In the well-cited case of the opens in a new window New York State Court of Appeals, People v. Keeffe, 50 NY2d 149, 428 NYS2d 446 (1980), the Court reviewed the rights of attorneys with respect to statutory opens in a new window charging liens pursuant to Judiciary Law Section 475 and common-law retaining liens.
The Appellate Division, Second Department, in recognizing the retaining lien of an attorney, held that it was error on the part of a trial court to direct prior counsel to transfer the papers upon which the attorney had a retaining lien before (a) determining the value of the attorney’s services, and (b) assuring that payment for those services was adequately secured.
The retaining lien is essentially a way for the legal profession to give itself not only an unfair advantage, but an advantage that is directly contradictory to the ethical obligations lawyers have to protect their clients. The idea behind the retaining lien is to harm clients as a way of forcing them to pay.
Of course, clients should pay their attorneys if the money is actually owed and the attorney has done the work as promised. But having reviewed lawyers’ invoices for many years, a client also has a right dispute a lawyer’s fees.
Your attorney’s ability to file a lien for his fees and costs may hinge, among other factors, on whether his withdrawal was reasonable. If, for example, he withdrew from your case without giving a reason (or because he decided to become a professional golfer instead), and his withdrawal damaged your case, the court may well support you in your decision not to pay him for the work he did. If, however, his withdrawal was necessary or reasonable and if the court approved the withdrawal, it is likely that he will be able to recover reasonable fees and costs for the work he did, according to the terms of your contract.
Whether you’ve failed to pay him or not, your attorney is still ethically obligated to avoid prejudicing the interests of your case. This basic rule applies very differently depending on the circumstances, but if the lien might hurt your chances in court, there is a higher likelihood that it will be denied.
Required Withdrawal: A lawyer is required to withdraw if representation violates the law or any of the Rules of Professional Conduct, if he’s physically or mentally incapable of representing the client, or if the client discharges him.
When an attorney is discharged and/or allowed to withdraw from a case, he still maintains the duty to protect his former client’s interests through the transition to new counsel, including providing case file information to the new attorney.
Permissible Withdrawal: Withdrawal is also allowed for many reasons so long as there is no harm done to the client’s interests – so an attorney who wants to withdraw on the eve of trial will likely need to state an extremely good reason for doing so.
The retaining lien is a right granted to an attorney to hold on to the property of a client until the legal fees due have been paid. It can be compared to a car mechanic who does work on a customer’s car and may hold on to the car until the bill for repairs has been paid.
Even though today, most of a case file may be filed online and, thus, the client’s file is not needed as much as in the past, this lien is still very effective when dealing with either large quantities of documents, original papers/evidence or property other than papers that cannot be easily obtained or replicated.
There are three prerequisites to the creation of a charging lien, as a result of the attorney’s efforts: (1) the client must assert a claim, (2) which results in proceeds, (3) payable to or for the benefit of the client.
Where the plaintiff is only a nominal appellant, and the dispute is between the discharged attorney and the new attorney, the discharged attorney may waive his right to have the amount of his lien fixed on a lump sum basis and may elect to have his lien fixed on a contingent percentage basis. (Friedman v.
Unlike their lay peers, professionals seldom sue first and analyze later. It is important to competently and thoroughly evaluate the claim. Planning for collection requires dealing with aspects of the claim with the same diligence and skill the attorney-client used to originally earn those legal fees. 2.
1. The "Retaining Lien" - until your client pays her bill, you have all of the client's property in your possession; and. 2. The "Charging Lien" - often applied in contingency cases, many state statutes would entitle you to a portion of a monetary judgment resulting from your work.
Having worked hard to earn your fee, you are legally entitled to assert an attorney' s lien on the case. In general, there are two types of attorney's liens which jurisdictions recognize to varying degrees: 1.
In practice, you may live to regret it. Having worked hard to earn your fee, you are legally entitled to assert an attorney's lien on the case. In general, there are two types of attorney's liens which jurisdictions recognize to varying degrees: 1.
Although the charging lien may not apply here, a retaining lien would enable you to hold the client's file hostage until she pays all reasonable attorney's fees earned in the case. This seems only fair and would prevent a client from benefiting from your services while skipping out on your bill.
An attorney is allowed to assert a retaining lien on the file when there is an unpaid balance for services rendered. It is one of the only ways that attorneys can protect themselves from clients skipping out on paying their bills. If services were rendered, I suggest you pay the attorney, and then your new attorney will have full access to the case file...
If you properly terminated the legal representation then the new lawyer should be able to obtain a copy of the file. There may very well be a copy charge. And there may be a lien for both costs and attorney fees if the termination was not for cause. As for original work product, the former lawyer may be entitled to keep that unless and until your current lawyer pays the cost of production for those exhibits. The attorney that you hire should be able to take care of this situation with your former lawyer.#N#More