how to protect former attorney lien from dismissal

by Larue Hammes 7 min read

In virtually all states, attorneys can protect themselves in such circumstances by asserting a charging lien, ensuring that their fees are paid out of the recovery obtained through their efforts. Charging liens arise out a recognition that a lawyer is entitled to benefit from a judgment obtained as the result of the lawyer’s services.

Full Answer

Can a former Attorney file a retaining lien on a case?

If your former attorney has filed a retaining lien on your case file or funds, your new attorney should be able to advise you on how best to proceed. If your case might be damaged by the retaining lien or if the attorney’s claimed fees and costs are unreasonable, you may be able to defeat the lien.

How do you defeat an attorney lien?

If your case might be damaged by the retaining lien or if the attorney’s claimed fees and costs are unreasonable, you may be able to defeat the lien. Another common type of attorney lien is known as a charging lien, which allows your attorney to claim a portion of the future settlement or judgment in your case.

What is an attorney’s lien?

An attorney’s lien (also termed a “charging lien”) is a lien that secures an attorney’s compensation “upon the fund or judgment” recovered by the attorney for the client.

Can a lien be denied in a personal injury 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. Contingency fee agreements – the type of contract most plaintiffs sign in personal injury cases – also bring special limitations.

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What happens if my former attorney files a retaining lien?

If your case might be damaged by the retaining lien or if the attorney’s claimed fees and costs are unreasonable, you may be able to defeat the lien.

What is attorney lien?

Attorney liens are the ultimate sign of a broken relationship between attorney and client. Part 1 discussed what an attorney lien is and Part 2 highlighted the requirements and limitations of an attorney lien.

What is a retaining lien?

In essence, a retaining lien is a way for your former attorney to hold your file hostage until he receives payment or an assurance that he will be paid out of the settlement or award received in your case.

What is considered your attorney's property in Florida?

In Florida, the case file your attorney builds as he works on your case – containing your attorney’s notes, investigation reports, expert opinion summaries, and other potential evidence vital to your case – is considered to be your attorney’s property.

Can an attorney retain a case if a contingency fee is paid?

If your contingency fee contract dictates that your attorney must pay for the costs and expenses of the litigation unless and until your case returns with a settlement or favorable verdict, he cannot retain your file, since he would have no right to payment until the contingency (the lawsuit’s success) occurred.

Can an attorney challenge a lien?

In order for an attorney to succeed in a lien application, he must be able to demonstrate that his work contributed substantially to your case – so if you feel that his representation and/or subsequent withdrawal actually harmed your case, you may be able to challenge his lien and his right to receive any payment .

Can a former attorney retain my file?

If, however, your contract dictates that you are responsible for part of the litigation expenses regardless of how the case ends, your former attorney may be able to retain your file until your portion of the expenses is paid.

What is a retaining lien?

A retaining lien is a lien for payment of services against client property in the attorney’s possession regardless of whether the property is related to the matter for which money is owed to the attorney. 1 A retaining lien does not require judicial action to perfect or enforce it.

When is a lawyer required to withdraw from a client?

Withdrawal is mandatory when the client discharges you, when you are too sick to continue, or when continued representation will result in a violation of the Rules of Professional Conduct. Subsection (b) of Rule 4-1.16 is permissive and states that “a lawyer may withdraw from representing a client if withdrawal can be accomplished without material ...

How long is a judgment good for?

A judgment lien against real property is good for seven years and may be extended for an additional 10 years by recording a new certified copy of the judgment and an affidavit setting out the lienholder’s current address prior to the expiration of the first lien. 14.

Can a charging lien be enforceable against a client?

If an opposing party (or opposing counsel) who has notice of your charging lien sends your client a settlement check and the client fails to pay you, your lien may be enforceable against the opposing party as well as your client. 8 However, time is of the essence.

What is a retaining lien?

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.

What are the requirements for a charging lien?

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.

What is the rule for excessive fees?

Rule 1.5 defines a fee as “excessive” when, after a review of the facts, a lawyer of ordinary prudence would be left with a definite and firm conviction that the fee is in excess of a reasonable fee. Factors to be considered as guides in determining the reasonableness of a fee may include: 1.

Do you sue first or analyze later?

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.

Can a discharged attorney waive a lien?

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.

Can a lien be filed online?

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.

What does the court do when a lien is not valid?

If there is a question of fact related to the determination of whether the lien is or is not valid, the court may take evidence to assist in the determination (like a deposition of interested parties or other evidence).

What are the requirements for a lien in Pennsylvania?

These requirements include: a debt of more than $500, notice requirements (for parties that did not contract directly with the property owner), timing requirements, and filing and service requirements ...

Can a lien be disallowed in Pennsylvania?

In such situations, liens are disallowed by law. If a lien is filed in that instance, the owner can petition the court for an immediate discharge of the lien. While these exact procedures are specific to Pennsylvania, there are many states with similar options to get a fraudulent or facially insufficient lien removed.

Can mechanics liens be abused?

Whether the abuse is intentional, or a potential claimant just didn’t meet the strict statutory requirements to claim a valid enforceable lien, property owners or other interested parties may need ...

Can a lien be removed quickly?

Another Option, But Only on Some Residential Projects. There is potentially another option to have a lien removed quickly (that also requires a court action). But, this option is only available if the project was on a single or double residential project, and the owner has paid the GC the full contract amount.

Can you file objections to lien enforcement?

The objections may be filed prior to the lien claimant initiat ing an enforcement action, and likely should be, to avoid the requirement to file a regular answer to the enforcement action. This is an action in court, and while an individual may represent him/herself, it is rarely a good idea, and it may be worth while to enlist the services ...

What is a lien on an attorney?

An attorney’s lien (also termed a “charging lien”) is a lien that secures an attorney’s compensation “upon the fund or judgment” recovered by the attorney for the client.

What is the California law on attorney lien?

While an attorney’s lien may be used to secure either an hourly fee agreement or a contingency fee agreement, hourly fee agreements purporting to create an attorney’s lien must comply with Rule 1.8.1 of the California Rules of Professional Conduct. Rule 1.8.1 requires that:

What is attorney-client relationship?

The common attorney-client relationship in its simplest form is: the potential client signs a fee agreement retaining the attorney, the attorney performs the requested work, the client achieves an end result, and the attorney gets paid. The unfortunate reality, however, is that sometimes a retained client fail to pay its attorney for some (or all) of the legal work that the attorney performed. When this occurs, the attorney is left in a difficult divide between complying with the attorney’s ethical obligations and enforcing the attorney’s right to be paid. So how can the attorney ethically enforce its right to be paid while still complying with the Professional Rules all attorneys are bound by? Is it even possible? The answer is in one small word “liens.”

Do retained clients pay their attorney?

The unfortunate reality, however, is that sometimes a retained client fail to pay its attorney for some (or all) of the legal work that the attorney performed. When this occurs, the attorney is left in a difficult divide between complying with the attorney’s ethical obligations and enforcing the attorney’s right to be paid.

Can an attorney's lien be created in California?

Unlike most jurisdictions, where an attorney’s lien is established by operation of law in favor of an attorney to satisfy attorney fees and expenses out of the proceeds of a prospective judgment, in California, an attorney’s lien can only be created by contract.

Herb Fox

In response to your response to Mr. Daymude about a course of action: you may not understand that the ethics complaint with the State Bar will not result in an award of money or resolution of your fee dispute. That is not the purpose of a state bar complaint.

Kellan Richard Martz

Mr. Daymude has provided a very good answer to your question. I would add that the State Bar law/rules on fees prevent an attorney from charging you more for working with another attorney, if the work would increase your fees. I would file a complaint with the State Bar and also file for fee arbitration through the State Bar.

Michael Raymond Daymude

You can demand non-binding fee arbitration. (See the CA State Bar website.) You can file a lawsuit against the attorney in small claims court for a refund up to $10,000.

What is attorney client privilege?

Piercing the attorney-client privilege may be one of opposing counsel’s top priorities irrespective of the strength of their case. The privilege protects confidential communications between the client and the lawyer made for the purpose of obtaining or providing legal assistance, to “encourage full and frank communication . . . and thereby promote broader public interests in the observance of law and administration of justice.” United States v. Zolin, 491 U.S. at 562, 109 S.Ct. 2619 (quoting Upjohn Co. v. United States, 449 U.S. 383, 389, 101 S.Ct. 677, 66 L.Ed.2d 584 (1981) ). But the privilege may not apply, it may be waived, or there may be exceptions to it. Counsel’s position on issues concerning potentially privileged documents impacts his or her credibility with the court, so it is advisable to be fully familiar with the scope of the privilege from the first time the issue arises in a matter, and not when it is too late.

Do officers, directors, and employees need in-house counsel?

Officers, directors, and employees must rely on in-house counsel to understand the difference. The predominant purpose of the communications should seek legal services for the privilege to apply. Copying in-house counsel on communications does not make them privileged.

Should outside counsel retain consultants?

Clearly identify when seeking or providing legal advice. Only outside counsel should retain and communicate with consultants during litigation. Retention by in-house counsel is preferable to retention by corporate management. Explain privilege limits and waiver to the client at the beginning and throughout a matter.

What happens if an attorney liases with your spouse?

If an attorney manages to liase many or all all your issues, then you have already lost, especially if they have told you not to talk to the spouse and they have served their purpose by fait accompli. If it comes down to money, you have lost, that is the level of basic understanding marriage has become for males.

What happens if you appeal a family court decision?

If you do decide to appeal the decisions of the family court, the Supreme Court, no less, will very likely uphold and support the malfeasance of the family court because the antics of the lower court personnel mirror those of the Supreme Court. I bet the family court personnel have recognized this and are busy minting.

Did the gal investigate any of the leads I gave him?

The gal did not investigate any of the leads I gave him. The magistrate had a stay for seven months. And the clerk of courts refused to send out the subpoenas. The clerk of courts told my attorney’s staff they were to short of staff to fax the subpoenas over my attorney’s office the day before the trial.

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Prerequisites

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There are several things that must exist before your old attorney can file a lien to recover unpaid costs and fees. First and foremost is a valid contract that contains an understanding that you will pay your attorney. If you never agreed to give money to an attorney, he cannot later demand to be paid, no matter what work he may ha…
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Lien Limitations

  • 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. Contingency fee agreements – the type of contract most plaintiffs sign in person…
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Acceptable Reasons to Withdraw

  • 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 f…
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Responsibilities After Withdrawal

  • 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. Though the option of retaining case files as security for unpaid fees is often available, it is limited by l...
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