Appeals Court Upholds Claim That Law Firm Shirked Its Obligation in Fee-Sharing Agreement
For the defendant firm to charge its obligation for a subsequent fee-sharing deal as an expense greatly reduced the amount paid to Cohen, said the plaintiff's lawyer Noel Schablik. "That's so fundamentally wrong, it shouldn't have happened," he said.
March 24, 2022 at 03:06 PM
5 minute read
Sorting through a tangle of fee-splitting agreements in a personal injury case, a New Jersey appeals court ruled that such deals can't be unilaterally modified when one of the lawyers enters into a subsequent deal to split fees with a third party.
The Appellate Division affirmed a lower court's ruling in favor of a lawyer who claimed he was shortchanged in a fee-sharing deal with Davis, Saperstein & Salomon of Teaneck, New Jersey. West Orange, New Jersey, attorney David Cohen reached a deal with the firm, giving him 20% of the legal fees from a construction worker's accident suit. But Davis Saperstein later claimed that Cohen was entitled to 20% of the proceeds that remained after the firm paid its obligation to another attorney in a fee-splitting deal stemming from an insurance bad-faith claim.
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