fee agreements to be reduced to writing.  That being said, I think it’s a bad idea not to.

C is not correct. There’s not enough information in the question to know.  For instance, if the lawyer has complied with Rule 1.5(f) and (g), then the money cannot go into trust.

Many lawyers charge “flat fees” that are “earned upon receipt” and treat the funds as their own upon receipt.  This is ok ONLY IF THE LAWYER COMPLIES WITH RULE 1.5(f) and RULE 1.5(g).  Otherwise, the money must go in trust until earned.

Question 5

Speaking of the JFK assassination . .  .

. . . Jules Mayer was a lawyer in Dallas.  In 1950, Mayer drew up a will for a client.  The will named Mayer as the executor the client’s estate.

The client died in 1967.  A dispute quickly arose, as the client’s family contended that the client had changed his will on his deathbed to remove Mayer as executor.  Mayer refused to make the change and kept the original will.

In 1991, after a lengthy legal battle, a probate court granted the family’s petition to remove Mayer as executor after concluding that he had mismanaged the estate.

Central to the dispute was gun associated with the JFK assassination.  Mayer’s client bought the gun for $62.50.   After winning their legal battle with Mayer, the client’s family sold the gun for $220,000.  Fortunately for the family, Mayer had safeguarded the gun, holding it in trust for 24 years.

Two-part question:

  1. Who was Mayer’s famous client?
  2. Who was the famous victim of the client’s gun?

Mayer’s client was Jack Ruby.  The gun was used on Lee Harvey Oswald.  A story of the gun is in this article in the Las Vegas Sun.

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Of Counsel: Compensation & Fees

Week before last, I started a 3-part series on ethics issues related to lawyers who work “of counsel” to a firm.  The first part is here.  To summarize: “of counsel” and its variants are misleading if the lawyer does not have:

  • “a close, regular and personal relationship that is more than a mere forwarder or receive of legal business, more than an occasional consultant relationship, and more than a relationship for the purposes of one case.”

I promised two more posts. One on conflicts, another on the relationship between the fee rules and “of counsel” attorneys.  I’m finally getting around to it.  (Let’s be honest – it’s not the most thrilling of topics and, anyway, the weather has been fantastic the past few weeks. Summer is short in this neck of the woods!)

Anyhow, let’s pretend we’re at one of my seminars.  I’ll throw the question to the audience – what’s the ethics issue that comes up when it comes to fees & the manner in which a firm compensates a lawyer who is “of counsel?”

Anyone?  Anyone?  Bueller?

Wait, did someone say “fee sharing??”  We have a winner!

Remember – Vermont does not allow straight referral fees.  I’ve blogged on that issue here, here, and here.  Rather, whenever lawyers not in the same firm want to share a fee, Rule 1.5(e) allows the division only if:

  1. it’s in proportion to work performed, or, each attorney assumes joint responsibility for the representation; and,
  2. the client agrees to the arrangement and the arrangement is confirmed in writing; and,
  3. the total fee is reasonable.

Scenario 1:  A former partner in a law firm is “of counsel” to the firm. The attorney has scaled back her practice, but will continue to practice through the firm. The attorney will not practice law at any other firm.  Former partner works on a client matter for firm.  Firm wants to pay former partner.  Does Rule 1.5(e) apply?

This one is clear: no, Rule 1.5(e) does not apply.  Here, though now “of counsel,” the rules treat former partner as being part of the same firm as, well, firm.

Scenario 2: Firm focuses on commercial litigation.  Firm’s clients often have related tax law issues.  Lawyer focuses on tax law.  Firm wants to take on Lawyer as “of counsel.”  Firm lawyers will consult with Lawyer on all client matters involving tax issues.  Firm will disclose the relationship to clients and Lawyer’s rate will be set forth in engagement letters.  Lawyer will also maintain a personal injury practice that is separate and independent from firm.   Does Rule 1.5(e) apply when Firm pays Lawyer?

The Illinois State Bar Association addressed this issue in Opinion 16-04:  The ISBA concluded that the answer is “no,” stating:

  • “The question then becomes how the ‘of counsel’ lawyer can be compensated for his or her services. We have never addressed whether an ‘of counsel’ lawyer is in the same firm or in a separate firm for the purposes of fee division, but conclude that given the close nature of the ‘of counsel’ relationship, the lawyers should be viewed as being in the same firm. Accordingly, while the lawyers may choose to disclose the nature of the fee distribution between the attorneys withthe client, the lawyers should not be subject to the restrictions set forth in Rule 1.5(e). However, fee agreements with ‘of counsel’ attorneys must always meet the general requirements of Rule 1.5 that a lawyer may not charge or collect an illegal fee or an unreasonable fee.”

The Illinois opinion cites to opinions from several other states that reached the same conclusion.

Scenario 3:  Change the last one a bit.  Firm focuses on commercial litigation and its clients often have related tax law issues.  Lawyer’s practice areas include tax and personal injury law.  Lawyer is “of counsel” to firm for tax law issues, but maintains a separate personal injury practice.  Firm does not handle personal injury cases.  A Firm client, however, was injured in accident.  Firm referred the client to Lawyer.  Does Rule 1.5(e) if Lawyer wants to share the fee with Firm?

In this situation, I’d argue “yes,” because Firm and Lawyer are not part of the same firm.  Rather, Firm referred the client to Lawyer’s separate and independent personal injury practice.  As such, if Lawyer chooses to divide the fee with Firm, Rule 1.5(e) applies and the division may only be made:

  1. in proportion to work performed, or, if Firm and Lawyer assume joint responsibility for the representation; and,
  2. if PI client agrees to the arrangement and the arrangement is confirmed in writing; and,
  3. if the total fee is reasonable.

In sum, it strikes me that the compensation issue will be governed by whether “of counsel” is working on the very matter for which client retained firm, or, whether firm referred to the “of counsel” lawyer a matter in which firm was not retained by the client.

Others might disagree.

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When does a rounding error become an unreasonable fee?

Rule 1.5(a) prohibits a lawyers from making an agreement for, charging, or collecting an unreasonable fee.  I’ve often mentioned that the Professional Responsibility Program receives few, if any, complaints about fees.  Indeed, my quick research reveals that the last disciplinary decision involving Rule 1.5(a) issued in October 2002.

Still, it’s good to know what’s good and what isn’t.

Undoubtedly, you have at least one friend or relative who frequently announces how wonderful it would be to be a lawyer, if only to bill 6 or 15 minutes for a quick phone call. Earlier today, I stumbled across two cases that shed some light on that exact issue.

The ABA Journal and the Legal Profession Blog covered a recent decision from the Wyoming Supreme Court.  The decision involved a client’s challenge to a firm’s practice of billing in 15 minute increments.  The Court concluded that, on the record before it, the evidence supported a conclusion that the firm’s billing practice was not unreasonable.

In its decision, the Court distinguished the case from one it decided in 2014.  It’s the 2014 decision that prompted this blog.

The 2014 case is here.  The lawyer’s license was suspended 30 days for, among other things, charging an unreasonable fee.  More specifically, the Court concluded that the lawyer violated Rule 1.5(a) by billing in 15 minute increments for tasks that, quite simply, did not take even close to 15 minutes to complete.

If your typical practice is to bill in minimum increments, the decision is worth a read.  A quick summary:

  • An attorney’s use of a minimum billing increment is not, standing alone, a violation.
  • Billing for work that was not done is a violation.
  • Double-billing for the same work is a violation.

In the abstract, those 3 statements don’t (and shouldn’t) seem surprising.

What’s key is to take a look at what the lawyer did.  Remember, per the fee agreement, she billed her client in minimum 15-minute increments.  The lawyer wrote down each task as it was completed.  If the task did not take at least 15 minutes, she did not record how long it actually took.  Thus, every single task was billed as having taken at least 15 minutes.  Among other things, the lawyer:

  • “routinely billed .25 hours to sign such documents as subpoenas, stipulated orders, and pleadings.”
  • regularly billed the client .25 hours for reviewing one-page scheduling orders, one-page pleadings, and one-page letters.
  • often billed the client .25 hours to review a document and another .25 hours to sign it.

Again, it wasn’t the minimum billing increment that resulted in the sanction.  Rather, per the Wyoming Supreme Court, an attorney’s billing practices necessarily involves application of “billing judgment.”  That is, an exercise of professional judgment demonstrated by “writing off unproductive, excessive, or redundant hours.”

On this issue, the Court concluded that the lawyer’s “practice of billing 15 minutes for such tasks as signing subpoenas, stipulated orders, and one page letters demonstrated a complete failure to exercise business judgment, which would have required her to write off unproductive, excessive, or redundant hours.”

To be very clear: I am not telling you that a minimum billing increment violates Rule 1.5(a).  I am, however, telling you that at least one Supreme Court has concluded that, if abused, the practice can lead to an unreasonable fee.

 

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Monday Morning Answers: #112

Good morning! Friday’s questions are here.  Aunt Kate would’ve needed her sunglasses as she walked east on Pearl to Abernathy’s this morning.  Alas, and sadly, even though it’s April 9, she also would’ve need her hat, scarf, and mittens.

Spoiler alert: the answers follow today’s Honor Roll.

Honor Roll

(hyperlinks when available.  lack of a link doesn’t reflect a lesser score or lower honors)

Answers

Question 1

Which is a rule?

When lawyers are associated in a firm:

  • A.  only one may have signature authority on a trust account.
  • B.  each is professionally liable for the misconduct of any other.
  • C.  none of them has a duty to report the misconduct of any other.
  • D.  none of them shall knowingly represent a client when any one of them would be prohibited from doing so by the conflict rules, unless the conflict is a personal one and does not present a significant risk of materially limiting the representation of the client by the remaining lawyers in the firm.  

That is Rule 1.10(a).

Question 2

Many lawyers advertise.   Indeed, an exception to a rule allows a lawyer to “pay the reasonable costs of advertisements.”   It’s one of the exceptions to the rule that prohibits a lawyer from:

  • A.  Giving anything of value to a person for recommending the lawyer’s services.
  • B . Direct contact with prospective clients.
  • C.   Using a misleading firm name.
  • D.  All of the above

Option A is an exception to Rule 7.2(b)’s prohibition on giving anything of value to a person for recommending the lawyer’s service.  Choices B & C are in different rules.

This is a good time to post this reminderReferral Fee? Think Thrice.

Question 3

Fill in the blank. (verbatim)

There’s a rule that prohibits a lawyer involved in the investigation or litigation of a matter from making “____________________ that the lawyer knows or reasonably should know will be disseminated by means of public communication and will have a substantial likelihood of materially prejudicing an adjudicative proceeding in the matter.”

  • A.   Any statement
  • B.   An extrajudicial statement
  • C.   A statement during jury selection
  • D.  A social media post.

Rule 3.6(a).  The key word is “extrajudicial.”   

.Question 4

Attorney represents Client in matter vs. Litigant.  Litigant is self-represented and does not have a lawyer.

The matter is close to resolving.  Attorney has reduced a proposed settlement to writing.  Attorney shows it to Litigant.  Litigant asks Attorney what paragraph 2 means.

True or False:  Vermont’s rules authorize Attorney to explain Attorney’s view of the proposed settlement and Attorney’s view of the underlying legal obligations created by paragraph 2.

TRUE.  See, Rule 4.2, Comment [2] (“So long as the lawyer has explained that the lawyer represents an adverse party and is not representing the person, the lawyer may inform the person of the terms on which the lawyer’s client will enter into an agreement or settle a matter, prepare documents that require the person’s signature, and explain the lawyer’s own view of the meaning of the document or the lawyer’s view of the underlying legal obligations.”)

Question 5:

Alan Page was elected to the Minnesota Supreme Court in 1992 and served until reaching mandatory retirement age in 2015.  When first elected, Page had been working for several years as an Assistant Attorney General in Minnesota.

I often blog on the duty of competence.  Prior to becoming a lawyer, Page excelled in a different profession.  Indeed, as a member of the famed “Purple People Eaters,” Page was among the most competent ever to do that particular job.

What was Page’s job prior to becoming a lawyer.

Alan Page was a professional football player. He was the NFL MVP in 1971 and is in the Pro Football Hall of Fame.  Page was a defensive lineman for the Minnesota Vikings (and, at the end of his career, for the Chicago Bears.)  The “Purple People Eaters” were the defensive line for the Vikings teams that went to 4 Super Bowls in the 70’s.

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Monday Morning Answers: Carvel & WPIX

Wow!  I had no idea that a post about Carvel & WPIX would resonate with so many.   Thank you readers for sharing your thoughts! I’ve pasted some of them in below the answers.

Friday’s questions are here.  The answers follow the Honor Roll.

Honor Roll

  • Karen Allen, Esq.
  • Matthew AndersonPratt Vreeland Kennelly & White
  • Evan Barquist, Montroll, Backus, & Oettinger
  • Penny Benelli, Dakin & Benelli
  • Leslie Black, Black & Govoni
  • Robert Grundstein, Esq.
  • Gregg Harris, Assistant Attorney General, Buildings & General Services
  • Glenn Jarrett, Jarrett & Luitjens
  • Keith KasperMcCormick, Fitzpatrick, Kasper & Burchard
  • Jeanne Kennedy, JB Kennedy Associates
  • Shannon LambPratt Vreeland Kennelly & White
  • John LeddyMcNeil, Leddy, & Sheahan
  • Michael Lipson, Esq.
  • Lon McClintockMcClintock Law Offices
  • Jeffrey MessinaBergeron Paradis Fitzpatrick
  • Hal Miller, First American
  • Herb Ogden, Esq.
  • Nancy Rogers, Chamberlin Elementary School
  • James Runcie, Ouimette & Runcie
  • Jay Spitzen, Esq.
  • Allison Wannop, Esq.
  • Thomas Wilkinson, Jr., Esq, Cozen O’Connor
  • Carole Zangla, Grafton County (N.H.) Senior Citizens Council
  • Peter Zuk, Kyocera Copiers, PRB hearing panel member

 

Answers

Question 1

What’s Vermont’s rule?  A lawyer shall:

  • A.  Charge a reasonable fee.
  • B.   Not charge an unreasonable fee.
  • C.   Not charge or collect an unreasonable fee.
  • D.   Not make an agreement for, charge, or collect an unreasonable fee.  V.R.Pr.C. 1.5(a).

Question 2

Fill in the blank.

The third comment to a particular rule defines __________ ___________ as involving “the same transaction or legal dispute or if there otherwise is a substantial risk that confidential factual information as would normally have been obtained in the prior representationw would materially advance the client’s position in the subsequent matter.”

It’s the definition of:

  • A.  when matters are “substantially related”.  V.R.Pr.C. 1.9(a), Comment [3].
  • B.   what type of information qualifies as a “client confidence”
  • C.   a concurrent conflict of interest
  • D.  a non-waivable conflict of interest

Question 3

Which is different from the others?

  • A.  Friending an adverse & represented party.
  • B.  Reviewing a potential juror’s Twitter account.
  • C.  Advising a client to “take down” social media posts.
  • D.  Crowdfunding litigation.

“A” is most likely to be a rules violation.  Violations including contacting a represented party and engaging in dishonest conduct.  For more, see these advisory opinions from the District of Columbia, New Hampshire & Massachusetts.

Reviewing a juror’s public Twitter feed is not a violation. Arguably, the duty of competence requires it.  

Crowdfunding is not a violation. I’ve blogged about it here.

Advising a client to “take down” social media posts is not, in and of itself, a violation.  For example, see these advisory opinions from Florida and Pennsylvania

Question 4

Isaiah meets with Lawyer to discuss a potential claim against Lonzo.  Isaiah mentions that Attorney represents Lonzo   Attorney and Lawyer are married to each other.

Which is most accurate in Vermont?

  • A.   Lawyer is prohibited from representing Isaiah.
  • B.   Lawyer is prohibited from representing Isaiah unless Isaiah provides informed consent that is confirmed in writing.
  • C.  Lawyer is prohibited from representing Isaiah and the conflict is imputed throughout Lawyer’s firm.
  • D.  Both Isaiah & Lonzo are entitled to know of the Attorney/Lawyer marriage and, ordinarily, Attorney & Lawyer may not continue unless each client gives informed consent.  V.R.Pr.C. 1.7, Comment [11]

Question 5

A woman named Linda passed away earlier this week.  She was 76 and grew up in Topeka, Kansas.  I don’t know whether anyone who reads this blog ever met her.  But, I’m positive that nearly every single person who reads this blog & who went to law school read about her in class.

What was Linda’s last name?

Linda Brown was 8 years old when she was turned away from Sumner  Elementary School in Topeka.  4 years later, the U.S. Supreme Court issued its decision in Brown v. Board of Education.  Linda’s passing was covered by many outlets, including NPR, the Huffington Post, the Chicago Tribune, and the New York Times.

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*************************************************************************************Comments on WPIX & Carvel’s Ice Cream

  • Your post today brought back some fond memories for me as well, I grew up in Northern NJ and used to watch channel 11 regularly.  As for the Carvel commercials and can still hear “Cookie Puss” and “Fudgie the Whale” in my mind if I close my eyes…
  • Get Smart was a silly favorite of mine.
  • How could you forget the classic (and now most politically incorrect!) F Troop?!  Sgt. O’Rourke, Cpl. Agarn, the Hekawi’s.  Only 65 episodes
  • Carvel’s was almost closest to my house; not as high quality as Marcus Dairy, out on Rt. 7, but closer…and we always had a craving for their “Flying Saucers”, wonderful ice cream sandwiches with crispy chocolate wafers! Bought them by the dozen to put in the freezer. I even remember “Mr. Carvel” who did the tv ads…can’t remember the pitch, but he was an “old guy” with a mellifluous voice.
  • What about The Mod Squad!?!?  Linc was the best! Peggy Lipton won an Emmy!
  • WPIX – Home of the Yankees.  My sister’s roommate in college was Cindy Rizzuto, The Scooter’s daughter.  “Holy Cow, can you believe that?”  AND …..There was nothing I wanted more on my birthday than a Carvel Ice Cream Cake.
  • Did you actually watch Yankee games on WPIX?  How did your Dad allow that?
  • Wow, that Magic Garden song made me laugh out loud. 
  • I did live near a Carvel – and yes – that was a treat – BUT, what I recall was going to a place called Jahn’s  Ice Cream Parlor.  They had “everything but the kitchen sink”  and it served at least 8.  It was served in a mini kitchen sink – with all flavors.  Kind of disgusting, actually.  They also had a .02 cent plain.  This was a glass of seltzer.  I love how your intros each week bring back memories.
  • Your blog on Carvel and WPIX brought back so many memories.  Hours spent watching Abbott and Costello reruns, Superman, Batman and not to mention Chiller Theater.  It was the only station on TV that regularly got me into trouble.  My mom thought Batman was way too violent and Chiller was beyond the pale.  That being said, she had no objections to watching The Bells of St. Mary’s or John Wayne in the Quiet Man, movies that ran almost monthly on WPIX.  Between WPIX in the afternoon and MAD magazine, I expressed my grade school rebellion. Oh those days. 
  • Love your blog this am,Especially since I grew up in Queens and Carvel was the height of taste bud heaven. To this day, I love ice cream! And who says ice cream doesn’t help one’s bp? Here’s to Carvel and WPIX!

Referral Fees: Think Thrice

I continue to encounter confusion about referral fees.  This week, the topic arose during an inquiry I received, and again at a CLE seminar I presented.

My position remains that Vermont’s rules do not authorize straight referral fees.

Here’s my quick analysis:

  1. Rule 7.2(b) prohibits a lawyer from “giving anything of value to a person for recommending the lawyer’s services;”
  2. Rule 7.2(b)(4) authorizes lawyers to make referrals and enter into reciprocal referral arrangements; but,
  3. Comment [8]  states that “[e]xcept as provided in Rule 1.5(e), a lawyer who receives referrals from a lawyer or nonlawyer must not pay anything solely for the referral . . .”
  4. Rule 1.5(e) authorizes lawyers who are not in the same firm to share fees if:
    • the division is in proportion to the services each performs, OR, each lawyer assumes joint responsibility for the representation;
    • the client confirms in writing the client’s agreement to the division of the fee; and,
    • the overall fee is reasonable.

Here’s a primer on referral fees.  And, here’s a post that discusses what it means”to assume joint responsibility for a representation,” and thereby trigger Rule 1.5’s authorization of a division of fees.

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Throwback Thursday: Referral Fees

Every now & then, I run a column where I link to a post from the past.

“Every now & then” is defined as “whenever it’s Thursday, I am lazy have writer’s block, but need to post something.”

Not sure what your calendar says, but on mine, it’s every now & then.

Really, this isn’t a “throwback.” It’s a reminder.

I continue to run across lawyers who don’t realize that the Vermont Rules of Professional Conduct prohibit straight referral fees. So, I’m re-posting Referral Fee? Think Twice.  It links to, and expands upon, my primer on Referral Fees.

Please feel free to share this post.  I don’t want lawyers to stumble into a violation.

Plus, it makes me laugh to think about the days when mix tapes were my most valuable possessions.  Don’t forget to come back tomorrow for the #fiveforfriday trivia quiz!

Throwback Thursday

Throwback Thursday: Crowdfunding

Earlier this week, I received my first inquiry on the ethics of crowdfunding litigation.  It reminded me of a blog I posted in January 2016.

The post is HERE and it’s on, you guessed it, the ethics of crowdfunding litigation.  Given the inquiry, I thought I’d revisit the post.

 

Crowdfunding

I’m aware that January 2016 isn’t much of a “throwback.”  But that’s okay.  At GW Law, I was the quarterback on O.P.P., the first law school team to win the “grad school” division of GW’s IM flag football league.  We advanced to the Final Four where we were utterly smoked in the semis by the team that won the “staff” division. In any event, back then I wasn’t known for throwing deep; pinpoint accuracy was my thing.   So, a throwback of a mere 14 months might not be much of a throw, but the topic is relevant. So, I consider it the equivalent of an 11-yard out that keeps the chains moving.