Lawyers who scaled dues pay another $273,000
Nearly 2,800 of some 20,000 active lawyers who scaled their 2004 membership
fees based on financial hardship have reviewed their scaling under statutory
criteria and have sent an additional $273,000 in dues to the State Bar. A statistically
valid group will now be audited to ensure that the statutory requirements for
scaling of either 25 or 50 percent are being followed.
The bar had sent a letter to everyone who scaled their dues this year asking
them to be certain they were eligible to reduce their fees and, if not, to pay
the difference. The inquiry was a result of confusion about the change in the
statutory criteria for scaling based on income level.
California is believed to be the only state that allows members to claim financial
hardship and scale bar dues according to income levels, an option that was legislatively
mandated in 1999. Depending on income, bar members are eligible for a hardship
reduction of their fee by either 25 or 50 percent.
An audit last year of 100 lawyers who scaled found that some who paid a reduced
fee in fact posted substantial earnings as arbitrators and mediators.
As a result, the statutory criteria for scaling changed this year, but the
change led to confusion. More than 100 people made hand-written modifications
to their scaling declaration so that it fits last year’s critera.
Those chosen for the next audit will be asked to provide copies of their tax
returns.
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