Grievance 101 Jennifer A. Hasley Hasley Scarano, L.L.P. P.O. Box 25371 Houston, TX 77265 T:...
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Transcript of Grievance 101 Jennifer A. Hasley Hasley Scarano, L.L.P. P.O. Box 25371 Houston, TX 77265 T:...
Grievance 101
Jennifer A. HasleyHasley Scarano, L.L.P.
P.O. Box 25371Houston, TX 77265T: 713.667.6900F: [email protected]
HBA All Day EthicsNovember 1, 2014
Alex B. RobertsBeck Redden LLP
1221 McKinney St., Suite 4500Houston, TX 7701T: 713.951.6261F: [email protected]
Disclaimer
Unless otherwise specified, examples discussed are fictional and do not depict any actual person or event.
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The Ethics of Unethical ConductWill know it when you see it?
If you will know it when you see it …Why do you need an ethics lawyer?
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Where do you stand?
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Ethics – Grievance Defense
• How do you act – generally?• How are you acting now?• Has it already happened?• Are you being proactive?• Have you been caught?• Can you fix it?• Do you want to fix it?
• Legal Obligation• Ethical Obligation• Moral Obligation
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Will you know it when you see it?Depends on your perspective …
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Things that can turn your life upside down.The “D” in Disbarment
• Divorce• Debt• Drugs / Alcohol• Depression• Death• Dishonesty• Deceit• Discretion (lack thereof)• Disinterest / Neglect• Dissatisfaction (Job)
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Expecting a Grievanceor just worried about itWhat is a grievance?What happens after a grievance is filed?What should you do if you receive a grievance?
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Expecting a GrievanceWhat to do …
• Evaluate options (e.g., refunds in fee disputes or at termination of representation).
• Take preemptive measures and corrective action (e.g., put papers in order, review trust account, communicate, file appropriate motions, etc.).
• Talk to objective third party, preferably a lawyer.
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Expecting a GrievanceWhat not to do …
• Do not panic.
• Do not get angry or retaliate.
• Do not conceal information or lie (cover up can be worse than problem or potential problem).
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Responding to a Grievance• Hire a lawyer.• Respond timely - Do not “bury your head in the sand.” – 30 days.• Focus on allegations.• Less is more.• Objectivity.• Do not create new allegations.• Do not provide or create evidence.• Do not make admissions against interest.• Do not sign affidavits or declarations.• Evaluate current status of underlying case.• Do not talk to just anyone.• The CDC is NOT your friend.• Do not try to “fix it” – “the cover up is worse than the crime!”
Not every case is a disbarment case.
DISCIPLINARY SANCTIONS• Dismissal• GRP• Private Reprimand• Public Reprimand• Probated Suspension• Active Suspension• Disbarment
Relevant factors for sanctions … and DISBARMENT• Number of rule violations.• Seriousness of the conduct in question (e.g.,
stealing client trust funds; self-dealing; attempt to cover-up misconduct, etc.).
• Dishonesty, fraud, deceit or misrepresentation.• Conduct during disciplinary proceedings.• Recidivism and/or pattern of misconduct.• Harm.• Prior disciplinary history.-------------------------------------------------------------------• Compulsory discipline.-------------------------------------------------------------------• Judge as Witness or Complainant
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Texas Attorney Disciplinary SystemStatistics
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Attorney Disciplinary System Statistics
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Attorney Discipline 13-14 12-13 11-12Active Attorneys 94,804 92,210 89,987Grievances Filed 8,832 7,882 7,239Dismissed as Inquiries 5,827 5,495 5,040Classified as Complaints 1,567 1,628 1,839Total Complaints Resolved 403 444 516Total Disciplines: 322 367 402 Disbarments 21 39 38 Resignations 17 24 27 Suspensions 131 122 137 Public Reprimands 31 37 40 Private Reprimands 65 89 106 Grievance Referral Program 57 56 54
Attorney Disciplinary System StatisticsAreas of law
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Areas of Law 13-14 12-13 11-12 10-11 09-10Criminal 2,366 2,441 2,741 2,581 2,677Non-Client Relationship 2,074 1,506 1,545 1,272 930Family 989 948 941 980 1,081Civil 744 821 665 628 647Personal Injury 297 349 398 405 536Immigration 249 281Other 194 263 366 557 796Probate/Wills 152 153 152 208 216Real Estate 88 117 108 101 108Bankruptcy 75 66 98 96 72Traffic 42 24 59 75 62Workman's Comp 31 25 52 54 49
Attorney Disciplinary System StatisticsRule Violations Alleged
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Rule Violations Alleged 13-14 12-13 11-12 10-11 09-10Integrity 1730 607 346 403 346Communication 886 832 975 1,006 871Neglect 799 812 888 981 932Declining or Terminating Representation 464 506 681 638 553Safeguarding Property 326 260 241 192 224Tribunals 151 117 119 86 74Fees 112 109 152 137 105Conflicts 98 136 77 73 77Non-clients 61 52 80 87 92Confidentiality 34 27 36 47 36Advertising & Solicitation 14 21 43 36 48Law Firms 7 17 34 35 27
Legal Malpractice
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Types of Legal Malpractice Claims
• Ordinary Negligence Claims
• Breach of Fiduciary Duty
• Breach of Contract
• DTPA
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Legal Malpractice Claims – General Principles• Requires Attorney-Client Relationship
• Generally, Two Year Statute of Limitations
• Claims May Not Be Split
• Expert Testimony Required
• Generally, Strict Privity Rule Applies
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Legal Malpractice Claims The Standard of Care
• “Reasonable Attorney” Standard
• At a Minimum, Comply With Applicable Rules of Ethics And Professional Conduct (Texas and ABA)
• Know The Law
• Meet Deadlines
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Legal Malpractice - Damages
• The “Suit Within The Suit”
• Puts Lawyer In a Difficult Position
• Positions Taken By Lawyer In Underlying Litigation May Come Back To Haunt
• Pleadings and communications with opposing counsel• Document your file with communications with client regarding “problems” with the case
• Damages Based On Change In Settlement Value
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Legal Malpractice - Statute of Limitations• Two year statute of limitations – Apex Towing Co. v. Tolin; 41 S.W. 3d
118 (Tex. 2001)
• Whether all claims are governed by two year status remains unsettled
• Many cases say all claims governed by two year statute• McGuire v. Kelley ruled that breach of fiduciary duty claims based upon intentional fraud
governed by four year statute
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Legal Malpractice - Statute of Limitations• Claim occurs when client sustains “legal injury” (tort committed and
damage suffered)• Apex clarified confusion between Hughes and Murphy – statute tolled
during pendency of underlying litigation • Hughes does not apply to DTPA claims or transactional work• Discovery rule applies to malpractice claims• Fraudulent concealment rule applies
The Statistics – Who Is Being Sued
Source: ABA Standing Committee on Professional Liability
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Avoiding A Legal Malpractice ClaimUse Engagement Letter• DOCUMENT AND LIMIT YOUR RETENTION• Specifically identify client• Individuals, corporations, partnerships
• Identify who not representing• Specify scope of representation• Identify lawyers on case• Set forth expense and fee arrangement• Get retainer on new clients• Local Counsel
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Avoiding A Legal Malpractice Claim Check For Conflicts• Run Conflicts Before Obtaining Confidential Information• Identify Client, Adverse Parties, Potential Adverse Parties and Third
Parties• Check Related Parties• Multiple representation – Get consent• Business Conflicts• Former Clients• Check Employee Conflicts at Hiring
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Avoiding A Legal Malpractice Claim Manage Client Expectations• Define Client’s GOALS and EXPECTATIONS• Regularly Monitor Goals and Expectations.• Tailor the Course of Action• Don’t Overpromise• Do NOT Guarantee Specific Results• Be Up Front on Fees and Expenses• Don’t Surprise Your Client
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Avoiding A Legal Malpractice Claim Client Communications• Keep Your Client Informed• Determine Extent of Client Involvement• Client Participation in Major Decisions• Solicit Clients Opinion• Document Decisions and Discussions• Watch for Warning Signs• 24 Hour Rule
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Avoiding A Legal Malpractice Claim Client Communications• Provide Detailed Time Entries• Do Not Talk Down to Your Client• Forward Documents• Report Activities• Choose Proper Medium of Communication
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Avoiding A Legal Malpractice ClaimKnow Your Limitations• Know Your Opponent• Stick To What You Know• Manage Your Time• Associate Experts in Area• Venue Considerations
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Avoiding A Legal Malpractice Claim Calendaring• Electronic System/Case Management Software Essential• Keep Paper Calendar• Electronic Notification System• Enter Deadlines Immediately• Multiple Entries/Notifications• Schedule Lead Time• Know Local Rules• Know Standing Orders
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Avoiding A Legal Malpractice Claim Just Say No!• Particular Client or Matter• Trust Gut Instinct• Unhappy with Current Representation?• Litigation History• Do You Have Time?• Do You Have The Expertise?• Put It In Writing
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Avoiding A Legal Malpractice Claim Avoid Business Relationships
• Governed by Rule 1.08 Texas Disciplinary Rules of Professional Conduct• Burden on Lawyer to Make Sure Client Knows What Getting Into• Must Be Fair and Reasonable• Don’t Mix Business with Legal Representation
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Avoiding A Malpractice Claim Avoid Fee Disputes
• Specify Rates and Personnel in Retention Letter• Set Out Clear Statement of Scope of Work• Provide Accurate Assessment of Cost of Handling the Matter• Don’t Just Send Bill-Report on What You Have Been Doing• Think Twice Before Suing for Fees
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Avoiding A Legal Malpractice ClaimAvoid Fee Disputes
• Follow Established Billing Practices• Provide Detailed Time Entries• Read Bills from Client’s Perspective
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Avoiding A Legal Malpractice ClaimElectronic Discovery
• ELECTRONIC DISCOVERY• Ultimately YOUR Responsibility• Litigation Hold Notice• Scope of Responsibilities• Preserving Electronic Information• Record All Preservation Efforts
Grievance 101
Jennifer A. HasleyHasley Scarano, L.L.P.
P.O. Box 25371Houston, TX 77265T: 713.667.6900F: [email protected]
HBA All Day EthicsNovember 1, 2014
Alex B. RobertsBeck Redden LLP
1221 McKinney St., Suite 4500Houston, TX 7701T: 713.951.6261F: [email protected]