SAN FRANCISCO (Legal Newsline) - A California mass tort law firm has ethical concerns about the way clients were referred to it.
Kershaw, Cook & Talley filed a complaint June 10 in San Francisco federal court against Nelson National Law Firm, seeking a determination of what fees - if any - Nelson can claim from proceeds of Camp Fire litigation.
The Camp Fire ignited in 2018 because of a faulty electric line and killed at least 85 people. The Kershaw firm used a legal marketing group to drum up clients.
That group said it would use Nelson National Law Group for the purposes of obtaining referrals in exchange for 40% of attorneys fees generated. Ultimately, Nelson referred 33 cases to KCT.
But now, KCT says it didn't realize Nelson is an Arizona firm not registered to do business in California and that it has a "secret agreement" to share attorneys fees with non-lawyers, contrary to California Rule of Professional Conduct 1.5.1.
"KCT now has serious concerns that complying with the referral agreement and sharing attorneys fees with Nelson may violate California law..." the suit says. It adds that a "pure" referral fee is prohibited in Arizona, where Nelson is located.
Victims of the Camp Fire submit claims to a trust for compensation.