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Attorneys must disclose if they do not have malpractice insurance or risk not being paid! (Rules of Professional Conduct, 1.4.2 (formerly Rule 3-410)

On Behalf of | Feb 13, 2020 | Civil Procedure, Employment |

The plaintiffs’ attorneys in a class action were denied attorney’s fees because some of the attorneys failed to disclose their lack of professional liability insurance to the client at the time the client retained the attorney.  The Court of Appeal concluded the agreement was unenforceable because of failure to comply with former rule 3-410 and reversed the fee award with directions to redetermine the division of fees. (Hance v. Super Store Industries (Cal. App. 5th Dist., Jan. 23, 2020) 2020 WL 373070.)  The new rule after 2018 is Rule 1.4.2.  Read the case: https://www.courts.ca.gov/opinions/documents/F075852.PDF