{"id":3924,"date":"2005-06-29T18:11:14","date_gmt":"2005-06-29T22:11:14","guid":{"rendered":"http:\/\/blogs.law.harvard.edu\/formerlyknownas\/2005\/06\/29\/our-outsourcing-decision-affi"},"modified":"2011-08-05T14:57:36","modified_gmt":"2011-08-05T18:57:36","slug":"our-outsourcing-decision-affirmed-by-me","status":"publish","type":"post","link":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/2005\/06\/29\/our-outsourcing-decision-affirmed-by-me\/","title":{"rendered":"our outsourcing decision affirmed (by me)"},"content":{"rendered":"<p><a name='a4100'><\/a><\/p>\n<blockquote><p>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">In Comments<FONT color=\"black\"> <\/FONT><\/FONT><A href=\"http:\/\/blogs.law.harvard.edu\/ethicalesq\/discuss\/msgReader$4095?mode=day\"><FONT face=\"Geneva,Arial,Sans-Serif\" color=\"black\" size=\"2\">here<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" color=\"black\" size=\"2\"> and <\/FONT><A href=\"http:\/\/blogs.law.harvard.edu\/ethicalesq\/discuss\/msgReader$4096?mode=day\"><FONT face=\"Geneva,Arial,Sans-Serif\" color=\"black\" size=\"2\">here<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><FONT color=\"black\">,<\/FONT> respectively, <\/FONT><A href=\"http:\/\/www.questionoflaw.net\/about_lisa.php\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Lisa Solomon<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"> and <\/FONT><A href=\"http:\/\/www.myshingle.com\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Carolyn Elefant<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"> <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">have disagreed with <FONT color=\"black\">yesterday&#8217;s post <\/FONT><\/FONT><A href=\"http:\/\/blogs.law.harvard.edu\/ethicalesq\/2005\/06\/28#a4090\"><FONT face=\"Geneva,Arial,Sans-Serif\" color=\"black\" size=\"2\"><EM>when outsourcing, just pass on the cost<\/EM><\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&nbsp; <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">(June 28, 2005).&nbsp; I believe a lawyer\/firm should (1)&nbsp;tell a client whenever legal <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">services are going to be done by a &#8220;temporary&#8221; lawyer outside of the firm (or, <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">as in <\/FONT><A href=\"http:\/\/www.legalaffairs.org\/issues\/May-June-2005\/scene_brook_mayjun05.msp\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the article<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"> that touched off the topic, by&nbsp;individuals overseas not licensed <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">to practice in the firm&#8217;s jurisdiction); and (2) charge the client no more than the <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">actual amount paid for the outsourced services (plus any properly allocated <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">overhead), <EM>unless<\/EM> the client is fully informed that a surcharge is being added <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">and told the amount of the surchage. <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">First, let me reiterate a few tenets from my philosophy of &#8220;legal ethics&#8221;:<\/FONT><\/DIV><br \/>\n<UL><br \/>\n<LI><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">For me, what is &#8220;ethical&#8221; is broader than &#8220;what you can<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">get away with under the Rules or Code.&#8221;&nbsp; [Carolyn asked<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&#8220;What&#8217;s the most equitable &#8212; and ethical &#8212; result?&#8221;]<\/FONT><\/DIV><br \/>\n<LI><br \/>\n<DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">The legal profession continually fails to apply fidicuary principles <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">in the context of fees &#8212; which is where it often means the most <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">to clients. (see <\/FONT><A href=\"http:\/\/blogs.law.harvard.edu\/ethicalesq\/2004\/02\/12#a770\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">prior post<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">)<\/FONT><\/DIV><\/DIV><br \/>\n<LI><br \/>\n<DIV><br \/>\n<DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">The good ficudiary keeps the client fully informed and follows <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">all the &#8220;shoulds&#8221;, not just the &#8220;musts&#8221; found in ethical opinions.<\/FONT><\/DIV><\/DIV><\/DIV><br \/>\n<LI><br \/>\n<DIV><br \/>\n<DIV><br \/>\n<DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">When it comes to fees, it is particularly obvious that lawyer <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">self-regulation has left the foxes guarding the hen house, with <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">only a few sleepy watchdogs watching the foxes.<\/FONT><\/DIV><\/DIV><\/DIV><\/DIV><\/LI><\/UL><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">That being said, the opinions cited by Lisa Solomon are not convincing <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">regarding&nbsp;what a law firm&#8217;s obligation <EM>should<\/EM> be to a client when legal <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">services are provided by temporary lawyers or off-shore lawyers. ABA<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Ethics Opinion 88-356, which is stressed by&nbsp;Lisa, is particularly unpersuasive&nbsp;<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">DISCLOSURE of OUTSOURCED Legal Services<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Op. 88-356 correctly concludes that &#8220;where the temporary lawyer is performing <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\"><FONT size=\"2\"><EM>independent work for a client without the close supervision<\/EM> of a lawyer <\/FONT><\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">associated with the law firm, the <EM>client must be advised<\/EM> of the fact that the <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">temporary lawyer will work on the client&#8217;s matter and the consent of the client <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">must be obtained.&#8221;&nbsp; Disagreeing with this limited obligation, ethics committees in&nbsp;<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">numerous states&nbsp;have correctly expanded the disclosure-agreement mandate to <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">all or virtually all utilization of out-of-firm legal service providers.<\/FONT><\/DIV><br \/>\n<UL><br \/>\n<LI><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">See <EM>Oliver v. Board of Governors, Kentucky Bar Ass&#8217;n, <\/EM>(Ky. 1989), <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">779 SW 2d 212 (disclosure should be made of a firm&#8217;s intention to use a <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">temporary attorney &#8220;in any capacity, in order to allow the client to make <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">an intelligent decision whether on not to consent to such an arrangement.&#8221;&nbsp;&nbsp;<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Ill. St. Bar Ass&#x2019;n Advisory Op. on Prof. Conduct Op. 92-97 (Jan. 22, 1993); <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Ohio Bd. of Comm&#x2019;rs on Grievances and Discipl. Op. No. 90-23 (Dec. 14, <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">1990) (requiring disclosure of temporary lawyers under Code of Prof. <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Conduct); Bar of City of New York Comm. on Prof. and Judicial Ethics, <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Op. No. 1988-3 (Mar. 31, 1988), <EM>reaff&#x2019;d<\/EM>, Ethics Op. 1989-2 (May 10, <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">1989) (&#x201C;The Committee continues to believe that the law firm has an ethical <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">obligation in all cases . . . to make full disclosure in advance to the client of <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">the temporary lawyer&#x2019;s participation . . . and to obtain the client&#x2019;s consent.&#x201D;);&nbsp;&nbsp;<\/FONT><\/DIV><br \/>\n<DIV><A href=\"http:\/\/www.dcbar.org\/for_lawyers\/ethics\/legal_ethics\/opinions\/opinion284.cfm\"><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">D.C. Ethics Opinion 284<\/FONT><\/A><FONT face=\"Times New Roman,Times,Serif\" size=\"2\"> (disclosure required &#8220;whenever the proposed use <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">of a temporary lawyer to perform work on the client&#x2019;s matter appears <\/FONT><\/DIV><br \/>\n<DIV><EM><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">reasonably likely to be material to the representation or to affect the <\/FONT><\/EM><\/DIV><br \/>\n<DIV><FONT size=\"2\"><FONT face=\"Times New Roman,Times,Serif\"><EM>client&#x2019;s reasonable expectations<\/EM>.&#8221;);&nbsp;&nbsp;&#8220;<\/FONT><\/FONT><A href=\"http:\/\/www.lmick.com\/pdfs\/bbspring97.pdf\"><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Contract Lawyers in Kentucky<\/FONT><\/A><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">, by <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Del O&#8217;Roark,&nbsp;KBA <I>Bench &amp; Bar<\/I>, Vol. 61 No. 2, Spring 1997;&nbsp;and &nbsp;&#8220;The <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Economics and Ethics of <\/FONT><A href=\"http:\/\/www.vtbar.org\/ezstatic\/data\/vtbar\/journal\/june_2005\/TempLwyr.pdf\"><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Hiring a Temporary Lawyer<\/FONT><\/A><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">,&#8221; by Peter Gardner, re <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Times New Roman,Times,Serif\" size=\"2\">Vermont and New Hampshire, and fn. 31 on other sources).<\/FONT><\/DIV><\/LI><\/UL><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">PERMISSIBLE FEES on OUTSOURCED Legal Services<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Once you have disclosure to the client of the use of outsourcing for legal services, you<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">will surely be faced with (1) a client smart enough to ask, &#8220;how much will the cost you <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">and how much will you charge me? or (2) a client <EM>not<\/EM> smart enough to ask that question.<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">In either situation, the ethical fiduciary will fully inform the client of the financial arrange-<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">ment (what else is a fiduciary for?), allowing the client to enter into informed decision-<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">making or negotiation.&nbsp; <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><img decoding=\"async\" src=\"http:\/\/cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/commandments.gif\" alt=\"commandments\" \/> Lisa Solomon points primarily to ABA Op. 88-356 for the proposition that no&nbsp;disclosure <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">is necessary of the amount&nbsp;paid by the firm for the services, and the conclusion that profit <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">can be added to the cost entailed by the firm. &nbsp;Unfortunately, there is very little reasoning <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">in the ABA Opinion.&nbsp; Here&#8217;s the entire discussion. <\/FONT><\/DIV><br \/>\n<BLOCKQUOTE><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">&#8220;Assuming that a law firm simply pays the temporary lawyer reasonable <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">compensation for the services performed for the firm and does not charge <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">the payments thereafter to the client as a disbursement, the firm has no <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">obligation <\/FONT><A name=\"Document1zzSDUNumber18\"><\/A><FONT face=\"Geneva,Arial,Sans-Serif\">to reveal to the client the compensation arrangement with the <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">temporary lawyer.<SPAN style=\"mso-spacerun: yes\">&nbsp; <\/SPAN>Rule 1.5(e), relating to division of a fee between lawyers, <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">does not apply in this instance because the gross fee the client pays the firm <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">is not shared with the temporary lawyer.<SPAN style=\"mso-spacerun: yes\">&nbsp; <\/SPAN>The payments to the temporary <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">lawyer are like compensation paid to nonlawyer employees for services and <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">could also include a percentage of firm net profits without violation of the Rules <\/FONT><\/SPAN><\/DIV><br \/>\n<DIV><SPAN style=\"FONT-SIZE: 10pt\"><FONT face=\"Geneva,Arial,Sans-Serif\">or the predecessor Code.&#8221;<\/FONT><\/SPAN><\/DIV><\/BLOCKQUOTE><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">The same approach is taken by other Committees after Op. 88-356.&nbsp; Beyond saying <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">that the&nbsp;total fee has to be reasonable, there are two themes:<\/FONT><\/DIV><br \/>\n<BLOCKQUOTE><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">(1)&nbsp; Just don&#8217;t call it a disbursement, and you can charge more than cost;<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">(2)&nbsp; It&#8217;s not a &#8220;split fee&#8221;, so you don&#8217;t have to disclose anything about the <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">financial situation.<\/FONT><\/DIV><\/BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">This is, for me, not the reaction of a proud profession of fiduciaries who always put <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the client&#8217;s interests first.&nbsp; It&#8217;s lawyers &#8220;lawyering&#8221; and using semantics to get more <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">money from their clients.&nbsp; The Virginia Bar <\/FONT><A href=\"http:\/\/www.vacle.org\/opinions\/1712.TXT\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Ethics Opinion 1712<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"> (1998) spelled out <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the ploy:&nbsp;&nbsp;<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><br \/>\n<BLOCKQUOTE><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&#8220;Whether a law firm retaining a Lawyer Temp must <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">disclose its payment arrangement with the staffing agency <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">to the client <EM>depends on the particular facts<\/EM>.&nbsp; ABA Opinion <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">88-356 stated, and California Formal Opinion 1994-138 <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">agreed, that when the hiring firm does not charge the Lawyer <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Temp&#8217;s compensation to the client as a disbursement, there <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">is no obligation to disclose the compensation arrangement <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">with the Lawyer Temp to the client.&nbsp; On the other hand, if <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the payment made to the staffing agency isbilled to the client <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">as a disbursement, or a cost advanced on the client&#8217;s behalf <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">(for example, &#8220;To-Reimbursement of costs advanced to staffing <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">agency for temporary lawyer&#8221;), then the hiring firm must disclose <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the actual amount of the disbursement and also disclose any <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">mark-up of&nbsp; or surcharge on the amount actually disbursed to<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the staffing agency.&#8221;<\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&#8220;. . . Since the charge is not represented to be the hiring law <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">firm&#8217;s actual disbursement of funds for client-reimbursement, <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the hiring firm does not thereby misrepresent as an out-of-pocket <\/FONT><\/DIV><br \/>\n<DIV><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">disbursement what is actually its out-of-pocket disbursement <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">plus a mark-up.&#8221; <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><\/BLOCKQUOTE><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">The Virginia committee says whether there is a need to disclose&nbsp;the&nbsp; <img decoding=\"async\" src=\"http:\/\/cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/honest.gif\" alt=\"honest\" \/><\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">financial arrangement&nbsp;for the&nbsp;temporary services&nbsp;&nbsp;&#8220;<EM>depends on the facts.<\/EM>&#8221; <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">However, the&nbsp;facts are the same &#8212; it is only the <EM>nomenclature <\/EM>used on the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Billing Invoice that is different.&nbsp; <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">A similar bit of lawyering is done with the &#8220;fee split&#8221; issue.&nbsp; The Committees <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">should be saying: &#8220;What is this situation most like?&nbsp;&nbsp;Isn&#8217;t it&nbsp;very analogous&nbsp;to <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">a fee split?&nbsp; The money that the client pays for the package of legal services <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">goes in reality to two different legal service providers.&nbsp; We should give the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">client the same&nbsp;treatment afforded in Rule 1.5(e) &#8212;&nbsp; full disclosure of the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">arrangement and the right to consent to it &#8212; &#8220;including the share each lawyer <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">will receive&#8221; &#8212; before the arrangement is made.&nbsp; &nbsp;<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Instead, the Friendly Watchdogs say, &#8220;Hey, it&#8217;s not a fee split, the client just <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">pays a single bill to the&nbsp;original law firm.&nbsp; See [how clever we are], no fee is <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">actually split.&#8221;&nbsp;&nbsp;So eager were they to find this loophole, none of the Ethics <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Committees have bothered to&nbsp;acknowlege the wording in <\/FONT><A href=\"http:\/\/www.abanet.org\/cpr\/mrpc\/rule_1_5_comm.html\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Comment<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"> [7]&nbsp;to <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Model Rule 1.5.&nbsp; It&nbsp;says very clearly:<\/FONT><\/DIV><br \/>\n<BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&#8220;A division of fee is a single billing to a client covering the fee of <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">two or more lawyers who are not in the same firm.&#8221;<\/FONT><\/DIV><\/BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">It is difficult to say which principal (other than the one saying the client always <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">gets the short side of the wishbone) is being served by ignoring how much this <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&#8220;division of fee&#8221; parallels the Temporary\/Outsourced Lawyer situation &#8212; where <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the client receives a single billing covering the legal services of both the original <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">firm and the &#8220;temporary lawyer.&#8221;&nbsp;&nbsp;&nbsp;<\/FONT><\/DIV><br \/>\n<UL><br \/>\n<LI><br \/>\n<DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Surely, the client&#8217;s right to disclosure and consent can&#8217;t depend on <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">whether the Temporary Lawyer is paid before or after the client <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">pays the bill that&nbsp;charges for&nbsp;the Temp&#8217;s legal services.<\/FONT><\/DIV><\/DIV><\/LI><\/UL><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">The Virginia ethics committee, along with Carolyn Elefant, make an analogy, <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">to billing for associate hours, which is more than the associate is paid per <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">hour in salary.&nbsp;&nbsp; <\/FONT><A href=\"http:\/\/www.vacle.org\/opinions\/1712.TXT\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Ethics Opinion 1712<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&nbsp;gushes: <\/FONT><\/DIV><br \/>\n<BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&#8220;That the associate is an employee and the Lawyer Temp is <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">an independent contractor seem to be a distinction without a <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">difference in terms of non-disclosure of the spread between <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">compensation paid and rates charged.&nbsp; In each instance the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">spread, or the mark-up, is a function of the cost of doing <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">business including fixed and variable overhead expenses, as <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">well as a component for profit. In each instance, too, DR 2-<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">105(A)(1) mandates that a lawyer&#8217;s fees shall be reasonable.&#8221;<\/FONT><\/DIV><\/BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><img decoding=\"async\" src=\"http:\/\/media-cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/spiltBucketG.jpg\" alt=\"spiltBucketG\" \/>&nbsp;&nbsp; With <EM>all <\/EM>due respect, there seem to be quite a few important differences:<\/FONT><\/DIV><br \/>\n<BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><img decoding=\"async\" src=\"http:\/\/cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/tinycheck.gif\" alt=\"tiny check\" \/> Virtually every client is well aware that billing rates for associates<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">are higher than associate hourly pay.&nbsp; They expect that the lawyer <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">is paying benefits, and overhead and trying to make a profit from <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the working of associates.<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><img decoding=\"async\" src=\"http:\/\/cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/tinycheck.gif\" alt=\"tiny check\" \/> Some savvy clients are very much aware of how much associates <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">are likely to be making and may very well negotiate their hourly rates <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">using that information.<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><img decoding=\"async\" src=\"http:\/\/cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/tinycheck.gif\" alt=\"tiny check\" \/>&nbsp; The firm has <EM>significant <\/EM>overhead expenses and sunk costs related to <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">each associate, and has every right to make a profit for taking the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">entrepeneurial risk and using the resources well.&nbsp; The firm also cannot <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">readily lay off associates when times get slow &#8212; not without greatly <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">affecting morale and perhaps provoking law suits.<\/FONT><\/DIV><br \/>\n<BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Firms often point to figures showing that per-associate <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">overhead is an enormous percentage of their hourly billing <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">rates.&nbsp; Why aren&#8217;t they willing to disclose&nbsp;similar ratios for <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">cost-plus-profit billing that is based on&nbsp;$10 per hour legal <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">services performed in India?&nbsp; <\/FONT><\/DIV><\/BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><img decoding=\"async\" src=\"http:\/\/cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/tinycheck.gif\" alt=\"tiny check\" \/>&nbsp; The firm has virtually&nbsp;<EM>no <\/EM>overhead expenses&nbsp;or sunk costs related to the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Temp &#8212; independent contractor &#8212; lawyer.&nbsp; The firm can also use temporary <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">services when needed and eschew them when not needed.&nbsp; There is no <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">entrepeneurial risk.&nbsp; The risk of not being fully paid for the disbursements <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">for temporary lawyers is not different than other kind of third-party costs. <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">The firm has ways to guard against that risk.<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><img decoding=\"async\" src=\"http:\/\/cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/tinycheck.gif\" alt=\"tiny check\" \/>&nbsp; Most clients would be surprised and irked to know&nbsp;that a law firm was <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">attempting to create profit-centers for services that are obtained outside the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">firm &#8212; especially if such services have traditionally been reimbursed by the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">client as disbursements and costs that are charged separately.&nbsp; <\/FONT><\/DIV><\/BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Let&#8217;s end with Carolyn&#8217;s ultimate question: &#8220;Finally, if profit is what it takes to encourage <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">this type of arrangement &#8211; which is clearly beneficial to a conventional law firm set up, <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">then why not reward those attorneys who do it? &#8221;&nbsp; There are already plenty of reasons <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">for law firms to use these arrangements.&nbsp; As Del <\/FONT><A href=\"http:\/\/www.lmick.com\/pdfs\/bbspring97.pdf\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">O&#8217;Roark points out<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">, &#8220;contract lawyering <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">offers flexibility to the profession. It allows a firm to leverage its output in peak times or <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">meet one-time requirements for a lawyer with special expertise without taking on all the <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">overhead.&#8221;&nbsp; Peter <\/FONT><A href=\"http:\/\/www.vtbar.org\/ezstatic\/data\/vtbar\/journal\/june_2005\/TempLwyr.pdf\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">Gardner echoes<\/FONT><\/A><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"> these conclusions:<\/FONT><\/DIV><br \/>\n<BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&#8220;It appears that temporary lawyers can, indeed, be an integral part <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">of a firm&#8217;s business strategy as long as applicable professional ethics <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">provisions are understood and complied with. A temporary lawyer is <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">typically an experienced independent contractor who provides consistent, <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">high quality work product on specific or general projects for law firms <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">and solo practitioners (I will refer to both as &#8220;firms&#8221;). A temporary lawyer <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">enables a firm to manage work flow and resources efficiently and cost-<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">effectively, and may even be less expensive to a client than were a firm <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">to engage outside counsel.&#8221;<\/FONT><\/DIV><\/BLOCKQUOTE><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">&#8220;Outsourcing&#8221; can&nbsp;make a law firm more competive &#8212; more responsive to the needs<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">of the client (so long as quality is assured and efficiencies realized).&nbsp; Firms should not <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">need extra inducement to adopt the practice.&nbsp; <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\"><\/FONT>&nbsp;<\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">If traditional rules on the treatment of <\/FONT><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">disbursements and&nbsp;dividing fees make sense&nbsp; <img decoding=\"async\" src=\"http:\/\/cyber.law.harvard.edu\/blogs\/static\/ethicalesq\/complaintbill.jpg\" alt=\"complaint bill\" \/><\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">ethically &#8212; and I believe they do &#8212; they <\/FONT><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">should be followed regarding outsourcing and <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\" size=\"2\">the use of temporary lawyers.&nbsp; Fully-<\/FONT><FONT face=\"Geneva,Arial,Sans-Serif\"><FONT size=\"2\">informed clients should be <FONT color=\"black\">allowed to make&nbsp;<\/FONT><\/FONT><\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\"><FONT size=\"2\"><FONT color=\"black\">reasoned&nbsp;decisions and to bargain from <\/FONT><\/FONT><\/FONT><FONT face=\"Geneva,Arial,Sans-Serif\"><FONT color=\"black\"><FONT size=\"2\">strength with their fiduciary-<FONT face=\"Geneva,Arial,Sans-Serif\">lawyers.<\/FONT><\/FONT><\/FONT><\/FONT><FONT face=\"Geneva,Arial,Sans-Serif\"><FONT color=\"black\" size=\"2\">&nbsp;We <\/FONT><\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Geneva,Arial,Sans-Serif\"><FONT color=\"black\" size=\"2\">should not leave the decision to use a <\/FONT><\/FONT><FONT face=\"Arial\" size=\"2\">temporary lawyer&nbsp;or&nbsp;off-shore legal service <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Arial\" size=\"2\">provider&nbsp;solely to the lawyer.&nbsp; And, we <\/FONT><FONT face=\"Arial\" size=\"2\">should not&nbsp;leave it to the lawyer to decide <\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Arial\" size=\"2\">the size of any mark-up above the firm&#8217;s costs for such services. <\/FONT><\/DIV><br \/>\n<UL><br \/>\n<LI><br \/>\n<DIV><FONT face=\"Arial\" size=\"2\"><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Arial\" size=\"2\">Carolyn <A href=\"http:\/\/www.myshingle.com\/my_shingle\/2005\/06\/billing_for_con.html#more\">Elefant has written more<\/A> today on these issues.<\/FONT><\/DIV><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Arial\" size=\"2\">Showing her mixed feelings on whether to use mark-ups.<\/FONT><\/DIV><\/FONT><\/DIV><br \/>\n<LI><br \/>\n<DIV><FONT face=\"Arial\" size=\"2\"><br \/>\n<DIV dir=\"ltr\"><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Arial\" size=\"2\"><A href=\"http:\/\/lawdepartmentmanagement.typepad.com\/law_department_management\/2005\/06\/do_legal_ethics.html\">Rees Morrison broached<\/A> the topic yesterday.<\/FONT><\/DIV><\/DIV><\/FONT><\/DIV><\/LI><\/UL><br \/>\n<DIV dir=\"ltr\"><FONT face=\"Arial\" size=\"2\"><\/FONT>&nbsp;<\/DIV><\/BLOCKQUOTE><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Comments here and here, respectively, Lisa Solomon and Carolyn Elefant have disagreed with yesterday&#8217;s post when outsourcing, just pass on the cost&nbsp; (June 28, 2005).&nbsp; I believe a lawyer\/firm should (1)&nbsp;tell a client whenever legal services are going to be done by a &#8220;temporary&#8221; lawyer outside of the firm (or, as in the article [&hellip;]<\/p>\n","protected":false},"author":94,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2926],"tags":[],"class_list":["post-3924","post","type-post","status-publish","format-standard","hentry","category-pre-06-2006"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p6kP1R-11i","_links":{"self":[{"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/posts\/3924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/users\/94"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/comments?post=3924"}],"version-history":[{"count":1,"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/posts\/3924\/revisions"}],"predecessor-version":[{"id":13149,"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/posts\/3924\/revisions\/13149"}],"wp:attachment":[{"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/media?parent=3924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/categories?post=3924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.blogs.harvard.edu\/ethicalesq\/wp-json\/wp\/v2\/tags?post=3924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}