While in such a situation it may be ethically permissible for an attorney to assert a lien with respect to materials in a case file, the validity and extent of the lien is a question of law to be decided by the courts. Florida common law recognizes two types of attorney’s liens: the charging lien and the retaining lien.
Full Answer
“Many attorneys are unaware that in Florida a case file is considered to be the property of the attorney rather than the client. In appropriate situations, however, an attorney is entitled to refuse to provide copies of material in the file and instead may assert an attorney’s lien. How do you prove attorney misconduct?
 · In order to have a valid charging lien the attorney’s services must contribute to a positive judgment or settlement for the client. 9 If the attorney is withdrawing upon his or her own volition prior to the conclusion of the case, in order to preserve your right to compensation and to a charging lien, the court must make a finding that withdrawal is essentially involuntary …
 · Florida common law recognizes two types of attorney’s liens: the charging lien and the retaining lien. The charging lien may be asserted when a client owes the attorney for fees …
Attorney liens are the ultimate sign of a broken relationship between attorney and client. Part 1 discussed what an attorney lien is and Part 2 highlighted the requirements and limitations of …
When an attorney is discharged and/or allowed to withdraw from a case, he still maintains the duty to protect his former client’s interests through the transition to new counsel, including providing case file information to the new attorney.
Required Withdrawal: A lawyer is required to withdraw if representation violates the law or any of the Rules of Professional Conduct, if he’s physically or mentally incapable of representing the client, or if the client discharges him.
Your attorney’s ability to file a lien for his fees and costs may hinge, among other factors, on whether his withdrawal was reasonable. If, for example, he withdrew from your case without giving a reason (or because he decided to become a professional golfer instead), and his withdrawal damaged your case, the court may well support you in your decision not to pay him for the work he did. If, however, his withdrawal was necessary or reasonable and if the court approved the withdrawal, it is likely that he will be able to recover reasonable fees and costs for the work he did, according to the terms of your contract.
Whether you’ve failed to pay him or not, your attorney is still ethically obligated to avoid prejudicing the interests of your case. This basic rule applies very differently depending on the circumstances, but if the lien might hurt your chances in court, there is a higher likelihood that it will be denied.
If those requirements have been met, the attorney can then file a notice of lien, setting forth exactly what he thinks he’s entitled to and his request as to how he’ll receive it.
Permissible Withdrawal: Withdrawal is also allowed for many reasons so long as there is no harm done to the client’s interests – so an attorney who wants to withdraw on the eve of trial will likely need to state an extremely good reason for doing so.
If your case might be damaged by the retaining lien or if the attorney’s claimed fees and costs are unreasonable, you may be able to defeat the lien.
Attorney liens are the ultimate sign of a broken relationship between attorney and client. Part 1 discussed what an attorney lien is and Part 2 highlighted the requirements and limitations of an attorney lien.
You should also be aware that your attorney may be able to retain funds he is holding for you – though there are strict limitations on what sort of funds he may retain. For example, attorneys may rarely retain any portion of funds held for a specific purpose (such as to guarantee a loan), even if the funds exceed the amount needed for the designated purpose. Again, review your contract carefully to see whether it contains language that allows him to retain your funds to pay his fees and costs, and under what circumstances.
If, however, your contract dictates that you are responsible for part of the litigation expenses regardless of how the case ends, your former attorney may be able to retain your file until your portion of the expenses is paid.
If your contingency fee contract dictates that your attorney must pay for the costs and expenses of the litigation unless and until your case returns with a settlement or favorable verdict, he cannot retain your file, since he would have no right to payment until the contingency (the lawsuit’s success) occurred.
In essence, a retaining lien is a way for your former attorney to hold your file hostage until he receives payment or an assurance that he will be paid out of the settlement or award received in your case.
If your first attorney withdraws from your case, your new attorney will normally request a copy of the first attorney’s case file since, without it, she would have to complete all the work already accomplished by the first attorney, causing expensive delays that could potentially damage your case. While your original attorney still has an ethical duty to not damage your case, he has a right to be paid according to the terms of the contract as well.
Florida common law recognizes two types of attorney’s liens: the charging lien and the retaining lien. The charging lien may be asserted when a client owes the attorney for fees or costs in connection with a specific matter in which a suit has been filed. To impose a charging lien, the attorney must show: (1) a contract between attorney and client; (2) an understanding for payment of attorney’s fees out of the recovery; (3) either an avoidance of payment or a dispute regarding the amount of fees; and (4) timely notice. Daniel Mones, P.A. v. Smith , 486 So.2d 559, 561 (Fla. 1986). The attorney should give timely notice of the asserted charging lien by either filing a notice of lien or otherwise pursuing the lien in the underlying suit. The latter approach is preferred.
Unlike a charging lien, a retaining lien may be asserted with respect to amounts owed by a client for all legal work done on the client’s behalf regardless of whether the materials upon which the retaining lien is asserted are related to the matter in which the outstanding charges were incurred. A retaining lien may be asserted on file materials as well as client funds or property in the attorney’s possession, and may be asserted whether or not a suit has been filed. Mones , 486 So.2d at 561. Florida Bar Ethics Opinion 88-11 (Reconsideration is here: https://www.floridabar.org/TFB/TFBETOpin.nsf/SMTGT/ETHICS,%20OPINION%2088-11%20 (Reconsideration).
An attorney’s right to assert a lien may be limited, however, by the ethical obligation to avoid foreseeable prejudice to the client’s interests. What papers or documents must be furnished to a client in a particular case in order to avoid prejudicing the client’s interest therein will necessarily depend on the specific facts and circumstances involved.
The ABA opinion discusses the approaches taken in various jurisdictions and notes that the majority (including Florida) use the “entire file” analysis, wherein clients are entitled to receive all items in the file unless the lawyer can show that the item would fall under one of the generally accepted exceptions , which include the following:
In appropriate situations, however, an attorney is entitled to refuse to provide copies of material in the file and instead may assert an attorney’s lien. Such situations include a client’s refusal to reimburse a discharged attorney for the attorney’s incurred costs or to provide a reasonable guarantee to the attorney that the costs will be repaid at the conclusion of the case. See Florida Ethics Opinion 71-57. While in such a situation it may be ethically permissible for an attorney to assert a lien with respect to materials in a case file, the validity and extent of the lien is a question of law to be decided by the courts.
In Florida , the client file is the property of the lawyer and the lawyer may assert a retaining lien on the client file after the representation is terminated; however, Florida Bar Rule 4-1.16 (d) states that, upon termination, the lawyer must surrender papers and property to which the client is entitled, take all steps to mitigate the consequences of the termination to the client, and “may retain papers and other property as security only to the extent permitted by law.”
Bottom line: Lawyers must be aware of the requirements of their jurisdictions regarding the return of a client’s file after termination of the representation and before contemplating the assertion of a retaining lien on the client’s file.
For information on admission under this rule contact the Florida Board of Bar Examiners at 850-487-1292. For more information, review the Military Spouse Rule frequently asked questions.
The Unlicensed Practice of Law (UPL) program was established by the Supreme Court of Florida to protect the public against harm caused by unlicensed individuals practicing law.
Military Spouse Rule: Chapter 21 establishes a process whereby the spouse of a service member who is licensed to practice law in another jurisdiction may obtain authorization to practice law in Florida for up to five years without taking the Florida Bar Examination while the service member is assigned to a duty location in the state.
Limited Appearance in Florida: Attorneys licensed in another state may represent someone in a court proceeding in Florida with the court’s permission and in arbitration proceedings in Florida. Certain requirements must be met in order to appear and copies of the motion or verified statement must be filed with The Florida Bar.
Florida construction law gives mechanics lien rights to direct contractors, subcontractors, material suppliers, equipment lessors, and laborers when they perform work for the “permanent benefit” of land or real property (as per §713.01 (15) definition of “improvement” ).
1 Year. An action to enforce a mechanics lien in Florida generally must be initiated within one year of the lien being filed. However, this timeframe can be shortened. If the property owner files a "Notice of Contest of Lien," the deadline to initiate an enforcement action is shortened to 60 days after the notice.
Florida mechanics liens have priority over encumbrances to the property that were not recorded prior to the mechanics lien attaching to the property. Any encumbrance that was properly recorded prior to the date that the mechanics lien attached to the property has priority over the subsequent mechanics lien.
Yes, a copy of the Claim of Lien must be served on the owner of the property either before filing or within 15 days of filing the lien. Service may be accomplished by sending the lien by personal delivery, by sending by registered or certified mail return receipt requested, sending by second-day delivery with evidence of delivery, or if none of those can be accomplished, by posting on the premises.
However, Florida mechanics liens do allow the inclusion of unpaid finance charges in the lien claim. Although attorney’s fees cannot be included in the claim amount , they may be awarded to the prevailing party in a foreclosure action.
Contractors, suppliers, property owners, construction lenders, and other vendors will encounter all kinds of lien-related paperwork and questions when working on Florida construction jobs. Here are some of the common issues you may encounter, with answers written by Florida construction attorneys and payment experts.
45 Days . Material suppliers who contract with a prime contractor in Florida must provide a Notice to Owner (NTO) by the earlier of: (a) 45 days after first providing labor or materials; (b) 45 days after work begins on making specialty materials; (c) before owner's final payment to prime contractor under its contract.
Lien law in Florida is governed by Fla. Stat. § 713 while subsection 713.31 specifically deals with fraudulent liens.
If a lienor files a fraudulent line, the owner has a complete defense in that the lien is fraudulent. Even if half the lien is valid, and the other half fraudulent, the defense stands against the entire lien.
Fraudulent liens are an area of the law that requires an extreme attention to detail. A lienor who isn’t paid on a job can make things much worse if he/she files a fraudulent lien. To avoid running afoul of these harsh penalties, you must educate yourself as to what you can claim on your lien.
If you are a lienor you can (1) educate yourself on what is and is not lienable, (2) only lien for completed work and (3) double and triple check your figures and the documentation you use to establish the amounts liened for. You may also retain an attorney to aid you in determining the appropriate method to compute the lienable amount.
The contractor could file a lien but not for the full contract price. The contractor can only lien for the amount which he actually has completed and is currently due – he cannot lien for the full contract price unless the work has been fully completed.
After the project is 50% finished, the owner terminates the contractor. The contractor could file a lien but not for the full contract price. The contractor can only lien for the amount which he actually has completed and is currently due – he cannot lien for the full contract price unless the work has been fully completed. If the owner could show that the project was not completed, he could use a fraudulent lien claim as a complete defense to the lien. See Viyella Co. v. Gomes, 657 So. 2d 83 (Fla. 3d DCA 1995).
Reading Time: 6 minutes. Florida’s lien law is an especially draconian area of the law. Filing a lien is an invaluable tool to help you as a contractor, sub-contractor or material man get paid on a construction job. It can also get you into trouble unless the statute is strictly followed.
The ONLY thing the design professional needs to do to secure its lien rights is to record a lien within 90 days of its final furnishing of professional services (and serving a copy of the lien on the owner).
The downside, however, is that a design professional’s lien maintains a priority standpoint from the date the lien is recorded. So, anything that is recorded before the design professional’s lien will be superior to the lien.
Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.
The framing subcontractor’s lien will have priority because it will relate back to the notice of commencement. Then, the structural engineer’s lien will have priority over the architect’s lien because it was recorded the day before the architect’s lien. Remember, design professional’s liens do not relate back to the notice ...
713.03 governs liens for professional services and provides: (1) Any person who performs services as architect, landscape architect, interior designer, engineer, or surveyor and mapper, subject to compliance with and the limitations imposed by this part, has a lien on the real property improved for any money ...
Under this paragraph, the design professional has lien rights for their professional services regardless of whether the real property is even improved. This means that the owner can decide not to use the professional services (the design) or abandon the project and the design professional in direct contract with the owner has lien rights even ...