Here is a story I think that typifies all that is wrong with the legal profession in our country. A well respected cardiologist who I know (but who works at a different hospital than I) told me this tale. The details of this by the way were not originally apparent to him – it was only at the end of the case (as you will see) when he found out what had been going on.
He was sued for being secondarily involved in a case where another doc had ordered a test and not followed up on it. The patient wound up having cancer and later died. In any case, the when lawyer representing the plantiff found out that this cardiologist had been involved, he recommeded that the plantiff sue him as well as the doc that originally was named in the suit. However, he told the plantiff that he could no longer represent him in the case since this doctor and he worked at the same hospital. In fact, this lawyer was also the full time in-house council for the hospital! Thus, he referred the case to a colleague. Now, as many of you know, when a lawyer refers a case, he or she is entitled to a “referral” fee – often 1/3 of the collections that are won in the case! This adds up! 1/3 of 3 mil is a mil! Do I get a referral fee for calling a surgeon in to do an appy? Do I get 1/3 of his fee? NO!!! Of course not. Yet lawyers do. Eventually the case came to trial and guess who showed up at the trial? The lawyer that did the referral. He was trolling around the back and conferred with the plantiff’s attorney to see if his ex-client was winning so he could collect his 1/3!!! My colleague noted his presence and called him on it the next day at the hospital. The guy just mumbled something and really could not answer. It was only then and after some investigation my friend uncovered this guy’s involvement. He was reported to the hospital’s president for this but since the two were buddies, nothing happened. Luckily the docs were exonerated and the lawyers collected nothing.
Pathetic.
I’m a lawyer in Scotland and we would get struck off for this sort of behaviour. In fact, in this country, we are not allowed to charge fees which are a proportion of damages recovered. We charge for the work actually done on a time and line basis and the charges are subject to the scrutiny of an independent auditor if the client wishes. Reading this sort of stuff makes me cringe.
Yeah, I was just thinking — this lawyer could get disbarred for that sort of thing. Your friend ought to contact the state bar ethics committee.
Loth,
Almost every time I ever have a discussion with lawyers in this country (U.S.) in which I suggest that the contingency based fee system should be abolished and replaced by the sort of sytem you describe working under in Scotland, I am met with histrionic outcries about how I want to strip people of their rights, how I just don’t understand anything about the legal system, how I must be an enemy of true justice, blah, blah, blah, etc.
Therefore, based upon what you have written, I can only conclude that Scotland must be a horrible oppressive place where people have no rights and justice is just a pipe-dream.
Surely they must have armed guards at the borders preventing people from escaping the country similar to the former Eastern Block nations.
It must be terrible for you to live there. I had no idea Scotland was so bad. You and your fellow countrymen have my deepest sympathies. Perhaps we should set up a Voice of America radio network to broadcast into your country.
By the way, I’m sure since you posted your description here on the internet, the jackbooted thugs who must surely be monitoring your connection will be kicking in your door any moment know. Please, run and hide while you still can!
(Please note the heavy sarcasm here in case it is not apparent enough.)
Not sure what US attorneys you speak with (as I am a member of the maligned profession) but most states have ethics laws that prohibit the collection of excessive fees, and referral fees fall into this category. True, some referral fees are collected and paid (not by my office I am proud to say), but they still cannot be so great as to be seen as excessive fees. The frame of reference is generally is “does the fee received reflect the work that was actually performed by the attorney.” In other words a huge payment for picking up the phone and referring to a colleague is generally not going to pass that test. The state bar for this attorney should be consulted…it is such behavior that infuriates the ethical members of the profession.
NMC,
Just for clarification, my little sarcastic rant wasn’t really directed at the concept of referral fees, but was rather in response to Loth’s statement…
“In fact, in this country, we are not allowed to charge fees which are a proportion of damages recovered. We charge for the work actually done on a time and line basis and the charges are subject to the scrutiny of an independent auditor if the client wishes.”
While I also have a problem with the referral fee idea, I was specifically ranting against the way many (most) plaintiff’s attorneys charge on a contingency fee basis.
You see their ads on television (another lack of professionalism in my opinion by the way) all the time with statements along the lines of “If you’ve been hurt call me and I’ll get you the money you deserve. Just one call, that’s all. You won’t be charged a cent unless we win!”
It is my opinion that this absolute lack of having anything to lose on the part of a potential plaintiff plays a big role in the existence of frivolous lawsuits.
I think that a system like Loth describes working under in Scotland sounds like a much more fair and reasonable system.
Guess that makes me (and Scotland) fascist.
Who knew?
p.s. Oh and by the way NMC, just for further clarification, I am not one who is in any way inclined to malign the legal profession as a whole.
I firmly believe that the practice of law is a noble and honorable pursuit. I am in fact married to an attorney and I hold her professionalism in the utmost regard.
That said, I observe sadly that both your profession and mine seem to have too many members whose level of professionalism is not deserving of much regard, and their numbers seem to be growing in my opinion.
Drsam -
I agree on all counts. The referral fee clarification was aimed at the “in-house” in the post – not Loth. I happen to agree (shh…don’t let the rest of my profession hear) that contingency fees are a large part of what has contributed to the litigious nature of our society. Thus, I practice on the defense side…surprise, surprise.
I am glad to hear comments from those in the legal profession. I too don’t feel that ALL lawyers are bad – but the way our system is set up, it just creates the market for frivolous suits, and helps spawn unethical lawyers who make WAY too much money doing such things. Unless one can break the stranglehold that these ambulance chasers seem to have on our government, I don’t see how the contingency fee system will go away.