05/07/2004
Professional Conduct Rule Requiring Written Fee Sharing Agreement and Client Consent Does Not Bar Quantum Meruit Recovery
Huskinson & Brown, LLP v. Wolf, Cal.4th (2004) 2004 WL 323997

Brief Summary

Although the California Supreme Court backed away from complete fee forfeiture, compliance with State Bar regulations concerning fee-splitting arrangements should be scrupulously adhered to. As the Supreme Court observed, in the typical contingency fee case, a quantum meruit recovery for the reasonable value of services rendered will be substantially less than the contingency fee splitting arrangement. Moreover, a quantum meruit recovery will require a law suit and litigation further reducing the potential recovery.

A final caveat is also in order: there can be no guarantee that other jurisdictions will allow quantum meruit recovery in the absence of written client authorization.

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