Recently in Legal Ethics Category

Oklahoma lawyers can't ethically pay your electricity bill

February 4, 2009, by
I just got off the phone with a current client.  It looks like he may be moved into the "former-client" category.  The client is obviously frustrated because he's injured and his having trouble finding work.  He wants me to front him some money to pay his living expenses.  The ethics rules for Oklahoma lawyers are absolutely clear on this issue.  Attorneys can't do this.

Rule 1.8 of the Oklahoma Rules of Professional Conduct ("RPC") prohibits certain transactions which might create a conflict of interest between the lawyer and a client. The relevant portions of RPC 1.8 are as follows:

(a) A lawyer shall not enter into a business transaction with a client or knowingly acquire an ownership, possessory, security or other pecuniary interest adverse to a client unless:

  1. The transaction and terms on which the lawyer acquires the interest are fair and reasonable to the client and are fully disclosed and transmitted in writing to the client in a manner that can be reasonably understood by the client;
  2. The client is advised in writing of the desirability of seeking and is given a reasonable opportunity to seek the advice of independent legal counsel on the transaction; and
  3. The client gives informed consent, in a writing signed by the client, to the essential terms of the transaction and the lawyer's role in the transaction, including whether the lawyer is representing the client in the transaction.

* * *

(e) A lawyer shall not provide financial assistance to a client in connection with pending or contemplated litigation, except that:

  1. a lawyer may advance court costs and expenses of litigation, the repayment of which may be contingent on the outcome of the matter; and
  2. a lawyer representing an indigent client may pay court costs and expenses of litigation on behalf of the client.

So, the moral of the story:  If you want me to violate any Oklahoma lawyer ethics rules, don't bother contacting me.  While I will fight for you in court against an insurance adjuster, I will not, under any circumstances, break any of the Oklahoma lawyer ethics rules.   

Dallas personal injury law firm gets probation for staging accidents (!)

January 9, 2009, by
DFW's Star-Telegram reported yesterday that the personal injury law firm, Trey Allen, P.C., was placed on probation and ordered to pay close to a million dollars in restitution for its part in scheming to stage car accidents.  The paper got its information from the U.S. Attorney's office. 

This seems like something that would be dreamed up and reported at The Onion.  Maybe I'm naive, but it just seems astounding that someone would even try to do this.  Hopefully, the Department of Justice will stick the people involved. 

I did a little research on the story.  The USDOJ, back in September, released a more detailed report at their website.  See: Law Firm Admits Role In Staged Accident Scheme.  It doesn't appear the attorneys were actually invovled:
According to the Trey Allen, P.C. factual resume, both legal assistants informed the government that they did not disclose their fraudulent activities to the officers of Trey Allen, P.C. They admitted, however, they had an arrangement with numerous chiropractors in the Dallas/Fort Worth (DFW) area in which they would refer business to the chiropractors and, in return, the chiropractors would pay the legal assistants a cash kickback out of the settlement proceeds. The cash kickback was 30% - 40% of the amount paid to the coconspirator chiropractors by Trey Allen, P.C., which resulted in inflated medical bills being presented to the insurance companies.