Prohibited Agreement

A subcommittee of the Virginia State Bar imposed an agreed reprimand on an attorney  who had filed a late response in a divorce case. The divorce was granted as uncontested as a result of the late filing. The lawyer then paid the client $40,000 "in exchange for an executed release from any malpractice liability from [the] falure to timely file..." The release further provided that the payment would be returned in the client prevailed on appeal. The lawyer then neglected the appeal. The parties in the disciplinary case agreed that the lawyer had failed to act with diligence and that the release violated Rule 1.8(a) (prohiibited business transaction). (Mike Frisch)