Texas appeals court revives disbarred lawyer's fee dispute with law firms

A Texas appeals court has revived a multi-case fee dispute involving R Kent Livesay, a disbarred attorney seeking compensation from law firms for client referrals he made while licensed to practice.

Livesay's legal action centres on unpaid fees from seven separate matters he had referred to various law firms before his disbarment. The firms had refused payment, contending that compensating Livesay would violate the Texas Rules of Professional Conduct governing fee-sharing arrangements and attorney conduct.

In its ruling, the appeals court found the law firms' position problematic, determining that they had not presented sufficient evidence to substantiate their claims that paying Livesay would breach professional standards. The court's decision suggests that Livesay's referral work, conducted while he held his licence, may have created legitimate entitlements to compensation regardless of his subsequent disbarment.

The case now returns to the lower court for further proceedings. Legal experts suggest the ruling could have broader implications for how Texas handles fee disputes involving disbarred attorneys and the circumstances under which prior referral arrangements remain enforceable.

The outcome remains significant for practitioners across the state, potentially clarifying the extent to which disbarred lawyers can pursue compensation for work completed during their time in good standing with the bar association.