Category Archives: Lawyer unreasonable fee

Florida Supreme Court adopts Bar Rules defining retainer, flat fee and advance fees and clarifying deposits of fees

 

Hello and welcome to this Ethics Alert which will discuss the recent opinion of the Supreme Court of Florida which adopted Bar Rules which define retainer, flat fee and advance fees and clarifying deposit of fees.  The opinion is In Re: Amendments to Rules Regulating The Florida Bar 4-1.5—Fees and Costs for Legal Services, No. SC14-2112 (September 17, 2015) and the opinion is here: http://www.floridasupremecourt.org/decisions/2015/sc14-2112.pdf  The amendments will become effective on October 1, 2015.

The opinion adopted amendments filed by The Florida Bar adding subdivision (2) to Florida Bar Rule 4-1.5, which defines the terms retainer, flat fee and advance fee.  The amendment also adds language to the Comment under “Terms of payment” stating that nonrefundable flat fees and nonrefundable retainers should not be deposited into the lawyer’s trust account; however, advance fees must be held in trust until earned.  The Comment also states that nonrefundable fees can still be excessive.

The amendment also moves the language in the Comment regarding contingent fees in criminal and domestic relations cases under the header “Prohibited contingent fees.”

Bottom line: these amendments to Rule 4-1.6 resulted from recommendations made by the ABA Ethics Commission 20/20.  As I pointed out in a previous Ethics Alert, the current amendments were drafted after an earlier attempt by The Florida Bar to place definitions in the Comment to Rule 4-1.5 was rejected by the Florida Supreme Court in an opinion stating that any definitions should be in the rule.

Be careful out there.

As always, if you have any questions about this Ethics Alert or need assistance, analysis, and guidance regarding these or any other ethics, risk management, or other issues, please do not hesitate to contact me.

Disclaimer:  this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2454 McMullen Booth Road, Suite 431

Clearwater, Florida 33759

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

 

 

 

 

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Filed under Attorney Ethics, Excessive fee, Florida lawyer trust accounts, joe corsmeier, Joseph Corsmeier, Lawyer escrow accounts, Lawyer ethics, Lawyer Ethics and Professionalism, lawyer excessive fee, Lawyer nonrefundable fees, Lawyer trust accounts, Lawyer unreasonable fee

Illinois Disciplinary Board upholds lawyer’s 6 month suspension for, inter alia, keeping fees and “indefensibly outrageous” statements

Hello everyone and welcome to this Ethics Alert which will discuss the recent Illinois Disciplinary Review Board report which recommended a 6 month suspension (with no automatic reinstatement) of a lawyer who failed to perform legal services for which he was retained, failed to return unearned fees, failed to communicate with clients and failed to reduce fee agreements to writing, and making “indefensibly outrageous” statements about lawyers and a court deputy in litigation cases.  The case is In the Matter of: David Alan Novoselsky, Commission No. 2011PR00043, SC No. 2069881 (April 10, 2015).  The link to the Board recommendation is here: http://www.iardc.org/HB_RB_Disp_Html.asp?id=11701

The Review Board of the Illinois Attorney Registration and Disciplinary Commission upheld a Hearing Board’s findings that the lawyer failed to perform legal services for which he was retained, failed to return unearned fees, failed to communicate with clients, and failed to reduce fee agreements to writing.  According to the Board’s report, the lawyer also called a female lawyer derogatory names, including “b—-,’ ‘‘asshole,” “slut,” “c—,” “pervert,” “whore” and “child molester”.  He called another lawyer an “idiot” and a “cokehead,” and he also called a deputy a “dumbbell” after she asked him to lower his voice.

“(The lawyer) denied making some of the statements and could not remember if he had made other statements. However, he admitted making several of the statements.  He often claimed he was provoked by undocumented personal attacks against him or claimed that the parties were “ribbing” each other, although witnesses confirmed (a witness’s) testimony that she did not provoke, react, or respond to these statements.”  “His attacks on opposing counsel and a court deputy displayed an utter disregard for the integrity of the courts…(w)hile he may still believe that he was provoked, the record indicates otherwise.  We find his conduct to be indefensibly outrageous.”

“Because we find (the lawyer’s) actions to be egregious and because respondent lacks any remorse or understanding of his misconduct, we recommend to the court that he be suspended for six months and until further order of the court.”  The hearing board had recommended a six-month suspension with automatic reinstatement.  The review board also recommended that the lawyer be ordered to return $30,000 in restitution of unearned fees.

The Board noted in mitigation that the lawyer had practiced law for 40 years without being disciplined, he had performed pro bono work, and had been active in bar associations.  There was no mention of any other mitigation, such as substance abuse or other personal issues.

Bottom line:  This case involved an Illinois lawyer who apparently went off the deep end and made outrageous derogatory statements in highly contested litigation cases.  He also apparently kept unearned fees, failed to perform legal services, failed to obtain written fee agreements, and failed to communicate with clients.  The Illinois Supreme Court will review the recommendation and it will be interesting to see if the Court agrees or increases the recommended sanction.  Stay tuned…

Be careful out there (and of course don’t do this).

Disclaimer:  this e-mail is not an advertisement, does not contain any legal advice, and does not create an attorney/client relationship and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2454 McMullen Booth Road, Suite 431

Clearwater, Florida 33759

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Filed under joe corsmeier, Joseph Corsmeier, Lawyer conduct adversely affecting fitness to practice, Lawyer conduct prejudicial to the administration of justice, Lawyer discipline, Lawyer ethics, Lawyer improper fees, Lawyer lack of communication with client, Lawyer sanctions, Lawyer unreasonable fee

Ethics Alert – Iowa Supreme Court reprimands lawyer who billed corporate client for costs of sanctions which “resulted from his own lack of diligence and communication”

Hello everyone and welcome to this Ethics Alert blog which will discuss the recent Iowa Supreme Court opinion which adopted a disciplinary report and imposed a reprimand on a lawyer who billed his corporate client for costs of attorney’s fee sanctions which “resulted from his own lack of diligence and communication”. The disciplinary opinion is: Iowa Supreme Court Attorney Discipline Board v. Cameron Davidson, Case No. 14-0878 (August 18, 2014). The disciplinary opinion is online here: http://www.abajournal.com/images/main_images/Davidson.pdf and here: https://www.iacourtcommissions.org/ViewLawyer.do?id=2704

According to the court opinion and discipline report, the lawyer represented Deere & Co. as a defendant in defending an employment discrimination lawsuit filed in federal court. The plaintiff was a former Deere employee who was terminated for allegedly violating Deere’s employee travel expense policy; however, she claimed that the termination was a result of age discrimination.

The lawyer responded to the plaintiff’s interrogatories and request for production requesting the names of all Deere employees who were investigated during the same time period (2005-2012) for travel expense violations and identified 4 employees; however, he did not provide the requested birth dates. The plaintiff’s lawyer filed a motion to compel which was granted and attorney’s fees sanctions of $700.00 were imposed. The lawyer ultimately self-reported and stated that the client had informed him it wanted to object to the plaintiff’s discovery requests, which resulted in the initial discovery dispute and the $700.00 sanction. The lawyer stated “I believed that I had discussed this matter with my client, however, my file does not reflect that I sent the motion (to compel and for sanctions) or the order to the client.”

The plaintiff filed a second motion to compel and for sanctions on another discovery issue. The lawyer stated that he was unsure how to respond to the second motion and admitted that he “ultimately missed the deadline to file a resistance or a reply.” The court granted the second Motion to Compel and imposed a sanction of $1,750.00 in attorney’s fees. “I again failed to send the motion or the court’s order to the client, which was not aware of the seriousness of the discovery dispute.”

The plaintiff filed a third motion to compel and for sanctions, which was also granted and sanctions of $1,050.00 in attorney’s fees were imposed. The lawyer also failed to send the plaintiff’s third motion and the court order imposing sanctions to the client. According to the report: “Despite these Orders (the lawyer) continued to delay providing complete interrogatory answers (and) failed to arrange for two of the employees to be deposed, as requested by the plaintiff.”

The lawyer billed the client for the costs of all three sanctions. In the billings, the lawyer called the first $700.00 sanction “Miscellaneous; Penalty on Discovery; Doug Stephens Law Firm”, the billing for the second $1,750.00 sanction “Misc(ellaneous Costs)”, and the billing for the third $1,050.00 sanction “Miscellaneous; Attorneys’ Fees; B. Douglas Stephens.” According to the disciplinary report, “(o)nly after your former partners learned of the sanctions orders was the client fully informed.”

The lawyer was found to have violated Iowa disciplinary rules related to lack of communication, lack of diligence, and charging an unreasonable fee or expense and was reprimanded.

Bottom line: This lawyer was found to be negligent in timely responding to discovery related matters, which resulted in three separate attorney’s fee sanctions and, not only did he fail to tell the client about the negligence and the sanctions which resulted from his negligence, but he also had the audacity to bill the client for the costs of the sanctions. That certainly was not a good decision and it is somewhat surprising that the lawyer only received a reprimand.

Let’s be careful out there!

Disclaimer: this Ethics Alert is not an advertisement and does not contain any legal advice and the comments herein should not be relied upon by anyone who reads it.
Joseph A. Corsmeier, Esquire
Law Office of Joseph A. Corsmeier, P.A.
2454 McMullen Booth Road, Suite 431
Clearwater, Florida 33759
Office (727) 799-1688
Fax (727) 799-1670
jcorsmeier@jac-law.com
http://www.jac-law.com

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Filed under Attorney discipline, Attorney Ethics, deceit, dishonesty, Excessive fee, joe corsmeier, Joseph Corsmeier, Lawyer discipline, Lawyer ethics, Lawyer Ethics and Professionalism, Lawyer lack of communication with client, Lawyer lack of competence, Lawyer lack of diligence, Lawyer sanctions, Lawyer unreasonable fee