Legal Question in Legal Malpractice in California

Legal Document Preparation - I read a response to previous writer who had a law degree but not licensed and wanted to provide legal doc prep services. I am newly licensed CA attorney who has been asked to provide consultation and representation for a Legal Document Preparation company clients and want to know how to structure my relationship with the company (if at all). Is it ok to be in-house counsel and review the work? If a client pays for a consultation am I fee sharing with a non-lawyer if the money is paid to the company and I get part of it? Can I represent clients who used the corporation services? If I set up a separate retainer, how goes the corporation get a legal percentage for the referral? Thanks.


Asked on 6/11/10, 2:37 pm

1 Answer from Attorneys

Robert Marshall Law Office of Robert L, Marshall

If you're a newly-licensed attorney and you're depending on a site like LawGuru for ethical guidance, you're already headed for big trouble. These open forums are for consumers looking for a little guidance, not the kind of detailed information you need. While many of the attorneys on this site give good advice, others are not as careful, and a few are downright nutty.

I see big problems with your plan. As you've noted, it is illegal for attorneys to share fees with, or pay a referral fee to, a non-lawyer. Your fee agreement with the client must also disclose whether you are paying a referral fee. The document preparation outfit is not an approved lawyer referral service and, as the attorney, you could wind up liable for any malpractice by their staff.

This is not something where you should trust a random stranger who happens to respond to your post on the Internet. You should start by calling the State Bar ethics hotline at the number on the back of your shiny new bar card. You should also see if a more experienced local attorney is willing to act as your mentor.

There are other resources available, such as your county bar association and the new attorneys' section of the State Bar, and the State Bar website.

Good luck with your new career.

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Answered on 6/12/10, 9:14 am


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