Tag Archives: North Carolina Dental Board antitrust

Ticket Clinic law firm and individual defendants file Motion for Sanctions for frivolous lawsuit against TIKD in federal lawsuit

Hello everyone and welcome to this Ethics Alert Update which will discuss the recent Rule 11 Motion For Sanctions for Filing Frivolous Lawsuit filed by the Ticket Clinic Law Firm (Gold and Associates) and the individual defendants.  The case is TIKD Services LLC, v. The Florida Bar, et al., Case No. 1:17-cv-24103-MGC (U.S. District Court, Southern District of Florida-Miami Division).  The Motion for Sanctions is available on the PACER federal document system here:  https://www.pacer.gov/login.html (subscription required).

As I previously blogged, TIKD Services, LLC filed the federal lawsuit against The Florida Bar, the Ticket Clinic law firm, and other individuals in the U.S. District Court, Southern District of Florida on November 8, 2017.  The TIKD app is set up to allow an individual who has received a traffic citation to upload a photo of the citation and pay a fixed fee.  TIKD then retains an attorney to represent that individual and, if that individual receives points against his or her license, TIKD refunds the payment and also pays the cost of the ticket.  The TIKD business model is apparently based on the fact that contested traffic tickets are often dismissed or a lower fine is assessed and, since TIKD deals in volume, it can charge a lower price than a lawyer who is separately retained by the individual.

The Florida Bar issued a staff opinion finding that lawyers who work with TIKD and similar programs could be in violation of various Florida Bar ethics rules, including fee splitting and interference with the lawyer’s independent professional judgment; however, TIKD states that its services fully comply with Florida Bar ethics rules and that lawyers who represent the individuals receive a flat fee and are independent practitioners “over whom TIKD does not exercise any direction or control.”  A complaint was filed by members of the law firm with The Florida Bar alleging that TIKD was engaging in the unauthorized practice of law (UPL).  That complaint is currently pending and the Bar has recommended further proceedings.

TIKD then filed a lawsuit in federal court alleging conspiracy, restraint of trade, tortious interference with business relationships, and antitrust violations.  The defendants include The Florida Bar, attorney Mark S. Good, who founded The Ticket Clinic law firm, and other individuals.  According to the Complaint, The Florida Bar advised TIKD that it was opening an unlicensed practice of law investigation into the company’s activities after the company was featured in a Miami Herald story.  A few months later, attorneys with The Ticket Clinic, a Miami law firm that handles traffic tickets, threatened to report two of TIKD’s lawyers to The Florida Bar if they continued to work with TIKD.

A state lawsuit was later filed and the parties reached a settlement in that matter; however, TIKD alleges in the Complaint that The Florida Bar and the Ticket Clinic law firm continued to make a “concerted effort” to put it out of business, and that the firm’s lawyers continued filing “baseless ethics complaints” against attorneys who represent TIKD customers.

The recent Motion for Sanctions alleges that the claims against the law firm and the individual defendants are baseless and fail to state a cause of action, that there is no subject matter jurisdiction, that The Florida Bar has immunity, which immunizes the individual defendants, that the individuals have immunity on other grounds, that the lawsuit is frivolous on other grounds, and that the lawsuit should be dismissed and the Plaintiffs should be sanctioned.

Bottom line:  As I have previously stated, this is one of the first cases filed in Florida (and possible in any jurisdiction) which directly alleges that a State Bar’s procedures violate the Sherman Antitrust Act in reliance upon the U.S. Supreme Court opinion in North Carolina State Board of Dental Examiners v. Federal Trade Commission.  A Motion for Sanctions under Federal Rules of Procedure 11 has now been filed seeking sanctions against TIKD and the dismissal of the Complaint against the law firm and individual defendants.

Stay tuned…

Be careful out there.

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.

29605 U.S. Highway 19 N. Suite 150

Clearwater, Florida 33761

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

Joseph Corsmeier

about.me/corsmeierethicsblogs

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Filed under Florida Bar, Florida Bar TIKD antitrust lawsuit, joe corsmeier, Joseph Corsmeier, Lawyer antitrust, North Carolina Dental Board, North Carolina dental whitening case and UPL, TIKD UPL Bar request for Florida Supreme Court injunction, TIKD v Florida Bar Motion for Sanctions, TIKD v. Florida Bar antitrust federal lawsuit, TIKD v. Florida Bar motion to disqualify ex-president, Unauthorized practice of law, Unlicensed practice of law, Unlicensed practice of law antitrust lawsuit, UPL North Carolina federal judge opinion on regulation of UPL

California law requires California Bar to split into mandatory regulatory and voluntary trade association entities

Hello everyone and welcome to this Ethics Alert which will discuss the recent California law that requires the California Bar to split into separate regulatory and trade association entities, which appears to be in response to the U.S. Supreme Court’s North Carolina dental antitrust case in 2015.  The State Bar of California’s press release announcing the “historic” law is here: http://www.calbar.ca.gov/About-Us/News-Events/News-Releases/ArtMID/10234/ArticleID/525/State-Bar-prepares-to-implement-historic-reforms-followingGov-Brown-signature-on-the-agency%E2%80%99s-annual-fee-bill

According to the State Bar press release: “Today (October 2, 2017) Gov. Jerry Brown signed SB 36 into law, the fee bill for the State Bar of California. In addition to setting the annual licensing fee for lawyers, SB 36 includes historic reforms for the public protection agency.”

Under the law, effective in 2019, the California Bar will act only as the disciplinary and regulatory agency and membership will be mandatory for all of the state’s lawyers.  The current 19-member Bar board will transition into a group of 13 individuals serving four-year terms.  Six of the 13 members must be members of the public.  All board members will be appointed by the California Supreme Court, the state legislature, and the governor and will no longer be elected.

A separate nonprofit entity will be created for trade association activities and will include all Bar sections.  Membership in that entity will be voluntary and will include an annual membership fee.

The California Bar must also comply with a California Supreme Court policy to identify and address any proposed decision of the board of trustees which raises antitrust concerns.  This requirement is clearly an attempt to avoid allegations of antitrust violations which were found by the U.S. Supreme Court in North Carolina State Board of Dental Examiners v. Federal Trade Commission, No. 13–534. (USSC February 25, 2015).

In that 2015 case, the USSC found that the North Carolina dental regulatory board, which was made up of primarily dentists, did not have state-action antitrust immunity in its attempts to prohibit non-dentists from providing teeth-whitening services to the public.

The regulation of lawyers (and other licensed professionals) in Florida and other states is implemented through boards, commissions, committees, or other similar entities which investigate and make findings.  In Florida, there is no separate trade association; however, findings by Bar Counsel, grievance committees, and the Bar Board of Governors are subject to review by the Florida Supreme Court.

I previously blogged about North Carolina State Board of Dental Examiners v. Federal Trade Commission and its aftermath in my Ethics Alerts here: https://jcorsmeier.wordpress.com/2015/03/17/u-s-supreme-court-opinion-finds-that-there-is-no-automatic-antitrust-immunity-for-state-professional-licensing-boards/, here: https://jcorsmeier.wordpress.com/2015/06/24/legalzoom-files-federal-antitrust-lawsuit-against-the-north-carolina-state-bar-citing-2015-ussc-dental-board-case/, and here: https://jcorsmeier.wordpress.com/2015/10/28/legalzoom-settles-multi-million-dollar-antitrust-suit-against-the-north-carolina-state-bar-with-agreement-to-continue-operating/

In some states, these antitrust issues are most likely not in play.   For example, the Illinois Attorney Registration and Disciplinary Commission oversees the registration and discipline of attorneys and all Illinois lawyers are required to pay dues to that entity.  All final disciplinary orders are also issued by the Illinois Supreme Court.  The Illinois State Bar Association is a separate voluntary association which engages in trade association activities.

Bottom line: This California law is clearly in response to (and an attempt to overcome) the antitrust issues identified by the U.S. Supreme Court in North Carolina State Board of Dental Examiners v. Federal Trade Commission.  Will other states follow?  Stay tuned…

…and be careful out there.

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.

29605 U.S. Highway 19 N. Suite 150

Clearwater, Florida 33761

Office (727) 799-1688

Fax     (727) 799-1670

jcorsmeier@jac-law.com

www.jac-law.com

Joseph Corsmeier

about.me/corsmeierethicsblogs

Leave a comment

Filed under Attorney discipline, Bar regulation and antitrust, California law requiring split of Bar regulation and trade association activities, joe corsmeier, Joseph Corsmeier, Lawyer discipline, Lawyer ethics, LegalZoom, LegalZoom antitrust, North Carolina Dental Board, North Carolina dental whitening case and UPL