Here are four ethics opinions we have been referring to recently to answer our insured’s questions.
Opinion 495: Can you refer your client to a collection agency?
Opinion 570: Does a lawyer have to give notes to a client requesting a copy of the lawyer’s file?
Opinion 577: When does a lawyer have to disclose payments made to another lawyer?
Opinion 586: Are arbitration agreements in fee contracts ethical?
Jett Hanna
Note that the new version of the proposed amendments to TDRPC might potentially reduce at least some of the client protections outlined in Op. 586 on arbitration. Proposed Rule 1.08(g)(2) would require disclosure of only (1) “the scope of the issues to be arbitrated,” (2) “the fact that the client will waive a trial before a judge or jury on these issues,” and (3) “that the rights of appeal may be limited.” Op. 586, however, ruled that the client must be aware of all “significant advantages and disadvantages” of arbitration. For an individual or small-business client, the opinion indicated, lawyers should disclose:
*The “cost and time-savings frequently found in arbitration.” (Sometimes arbitration costs more, of course.)
*The waiver of significant rights, such as jury trial.
*The “possible reduced level of discovery.”
*The “relaxed application” of the rules of evidence.
*The “loss of the right to a judicial appeal because arbitration decisions can be challenged only on very limited grounds.”
The opinion also noted that a lawyer might need to make other disclosures that might be important to some clients, including: the privacy of arbitration versus public trial; the method for selecting arbitrators; the client’s obligation to pay arbitration fees/costs.
It will be interesting to see if the proposed rule comments, which have not yet been issued, address those issues.
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