By Joan C. Rogers
The Ohio Supreme Court Dec. 3 reprimanded the owner of a law firm for offering a “free consultation” on the firm's website without disclosing that billing would begin even during the initial meeting once the prospective client signed a fee agreement (Cincinnati Bar Ass'n v. Mezher, Ohio, No. 2012-0684, 12/3/12).
In an opinion by Justice Judith Ann Lanzinger, the court also decided that another lawyer in the firm violated his obligation to explain the basis of his fee by not clearly communicating this limitation on free consultations during his initial meeting with clients. That lawyer, too, received a public reprimand.
A potential client, Stephanie Mahaffey, contacted the firm and set up an appointment to talk about her mother's estate. She was aware that the firm's website advertised free consultations, the court said.
Mahaffey, her husband, and her sister Jessica Burns met with Espohl. During the consultation, Burns signed a retainer agreement and left original documents with Espohl. About three weeks later, she asked for the documents back, saying the family no longer wished to retain the firm.
When Burns arrived to pick up the materials, she was presented with an invoice that included a $250 charge for “ATTY--CONFERENCE” on the day of the sisters' meeting with Espohl. Burns questioned the bill, and this disciplinary proceeding followed.
The complaint alleged that Mezher and Espohl committed misconduct by charging a client for an initial consultation that was advertised as free on the firm's website and by failing to adequately inform the client about the basis of the fee to be charged. A hearing panel and the disciplinary board recommended that the two lawyers be publicly reprimanded--Mezher for violating Ohio Rule of Professional Conduct 7.1 (communications about lawyer's services), and Espohl for violating Rule 1.5(b) (duty to explain basis or rate of lawyer's fee).
The supreme court adopted those findings and publicly reprimanded both lawyers.
Espohl testified that the sisters wanted to get started immediately, and that after the fee agreement was signed the meeting with the sisters continued for approximately an hour, during which time he reviewed the will and trust, researched real estate deeds, and answered additional questions.
According to Espohl, the sisters were billed only for the second portion of the meeting, in keeping with the firm's unwritten policy that although no fee would be charged for a free consultation, the free consultation ended when the prospective client either left without engaging the firm or hired the firm by signing a fee agreement.
Mezher adopted this policy as owner of the firm and conveyed it to associates, the court noted. It agreed with the hearing panel and the board that she violated Rule 7.1 by failing to include on the firm's website any information as to when the law firm would begin to charge for its services.
“The advertisement was misleading because it omitted a key piece of information--the free consultation ended (and billing began) with the signing of the fee agreement.”Ohio Supreme Court
This incomplete advertising was similar, the court found, to the misconduct in two other cases in which lawyers were disciplined for advertising that there would be no fee if there was no recovery without disclosing that clients would still be responsible for paying costs.
Although the court held Mezher responsible for the misleading advertisement, it concluded that the charge against Espohl for violating Rule 7.1 must be dismissed, as he was not shown to have any control over the advertising on the firm's website.
Rule 1.5(b) requires a lawyer to communicate to a client “the basis or rate of the fee” for which the client will be responsible. “Thus, an attorney must inform the client when the representation and chargeable events commence,” the court stated.
Most nonlawyers, the court said, would view Espohl's meeting with the sisters as a continuous consultation rather than a free consultation followed by a billable attorney conference. Although Espohl viewed the signing of the fee agreement as the line of demarcation, nothing in the fee agreement alerted the sisters that their free consultation was over, nor did Espohl advise them of that fact, Lanzinger said.
With regard to Mezher, the court concluded that the charge of violating Rule 1.5(b) must be dismissed because she had no contact with the sisters and did not participate in preparing their bill.
The court found that a public reprimand was an appropriate sanction for both lawyers in light of their otherwise clean disciplinary records, cooperative attitude, and demonstrated good character, although they failed to make timely restitution. Mezher rectified the problems with the firm's website and modified her fee agreements, the court noted.
In any event, the standards the majority announced in its opinion for advertising free consultations should apply prospectively only, because those standards had never previously been made clear, the dissenters contended.
James F. Brockman of Lindhorst & Dreidame, Cincinnati, and Katherine C. Morgan, also of Cincinnati, represented the Cincinnati Bar Association.
Thomas W. Condit, Cincinnati, and Michael B. Mezher Jr. of Kathleen Mezher & Associates, Cincinnati, represented Kathleen Mezher. Frank Espohl, Kathleen Mezher & Associates, represented himself.
The ABA/BNA Lawyers’ Manual on Professional Conduct is a joint publication of the American Bar Association Center for Professional Responsibility and Bloomberg BNA.
Copyright 2012, the American Bar Association.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).