Lawyers Must Follow Strict Payment Rules
If the payment account name does not match the Client name, we must provide the disclosure below. This includes using your spouse’s account, a partner’s account, an investor’s account, and using your personal account to pay for your business’s services or vice versa. We need you to submit the form below to help us comply with these rules.
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Disclosure and Consent: Third Party Payor Payment of Attorney’s Fees and Costs
Under California Rules of Professional Conduct an attorney may not accept compensation from one who is not the client (Third Party Payor) without: (1) assuring the arrangement does not interfere with the attorney’s independence or professional judgment on behalf of the client or with the attorney-client relationship, (2) providing for protection of client confidential information and secrets, (3) providing the client with a written disclosure of the relevant circumstances and the actual and foreseeable adverse consequences arising from the arrangement, and (4) obtaining the client’s informed written consent.
The potential adverse consequences of having a Third Party Payor responsible for payment of attorney’s fees and costs is that the Third Party Payor may: (1) attempt to interfere with the attorney-client relationship between the attorney and client, (2) attempt to interfere with the attorney’s exercise of independent professional judgment on behalf of the client, (3) seek access to client confidential information or secrets contrary to the wishes of the client, or (4) use payment or withhold payment to attempt to influence attorney’s representation of the client.
Third Party Payor may not interfere with Attorney’s representation of the Client. Third Party Payor has no right to information regarding the representation. Attorney will not communicate with nor disclose any confidential or privileged information to Third Party Payor, unless the Client gives written permission to discuss some or all of their matter with Third Party Payor. Any disclosure must be subject to review by Attorney to protect Client’s right to expect full confidentiality.
Client, will remain responsible for and will pay Attorney’s bills in the event that Third Party Payor fails for any reason to pay invoices as they become due. If a refund is due at the conclusion of the representation, the refund will be paid to the person or entity who paid the fees and costs. All billing objections must be submitted by Client in accordance with the Attorney-Client Agreement. Objections submitted by Third Party Payor will not be accepted.
It is improper for attorneys to accept any payment or money from clients that they know or should know is derived from illegal sources. Client affirms and attests that all money paid to Attorney comes from a legal source.
Client should feel free to consult with independent counsel before consenting to this Third Party Payor Disclosure.