Roy Frye starts a case against THC with attorneys Andrew Zacks and Paul Utrecht. Claiming that THC can’t charge contingency fees because the organization is not registered with the State Bar, although its attorneys are. In San Francisco Superior Court its ruled that THC did not commit fraud but the rest of the case must go to trial.
Housing attorney Andrew Zacks loses his claim that Tenderloin Housing Clinic is not really a nonprofit agency after THC wins Suit over legal fees. The case is to be appealed by Zacks who hopes to force the clinic to disgorge hundreds of thousands of dollars in attorney fees the clinic has collected over the years.
A state ruling states that; nonprofit organizations can’t practice law in California unless they’ve registered with the State Bar. Nonprofits grapple with where that leaves them and there ability to enter contingency fee agreements. The issue will go back to trial.
State supreme courts agree to review a ruling that; required all members and directors of nonprofit law groups be attorneys, required the non-profit to be registered to the state bar, and prohibited contingency agreements. This comes after many non-profits including Tenderloin Housing Clinic were greatly effected by these rulings.
In the summer of 2004, a Court of Appeal ruling required THC to remove non-attorneys from our Board. Due to its impact on nonprofits in California dozens of groups submitted amicus briefs to the California Supreme Court on our behalf. The court voted to take THC’s case, and non-attorneys are returned to the board.
The California Supreme court rule unanimously to uphold the right for non-profit advocacy groups to practice law.
A link to the ruling is below;