Where I live, there is a lawyer (James Sokolove) who advertises constantly on TV. He solicits clients for accidents, asbestos, personal injuries, etc. However, at the bottom of his ads, the fine print saya that “you may be referred to another law firm”. I’ve learned that James Sokolove LLP essentially acts as a booking agency for other law firms, and that this firm gets a cut of any subsequent award. Is this legal?I thought that soliciting clients for a case (hat you have no direct representation of) is a champertous act.
And, if legal, is it ethical? Suppos you call up this Sokolove, and they tell you that your broken leg (caused by a slip and fall accident) isn’t worthwhile-can they legally refuse to take your case/ Is the TV ad an “implied contract”?
And, should Sokolove deem your case worthy-how much is he entitled to take (of yur award)?
I don’t know where you are, but I think he runs them all over the country. You’ve got to cast a wide net . . .
Yes, as long as it is disclosed, the client agrees and the amount that each party will get is clear. Generally, it needs to be in writing. Think about it this way – you call me and ask me to take your case. I do, but after a few months, I realize that I don’t have the expertise you need, or I’m too busy, or something. I took your case on contingency, which means that if I pass you off to another lawyer, I will not get paid for the time that I spent. With your permission, however, the new lawyer can agree to pay me out of any recovery s/he gets from what you get. That’s all this is.
I had to look up champerty, which one case defines as
I don’t know if this is the majority definition, but we can work with it. Here, the attorney has no interest in the suit, but his claim on the result of the suit is not based on a champertous interest but on the work that he has done to get you an attorney. He is neither advancing the litigation or supporting it, other than by getting you a (presumably) competent lawyer. I think you’d be hard pressed to claim champerty, but I’d be interested to hear other perspectives.
Yes. Remember, the point of it is to connect the client with a competent attorney, licensed in the client’s jurisdiction. And while most jurisdictions have limitations on solicitation, the prohibition is generally on in-person solicitations (ambulance chasing) as opposed to mass media.
Yes, if you have no case, the attorney is legally obligated not to pursue it. (The link is to the federal rule, but most states have a similar rule.) The ad is not an implied contract because there is no consideration. It’s more of an offer to offer: you call him with your case, he’ll then make you an offer based on it, which you can then accept. A contract is formed after acceptance of the offer, so I’d call this an offer to offer.
Whatever you and he agree to. Typical contingency fee agreements are for a third. He likely has agreements with the other attorneys to which he would refer you, and I don’t know what those are, but if you’re paying your attorneys a third, he may take a cut of that third, or he may take an additional amount from you. Either way, it has to be disclosed and agreed to ahead of time by the client.
Under the New York Code of Professional Responisibility [lawers ethical code], Disciplinary Rule 2-107(a) provides:
This means if a client agrees, a lawyer (or law firm) may divide his or her (or its) fees with another lawyer (or law firm) proportionally to their respective services, or (more commonly in personal injury contingent fee cases) by both assuming joint responsibility for the representation. In New York, personal injury and property damage contingent fees, and joint representation/fee agreeements must be reported to the Office of Court Administration.
Commonly, the firm bringing in the client will agree to split the contingent fee 50/50 with the “trial counsel” who will be doing most of the actual work of litigating the case. Frequently, law firms will assign out cases to trial counsel based on the county or other jurisdiction where the trial will be held.
I don’t practice in this area, but I once represented a law firm that was involved in litigation with a trial counsel that it employed with regard to such fees.
In other states and in different circumstances things may vary. However, I believe that under most state lawyer ethical codes, referring litigation under such an agreement is permissable with client consent.