07/07/2004
Oral Charging Liens Held Not Enforceable
Fletcher v. Davis 2004 WL 1276709

Brief Summary

To the extent it was unsettled whether an attorney's lien against a client's potential recovery is an adverse interest, Fletcher clarifies that under California law the lien is an adverse interest requiring a written disclosure and consent. Fletcher also clarifies that a relatively low standard (reasonable foreseeability) will be used to assess the need for conflicts waivers in personal or business conflicts between attorney and client.

This case also raises the prospect of litigation concerning what is a reasonable opportunity to seek the advice of a second attorney before waiving a conflict. It clearly is best if the client is not required to sign the conflicts waiver immediately upon receipt, but that runs the risk—which became a reality here—that the client will never sign. Query whether it would be sufficient to assert, perhaps in bold and conspicuous writing, that the client has been advised to seek the advice of another attorney, has been told that immediate signature is not required and has either sought such advice or expressly declined to do so. Alternatively, query whether the client could be asked to sign now, subject to a right to revoke in, say, 10 or 14 days after consultation with other counsel—subject, however, to the right of the attorney to delay beginning work or to stop work if the signature is revoked.

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