In re Discipline of Reneer

After Thomas Broude was arrested, Utah Legal Group (ULG), a legal-marketing service, contacted Broude. Judy Carey, Broude’s mother, agreed to pay UGL $6,000 to find a lawyer for Broude, pay the lawyer’s fees, and monitor Broude’s defense. ULG contacted attorney Jere Reneer (defendant) and offered to pay Reneer $2,500 for Broude’s representation; Reneer accepted. Reneer had no fee agreement with Carey or Broude. Reneer negotiated a plea deal for greatly reduced jail time. Carey claimed that ULG had told her that Broude would not serve time, so Carey filed a complaint with the Utah Supreme Court Ethics and Discipline Committee (the committee) against ULG and Reneer. A panel heard evidence concerning Reneer’s alleged violation of Utah Rule of Professional Conduct (Rule) 1.8(f), which requires a lawyer to get a client’s informed consent before accepting payment for legal fees from a third party, and Rule 8.4(a), which prohibits attorneys from violating the rules. There was no evidence regarding whether Reneer explained to Broude, orally or in writing, about the potential conflicts inherent in a third-party fee-payment arrangement. Because Reneer could not prove that he explained the fee arrangement, the panel found that Reneer had violated Rule 1.8(f) and therefore Rule 8.4(a). The panel recommended private admonishment, and Reneer filed an exception. The committee determined that there was substantial evidence that Reneer violated Rules 1.8(f) and 8.4(a). Reneer appealed.