When Can A Lawyer Threaten Legal Action?
Legitimate Grounds to Threaten Legal Action
The law requires lawyers who willfully threaten or bring frivolous legal actions against others to risk loss of both their professional reputation and perhaps their law license. So, what are the basic legal "prerequisites" that must be met? Here’s the gist of it:
1. There must be a legitimate basis for believing that the threatened claim has merit. Generally speaking, this requires a factual basis to support each element of a properly stated cause of action in the jurisdiction. In most cases, the attorney must receive sufficient evidence before threatening legal proceedings that the evidentiary support for each essential element of the cause of action exists; otherwise, if the claim is not viable because its factual foundation is lacking, the claim is frivolous.
2. The threatened claim must be based upon a proper legal theory and have a legal basis. This means, effectively, that the threatened claim should have a textually arguable legal foundation in applicable statutes, case law, administrative regulations, or rules of courts.
3 . The client must be advised of the potential consequences of pursuing the claim (becoming liable for malicious prosecution and/or abuse of process, among others). A failure to adequately inform the client of these potential consequences can hurt the attorney in the event of a later malicious prosecution/legal action brought against the client.
4. The attorney must have a good-faith factual basis for concluding that the client has a rational belief that the merits of the threatened claim outweigh its potential risks, and the factual basis for a conclusion to that effect is enough for the attorney to convey the information above to his/her client.
5. The attorney’s purpose for threatening the legal action must be innocent and cannot be for an ulterior purpose. So, if the motivation for threatening legal action is to force the recipient to abandon legitimate claims, the attorney may be liable. This is not to say that legitimate claims can’t be pursued, just that the purpose for bringing the suit or threatening suit cannot simply be to harass the other party or benefit the attorney’s client at the other party’s risk.