Hall v. Rental Management, Inc.

IN RE: PETITION OF THE ARKANSAS BAR
ASSOCIATION TO AUTHORIZE PAYMENT OF A
REFERRAL FEE TO ITS LAWYER REFERRAL SERVICE 

95-1323                                            ___ S.W.2d ___

                    Supreme Court of Arkansas
               Opinion delivered January 22, 1996


Petitions -- request for approval of referral fee -- request 
     referred to Committee on Professional Conduct. -- Where the
     Arkansas Bar Association petitioned for approval of payment of
     a referral fee to its Lawyer Referral Service, the supreme
     court referred the petition to the Committee on Professional
     Conduct.


     William A. Martin, Exec. Dir. of the Arkansas Bar Ass'n, by: 
Ann West.

     Per Curiam.January 22, 1996.
*ARKREP10*

                                   95-1323





IN RE:  PETITION OF THE ARKANSAS
BAR ASSOCIATION TO AUTHORIZE 
PAYMENT OF A REFERRAL FEE TO 
ITS LAWYER REFERRAL SERVICE.







                           PER CURIAM
     The Arkansas Bar Association, by and through its Lawyer
Referral Service Committee, has petitioned this court pursuant to
Ark. Code Ann.  16-22-101(a) (Repl. 1994) for approval of the
operation of its Lawyer Referral Service.  The Arkansas Bar
Association seeks approval of a referral fee of ten percent of any
fee over $500.00 collected by an attorney who receives the fee as
a result of a referral given by the Arkansas Bar Association's
Lawyer Referral Service.
     It has been a longstanding custom and practice for the court
to refer requests of this nature to our respective committees for
study, comment, and recommendations to the court.  Accordingly, the
Arkansas Bar Association's petition is referred to the Committee on
Professional Conduct.  The committee is to furnish the court within
a reasonable period of time its recommendations as to the ethics of
the proposal.
     Dudley, J., concurs.*ARKREP10-A*





IN RE: PETITION OF THE ARKANSAS 
       BAR ASSOCIATION TO      
       AUTHORIZE PAYMENT OF A  
       REFERRAL FEE TO ITS     
       LAWYER REFERRAL SERVICE.
               




95-1323






CONCURRING OPINION.




                   Robert H. Dudley, Justice.

     
     The Arkansas Bar Association operates a Lawyer Referral
Service that collects an enrollment fee from participating
attorneys, but, at this time, does not collect compensation for
referrals.  It seeks approval by this court of a referral fee of
ten percent of any lawyer's fee over $500.00.  The court has today
referred the petition to the Committee on Professional Conduct for
a recommendation on the ethics of the proposal.  I concur, and
write this separate opinion because this petition presents part of
a dilemma that faces this court from time to time.
     The Arkansas Bar Association is a voluntary non-profit
association of attorneys supported primarily by annual dues paid by
its members.  It was conceived by attorneys with a grand
professional vision who, as leaders of the bar, felt that by
voluntarily coming together and holding annual conventions they
could discuss various issues and give leadership in matters
relating to the improvement of justice.  Through the years the
Arkansas Bar Association has well served the bench, bar, and the
State.  However, because the  Arkansas Bar Association is a
voluntary association, the responsibilities of the association fall
only on those lawyers who are willing to devote their time, money,
and efforts to the association's various projects.
     All attorneys are required to pay annual license fees to this
court in order to maintain their attorneys' licenses, and in so
doing, automatically become members of the Bar of Arkansas.  The
Bar of Arkansas funds many of this court's operations that are
performed for the improvement of the Bar.   Two examples are the
Committee on Professional Conduct and the Client Security Fund. 
The costs of the operations of the Bar of Arkansas are shared by
all licensed lawyers.
     On a number of occasions the Arkansas Bar Association has
petitioned this court to create and fund, from the Bar of Arkansas,
many of our important programs.  As an example, the Client Security
Fund was created and funded after a petition from members of the
Arkansas Bar Association.  When this court first created the Client
Security Fund, we deposited $2.00 of every lawyer's annual license
fee into the fund.  See In re The Client Security Fund, 254 Ark.
Appendix 1075, 493 S.W.2d 422 (1973) (per curiam).  Over the next
twenty-two years, we raised the amount of the annual fee that was
deposited into the fund to $4.00 and then to $5.00; now it is
$10.00.  See In re The Client Security Fund, 291 Ark. 647, 722
S.W.2d LVIII (1987); 300 Ark. 643, 782 S.W.2d 357 (1989); 306 Ark.
656 (1991); and 310 Ark. 812, 832 S.W.2d 815 (1992) (per curiam). 
The cost of this court's operations through the Bar of Arkansas has
continually risen as new programs are added.  This court's budget
from license fees from the Bar of Arkansas is now in excess of one-
half-million dollars each year.  See  In re Bar of Arkansas License
Fee, 317 Ark. Appendix 686, 878 S.W.2d 409 (1994) (per curiam).  It
has been necessary for us to raise annual license fees from $2.00
in 1955, to $17.00 in 1972, see In re Supreme Court License Fees,
251 Ark. Appendix 800, 483 S.W.2d 174 (1972) (per curiam); to
$20.00 in 1981, see In re Supreme Court License Fees, 270 Ark.
Appendix 1020 (1980) (per curiam); to $25.00 in 1985, see In re
Attorney's Annual License Fees, 284 Ark. Appendix 580, 679 S.W.2d
XCI (1984) (per curiam); to $50.00 in 1988, see In re Penalty for
Late Payment of Bar of Arkansas Membership Dues, 294 Ark. Appendix
663, 740 S.W.2d LXII (1987) (per curiam); and finally, to $100.00
today.  See In re Bar of Arkansas License Fees, 317 Ark. Appendix
686, 878 S.W.2d 409 (1994) (per curiam).      
     From time to time, the Arkansas Bar Association asks that we
create and fund new programs.  Most of the new programs increase
the cost of operating the Bar of Arkansas.  Today's petition would
not directly increase the cost of operating the Bar of Arkansas,
but it does give the opportunity to discuss the dilemma we face.
     It seems that if we continue to raise license fees for the Bar
of Arkansas at the rate required in the past few years, it will
ultimately cause a loss of membership in the Arkansas Bar
Association.  Perhaps it is time to again re-evaluate the merits of
an all-inclusive, or unified or integrated, bar.  
     The concept of a unified or integrated bar originated in the
American Judicature Society in 1914.  This form of bar organization
has won widespread public approval and now exists in the majority
of states.  Its distinguishing characteristic is the requirement
that every attorney be a member of the organization and contribute
to the support of all bar activities.  
     No state having an integrated bar has ever returned
permanently to the alternative of a voluntary association that is
supported only by those lawyers who are willing to devote their
time and money to projects that are really the responsibility of
the bar as a whole.   
     This court has the authority to order creation of such a bar. 
In re Integrating the Bar, 222 Ark. 35, 259 S.W.2d 144 (1953).  In
fact, in 1953, this court took the first step in creating a unified
bar, id. at 39, 259 S.W.2d  at 146, but, after taking a poll of the
members of the Bar of Arkansas granted rehearing and denied the
creation of a unified bar.  Id. at 47, 259 S.W.2d  at 151.
     It has been forty-two years since we rejected the petition for
a unified bar, and there has been no petition for an all-inclusive
bar in recent years.  A unified bar is of more direct concern to
the bar than to the bench, and the members of this court are likely
to give effect to the wishes to a majority of the members of the
bar.  It would seem that leaders of the Bar should again examine
the concept of a unified bar, and, if there is a consensus,
consider filing a petition asking this court to take the first
steps to create such a bar.  It would most likely help solve the
financial difficulties faced by two bars, be more economical, and
provide better services to all members of the Bar.