Issue Number 3, 2007

January of this year marked the 30^th anniversary of the Bar Board of Directors' decision to endorse the idea of a reciprocal or interinsurance exchange.  In less than two years, TLIE will cross another significant milestone in its history.  On May 1, 2009 we will celebrate the 30^th anniversary of the first TLIE policy issued to a Texas attorney.  We continue to believe that our most important function is to remain available during all types of market conditions.  Financial stability and a commitment to quality service continue to be important considerations in the selection of an insurance carrier.  Past experience clearly demonstrates the validity of this statement as we are all very much aware of carriers that are either no longer in existence due to insolvency or have simply withdrawn from the market and utilized their capital to pursue other lines of insurance.  I suspect the future will be much the same as the past.

Arbitration clauses in fee agreements have been used by many Texas lawyers.  This article will discuss the state of the law regarding the validity of such agreements, and will note some of the practical issues that should be considered before including such agreements in contracts with clients.

Texas Ethics Opinion No. 577, issued in March 2007 and published in the October 2007 Texas Bar Journal, addresses when and how a law firm can charge a client more for an attorney’s services than it pays the attorney.  The opinion notes that Texas Disciplinary Rule of Professional Conduct 1.04(f) governs the division of fees between “lawyers who are not in the same firm.”  When a firm or lawyer charges its client more than it pays a lawyer outside the firm, the opinion considers this a division of fees subject to Rule 1.04(f).