Do You Think You Have a Great Wrongful Termination Lawsuit?

A businessman hides his crossed fingers behind his back as he shakes a woman's hand.

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Today’s story will be of special interest to anyone who has been fired and encouraged to sue for wrongful termination.

“In our sue-happy society, where the boss is always wrong and employees think they have a right to a job — which they do not — few can even remotely consider that, just maybe, they deserved to be fired. Many are told that if it happens, they are a victim of wrongful termination and should sue for damages,” says Southern California employment attorney Jay Rosenlieb.

“In reality, ‘wrongful termination’ is being fired for an illegal reason, such as discrimination, violation of labor laws, retaliation, etc. And, yes, there are a small number of horrible employers who violate these laws and merit being sued, big-time. So often, angry employees go on the internet and find YouTube videos from lawyers all over the country begging to take their cases. The result is grief for the employee, who is often lied to about having a good case and endures massive amounts of wasted time over something that isn’t there. Employers become victims of legalized extortion, paying money that isn’t owed just to end the litigation.”

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This woman was told she had a great case

Sarah Dunn was fired from her job as an overnight crew member at a California fitness center and phoned a Los Angeles law firm that advertises online: “We are wrongful termination lawyers and protect employee rights — no recovery, no fee.”

“I told one of their lawyers that, basically, my relationship with a new manager soured, and we just could not get along,” Dunn says. “(The lawyer) said, ‘This is a good case of wrongful termination.’”

Of course, “not getting along” isn’t a basis for a wrongful-termination claim, but that small detail did not matter to this law firm.

Dunn docusigned the retainer emailed to her, but in violation of California bar rules, the law firm failed to send her a copy of the signed agreement.

Had she read the firm’s many negative Yelp reviews — which used words such as "cons," "predatory," "scam" and "absolute trash" and also included, "If you’re looking for unprofessional representation, you’ve found it!" — this story would never have been written.

What does 'no recovery, no fee' really mean?

So-called no-recovery, no-fee terms are used in contingent-fee matters — such as auto accidents — and expressed as a percentage, such as 25% to 50%. But the firm’s retainer does not give a percentage. Rather, it states, “We bill on an hourly basis — $150 to $695 — and do not send out monthly billing statements.”

What? No monthly billings? No kidding.

So clients have no way of knowing how much their attorney fees will be as these cases progress — or if it is worth even pursuing the matter — because the firm hides its fees until the very end, violating California State Bar rules that require monthly bills to be sent to clients when fees are on an hourly basis.

Dunn didn’t know what she would be billed until after the case was over. Plus, the firm charged her to prepare the invoice — almost $600, at the attorney’s hourly rate, which is totally wrong. This is not only against bar rules, but the invoice was filled with double billing and outright bill padding. How much was the bill? Over $7,000! Though the firm magnanimously reduced that to $5,000.

She asked the firm to refund the settlement to her employer

Until Dunn met with our office, she had been led to believe that hers was a good case of wrongful termination, which was settled — I would use the term “extorted” — for $10,000 from her employer. The law firm kept half.

Because Dunn has a conscience, she wrote to her attorney, stating, “You fraudulently misled me into retaining your firm. But there was no wrongful termination in the legal sense. You caused my former employer to waste time and attorney fees based on your fraud. I want you to refund that money to them.”

The attorney had not replied before the publication of this article, and I’m sure he won’t. His failure to deny her accusations could be viewed as an adoptive admission, meaning, "Yes, I am guilty."

But this gets even worse. The settlement agreement has an NDA, also known as a nondisclosure agreement, that prevents Dunn from talking with just about anyone about this case or their firm.

But employees are free under California law and NLRB regulations to discuss any aspect of their employment or termination outside of protected things such as trade secrets. So, this law firm tries to scare its own clients to prevent them from discussing their cases with just about anyone.

And she filed a complaint with the state bar

Dunn filed a formal complaint about the attorney with the California State Bar. They slapped the guy on the wrist, putting him in a disciplinary program and admonishing him to be a “good lawyer” in the future. Also, these actions do not appear on his State Bar page, so potential clients are not warned of his ethics issues.

Disgusted, I wrote to the bar’s trial counsel, “Remember Tom Girardi? He’s the lawyer whom you guys enabled to embezzle millions of dollars from clients to fund his lifestyle as featured on The Real Housewives of Beverly Hills. Well, you’ve got something similar here and need to go in there, grab their files and see how much clients have been ripped off!”

The bar hasn’t replied, and I doubt it will.

How to not get taken by a lawyer or law firm

Here’s how you can avoid getting into Dunn’s situation with an unethical lawyer or law firm:

Before hiring any lawyer or law firm, use Google or any research method to learn as much as possible about them. Look them up on their state bar website, which should show disciplinary actions.
When reading reviews, focus more on the negative ones than the glowing, positive comments. Look for statements suggesting a failure to return phone calls, withholding settlement money, outright lying or making guarantees of an outcome (it is illegal for lawyers and doctors to guarantee results).
If it is in the area of employment law, educate yourself. Look up the definition of what the lawyer says you could sue for. Ask yourself if the facts of your case match the legal definition. If they do not, then consider the real possibility that you are being lied to.

It would be nice if the public could always trust the legal profession. Sadly, that is not the case today. “Buyer beware” applies just as much to hiring an attorney as in buying a used car.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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After attending Loyola University School of Law, H. Dennis Beaver joined California's Kern County District Attorney's Office, where he established a Consumer Fraud section. He is in the general practice of law and writes a syndicated newspaper column, You and the Law. Through his column, he offers readers in need of down-to-earth advice his help free of charge. "I know it sounds corny, but I just love to be able to use my education and experience to help, simply to help. When a reader contacts me, it is a gift."