Risk Update

Conflicts, Financial Arrangements, and Fees — Judge Find Firm Disqualification More Than Just a Possibility, Lt Gov’s No-bid Contract Creates Conflicts Calls, On Written Fee Agreements

Lt. Gov. Micah Beckwith signs no-bid contract with law firm closely tied to his church” —

  • “Indiana Lt. Gov. Micah Beckwith’s office has signed a no-bid contract with a Noblesville-based law firm that’s closely affiliated with the church where Beckwith still serves as a pastor, a move that has raised red flags for ethics experts and lawmakers alike.”
  • “The state will pay up to $150,000 this year for Adler Attorneys to perform ‘general counsel’ and ‘general consulting services’ for Beckwith and his team during his first year as lieutenant governor, according to the contract and a request for outside counsel Beckwith’s office submitted earlier this year to the attorney general.”
  • “Multiple ethics experts contacted by IndyStar questioned the optics of awarding a no-bid contract to a company that has close ties to Beckwith’s other employer.”
  • “Not only is Adler Attorneys’ CEO and senior attorney, Raymond Adler, a member of the church, another of its attorneys, Devin Norrick, serves on the church’s board of directors. The law firm has also recently represented Life Church in municipal government matters.”
  • “It’s unclear whether Norrick, who now describes himself as the chief legal counsel for Beckwith’s office, has any hiring or firing power over Beckwith on the church’s board. The lieutenant governor’s office referred questions about that to Life Church, which didn’t respond to a request for comment.”
  • “‘Awarding a no-bid contract in that situation raises all sorts of concerns,’ said Abraham Schwab, a Purdue University-Fort Wayne professor who serves on the Allen County Ethics Commission. ‘It ultimately undermines (trust in) their ability to be good stewards of the public resources they’ve been provided.'”
  • “IndyStar asked Beckwith’s office about the potential appearance of a conflict of interest, but it didn’t immediately reply. The office told IndyStar it signed the contract in order to increase government efficiency and that it considered other law firms to do the work.”
  • “The contract comes as Life Church has become increasingly enmeshed in Indiana government, and as Beckwith has advocated for more connection between government and the faith community. A recent town hall featuring four statewide elected officials was held at the church, which served as a polling place in the 2024 election.”
  • “Oftentimes, statewide elected officials will leave their occupations once elected, which can help reduce potential conflicts of interest, but Beckwith has not. That means he earns a salary both from the state of Indiana and Life Church, according to his latest financial disclosure form, which his office confirmed is still accurate.”
  • “Paul Helmke, former Republican mayor of Fort Wayne and director of the Civic Leaders Center at Indiana University, said it’s important to avoid even the appearance of a conflict of interest as a government official. It’s why, he said, he cut ties with his law firm when he became mayor of Fort Wayne.”
  • “‘The concern here is you’re throwing public tax dollars to your (church’s) board member,’ Helmke said. ‘Regardless of if it’s a board with authority, or more advisory, it raises the appearance of impropriety.'”
    Contract lacked bidding process”
  • “The contract was signed without undergoing a competitive bidding process, Beckwith’s office confirmed to IndyStar. His spokesman, Jim Kehoe, said a request for proposals was not completed because it was ‘not required.’ Kehoe said the office considered two other law firms to do the work but wouldn’t say which firms it considered.”
  • “Jeffrey Dunn, director of the Janet Prindle Institute for Ethics at DePauw University, said the move to hire a private law firm ‘certainly raises red flags because it’s out of the norm’ but he said it’s hard to comment on whether the choice was ethical without more details.”
    Generally speaking, Dunn said, those holding public office should take care to avoid real or perceived conflicts of interest.”
  • “A request for other bids, even though not legally required, would have removed the appearance of a conflict of interest here, Dunn said.”

Quinn Emanuel DQ In Fla. Oil Row More Than Just ‘Possibility’” —

  • “A Florida federal judge has ordered expedited discovery in a Mexican oil company’s case over alleged improper fund transfers, after determining there is ‘more than a mere possibility’ of Quinn Emanuel being conflicted out of representing itself in the litigation due to prior representation of the company.”
  • “In her order on Tuesday, U.S. Magistrate Judge Enjoliqué Lett granted Oro Negro Drilling Pte. Ltd. and its Singapore subsidiaries’ motion for leave to take expedited discovery and file a motion to disqualify Quinn Emanuel Urquhart & Sullivan LLP in three criminal proceedings and one bankruptcy proceeding all pending in Mexico. She determined the discovery would not prejudice the law firm.”
  • “The case stems from Quinn Emanuel’s 2021 representation of the oil company in U.S. Bankruptcy Court in the Southern District of New York, according to the recap in Tuesday’s order. It was amid this case that the law firm brought an adversary proceeding on behalf of Oro Negro Drilling and the subsidiaries alleging a $27 million unjust enrichment by bondholders of an Oro Negro Drilling project.”
  • “Leadership of the company changed, and in July 2024, Oro Negro Drilling filed its motion to expedite discovery and disqualify Quinn Emanuel from representing itself in the Florida action. Because of the shift in leadership, Oro Negro Drilling argued, Quinn Emanuel is now the sole possessor of records relating to the earlier representation, and the drilling company must access that information to back up its bid to disqualify the law firm.”
  • “Quinn Emanuel fought the bid, arguing in part that the expedited discovery overlaps with an action pending in Mexico, and that therefore it should not be compelled to share the information.”
  • “Oro Negro replied, arguing the information must be shared. The company then filed a notice of supplemental authority and evidence, asking for additional documents — including a disqualification order in a separate case, bank statements and the dismissal of North American Free Trade Agreement arbitration Quinn Emanuel brought against Mexico on behalf of some of the parties.”
  • “In her order Tuesday, Judge Lett said the Oro Negro parties ‘have demonstrated good cause for seeking expedited discovery.'”
  • “According to the judge, the ‘petitioners insist that they are former clients of Quinn Emanuel where confidences were disclosed, and therefore, Quinn Emanuel’s self-representation violates its continuing ethical obligation’ to the Oro Negro parties.”
  • “Without an ‘ethical wall’ separating the firm and conflict counsel from Gelber Schachter & Greenberg PA, the companies argued, Quinn Emanuel’s conflict of interest may also shift onto Gelber Schachter, the Oro Negro parties further argued.”
  • “Judge Lett said the purported conflict is ‘more than a mere possibility,’ noting the petitioners had shown that Quinn Emanuel filed an adversary bankruptcy complaint in the Southern District of New York on their behalf, and that in a status conference, the firm acknowledged the filing.”
  • “‘Because an attorney-client relationship creates an irrefutable presumption that confidences were disclosed during the relationship, without this court’s intervention, petitioners risk being prejudiced by their confidences being improperly disclosed to [Gelber Schachter] in this litigation,’ Judge Lett stated.”

Trump Wants Law Firms to Defend Cops Facing Misconduct Suits” —

  • “President Donald Trump ordered the Justice Department on Monday to launch a program including free legal assistance from law firms to police officers accused of wrongdoing.”
  • “The program will ‘provide legal resources and indemnification to law enforcement officers who unjustly incur expenses and liabilities for actions taken during the performance of their official duties to enforce the law,’ Trump said in an executive order. ‘This mechanism shall include the use of private-sector pro bono assistance for such law enforcement officers.'”
  • “Major law firms have committed $940 million in legal services in a series of deals with Trump, seeking to avoid punitive executive orders like those targeting other firms over ties to lawyers involved in investigations and cases against the president. The firms pledged to take up a range of issues, including supporting military veterans and law enforcement officers, as well as ‘ensuring fairness’ in the justice system.”
  • “Trump has also suggested he’ll tap the firms to work on trade issues stemming from his tariff war and in efforts to ramp up coal mining.”

Guidance Opinion Affirms the Importance of Written Fee Arrangements Under Pa. Rules of Professional Conduct” —

  • “The Pennsylvania Bar Association committee on legal ethics and professional responsibility recently issued Formal Opinion 2025-100, offering practical guidance about the ethical obligations when entering into fee arrangements under Pennsylvania Rule of Professional Conduct (PA RPC) 1.5. This column summarizes the advice given by the opinion.”
  • “The opinion addresses common inquiries about when written fee arrangements are required, what they should include, and best practices for lawyers to follow. It emphasizes the importance of written communication to ensure transparency, avoid misunderstandings, and protect both the lawyer and the client. Although written based upon the Pennsylvania Rules of Professional Conduct, it equally applies to all attorneys wherever they are licensed.”
  • “PA RPC 1.5 governs the ethical requirements for lawyers regarding fees. It mandates that lawyers communicate the basis or rate of their fees in writing to clients before or within a reasonable time after commencing representation, except when the lawyer has regularly represented the client. This written communication is not optional. It is a critical ethical obligation designed to eliminate uncertainties and surprises in the client-lawyer relationship.”
  • “While Rule 1.5 does not require a formal engagement letter or a signed agreement, it does require a written communication that memorializes the basis or rate of the fee. This writing must be maintained by the lawyer for at least five years after the termination of the client-lawyer relationship or the disposition of property, as per PA RPC 1.15(c).”
  • “The committee advises that, although a simple written statement of the fee basis or rate may suffice, a more detailed explanation is often necessary to comply with Rule 1.4, which requires lawyers to provide clients with sufficient information to make informed decisions.”
    Best Practices for Fee Arrangements”
  • “The committee recommends several best practices to enhance clarity, manage expectations, and protect the rights of both the lawyer and the client. These include:”
    • “Client Identification: Clearly specify whether the lawyer represents the client in an individual, fiduciary, official, or organizational capacity. Example: A lawyer representing a business should clarify whether they are representing the business entity or the individual owner to avoid confusion about the scope of representation.”
    • “Scope of Representation: Define the scope of representation, including whether it is limited in nature. Example: In a limited-scope representation for drafting a contract, the lawyer should specify that they are not providing advice on litigation or regulatory compliance related to the contract.”
    • “Terms and Conditions: Outline the terms and conditions of the representation, including fees, expenses, and payment deadlines. Example: A lawyer may state that invoices will be sent monthly, payment is due within 30 days, and interest will be charged on overdue balances.”
    • “Billing Practices: Explain the method of fee calculation, billing frequency, and format, as well as any minimum time charges for specific tasks. Example: A lawyer may specify that phone calls and emails will be billed in increments of 0.1 hours (six minutes) and that administrative tasks performed by paralegals will be billed at a lower hourly rate.”
      Retainer Policies: Describe the services covered by the initial retainer and the terms for replenishment. Example: A lawyer may explain that the retainer covers the first 10 hours of work and must be replenished once the balance falls below a certain threshold.”
    • “Termination Rights: Clarify the circumstances under which the client or lawyer may terminate the relationship. Example: A lawyer may include language stating that the client may terminate the relationship at any time, but the lawyer reserves the right to withdraw if the client fails to pay fees or cooperate in the representation. “
    • “Confidentiality Obligations: Specify the lawyer’s obligations regarding confidentiality. Example: A lawyer may explain that all communications will remain confidential unless disclosure is required by law or court order.”
    • “File Closing Procedures: Detail the disposition of client files and property after the representation ends. Example: A lawyer may state that client files will be stored for five years after the conclusion of the matter and then securely destroyed unless the client requests their return. “
    • “Fee Calculation for Appeals: Address whether appeals are included in the representation or require a separate fee arrangement. Example: A lawyer handling a trial may specify that appellate work is not included in the initial fee arrangement and will require a new agreement.”
    • “Expert Witness Costs: Communicate the expected cost of expert witnesses and the issues that may require their retention. Example: A lawyer may inform the client that expert witness fees will be billed separately and provide an estimate of the costs. ”
      Administrative Charges: Identify charges for administrative employees’ services. Example: A lawyer may specify that clerical tasks performed by administrative staff will be billed at a flat rate per hour. “
  • “The opinion highlights specific scenarios where written fee arrangements are required, including:”
    • “Pro Bono and Gratis Arrangements: Even when no fee is charged, the basis or rate of the fee must be communicated in writing. Example: A lawyer providing free legal services may still document the scope of representation and any costs the client may be responsible for, such as filing fees.”
    • “Limited-Scope Representation: Clearly define the scope and limitations of the representation. Example: A lawyer assisting with a single court filing should specify that they are not representing the client in hearings or appeals.”
    • “Judicial Appointments: Some courts and agencies mandate written fee arrangements before a lawyer can enter an appearance. Example: A court-appointed lawyer may need to provide a written agreement outlining the scope of representation and any fees paid by the court or client. “
    • “Hourly and Flat Fees: Whether refundable or nonrefundable, these arrangements should be documented in writing. Example: A lawyer charging a flat fee for drafting a will should specify whether the fee is refundable if the client terminates the relationship before the work is completed.”