The Supreme Court for the State of Colorado has ruled that a law firm’s ‘reimbursement agreement,’ which asked a departing attorney to pay over $1,000 per client they retained, violates Colorado ethics rules. This agreement was found to restrict an attorney’s right to practice and a client’s right to choose their own counsel.
Details from the ruling indicate that on Tuesday, the high court echoed that Colorado Rule of Professional Conduct 5.6(a) prevents agreements that necessitate a lawyer departing a firm to pay an undifferentiated per-client fee for continued representation of those clients.
The court held that facilitating such agreements would infract significant public policy interests. It redefines the traditional norms related to a lawyer’s transition from a law firm and client representation following the lawyer’s departure, especially when fees are involved.
The full judgment can be accessed in the official document provided by the Supreme Court of Colorado. It reinforces the importance of upholding the rights of both attorneys and their clients in the legal profession.