Taking a Promissory Note in Exchange for Attorneys' Fees
Taking a promissory note in exchange for attorneys' fees does not constitute a violation of professional rules, provided that it complies with the agreement.
Summary
The respondent lawyer accepted a post-dated promissory note at the request of the client for the attorneys' fees earned pursuant to a written agreement made with the client. Although the Bar Association imposed a disciplinary penalty on the lawyer due to this action, the TBB Disciplinary Board ruled that as long as the receipt of the promissory note is based on the agreement and remains within the bounds of the tariff/agreement, it will not constitute a disciplinary offense. For this reason, the previous penalty decision was revoked and it was decided that there was no room for imposing a penalty on the lawyer.
The Facts
A disciplinary prosecution was conducted against the respondent lawyer on the allegation that the lawyer accepted a post-dated promissory note from the client in exchange for the earned attorneys' fees, and enforcement proceedings were initiated against the client as a result of the endorsement of this promissory note to a third party.
Assessment
The Board stated that accepting a promissory note in exchange for attorneys' fees is not a prohibited act in itself, but that this promissory note must comply with the agreement between the parties or the minimum fee tariff. Since it was understood in the concrete case that the promissory note was based on the agreement and an annotation was made regarding this matter, it was concluded that the lawyer's action was not an improper conduct or one that damaged professional honor.
Rules Violated
- Attorneys' Act (No. 1136) art.
- TBB Professional Rules
Key Terms
- Bono
- A type of negotiable instrument containing an undertaking that a certain amount will be paid on a certain due date.
- Ciro
- The process of transferring the rights under a negotiable instrument to another person by way of signature.
- Disiplin Kovuşturması
- The legal process conducted by bar association organs upon an allegation of an act by a lawyer in violation of professional rules.
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Outcome
It was decided to revoke the warning penalty imposed on the respondent lawyer and that there was no room for imposing a disciplinary penalty.