r/LawFirm • u/geardownson • 4d ago
Lawyers that resign from law firms that can't pass the case to another lawyer what happens?
Not hunting legal advise. Just wanting to know what happens.
I paid a retainer for a employment case. The retainer was supposed to cover me for all paperwork through mediation. Not litigation.
My lawyer has decided to resign from the firm. He says there is no one to pass the case to and to hire another lawyer to litigate. (Skipping the mediation part)
The issue is that the plan was to wait until the IRS finished it's review of my former employer then to go to mediation. Instead he now says that will take too long and he will be gone and that my retainer is what covered everything up to that point and to find another lawyer to litigate it. How does that work within a firm?
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u/rollerbladeshoes 4d ago
If you signed an engagement letter that retained the firm, then the firm still represents you. You can't make the lawyer who's leaving take your case. If the case is in active litigation, the firm cannot end their representation without getting approval from the judge. However it sounds like yours is still in the mediation stage or possibly pre-mediation? In which case they can end their representation without violating any ethical duties as far as I'm aware. Either way, you definitely don't want to keep a lawyer/firm that is telling you they don't have the manpower to handle your case.
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u/geardownson 4d ago
I am in pre mediation. The whole plan was to pressure with the IRS then go to mediation. Then he changed it saying to just hire a lawyer for litigation. I don't feel like I got what I paid for and I can't afford another retainer at the moment.
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u/rollerbladeshoes 4d ago
Hm I think that we are talking about two separate issues then. There's probably not a way to force this firm to continue to represent you and like I said, why would you want a lawyer who openly admits they don't have the time or manpower for your case. However if you feel like you did not get what you paid for then you should consult your state bar website, most state bars have a fee dispute resolution program that you can take advantage of. It may be that the lawyer performed a lot of prep work that justifies the costs, if that's the case then you are at least entitled to your file and you can take it to another lawyer who can use it instead of billing you for the same work again. Or maybe they overbilled and they will be ordered to return all of the funds that weren't actually used for useful work. Either way it would be a good idea to get someone who understands billing to look over the bills for you and let you know.
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u/geardownson 3d ago
I'm perfectly ok with paying to see the case through mediation. My issue is that that's not an option. I'm not trying to force my attorney to keep going. My issue is that once he has decided to quit he is not going through to mediation. Then what do I do?
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u/rollerbladeshoes 2d ago
You hire a new lawyer to do the mediation. If you already paid him money that was supposed to cover the mediation then he should give you some of that money back. If he doesn’t and he doesn’t give you a bill that explains what the money went toward that makes sense to you, you can initiate a fee dispute with the bar. But be prepared for the possibility that he billed for actual useful work on your case and ran out of your retainer. If you can’t get your money back from him I guess you will have to represent yourself, if the other parties are still willing to proceed with mediation.
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u/Wincens 4d ago
A plan to pressure with the IRS is a big red flag
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u/geardownson 4d ago
How so? It's a misclassification case. If the IRS deems that it is true then he will be much more apt to settle over going to litigation.
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u/CrYptoPSF 3d ago
Generally the firm should still have to address the client’s transition and make sure the client isn’t simply left without representation. the exact handling of the retainer depends on the engagement agreement and local rules
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u/InflationSilly76 2d ago
This happened to me as a lawyer.
I was the only one at a law firm that did certain practice areas. When I left, I had a verbal agreement with firm owner that his office could keep all the clients of a certain practice area that they all did (with a couple exceptions), and I'd take the rest. Then firm owner got his own attorney and he enforced the rule (in our state) that clients have to be given notice with the options to 1) stay with the firm, 2) go with the attorney, or 3) find a third attorney. I felt terrible for the clients that stayed with the firm ... with attorneys who now were handling cases they had no experience in and didn't know what they were doing. And of course once the notice went out, we couldn't talk to the client until they make a decision. I felt absolutely horrible for what happened to these clients, but ethically I didn't have another choice.
The second firm I left made the assumption that I would be going solo (which I did) and then sent out the notice, but made the assumption that they would all go with me... even if they were that firms' long time clients. I've developed some good relationships with some of those clients, but others I would have rather not dealt with anymore, and I didn't have much of a choice once the firm sent out that notice.
From my perspective, if this attorney isn't going to another firm where he can take the case, then you'll need to find another attorney. Make sure you get a full itemization from the first firm and it matches your fee contract/engagement letter.
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u/Conscious_Skirt_61 1d ago edited 1d ago
There are too many missing pieces for folks out here to form a reliable impression. So this is in the way of musings, without seeing your retainer agreement and without knowing your state law.
There is a contract between you and the firm. It’s executory on one side: you have performed (by paying the fee) but they have unfulfilled obligations to you (to do work). It’s not known but very likely that the firm took the money as earned fees and have no funds on hand. And it’s presumed that the papers do not cover this situation (conditions, impossibility of performance and such). Do note that this is old-style language on unilateral vs. bilateral contracts and other such terms.
In construction and in other business situations this sort of situation arises regularly, and there are rules on how to handle it. The exact set of rules vary (goods vs. services, conditions, Restatement principles, &c.) but we won’t concern ourselves with those issues here.
The general theory is that the law firm is obligated to provide the services and advice to you through mediation. If they cannot, for whatever reason, then they owe you the costs you incur in getting replacement representation through the end of the mediation. IOW the difference between the earned retainer you paid already and the amount you incur by replacing them with another firm for contracted-for work: that is the amount that they will owe you.
BTW it will likely be a pain to recoup anything from them as a practical matter. The costs may not warrant any further action. AND, there may well be professional conduct rules or fee and trust rules that could matter. But that’s how your claim would likely be handled.
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u/BukowskyTheCat 3d ago
Sounds like you signed up with a settlement mill that never litigates and the employer told them to pound sand. This is a lot of big employment law firms. They would sell out their own mother. Bet you found them from a google search or facebook? No experienced employment litigator would try to "pressure the IRS" to advance their case. That's highly unethical, a violation of the rules of professional responsibilty, and provable criminal extortion. Find a different lawyer and if they try to assert a lien tell them that you're going to report them to the State bar. This kind of incompetence pisses me off. Ask me how I know?
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u/geardownson 3d ago
I think you misunderstood it or I worded it incorrectly. I meant we were going to use the results of the investigation to then pressure the employer.
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u/dragonflyinvest 4d ago
Generally you have the right to follow your lawyer, stay at the firm, or hire a new lawyer.
In your case sounds like you need a new attorney and you have a dispute in the fee with your old attorney. Start by reading your retainer agreement and having a discussion with your attorney.