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February 13, 2013

Comments

Bill Freivogel

Another unintended consequence in California:

    Sands & Associates v. Juknavorian, 2012 Cal. App. LEXIS 1058 (Cal. App. Oct. 10, 2012).  Client brought a fee arbitration proceeding against Law Firm.  Law Firm won and is seeking attorneys fees as a "prevailing party" under the terms of the engagement agreement with Client.  The trial court, in confirming the arbitration award, granted fees to Law Firm.  In this opinion the appellate court reversed.  First, the court held that a law firm that represents itself cannot recover lawyers' fees as a prevailing party.  Second, the court held that Law Firm had represented itself in the arbitration because Law Firm was represented by two lawyers who were listed on Law Firm's letterhead as "of counsel."  Standard (8) under California Rule 1-400(E) states that to designate a lawyer as "of counsel" is to say that the relationship is "close, personal, continuous, and regular."

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