When a law firm represents a group of people in aclass action lawsuit and wins that lawsuit, the firm receives a percentage of the group’s monetary settlement. That settlement amount is based on the total number of people in the group–the larger the group and the larger the settlement the more money the firm will receive.
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When is a lawyer a lawyer for the organization and not its constituents?
Under Rule 1.13 (a), when a lawyer for an entity is dealing with the organization鈥檚 constituents and the lawyer perceives differences between the interests of the organization and the interests of its constituents, the lawyer must 鈥渆xplain that the lawyer is the lawyer for the organization and not for any of the constituents.鈥?/div>Whom Does a Corporation鈥檚 … – New York Legal Ethics
Is a law firm the lawyer for the entity or the client?
Although Rule 1.13 provides that a firm is the lawyer for the entity and not for any of its constituents, confusion may arise when a law firm represents small or closely held corporations with few shareholders, or when a firm represents both the corporation and individual officers or employees but bills the corporate client for the legal services.
Can a lawyer represent a Corporation鈥檚 subsidiaries?
The main lesson of the case is that a lawyer who represents corporations whose relationships with its affiliates and subsidiaries are like Johnson Johnson鈥檚 鈥?including a common legal department 鈥?will be deemed to represent the corporation鈥檚 subsidiaries 鈥?absent 鈥渢he most express of waivers鈥?鈥攄espite Rule 1.13 (a).
How do law firms get paid in a class action lawsuit?
When a law firm represents a group of people in a class action lawsuit and wins that lawsuit, the firm receives a Percentage Of the group’s monetary settlement. That settlement amount is based on the ttal number of people in the group 鈥?the larger the group and the larger the settlement, the more money the firm will receive.