In Eng v. Cummings, McClorey, Davis & Acho, the Eighth Circuit expressed its unhappiness over a referral fee arrangement between a Michigan firm that didn't learn and follow Missouri's rules and a Missouri firm whose conduct was inconsistent with the legal position they later asserted. Bottom line: the referral fee agreement is unenforceable, but the Michigan firm can proceed with a fraudulent inducement claim. Opinion on this page (scroll down to 7/9 opinions); news story here. (A few years ago in California, we had a similar case in California, Chambers v. Kay, where a failure to mind the formalities meant that a fee sharing agreement was unenforceable.)
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July 30, 2010
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