[Draft 2] - Attorney Business Practices
Posted: Thu May 02, 2024 4:33 am
Introduction
This is based on the UK Solicitors Regulatory Authority Code of Conduct. So it’s British not American regulation based, but it’s broadly similar. (Some parts are from the American Model Rules of Professional Conduct).
Note that this regulates business practices, not professional ethics. This is largely for length reasons (as that topic really needs a separate resolution. Sections on disciplinary action, etc., have been removed.
Category: Regulation/Legal Reform
Draft 2
Char count: 4,101
This is based on the UK Solicitors Regulatory Authority Code of Conduct. So it’s British not American regulation based, but it’s broadly similar. (Some parts are from the American Model Rules of Professional Conduct).
Note that this regulates business practices, not professional ethics. This is largely for length reasons (as that topic really needs a separate resolution. Sections on disciplinary action, etc., have been removed.
Category: Regulation/Legal Reform
Draft 2
The World Assembly (WA),
Noting the critical role that attorneys play in everyday life;
Desiring to impose at least minimal standards on their business practices, in the interest of protecting their clients, especially clients from other WA states;
The WA hereby enacts as follows:
- Definitions.
- "Attorney" means anyone admitted to practise law on behalf of a client (“client”). This including advocates, barristers, solicitors, and other similar positions. This also includes any firm(s) of attorneys.
- "Attorney" excludes anyone working as an employee such as in-house counsel. It also excludes anyone elected to a position of law under a political process.
- "WA state" includes its sub-national divisions.
- Definitions in the singular include the plural and vice versa.
- Admittance.
- No one may act as, or hold themselves out as, an attorney unless duly admitted by a competent authority (“authority”) of a WA state.
- Each WA state is entitled to admit attorneys for practicing its own laws pursuant to its own processes and its own qualifications requirements.
- If one WA state ("practicing state") is to admit attorneys specifically qualified for the laws of another WA state ("foreign state") to practice in the practicing state, must ensure that such attorneys are qualified under the laws of the foreign state, in addition to any requirements imposed by the practicing state.
- Engagement letter.
- An attorney can only be engaged to act if an engagement letter ("letter") has been duly executed by a client.
- Any variations to a letter require the explicit consent of the client.
- Prior to an engagement, an attorney must clearly advise clients of their full name, their state (or sub-national division) of admittance, qualifications obtained, specialization, experience, and any adverse disciplinary record where such record is publicly available.
- The letter must set out the scope of work, fee structure (including potential costs associated with appellate process), costs on account (if any), the handling attorney(s), service standards, and other pertinent matters as required by each WA state.
- If an attorney is acting on an hourly rate or retainer basis, the attorney must give a reasonable estimate of the fees to be incurred.
- An attorney is required to ensure that the client is legally competent at the time of the engagement, and to fully explain the implications of the engagement to the client prior to engagement.
- Client money.
- An attorney is required to properly safeguard and account for any client money.
- All client money must be segregated from proprietary money and held independently in a depository institution with satisfactory levels of deposit insurance.
- Costs on account.
- A general retainer is earned subject to the nature of the general retainer. A specific retainer for a case (and costs on account) must be expensed as charges are incurred.
- Any costs on account held must not be excessive.
- Any unearned retainer or costs on account must be promptly returned to the client after the conclusion of an engagement.
- Fees.
- Fees must be reasonable based on (i) the time, skill and labor required from the attorney and (ii) the customary rates charged in that WA state.
- Attorneys acting on a purely contingent fee basis must be entitled only to a reasonable share of any results obtained.
- Non-refundable fees are prohibited.
- Insurance.
- A practicing attorney must have adequate insurance coverage with a reputable insurer at all times.
- Such coverage shall cover malpractice, professional discipline, and misconduct, as well as business risks such as fire, flooding, and cybersecurity.
- Jurisdiction.
- Each WA state is responsible for the interpretation and enforcement of this resolution, and for any penalties that may be imposed.
- Such enforcement shall be in good faith, and shall be conducted as such to provide the client the greatest amount of protection and rights.
Char count: 4,101