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Attorneys must abide by the ethical standards of conduct that govern their profession. One of the worst ways that attorneys violate these standards is by engaging in fraud. If you believe that your lawyer committed fraud, you will likely have concerns about how this behavior has impacted your case and your legal rights. Fortunately, there are not only practical steps you can take to protect yourself but to also seek compensation from the lawyer or law firm that committed the fraud that rises to the level of legal malpractice. The legal malpractice attorneys of Stanfield Bechtel Law explain what you need to know.
How Do Attorneys Engage in Fraud?
Fraud occurs when an attorney knowingly makes a material misrepresentation of fact with the intent that the client acts upon or relies upon it in some way. “Material” means significant, usually enough to negatively affect the outcome of the case to the extent that it causes you to lose compensation. Some specific examples of attorney fraud include:
- Altering client billing and payment records: Attorneys who misrepresent a client’s billing, including by falsifying the amount of time spent on the case, are defrauding the client. The same applies if the attorney falsely misstates what a client has paid towards his or her legal bills.
- Presenting fraudulent licensure or experience: An attorney who isn’t licensed, in good standing, or otherwise able to practice should not be making misstatements about these matters to induce a client to hire him or her. Also, an attorney should not say that he or she has handled a particular type of case if this is not true.
- Misrepresenting the law or facts: Some attorneys misrepresent the law, either to clients or to the court. An example might be informing the client that he or she can pursue a claim that has expired due to the statute of limitations. With respect to court, presenting false case authority or falsifying evidence are serious examples of fraud.
- False statements regarding the progress of a case: Clients expect their lawyers to diligently work on their cases by investigating and obtaining evidence, conducting discovery, drafting and filing court documents, and so forth. When a lawyer lies about the progress of a case, the client’s interests may be directly harmed.
- Lies about appearing in court: One of the worst types of fraud occurs when a lawyer assures a client that he or she will appear in court on their behalf but fails to do so, negatively impacting your case in a substantial way. I in civil court, a case can be dismissed because of a failure to appear.
- Hiding information presented by the other side: At some point during a case, a lawyer may acquire information or documents from the opposing party that the client deserves to know about. It is fraudulent to hide this, especially if doing so is designed to prolong the case and generate more legal bills.
- Misrepresenting settlement offers: A similar problem arises with settlement offers presented by the opposing party. A lawyer who receives an offer has a duty to convey it to the client. But an attorney may conceal the offer or misrepresent it to prevent the case from settling and bill the client more money.
- Misappropriation of settlement funds or a paid judgment: If the opposing party makes a payment towards settlement or a court judgment, the lawyer who receives that money should give it to the client. Some lawyers decide to misappropriate or outright steal this money and provide an excuse (also fraudulent) for why the client hasn’t received the money.
Steps To Take If You Suspect Attorney Fraud
Learning that your lawyer has committed fraud can be distressing, but quick action can mitigate and potentially reverse the damage. Our firm recommends you do the following:
- Obtain your client files: Call your lawyer or law firm and request that your client files be returned immediately. Contact our office right away if you cannot reach your lawyer or he or she refuses to return your files.
- Hire new counsel: Fraud can jeopardize a client’s legal interests and rights, so it is imperative that you hire a new lawyer right away. Your new counsel can help sort the mess out, but you should not delay retaining someone to represent you.
- Examine what has (or has not) been filed: Take a trip to the courthouse to pull your file and see what’s in it – or not. Your lawyer may have lied about what has been filed and the contents of the filings, so see for yourself what’s in the court records.
- Examine your billing, communications with opposing counsel, and more: Take a look at your attorney’s invoices and determine whether you were billed for work that was never done. Review your client file to examine your lawyer’s communications (with opposing counsel, court, or others), settlement offers, court orders, and more.
- Talk to our legal team: We can take a look at the facts in your case and determine whether the lawyer’s misconduct constitutes fraud. If so, we can explain your options for seeking the compensation and justice you deserve.
Does Fraud Count as Legal Malpractice?
An attorney who has committed fraud may be sanctioned by the Bar or court. But a legal malpractice lawsuit is separate from these disciplinary actions. To prove malpractice, you will need to show:
- The existence of an attorney-client relationship: This can be evidenced by an engagement letter, communications from the lawyer promising to represent you, or other records.
- A wrongful act or failure to act that deviates from the standards of professional conduct: Lawyers must do their jobs ethically and professionally, and committing fraud violates this duty.
- The wrongful act or omission harmed the client: Next, the client must show that the lawyer’s fraud has done damage to his or her finances, legal rights, or other interests.
- The client suffered damages as a result: Finally, the client has to demonstrate that he or she suffered damages. These are usually but not always monetary in nature.
Contact Our Skilled Legal Malpractice Attorney
A client only has three years to file a malpractice lawsuit. Ideally, action should be taken much sooner to protect your rights and demand compensation from the lawyer or law firm that committed malpractice. If you have questions about attorney fraud, call Stanfield Bechtel Law to get started on your case.