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Ethics

: Legal Ethics Forum

Eighth Circuit unhappy with two sets of lawyers feuding over referral fee

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In Eng v. Cummings, McClorey, Davis & Acho, the Eighth Circuit expressed its unhappiness over a referral fee arrangement between a Michigan firm that didn't learn and follow Missouri's rules and a Missouri firm whose conduct was inconsistent with the legal position they later asserted.  Bottom line: the referral fee agreement is unenforceable, but the Michigan firm can proceed with a fraudulent inducement claim.  Opinion on this page (scroll down to 7/9 opinions); news story here.  (A few years ago in California, we had a similar case in California, Chambers v. Kay, where a failure to mind the formalities meant that a fee sharing agreement was unenforceable.)

Full post as published by Legal Ethics Forum on July 30, 2010 (boomark / email).

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