Advertisement

ORANGE COUNTY VOICES : Middle-Class People Often Can’t Afford a Much-Needed Day in Court : Legal help is available for the rich and, sometimes, the poor. The glut of lawyers should find a way to help those in between.

Share
<i> Sarah L. Catz is an attorney in Laguna Beach</i>

When I was deciding where I should attend law school, I spent a few days in New York City checking out several of its schools. At the end of that trip I attempted to give my mother my impressions. She summed up my feelings by stating: “New York City is for the very rich and the very poor . . . and honey, you’re middle class.”

I chose not to attend law school in New York City but retreated instead to the secure havens of Northern California. It has been 13 years since I graduated from law school and I never thought that I would some day apply my mother’s pearls of wisdom to the practice of law.

Today, especially in Orange County, legal services are very much available for the rich and somewhat available for the poor (through Legal Aid and the Public Law Center). But there is a void when it comes to services for the middle class.

Advertisement

Those greatly affected by this void include landlords and tenants, the newly divorced parent and the small business person who may even have to file bankruptcy because of a major injustice that is too costly to fight.

While the public perception of too many frivolous lawsuits is probably accurate, there are also many potential lawsuits that are very worthy yet never adjudicated simply because the plaintiff cannot afford the attorney’s fees. The middle-class person is unable to pursue their rights through the justice system because they just do not have the funds to bring it to court--or even to the tables to begin mitigation.

At the Republican National Convention last August, George Bush stated that he is “fighting to reform our legal system, to put an end to crazy lawsuits.” He accused the trial lawyers of being the culprits.

Trial lawyers are the ones that represent their clients on a contingency-fee basis. This means that the client does not need to put out any money for the lawsuit. If and when a favorable award results, the attorney keeps a percentage of it (usually 25% to 40%) as the fee. This is often the only way many people can obtain quality legal representation.

Contingency fees are usually negotiated in personal injury lawsuits (from a car accident for example), product-liability cases or a wrongful-death suit. Beyond those three types of cases, it is rare for an attorney to accept a case unless a cash retainer is received.

Several acquaintances of mine had experiences recently that typify the legal problems of the middle class.

Advertisement

A couple I know entered into a partnership for the purchase of an alarm company with a person they met through a business broker. After a year of increasing profits, the couple’s new partner decided he did not want to have partners anymore and broke their partnership agreement.

When the couple met with a top business lawyer, they were told it would cost hundreds of thousands of dollars to take the partner to court to enforce the agreement. The attorney suggested they settle out of court for a fraction of what was owed to them. The attorney explained: “Little people like you can’t afford to litigate.”

Another of my acquaintances is a 37-year-old mother with a 2-year-old son. Upon her divorce, her ex-husband fought her for custody of their son. After spending $25,000 for a custody agreement, she discovered that her attorney had neglected to obtain medical insurance for them.

The mother hired another attorney to complete what the first attorney had set out to do. The second attorney required a $5,000 retainer. She depleted her life savings, went through a horrible divorce, and then had to put up with name calling and disrespect from an attorney she had hired and entrusted to look out for her best interests! Unfortunately, it doesn’t end there.

The mother called a third attorney, hoping to obtain a modification order to allow for sole custody decisions when it pertained to health. She was told: “I charge $265 an hour, and I wouldn’t touch your case for less than a $2,500 retainer.”

Another small businessman I know opened a video store in Dana Point in a brand-new strip center. Although many new tenants were to have also moved in, no one ever did. To save money, the developers started turning the lights off at night. Consequently, no one could see the video store. After a $25,000 retainer was given to a lawyer to write letters to the developer, the businesman gave notice to the developers that he was leaving the center even though he had spent $100,000 of his own money on tenant improvements, $150,000 on inventory and equipment and lost $80,000 on business interruption.

Advertisement

When the developers received the notice of termination of the lease, they turned around and sued for breach of contract. The businessman wanted to countersue, but his attorney wanted an additional $80,000. Even if he could have come up with the additional money, it made no sense to spend $80,000 to recover $150,000--and that would only happen if he were successful.

There are many more innocent victims out there, being taken advantage of and handing over their life savings to attorneys. Something has to be done.

More attorneys should be willing to take a case on a contingency-fee basis. If they did, that businessman most likely would have recovered a substantial portion of his losses.

Because of the economy and the glut of lawyers in the marketplace (over 136,000 in California alone), law firms are starting to downsize. Surely in this economic climate lawyers can come together and help people who may not be able to pay their fees up front. Contingency fees could be used for a variety of cases, especially in the area of business. (For ethical reasons, contingency-fee arrangements are not allowed in divorce cases.)

Attorneys also need to start learning compassion. Recently the State Bar of California implemented a continuing education requirement. The required courses include drug abuse education and legal ethics. The State Bar should also require a course on compassion and people skills. Some medical schools have already provided programs that include these types of courses. Law schools should follow the lead.

If attorneys not only practiced law but also compassion and flexibility, the middle class--and the entire judicial system--would be greatly aided.

Advertisement
Advertisement