Equity, Retainer Agreements: Attorney Security Agreements For Fees Can Take Precedence Over Charging Orders

Matter Remanded To Determine Scope Of Security Agreement.

            We commend that all attorneys, with respect to collection of fees, read Rice v. Downs, Case No. B307780 (2d Dist., Div. 1 Dec. 27, 2021) (partially published) where the Court of Appeal, with some remand limited instructions, did seem to validate a security agreement/ UCC-1 filing for fee compensation as against a later charging order.  Lien priorities did govern here, but the opinion is good reading on how to perfect and obtain priority for purposes of fee recovery against competing creditors.

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