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August 15, 2010
Board adopts medical lien rule for use in personal injury cases

A rule covering when attorneys handling personal injury cases can hire a second firm to work on medical lien issues has been approved by the Bar Board of Governors.

The rule, passed at the board’s recent Sarasota meeting, allows a firm concentrating in liens to be brought in when it will benefit the client, as long as the client agrees and the fee paid to the second lawyer for the lien work does not on its own violate the fee limits in Rule 4-1.5. As written, the rule also prohibits referral fees from being paid by the lien attorney.

The rule had been slightly rewritten from its presentation to the board in May to make clear the referral fee prohibition.

The lien issues arose from an ethics inquiry from an attorney who wanted to know if referring medical liens to a second attorney, who would be paid on a reverse contingency fee, would violate the contingency fee caps in Rule 4-1.5.

The Board Review Committee on Professional Ethics said if the total fees paid to both attorneys exceeded the limits in the rule, that could cause a problem. But board members were reluctant to endorse that, noting that medical lien resolution has become an increasingly intricate area and bringing in a second attorney could save the client money, even if the contingency fee limits are exceeded.

A special committee was appointed, which recommended the change to Rule 4-1.5.

The board also reviewed a rule on compensating retired witnesses. The board was presented with an amendment to Rule 4-3.4 to allow compensating witnesses a reasonable amount for their time in preparing for testimony. The current rule allows only reimbursement for lost compensation, limiting payments to those who are employed. The rule will come to the board for final approval at its October 1 meeting.

[Revised: 04-16-2012]