Articles Posted in Attorney-Client Relationship

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DRAFT COMPLAINT.

The ARDC has filed a complaint against two lawyers who handled a case on a contingency basis.  The first agreement from 2005 gave them a legal fee of 33 and 1/3 of the gross amount recovered.  After they had obtained a recovery for the client, they lawyers prepared a new agreement in 2008 which increased the fee to 40% of the total amount.  The ARDC alleged that the increased fee constituted overreaching and a breach of fiduciary duty.

Generally, it is taboo to renegotiate a contingency fee agreement after a recovery has been made.  The client is vulnerable and the lawyer, who may be holding funds in a trust account, is in a stronger position.

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Harkins v. Paxton, Mich: Court of Appeals 2012 – Google Scholar.

This is a legal malpractice case. Plaintiffs (referred to as “the Judges”)  claimed that they lost an underlying case (a Section 1983 action) because of the negligence of their attorney.  The attorney, who was retained by an insurance company, moved to dismiss on the ground that the plaintiffs lacked standing.  He argued that there was no attorney-client relationship, apparently because he was retained by the insurance company.

The trial court granted the motion, but the Michigan Court of Appeals reversed.  It explained:

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