Monday, October 25, 2010
From the web page of the Ohio Supreme Court:
The Supreme Court of Ohio’s Board of Commissioners on Grievances & Discipline has issued an advisory opinion addressing a lawyer’s use of a contingent fee agreement in which a client grants a power of attorney to the lawyer as to all aspects of a legal matter.
Opinion 2010-6 notes the “ethical risks” that exist with a power of attorney granting a lawyer authority to make all decisions and execute all documents that the lawyer deems necessary in a client’s contingent fee matter. It also states that “in the absence of extraordinary circumstances, the practice is unethical for the lawyer and shortchanges the client’s role in legal representation.”
The opinion finds that “such use of a broad power of attorney in a contingent fee agreement contravenes Prof. Cond. Rule 1.2(a) by improperly allocating all of the authority regarding the representation from the client to the lawyer and disregards Prof. Cond. Rule 1.4(a) by eliminating required communication by the lawyer to the client.”
The opinion further notes that “a lawyer’s contingent fee representation of a client in a civil matter requires skillful communication. A lawyer must communicate effectively to understand the client’s objectives of representation, explain settlement offers, reach agreement to settlement terms, obtain necessary client signatures, and disburse settlement proceeds. Such communication is a time honored legal skills, but is a time laden process.”
A copy of the opinion is available at: http://www.supremecourt.ohio.gov/Boards/BOC/Advisory_Opinions/2010//op_10-006.doc.