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Can Attorneys Pay for Non-Attorneys to Refer Cases to Them?

NO! In Texas, it is against the Texas Disciplinary Rules of Professional Conduct to allow an attorney to PAY for cases. A lot of attorneys in Texas, and especially in SOUTH Texas, solicit and obtain clients against the rules. Barratry is defined by the statutes:

“(a) A person commits an offense [OF BARRATRY] if, with intent to obtain an economic benefit the person: (1) knowingly institutes a suit or claim that the person has not been authorized to pursue; (2) solicits employment, either in person or by telephone, for himself or for another; (3) pays, gives, or advances or offers to pay, give, or advance to a prospective client money or anything of value to obtain employment as a professional from the prospective client; (4) pays or gives or offers to pay or give a person money or anything of value to solicit employment; (5) pays or gives or offers to pay or give a family member of a prospective client money or anything of value to solicit employment; or (6) accepts or agrees to accept money or anything of value to solicit employment.

In Texas, the Texas Disciplinary Rules of Professional Conduct serve as guidelines that attorneys must adhere to. These rules explicitly forbid attorneys from engaging in barratry, which encompasses various actions carried out with the intention of gaining an economic advantage. Barratry includes unauthorized initiation of legal proceedings, actively seeking out clients for legal representation, offering financial inducements to potential clients, and accepting payments for soliciting legal work.

Despite these stringent regulations, there are instances where attorneys in Texas, particularly in South Texas, violate these rules by engaging in barratry practices. This unethical behavior not only undermines the integrity of the legal profession but also jeopardizes the rights and interests of individuals seeking legal assistance. It is crucial for attorneys to uphold ethical standards and operate within the boundaries of the law to ensure fair and just legal representation for all individuals.

(b) A person commits an offense if the person: (1) knowingly finances the commission of an offense under Subsection (a); (2) invests funds the person knows or believes are intended to further the commission of an offense under Subsection (a); or (3) is a professional who knowingly accepts employment within the scope of the person’s license, registration, or certification that results from the solicitation of employment in violation of Subsection (a).”

In the legal context of Texas, barratry refers to the unethical practice of attorneys or individuals engaging in activities to improperly solicit legal work or cases for financial gain. The Texas Disciplinary Rules of Professional Conduct strictly prohibit barratry to maintain the integrity of the legal profession and protect the public from unscrupulous legal practices.

Subsection (b) of the statutes outlines additional offenses related to barratry. It states that a person can be charged with an offense if they commit certain actions, including:

  1. Knowingly providing financial support for someone to commit barratry.
  2. Investing money that they know or believe will be used to facilitate barratry.
  3. Being a licensed professional who accepts employment resulting from solicitation practices that violate barratry laws.

The first point highlights the criminal liability of individuals who knowingly finance the commission of barratry. By financially supporting such unethical practices, these individuals become accomplices to the offense and are subject to legal repercussions. This provision aims to deter individuals from enabling barratry by cutting off the financial means that sustain these illegal activities.

The second point concerning the investment of funds intended to further barratry emphasizes the accountability of individuals who knowingly contribute to the continuation or expansion of barratry schemes. By investing funds that they know or believe will be used to advance barratry activities, individuals become complicit in the perpetuation of illegal practices and can face criminal charges for their involvement.

The third point targets licensed professionals who accept employment within the scope of their credentials that results from solicitation practices prohibited under barratry laws. This provision holds professionals accountable for engaging in legal work obtained through unethical means, such as improper solicitation or inducements. By accepting employment derived from barratry, professionals not only violate legal standards but also compromise the integrity of the services they provide.

Overall, the inclusion of these provisions in the statutes related to barratry serves to strengthen the enforcement of laws against unethical legal practices and protect the interests of clients and the public. By outlining specific offenses and consequences for individuals involved in barratry-related activities, the legal framework aims to deter such behavior and uphold the principles of fairness, justice, and ethical conduct within the legal profession.

(c) It is an exception to prosecution under Subsection (a) or (b) that the person’s conduct is authorized by the Texas Disciplinary Rules of Professional Conduct or any rule of court.

(d) A person commits an offense if the person: (1) is an attorney, chiropractor, physician, surgeon, or private investigator licensed to practice in this state or any person licensed, certified, or registered by a health care regulatory agency of this state; and (2) with the intent to obtain professional employment for the person or for another, provides or knowingly permits to be provided to an individual who has not sought the person’s employment, legal representation, advice, or care a written communication or a solicitation, including a solicitation in person or by telephone, that: (A) concerns an action for personal injury or wrongful death or otherwise relates to an accident or disaster involving the person to whom the communication or solicitation is provided or a relative of that person and that was provided before the 31st day after the date on which the accident or disaster occurred; (B) concerns a specific matter and relates to legal representation and the person knows or reasonably should know that the person to whom the communication or solicitation is directed is represented by a lawyer in the matter; (C) concerns a lawsuit of any kind, including an action for divorce, in which the person to whom the communication or solicitation is provided is a defendant or a relative of that person, unless the lawsuit in which the person is named as a defendant has been on file for more than 31 days before the date on which the communication or solicitation was provided; (D) is provided or permitted to be provided by a person who knows or reasonably should know that the injured person or relative of the injured person has indicated a desire not to be contacted by or receive communications or solicitations concerning employment; (E) involves coercion, duress, fraud, overreaching, harassment, intimidation, or undue influence; or (F) contains a false, fraudulent, misleading, deceptive, or unfair statement or claim.”

An attorney cannot pay money for a case and should not. Attorneys can refer cases to another attorney and those attorneys can split attorney’s fees. Since, in this case, both parties are attorneys, the attorneys are allowed to structure an agreement to split the fee.

If you have been hurt due to the negligence of someone else, please call Herrman & Herrman, P.L.L.C., first!

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